As the UK leaves the European Union, the City of London seeks to forge greater business links between the fastest-growing economies across Africa. To all the Black Brits heading back to the motherland to invest and/or create new lucrative business opportunities – once you start hitting those large margins you may want to consider listing on the London Stock Exchange.
There are, of course, several cons to listing on any stock market, such as accountability and scrutiny. Public companies are public property and are therefore expected to comply with the rules of the markets they populate; not to mention the undervaluation risk and costs associated with a flotation and ongoing listing.
On the flip side, there are several ways in which your business may benefit, for example, an increase in supplier, investor and customer confidence. There is also a market valuation for the business, that’ll give the opportunity to raise capital for expansion, increase the possibility of realising some of your investment.
111 African companies have ventured to the UK to list on the London Stock Exchange. The UK has been particularly interested in luring Nigerian companies to list on the London Stock Exchange, with the most recent being leading Nigerian businessman Aliko Dangote who is preparing to list his $10 billion cement company.
UK-Nigeria trade was worth £4.2 billion last year and British companies including British Airways, GSK, Shell, Diageo, Unilever and Standard Chartered have successful and long-established operations in Nigeria, many of which date back to the 1930s.
Lagos is at the forefront of FinTech innovation in Africa, and Britain is a leading global hub for FinTech which contributes over £5 billion to the UK economy every year. The first FinTech Partnership between the UK and an African country (Nigeria) will use the UK’s expertise to support Nigerian entrepreneurs, improve access to financial services for consumers and encourage new investment.
Nigerian entrepreneurs will be connected with UK FinTech investors and business mentors to get finance and advice, helping them to start and subsequently grow their companies. A dedicated fund worth up to £2 million will support Nigerian innovators as they turn their ideas into successful businesses.
The creation of new Innovation Partnerships in South Africa, Kenya and Nigeria are bringing together African and British expertise to address global challenges and provide tailored support to businesses across the continent to help them connect, grow and trade. If you’ve left the rainy UK and headed back to the motherland to start a life and your own business, or you’re in the midst of planning your first venture, make sure to investigate all the various initiatives and support available to you.