From local to global: defining African businesses’ expansion strategies in 2025

In 2025, African companies continue to demonstrate strong ambitions to expand internationally, yet their aspirations collide with a set of complex realities. Regulatory and legal complexities in understanding the environment, and setting up companies and finding trusted local partners stand out as growing obstacles. Widening divides within Africa and globally are not only reshaping political discourse but also damaging brand perception.

Many African firms still grapple with outdated stereotypes around quality, governance and political risk — narratives that complicate their ability to win consumer trust abroad. Anoop Ninan, Country Leader of Forvis Mazars in South Africa and Chair of the African Regional Committee, also points out infrastructure and logistical limitations, which affect supply chain efficiencies. He explains, “Understanding the local culture and ways of doing business in a country as well as currency fluctuations and restrictions on cross border payments are also hampering African businesses’ international.”

 Alongside this, access to finance remains a bottleneck as it restricts African firms’ ability to fund expansion strategies and build the resilience needed to compete internationally. Uhabia Ojike, Country Leader of Forvis Mazars in Nigeria, emphasises societal polarisation as a hurdle as well, citing the World Economic Forum Global Risk Perception Survey for 2024-2025, which ranks societal polarisation as the fourth most significant short-term global risk. Like Anoop Ninan, he also underlines lack of affordable financing for African businesses as a detrimental factor hindering the growth of many African micro, small and medium enterprises (MSMEs). He says, “Even in 2025, the challenge of securing affordable financing for international expansion persists.”  

Pathways forward through strategic networks and partnerships

Despite these challenges, African businesses are finding pathways forward through strategic networks and partnerships. The African diaspora across Asia, the Americas and Europe offers a unique bridge to new markets, helping firms build credibility and customer trust. Partnerships and joint ventures with local players remain critical for navigating regulatory hurdles and accelerating market integration.

On a broader scale, frameworks such as the African Continental Free Trade Area (AfCFTA) are reshaping the expansion landscape, offering a platform for more coordinated and scalable internationalisation.

Equally vital is the need for embedding sustainability into business models. With climate-related regulation tightening across markets, integrating environmental, social and governance (ESG) practices is no longer optional. It is becoming a prerequisite for securing investor confidence, attracting ESG-conscious customers and ensuring compliance with international trade standards.

“African companies should adopt a scalable approach when it comes to international expansion. A targeted regional strategy, built on sub-regional dynamics (ie ECOWAS, CEMAC and AfCFTA), provides a relevant springboard. It is essential to capitalise on local expertise, innovate from constraints, and seek partnerships to secure entry into foreign markets,” highlights Jules Alain Bikok, Regional Executive President at Forvis Mazars in WACA (West Africa-Central Africa), adding that strengthening governance, financial transparency and compliance are instrumental to gaining credibility with international investors and partners. 

Continuing in the same vein, Ninan points out that companies must have a long-term vision when entering any market and must identify a trusted advisor to assist in dealing with local regulations and compliance matters. He says, “It is also instrumental to lean on trusted local partners who have a thorough understanding of the local environment and who can assist in building networks with local suppliers and clients as well as assisting in attracting local talents.”

Navigating geopolitical risks

Geopolitics adds another layer of uncertainty. While most of the tariff policies from the U.S. are largely impacted by Asia and Europe, the potential dismantling of the African Growth and Opportunity Act (AGOA) looms as a risk.

The agreement, which historically granted African exports duty-free access to the U.S. market, has been a cornerstone of Africa-U.S. trade relations. A reversal could have unfortunate consequences on African firms. “The U.S. is one of the largest export markets for African countries. I do believe that, in the short term, African companies that export to the US will be negatively impacted,” comments Ninan.

Ojike notes that the United States’ Africa policy appears to be driven by U.S. strategic interests, particularly in minerals and security, rather than a commitment to broader African development or trade partnerships. “This unpredictability could adversely impact African companies' efforts to expand into the US market,” he adds.

African businesses are not short on ambition, talent or opportunities. To thrive, they will have to adapt faster: modernise their models, strongly embrace ESG, deepen diaspora and local partnerships, and secure innovative financing solutions.

The international stage is within reach, but sustained competitiveness will depend on how effectively Africa’s private sector navigates polarisation, financing gaps, forex constraints and shifting geopolitics. The outcome of these choices will define not just the pace of international expansion, but Africa’s broader economic role in a fast-evolving global trade landscape.

The best strategies for companies willing to expand

Abdou Souleye Diop, Country Leader of Forvis Mazars in Morocco and Member of Forvis Mazars’ Global Governing Board, comments: "In today’s increasingly complex global landscape, African companies are prioritising regional consolidation, leveraging the African Continental Free Trade Area (AfCFTA) to deepen their footprint across the continent. A robust regional presence not only enables scale but also strengthens operational efficiency and brand resilience, key assets for global competitiveness.

"To thrive, these businesses must embrace agile, targeted and future-oriented strategies. This includes forging strategic alliances through joint-ventures, franchising models and collaborations with trusted local partners to mitigate market entry risks.

"The need to invest in global branding, compelling storytelling and internationally recognised certifications to build credibility and visibility on the world stage is especially important. Now is the moment for African enterprises to assert themselves globally, not merely as exporters, but as originators of innovation, culture and lasting impact."

The impact of U.S. tariffs on African companies' short-term expansion plans

Diop explains: "As trade tensions escalate between major global powers, particularly the United States and China, African businesspeople become increasingly concerned.

"While Africa may not be the primary target of these tariff disputes, the ripple effects pose significant risks for companies aiming to expand beyond the continent. Exporters in key sectors such as textiles, food processing, and automotive components are especially vulnerable. Their ability to thrive internationally depends on consistent and reliable market access.

"On the other hand, preferential trade frameworks like the African Growth and Opportunity Act (AGOA), which currently grants duty-free access to U.S. markets for many African nations, are under scrutiny, potentially subject to non-renewal or renegotiation under less favourable terms.

"African firms are among the most exposed to these indirect consequences, which could dampen investors’ confidence and disrupt expansion strategies in the near term. Though, the U.S. tariffs must also be considered as an opportunity for Africa since the countries that are suffering the most from these tariffs will be eager to seek new markets to expand in and Africa stands ready to welcome them. 

"Growth remains achievable, but I think success will depend on adopting highly targeted, agile and forward-thinking approaches, anchored in supply chain diversification, regulatory intelligence and strategic diplomacy."