UK, Africa to boost trade collaboration

The United Kingdom government is actively seeking to bolster trade ties with Africa through various initiatives such as the Developing Countries Trading Scheme. The UK, being one of the largest economies in the world with a diversified economy, has a great demand for fresh produce, cut flowers, materials, minerals, and services. This presents a vast opportunity for businesses in both the UK and Africa. CNBC Africa's Flora Limukii sat down with John Humphrey, His Majesty’s Trade Commissioner for Africa, to delve deeper into the potential collaboration between the UK and Africa. Humphrey highlighted specific sectors with potential for collaboration between the UK and Africa. He emphasized that markets in Africa differ from each other, with each country having its own culture, strengths, and weaknesses. He commended Rwanda's strategy of positioning itself as a hub, citing its stable and predictable business environment as an attractive prospect for UK investors. Addressing the issue of tariffs and inaccessibility to markets, Humphrey pointed out the lack of logistics infrastructure in Africa, which creates friction in business transactions. To tackle this, the UK launched the Developing Countries Trading Scheme, providing several African countries with quota-free, tariff-free access to the UK market. This initiative not only grants access to the UK market but also encourages building value chains within Africa. In terms of tech and innovation, Humphrey, with a background in the tech industry, expressed enthusiasm for partnerships between the UK and Africa, particularly in the fintech and cybersecurity sectors. He noted the abundance of human capital in Africa and the potential for technological leapfrogging, emphasizing the advantage of adopting technology later to innovate differently. Regarding historic ties within the Commonwealth, Humphrey highlighted the evolving nature of the organization, with countries like Rwanda and Mozambique becoming members. He stressed the benefits of Commonwealth countries trading together, citing lower trade costs and fewer barriers compared to other trade relationships. Humphrey's role as Trade Commissioner to Africa involves representing Rwanda in the UK Rwanda Business Forum, aimed at strengthening economic and bilateral ties. The forum serves as a platform for forming new businesses and fostering connections that can lead to fruitful business relationships. By engaging with stakeholders and understanding market needs, Humphrey aims to position Rwanda as an investment hub in Africa. In conclusion, the UK's commitment to enhancing trade collaboration with Africa through initiatives like the Developing Countries Trading Scheme reflects a shared goal of fostering economic growth and prosperity for both regions. With a focus on sector-specific partnerships, infrastructure development, and technological innovation, the UK and Africa are poised to unlock new opportunities and drive sustainable development.