UK pushes for deeper trade ties with Africa ahead of Brexit

The recent UK-Africa Investment Summit 2020 has sparked discussions on the potential for deeper trade ties between the UK and Africa, particularly in light of Brexit. The summit saw the UK Prime Minister Boris Johnson expressing his desire for the UK to be the investment partner of choice for Africa. However, as Nigeria's economy continues to be closely tied to oil prices and production levels, there are concerns about the uncertainties in the global market affecting the country's growth prospects. The International Monetary Fund (IMF) has projected Nigeria's economy to grow by 2.5% in 2020 and 2021, which aligns with local analysts' estimates. But with geopolitical issues such as US-Iran tensions and the US-China trade war impacting oil prices, there are challenges ahead for Nigeria's economic outlook. Andrew Nevin, Partner and Chief Economist at PwC Nigeria, highlighted the importance of building Nigeria's economy within Africa amidst the global economic slowdown. Nevin emphasized the need for Nigeria to attract investments and create an investor-friendly environment to drive economic growth. He stressed that Nigeria must focus on key factors such as rule of law, ease of doing business, and demographic attractiveness to become a top destination for global investors. Despite the global economic challenges, Sub-Saharan Africa has shown resilience, with countries like Ghana, Cote d'Ivoire, Ethiopia, Rwanda, and Kenya experiencing robust economic growth. However, Nevin pointed out that the growth of giants like Nigeria and South Africa is crucial for driving overall economic growth in the region. He underscored the importance of increasing investment levels in Nigeria to achieve higher growth rates and lift millions out of poverty. Kyari Bukar, Former Chairman of the Nigerian Economic Summit Group, echoed the sentiment that Nigeria needs to attract investments to enhance its economic prospects. He highlighted the structural issues that hinder Nigeria's attractiveness to investors, such as the need for rule of law and an investor-friendly environment. Bukar emphasized the importance of leveraging both domestic and foreign investments to accelerate Nigeria's growth and unlock its economic potential. The UK-Africa investment partnership comes at a time when Africa is facing internal economic challenges, including the implementation of the African Continental Free Trade Agreement (AfCFTA) and the launch of the Eco currency. Bukar noted that the UK's efforts to engage with Africa present opportunities for mutually beneficial partnerships, given historical ties and emotional connections between the UK and former colonies. However, he emphasized the need for a pragmatic approach to ensure that the partnership is a win-win situation for both parties. In conclusion, as Nigeria navigates through economic uncertainties and strives for higher growth rates, attracting investments and fostering a conducive business environment will be key to driving economic development. The UK-Africa investment summit serves as a platform for exploring opportunities for collaboration and addressing the challenges that lie ahead. Nigeria's ability to seize these opportunities and address structural issues will determine its economic trajectory in the post-Brexit era.