A recent report has identified a growing number of British businesses’ investment interest in Nigeria and other African countries as a key strategic growth region, drawn by the continent’s abundant mineral resources. Demographic advantage and reforms are powering a new wave of foreign interest in the continent, DAMILOLA AINA writes.
Africa is no longer seen as a frontier market; it is fast becoming a focal point for global investment. A new wave of investor interest is sweeping across the continent, with businesses based in the United Kingdom increasingly looking beyond traditional trade routes to tap into Africa’s growing markets, surging youth population, and abundant natural resources.
New research by the United Kingdom-based Strategy Management Partners reveals that a growing number of British businesses are identifying Africa as a key strategic growth region, drawn by structural reforms, demographic momentum, and rapid digital transformation across the continent.
Fresh insights from a Q1 2025 survey of 250 UK business executives in strategic roles, including CEOs and Heads of Strategy, reveal that 50 per cent of companies with an annual turnover of over £20m are already operating in African markets and planning expansion after years of economic uncertainty. An additional 28 per cent say they are interested in venturing into the continent but remain uncertain about how best to enter.
These interests are propelled by the fact that the continent is home to 30 per cent of the world’s mineral reserves, 8 per cent of natural gas, and over 12 per cent of oil reserves. It also boasts 65 per cent of the world’s arable land and is projected to house one-quarter of the global workforce by 2035.
Seven sectors stand out as magnets for international capital: technology, oil and gas, power (including renewables), agriculture, manufacturing, infrastructure, and strategic minerals.
Digital technology is especially attractive due to the continent’s fast-growing population of digital natives. The push for industrialisation, through Special Economic Zones and value-chain upgrades, is also turning Africa into a competitive manufacturing base.
The Strategy Management Partners report stated, “Africa stands at a critical turning point. Historically regarded primarily as a source of raw materials, the continent is now emerging as a vibrant and increasingly influential economic centre, shaped by its youthful population, accelerating innovation, and regional integration efforts.
“With over 30 per cent of the world’s mineral reserves and a population set to comprise a quarter of the global workforce by 2035, Africa presents one of the most compelling growth opportunity narratives of our time. UK businesses are paying attention. New research among 250 senior leaders of UK companies with over £20m in turnover reveals that more than half are already operating in African markets and seeking to grow further, while nearly a third have an interest in exploring opportunities.
It added, “At the heart of this pivot is Africa’s evolving economic identity. No longer seen merely as a source of raw materials, the continent is now being recognised for its transformational potential. From Lagos to Nairobi and Cairo, Africa is rewriting its own story, and UK investors are taking note.”
This latest development comes against the backdrop of a shift in trade relationships between the United States and Nigeria, which has suffered a significant setback. The United States, a major trade partner for decades, reduced imports of Nigerian goods by $527m in the first five months of 2025 compared to the same period in 2024.
Official data from the US Census Bureau and the Bureau of Economic Analysis show that this represents a nearly 20 per cent year-on-year decline amid recent bilateral trade tensions between the two nations. In the corresponding period of 2024, the U.S. imported goods worth $2.65bn from Nigeria. That figure fell sharply to $2.12bn between January and May 2025.
The decline comes amid a wave of renewed protectionist measures spearheaded by US President Donald Trump, who signed an executive order on April 2, 2025, introducing a general 10 per cent import tariff on most countries.
Under this policy, known as the “Liberation Day” tariff framework, Nigeria was targeted with a higher tariff rate of 14 per cent due to its previous trade surplus with the US. Although Nigeria remains one of the US’s largest African trade partners, the impact of Trump’s renewed trade policy agenda is being felt.
Further pressure mounted when Trump threatened an additional 10 per cent tariff on countries seen to be aligning with the BRICS economic bloc, which includes Nigeria as a potential new member. The imposition of these tariffs appears to have discouraged US purchases of Nigerian products.
