This Friday, while I sat in a room surrounded by leaders, entrepreneurs, and investors from across the UK and Africa, I felt a deep sense of optimism. This year's UK-Africa Business Summit, stands as a testament to the potential that Africa holds as a trading partner for the UK. I have long championed the economic opportunities across Africa, and this summit reinforced my belief that Africa’s prosperity can be the UK’s prosperity.
For over a decade, I have advocated for closer trade and investment ties between the UK and Africa, particularly in my role as the Prime Minister’s Trade Envoy to Uganda, Rwanda, and the Democratic Republic of Congo (DRC). During this time, I have witnessed the tremendous changes taking place across the African continent, from advancements in infrastructure to the rise of a tech-savvy generation. These developments are creating endless opportunities for trade and collaboration that we in the UK cannot afford to overlook.
However, despite Africa’s rapid growth, the UK’s share of trade with the continent has significantly decreased, with just 2.2% of UK exports are intended for Africa. The continent’s potential should not be ignored. In just 40 years Africa will have a larger population than India and China combined. This summit served as a reminder that it’s time for the UK to renew its focus on Africa and seize the opportunities it presents. As I have stated before- when Africa thrives, so do we, and I firmly believe that the time is now to act on this.
A crucial area discussed at the summit was the role of critical minerals in the green economy. Africa is rich in the minerals required for technologies such as electric vehicles, wind turbines, and smartphones. These resources are increasingly in demand as the UK and the rest of the world are transitioning towards more sustainable energy solutions. Although, there are challenges to overcome in ensuring that these minerals are sourced responsibly and sustainably, the potential for collaboration is huge.
Of course, we also have work to do in breaking down the barriers to trade between the UK and Africa. Over the years, I have seen first-hand the hesitation among UK businesses to invest in Africa, often due to outdated perceptions or concerns about infrastructure. However, this mindset is beginning to change. I have worked closely with SMEs to encourage them to explore Africa’s emerging markets, and many are now realising the many opportunities available. For example, as highlighted by Ramathan Ggoobi, during the summit, Uganda’s economic performance has been impressive. They have acquired substantial Foreign Direct Investment, had a rise in remittances and increased tourism revenue to $1.28 billion. Furthermore, in relation to the UK, between early 2023 and early 2024, trade between Uganda and the UK reached £287 million. This is just the beginning, and I believe that more UK businesses will follow suit.
Therefore, I am confident that the groundwork laid at 2024 UK-African Investment Summit, will lead to even greater success. It is clear that Africa is on the rise, and the UK must position itself as a key partner. The opportunities are extensive, but we must be proactive in overcoming the challenges and ensuring that our trading relationship with Africa is built on trust, innovation, and mutual benefit.
In my role as Trade Envoy, I will continue to advocate for deeper engagement with Africa, and I encourage UK businesses to do the same. Africa’s growth is already happening, and I am proud to be part of the effort to strengthen these essential ties. Together, we can create a future of growth and prosperity.
