Flutterwave founder Olugbenga Agboola says African technology companies need access to international capital and talent to expand. [Photo: Kent Nishimura/Bloomberg
- The study examined 100 internationally connected companies from six African markets.
- Some 67% had a US affiliation, largely for incorporation and fundraising.
- Among UK-connected companies, 47% had operations and 19% held licences.
- The selected sample does not represent every technology company in Africa.
America was the most common foreign destinationamong the companies studied, but many of the connections stopped at corporate registration.
Britain attracted fewer companies, although their UK presence was more likely to include employees, regulatory licences and commercial operations.
The findings are contained in Home and Away: Tracking African Tech’s Global Footprints, TLP Advisory’s third annual technology-ecosystem report.
The study examined 100 companies from Nigeria, Ghana, Kenya, South Africa, Egypt and Morocco with documented links to the US, UK or UAE.
The report found that 67% of the selected companies had a US affiliation.
About 90% of those companies were incorporated in America, while registration was their only recorded US connection in 81% of cases. Just 3% held a US regulatory licence.
The study found that 67% of the selected companies had a US affiliation, but many had no American presence beyond incorporation. [Image Credit: Techslang]BI Africa
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American incorporation can give startupsa legal structure familiar to international venture investors. However, it does not necessarily mean the companies have moved their employees, customers or daily operations to the country.
The UK was connected to 32% of the companies studied. Among that group, 84% were incorporated in Britain, 47% had an operational presence and 19% held regulatory licences. The UK licensing rate compared with 3% in the US and 4% in the UAE.
TLP Advisory co-founder Odunoluwa Longe said Britain’sappeal went beyond incorporation to include local teams, customers and licences.
The UK also offers access to international investors, a familiar legal system, tax incentives for eligible early-stage investments and potential routes to public markets through the London Stock Exchange.
The UAE, however, recorded the strongest operational presence. Although only 23% of the selected companies had a UAE affiliation, 87% of that group maintained operations there.
Flutterwave founder Olugbenga Agboola said Africa remained the company’s home, but building a large technology business required access to international capital, talent and opportunities.
That expansion can introduce new financial pressures.
The report found that 76.5% of funded Nigerian startups raised money in US dollars while generating much of their revenue in naira. A weaker domestic currency therefore makes dollar-denominated costs more expensive.
African startups entering Britain or America must also pay for regulatory compliance, staff, marketing and customer acquisition. Establishing a foreign company does not guarantee customers or commercial success.
