How the Commonwealth nations' shared values and interests are key to our future trade

This week in London, Trade Ministers and senior officials representing the Commonwealth’s 53 countries - including 19 in Africa - will meet to consider how to deepen trade and investment between the Commonwealth, as well as supporting and championing an inclusive and open rules-based global trading system.

The Commonwealth is highly diverse, but bound together by a shared desire to strengthen multilateral trade; fight protectionism; and increase Commonwealth trade. Around three-quarters of Commonwealth members are middle or lower income countries that all stand to benefit from a greater focus on trade and growth. At last year’s Commonwealth Heads of Government Meeting in London, we agreed the ambition to more than double trade within the Commonwealth by 2030, from current levels of $700 billion up to $2 trillion. As we see a rise in protectionism in many parts of the world, reinforcing our collective support for free trade as the most effective way to drive inclusive growth, create jobs and economic opportunities, and provide a route out of poverty, has never been more important. 

As Her Majesty’s Trade Commissioner for Africa, I see every day the positive power of trade and investment, through ongoing partnerships between the UK government and Africa’s Governments and businesses to achieve our shared and mutually beneficial prosperity. As we work together to strengthen and diversify economies, I see exciting new opportunities opening up across the continent. Working across 23 countries in Africa (including ten of Africa’s 19 Commonwealth countries), my teams help a range of UK companies to identify these emerging business opportunities and get sustainable and inclusive trade and investment flowing further and faster, which includes tackling the barriers that constrain business activity. Furthermore, enabling countries to move beyond aid to a focus on trade will benefit people across Africa, in the UK and around the world.

As the UK prepares to leave the EU on 31 October, we have a unique opportunity to extend further our business relationships with Africa and the Commonwealth. We are demonstrating our commitment to free trade by transitioning existing trading arrangements, to keep trade flowing freely after Brexit. We have already secured agreement with the Eastern and Southern Africa countries (which includes the Commonwealth countries of Mauritius, Seychelles and Zambia as well as Madagascar and Zimbabwe). And having initialled a few weeks ago the transitioned Economic Partnership Agreement between the UK and the six Commonwealth countries of the Southern Africa Customs Union and Mozambique, I will feel honoured to sign this agreement on behalf of the UK Government this week in London alongside our DIT Secretary of State, Elizabeth Truss. These agreements will allow businesses to continue to trade on preferential terms. They also lay the foundations for new trade and investment in the future.

The Commonwealth contains some of the world’s fastest growing economies and accounts for one-fifth of global trade. South Africa and Nigeria are in the top ten largest Commonwealth trading partners with the UK, accounting for approximately ￡7 billion of trade in 2018. In this period of unprecedented change and global uncertainties, Africa is a continent alive with tremendous opportunity. By drawing on the shared values and principles that are inscribed in the Commonwealth Charter, I believe we can build strong and enduring partnerships that will champion transparency, inclusion and fairness within an open rules-based trading system, with mutual prosperity for all at its core. 

The UK is currently one of the largest foreign investors in Africa. In recognition of the transformational impact of high quality, sustainable and transparent investment – and the priority that many leaders place on attracting foreign investment as a driver of economic growth and long-term prosperity – the UK aspires to be the largest G7 investor in Africa. As a demonstration of our commitment to this ambition, the UK will host an Africa Investment Summit in London on 20 January 2020, bringing together political and business leaders from Africa with UK investors and international institutions, to showcase and promote the breadth and quality of investment opportunities across this dynamic continent.

For businesses interested to find out more or to get in contact with my team on the African continent looking for trade and investment guidance across the region, please contact the DIT Africa Trade Services Unit (TSU) at [email protected]