The United Kingdom is intensifying efforts to attract African companies to the London Stock Exchange (LSE), pitching London as the global capital-raising hub of choice. British officials argue that London offers unmatched access to international investors and deep pools of capital. The campaign comes at a time when U.S. exchanges such as Nasdaq and the NYSE are stepping up competition for African listings.
Why London Is Making Its Pitch
Between 2010 and 2020, more than 100 African firms raised over £17 billion through listings in London. The LSE has long positioned itself as the preferred destination outside the continent for African corporates seeking scale and global visibility. However, with U.S. exchanges boasting six to eight times larger market capitalizations, the U.K. faces renewed urgency to maintain its edge.
Recent African Successes in London
High-profile transactions have reinforced London’s appeal in recent months. In March, the Africa Finance Corporation listed a $500 million eurobond, while Guaranty Trust Holding Company (GTCO) secured $100 million in an IPO last month, becoming the first Nigerian bank holding company to go public in London. These deals underscore how the LSE continues to attract headline African issuers despite stiff competition.
The U.K.’s Long Courtship of Africa
The Department for Business and Trade (DBT) has spent nearly four years actively courting African companies to the LSE. Officials have convened forums with private equity and venture capital firms to highlight London’s strengths, from analyst expertise to liquidity. The push is part of the U.K.’s broader economic diplomacy strategy, aligning financial services with global trade partnerships.
Regulatory Reforms to Boost Listings
As part of its pitch, London has revised listing requirements to make entry easier for growth-focused firms. Among the changes is a reduction in the minimum equity stake companies must cede to investors to qualify for listing. These reforms aim to position London as a more competitive and flexible marketplace compared to New York and continental Europe.
Sectors and Geographies in Focus
DBT has placed particular emphasis on pan-African firms in technology-driven sectors. Artificial intelligence, biotech, and clean technology ventures have emerged as key targets for outreach, reflecting global investor appetite for high-growth industries. North Africa, especially Tunisia, is gaining attention for its engineering talent in AI and deep tech, while Ghana, Tanzania, Nigeria, and South Africa are producing promising scale-ups.
London’s Historical Track Record
Over the past three decades, the LSE has hosted African listings ranging from Helios Towers to Airtel Africa. The Alternative Investment Market (AIM), launched 30 years ago, has served as an accessible gateway for African mid-sized firms preparing for full listings. On average, companies invest around three years in preparation before debuting on the London market, underlining the long-term commitment required.
Competing With Wall Street
Despite London’s record in African IPOs, the gravitational pull of U.S. markets remains strong. Jumia listed on the NYSE in 2019, and IHS Towers followed in 2021, both citing deeper liquidity and broader analyst coverage. London counters by offering a specialist investor base attuned to African equities, alongside a network of brokers and advisors experienced in navigating African risk.
Benchmarking African Performance in London
African firms remain integral to the LSE’s indices. Nigeria’s GTCO, for example, now ranks second on the FTSE UK Listed Africa Index, which tracks African companies listed in London. The index itself provides visibility for global investors monitoring the continent’s corporate champions.
By combining regulatory reforms, targeted outreach, and a track record of successful deals, London is working to cement its role as Africa’s preferred listing venue. The U.K.’s strategy highlights both the opportunities and the competition facing African firms seeking global capital. Whether London can maintain its lead amid Wall Street’s dominance will depend on how effectively it balances accessibility, investor confidence, and sectoral innovation.
Source: Semafor