Britain's Hammond seeks to strengthen ties with S.A

The British High Commissioner to South Africa and the Johannesburg Stock Exchange recently hosted a roundtable discussion on partnership for bilateral prosperity between South Africa and the United Kingdom. Philip Hammond, an MP and Chancellor of the UK's Exchequer, sat down with CNBC Africa to discuss the opportunities that Brexit presents for strengthening ties with trading partners around the globe. Hammond highlighted that Brexit offers the UK a chance to leverage its relationships with fast-growing economies, such as South Africa, and move away from the slower-paced European economic block. The Chancellor emphasized that despite the uncertainty surrounding Brexit negotiations, the UK remains open for business and is keen on enhancing its trade relations with key partners, including South Africa. Hammond expressed that the UK business climate is known for being user-friendly and highlighted the importance of minimizing uncertainty during the Brexit process. He underscored the need to engage with countries like South Africa to explain the ongoing negotiations and assist businesses in navigating through the changes. Hammond acknowledged a growing global trend of disconnection from established political and economic models, attributing it in part to the impacts of globalization. He noted the challenge of upskilling workers to fill new job opportunities in a rapidly changing economy. The discussion also delved into the economic landscapes of both the UK and South Africa, with a focus on managing debt and deficits. Hammond and South Africa's Finance Minister, Pravin Gordhan, explored opportunities for deeper economic integration post-Brexit, recognizing the complementarity of their economies. Despite challenges, South Africa continues to be an investment destination of choice for the UK, driven by strong historic ties and burgeoning two-way investment flows. Hammond emphasized the potential for enhanced trade in various sectors, such as wine and produce, post-Brexit. With the UK set to lose preferential access to markets for certain European producers, South African companies stand to benefit from easier market access in the UK. Additionally, the Chancellor highlighted the role of South Africa as a gateway to the broader African market, with potential for industrial cooperation and research collaborations. Looking ahead, Hammond projected a manageable economic slowdown for the UK in the coming years, with growth rates forecasted to dip before rebounding above 2% in 2019. Despite the short-term challenges, the UK is focused on capitalizing on the opportunities post-Brexit and rekindling relationships with traditional trading partners globally. In conclusion, Hammond's visit to South Africa underscores the UK's commitment to nurturing long-term partnerships with fast-growing economies and leveraging Brexit as a catalyst for enhancing bilateral trade and investments. As discussions continue, both countries remain optimistic about the prospects for deeper economic cooperation and mutual prosperity.