May strikes trade deal on Africa trip
THERESA MAY outlined Britain’s first post-Brexit trade pact as she also committed the UK to providing an extra £4bn of investment in African economies.
The Prime Minister said the Government intends to carry over the EU’s economic partnership agreement with Mozambique and the Southern African Customs Union (SACU), which consists of South Africa, Botswana, Lesotho, Namibia and Swaziland.
Mrs May’s pledge came during a keynote speech in Cape Town on how the UK plans to use its aid budget in the ‘national interest,’ encourage private firms to invest on the continent and help offer security and jobs to stabilise African economies.
She said an additional £4bn of UK investment aimed to ‘pave the way’ for at least another £4bn from private sector financing, as part of the Government’s ambition to overhaul the United States as the G7’s top investor in Africa.
The UK is also to sign a new agreement to ‘repatriate huge sums of money that have been illegally removed from Kenya’ allowing this to be returned to its ‘rightful owners’ and invested in the country, Mrs May said. But she denied the UK has neglected Africa, pointing to visits by former foreign secretary Boris Johnson.
Downing Street believes helping young people in Africa secure jobs will stabilise the economy of their country while also reducing the likelihood of them undertaking risky journeys to Europe.
Mrs May is taking part in a trade mission to South Africa, Nigeria and Kenya, which also has a focus on security.
Speaking at the First National Bank in Cape Town, Mrs May said: “As Prime Minister of a trading nation whose success depends on global markets, I want to see strong African economies that British companies can do business with in a free and fair fashion. Whether through creating new customers for British exporters or opportunities for British investors, our integrated global economy means healthy African economies are good news for British people as well as African people.
“That’s why I’m delighted that we will today confirm plans to carry over the European Union’s Economic Partnership Agreement with the Southern African Customs Union and Mozambique once the EU’s deal no longer applies to the UK.”
Britain’s overseas aid budget totalled £13.9bn in 2017, an increase of £555m in 2016 and in line with the legal commitment to invest 0.7% of national income in this area.
Asked if the UK has neglected Africa and come ‘late to the party’ compared to other nations in working with the continent, Mrs May replied: “No.
“I think, just look at the number of visits the former foreign secretary made last year as an example of that.”
Mrs May said she would discuss South African land reform with the country’s president Cyril Ramaphosa, backing his calls of having ‘no smash and grab’ change.