On the contrary, the gap has led to a renewed interest from UK firms. Last week, the Foreign Commonwealth and Development Office/British Deputy High Commission said about 27 London-based companies in fintech, enterprise technology, and sustainability have explored investment opportunities in Nigeria during the just-concluded visit of the Mayor of London, Sadiq Khan, to the country.
The delegation connected with Nigerian policymakers, investors, and creatives through curated events aimed at fostering collaboration and unlocking new business opportunities across Africa.
Khan’s visit to Lagos was aimed at strengthening the UK-Nigeria economic relationship and celebrating the deep cultural ties, shared vibrancy, and global influence of two dynamic cities, London and Lagos.
On his visit to Nigeria, the Mayor of London said, “I am delighted to be visiting Nigeria and Africa this week, the first visit of its kind by a Mayor of London, to bang the drum for the capital and further develop the strong ties between our countries. Africa has the world’s fastest-growing population and is seeing major economic growth across many of its economies. Over the next decade, there are huge opportunities to deepen partnerships with London.
“I will be working tirelessly throughout this visit to drive trade and investment across critical sectors, including finance, education, health, tech, creative, and sustainability. Londoners of African heritage have played, and continue to play, a huge role in making London the greatest city in the world, and this trip is an opportunity to celebrate our shared heritage, history, and culture with the African continent, as we build a better and fairer city for everyone.”
This promise is already bearing rich and vibrant fruits, as the seeds of opportunity sown across the continent begin to blossom into tangible gains and transformative impact.
“UK businesses are increasingly seeing Africa as a strategic growth market, driven by structural reforms, digital adoption, and the momentum behind the African Continental Free Trade Area,” says Muibat Ijaiya, Partner at Strategy Management Partners.
“But real progress will depend on practical cooperation with African governments. The AfCFTA is a pivotal step forward. What’s needed now is a deeper alignment between public policy and private investment to address trade, regulatory, and infrastructure barriers and unlock long-term, sustainable growth.”
The top factor driving UK investment decisions is Africa’s market size and consumer demand. As urbanisation accelerates and middle-class consumption rises, the demand for goods, housing, transportation, and digital services is expanding rapidly.
But while the opportunity is immense, so too are the risks.
Investors cite infrastructure gaps, political volatility, and complex regulatory frameworks as persistent barriers. Currency instability and cross-border trade inefficiencies remain major pain points.
The report added, “Despite growing optimism among business leaders, several critical risks continue to constrain the attractiveness of African markets. Addressing these top barriers, especially political stability, regulatory clarity, and ease of cross-border transactions, is essential for fully unlocking the attractiveness. While Africa presents compelling opportunities, business leaders remain cautious due to persistent structural and regulatory challenges. The top four challenges are political and country risk, safety and security concerns, tariffs, duties, and regulatory hurdles, and cross-border transaction complexity. In addition, other significant concerns include weak rule of law and property rights protection, exchange rate volatility, and unclear or inconsistent tax frameworks. Addressing these issues will be crucial to unlocking Africa’s full potential for UK investment.
“Interestingly, some risks often associated with Africa were seen as less significant in practice, such as challenges in opening local bank accounts, difficulty accessing working capital, and issues with securing financing.”
For those already in the game, the returns are beginning to justify the risks.
The game-changing variable remains Africa’s people. With 70 per cent of its population under the age of 30, Africa is the world’s youngest continent. By 2035, one in four people on the planet will be African.
This demographic dividend is both a workforce and a market. Labour-intensive industries such as apparel, manufacturing, logistics, and construction are taking advantage of this vast pool of talent and consumers.
As a strategic antidote to these challenges and a means to de-risk high-stakes investments, infrastructure expert Babatunji Adegoke has passionately championed a bold, structured embrace of Public-Private Partnerships as the catalytic bridge between Nigeria’s untapped potential and tangible, transformative progress.
