Why African tech firms are setting up in the UK
A TLP Advisory report of 100 African tech firms finds 32% have UK ties, with the UK mixing incorporation, operations and regulatory licences.
The facts
- According to TechCabal, a November 2026 TLP Advisory report studied 100 tech companies across six African countries. 67% had US ties, 32% had UK ties and 23% had UAE ties.
- Of the UK-connected firms, 84% were incorporated there, 47% kept an operational presence and 19% held regulatory licences. Only 3% of US-linked and 4% of UAE-linked firms held licences.
- Nigerian companies account for roughly two-thirds of the UK regulatory licensing links, mostly financial services businesses, per the report.
- Moniepoint's UK subsidiary reported a £1.2 million loss for 2024, its first year of operation and before it earned revenue in the UK.
Case notes · Danny's take
Why it matters
A UK address is not the same as a UK business. The report shows the US is mostly a place to incorporate, the UAE a place to operate, and the UK a bit of both, with licences on top. For Nigerian fintechs, that matters because they earn in naira and often raise in dollars. A regulated base closer to the diaspora is one way to cut that mismatch. But the cost is real: Moniepoint's first-year loss shows how much compliance and setup eat before any revenue arrives.
For builders
If you build payments or remittance products, check what each market actually demands before you pick a base. UK licensing, US state-by-state money transmission and UAE free-zone rules all work differently. Note too that SEIS and EIS tax relief need a genuine UK presence and exclude financial activities, so they will not help most fintechs.
Not financial advice. Do your own investigation.
This story was summarised with AI from TechCabal's reporting and checked against our editorial policy. Danny's take reflects his views. Disclaimer.
Danny Walter
Founder of Moon Republic, Volt Terminal and Moon Republic Academy. Author of The Market Is a Crime Scene and After the Applause.