Into Africa

a post by Adrien Couderc for the DEMOS blog

As the UK looks to enhance its reputation as a ‘global leader in free trade’ after Brexit, the International Trade Secretary, Liam Fox, has argued that Britain should look to strike free trade deals with emerging countries. So far, much of the focus has been on deepening trade relationships with India and China – but Africa too has been cited as a potential trade opportunity for Britain. Yet the lazy assumption that emerging countries will automatically queue up for trade partnerships with Britain could exasperate post-colonial tensions. To move beyond this, the government will need to rethink its whole approach to international trade and explore free trade agreements that can balance liberalisation alongside social protection. And in Africa, this will mean establishing a pathway towards reciprocity that understands and recognises the national interest of African countries as well as our own.

Africa’s market of 1.2 billion people holds huge promise in terms of boosting UK trade. First of all, Africa has enormous potential for growth – in 2017, nine of the fastest growing economies in the world were in Africa. Secondly, the emergence of an African middle class, a key potential source of demand for manufactured goods, is an untapped opportunity for British exporters. The growth of African markets will also increase the demand for UK services exports. For example, The City of London is already exploring how the UK fintech industry could be at the forefront of developing innovative solutions to make mobile banking widespread for a continent where nearly 80 per cent of adults do not have access to formal banking services. For instance, WorldRemit, a London startup, is already facilitating online money transfer for millions of people across the continent – providing a crucial lever for financial inclusion in Africa.

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