He called for the urgent expansion of PPPs as a strategic tool to unlock Nigeria’s potential and attract critical foreign investment across the seven attracting sectors.
Speaking in an interview with our correspondent on Sunday, Adegoke, who is the Treasurer of the Nigerian Society of Engineers (Victoria Island Branch), said Nigeria must shift from rhetoric to execution in order to close its vast infrastructure gap and harness its strategic mineral wealth.
“PPP is not just an option; it’s a necessary strategy,” Adegoke said in the telephone conversation. “If we approach it with clarity, professionalism, and the right incentives, it can serve as a major channel for Foreign Direct Investment, particularly in high-potential areas like lithium development.”
“Public-Private Partnerships are gradually establishing their place in Nigeria’s development strategy, and the recent summit by the Infrastructure Concession Regulatory Commission is a clear indication of that growing momentum. The support expressed by the President further shows that the country is ready to move from conversation to execution.
Adegoke stressed that with Nigeria’s constrained public budget and expanding development needs, PPPs offer a tested alternative to traditional procurement methods.
He added, “PPP will be instrumental in attracting Foreign Direct Investment, especially now that government budgets alone cannot meet the scale of infrastructure or resource development we require. Investors are more likely to commit when they see clear frameworks that reduce risk and promote long-term value. PPP offers exactly that structured pathway that brings together public oversight and private expertise.
“When we talk about unlocking the potential of strategic minerals like lithium, PPP becomes even more critical. Developing lithium isn’t just about mining; it involves creating the supporting infrastructure, such as roads, energy, and processing facilities, and that requires significant capital and coordination. Through well-structured PPPs, Nigeria can attract both the funding and technical know-how needed to make this a reality.”
Adegoke also emphasised the role of local professionals in making PPPs sustainable and impactful.
Unlike traditional procurement, which he described as often “rigid or underfunded,” Adegoke said PPPs deliver flexibility, innovation, and shared accountability, three key factors investors in mining, energy, and transportation sectors are seeking.
“Also important is the role of local professionals. When transactions are designed and managed by people who understand our environment, our laws, our market dynamics, and even the challenges of implementation, the result is a more balanced and sustainable partnership. This builds investor confidence and helps ensure that public interest is not compromised.
“Unlike traditional procurement, which can often be rigid or underfunded, PPPs offer flexibility, innovation, and shared accountability. For investors looking at sectors like mining, energy, or transportation, that’s a much more attractive proposition.
“PPP is not just an option; it’s a necessary strategy. If we approach it with clarity, professionalism, and the right incentives, it can serve as a major channel for FDI, particularly in high-potential areas like lithium development.
Meanwhile, strategic minerals, such as cobalt, manganese, graphite, and lithium, are positioning Africa at the centre of the global energy transition. These materials are vital for electric vehicle batteries, solar panels, and high-tech manufacturing.
The engineer urged government agencies to accelerate PPP reforms and make frameworks investor-ready while also deepening local expertise in infrastructure transaction structuring.
Governments are not sitting still. From South Africa’s tariff reforms to Nigeria’s recent trade concessions under the African Continental Free Trade Area, there is visible momentum toward a more integrated and business-friendly Africa.
Twenty-three countries have already implemented preferential tariffs under the AfCFTA as of April 2025. Meanwhile, China’s elimination of tariffs on imports from 53 African countries is recalibrating trade dynamics and stimulating industrial capacity.
At the heart of Africa’s investment revolution is a shift in mindset, from extraction to equitable value creation. Rather than exporting raw cobalt, manganese, or graphite, countries are now focusing on local processing and beneficiation. This reimagined model of African development is rooted in partnerships, sustainability, and innovation.
Africa’s moment is now. With its youthful population, rich resources, accelerating policy reforms, and growing consumer markets, the continent offers a rare blend of long-term opportunity and immediate potential. Those who move with purpose and stay for the long haul may well find themselves not just investors, but partners in the making of Africa’s next great economic chapter.
