London and Africa: Strengthening Trade and Investment Ties

Strategic Insights -

London Mayor Sadiq Khan has announced the first-ever London-Africa business summit, set to take place next year, as part of his efforts to boost trade and investment links between the UK and Africa. The summit aims to bring together entrepreneurs, investors, and state officials from across the continent to attract foreign investment to London and promote the city as a hub for African businesses. The announcement comes as Sadiq leads a trade delegation to Nigeria, Ghana, and South Africa to promote London as a place to invest and do business, making him the first London Mayor to do so.

Key Takeaways:

  • The UK's bilateral trade with Africa is projected to reach £62 billion by 2030, with nearly £50 billion of this trade currently worth £49 billion in 2024.
  • London has a rich history with the African continent through its diaspora communities, with nearly eight per cent of Londoners being of African heritage.
  • The summit will focus on strengthening trade and investment links between London and Africa, particularly in key growth sectors such as fintech, creative industries, education, and sustainability.
  • African countries are expected to experience economic growth, with several countries projected to rank among the top 10 fastest-growing economies globally in 2025.
  • The UK has already established a strong presence in Africa, with London being the leading destination city for African FDI in Europe and the US since 2013, hosting 72 projects worth an estimated £578 million in capital expenditure and creating 2,145 jobs.
  • The Mayor's growth agency, London and Partners, is hosting a trade delegation of 36 London-based companies to grow their business and access opportunities in Africa.

Statistics:

  • UK bilateral trade with Africa reached nearly £49 billion in 2024, with £25 billion in exports and £15.8 billion in imports.
  • UK investors have recorded £578 million in capital expenditure and created 2,145 jobs in London since 2013.
  • London accounts for 2.7% of all outbound African FDI projects, with South Africa being the leading source country for FDI from Africa to London.
  • Key industries in Africa include software and IT services, accounting for almost 1/3 of all projects, while business services and financial services have been the leading sectors for FDI from London to Africa.

Sources:

  • [Source 1] London and Partners analysis based on data from the ONS UK Pink Book (2024) and the IMF World Economic Outlook (April 2025)
  • [Source 2] Mayor of London announcement
  • [Source 3] fDi Markets, the Financial Times Ltd 2025
  • [Source 4] ONS UK Pink Book -- 2024
  • [Source 5] fDi Markets, the Financial Times Ltd 2025
  • [Source 6] London and Partners analysis based on data from the ONS UK Pink Book (2024) and the IMF World Economic Outlook (April 2025)
  • [Source 7] ONS Census (2021) for England and Wales
  • [Source 8] London and Partners analysis based on data from the ONS UK Pink Book (2024) and the IMF World Economic Outlook (April 2025)
  • [Source 9] Dealroom - global provider of data and intelligence on startups and tech ecosystems
  • [Source 10] IMF World Economic Outlook -- April 2025
  • [Source 11] ONS UK trade, quarterly goods and services: September to December 2024 report