The Key to Better Trade with Africa After Brexit

When I first visited Africa as a young businesswoman, I was struck by the incredible potential of the continent. I saw a vibrant, diverse, and entrepreneurial people, with a wealth of natural resources and an eagerness to engage with the world.

But I also saw the challenges that Africa faces. Many African countries are still struggling with poverty, conflict, and political instability. And despite the enormous strides that have been made over the past few decades, African economies remain largely disconnected from global trade and investment flows.

The Potential for Trade

As Britain prepares to leave the European Union, we have a unique opportunity to build stronger economic ties with Africa. In recent years, there has been growing interest in Africa as a destination for trade and investment, driven by demographic trends, urbanization, and rising incomes.

According to a recent report by McKinsey, Africa's consumer-facing industries are projected to grow by $410 billion by 2024. This presents enormous opportunities for British businesses looking to expand into new markets.

But to tap into this potential, we need to overcome the barriers to trade that have historically held African economies back. These include issues like high tariffs, complex customs procedures, and poor infrastructure.

Breaking Down Barriers to Trade

To address these challenges, the UK government has launched a new initiative called the Africa Free Trade Initiative, which seeks to promote greater economic openness and cooperation between Britain and Africa.

As part of this initiative, the government has committed to negotiating a comprehensive free trade agreement with the African Union, which represents 54 countries and 1.3 billion people. This agreement would create new opportunities for British businesses to export to Africa, and for African businesses to invest in the UK.

In addition, the government is working to reduce tariffs on African goods entering the UK, and to streamline customs procedures to make it easier for businesses to trade across borders.

Case Study: Coffee from Rwanda

One example of the potential for increased trade with Africa is coffee from Rwanda. Rwanda is known for producing high-quality coffee beans, but historically it has been difficult for Rwandan coffee producers to export to the UK due to high tariffs.

However, in recent years, the UK government has taken steps to reduce these tariffs and make it easier for Rwandan coffee to enter the UK market. As a result, Rwandan coffee exports to the UK have increased by over 50% since 2017.

This is a win-win situation for both countries. Rwandan coffee producers now have access to a new market, which can help to boost their incomes and support their families and communities. And British coffee drinkers can enjoy a delicious new flavour profile, while supporting a sustainable and socially responsible supply chain.

Conclusion

In conclusion, the key to better trade with Africa after Brexit is to break down the barriers that have historically held African economies back. By negotiating a comprehensive free trade agreement with the African Union, reducing tariffs on African goods, and streamlining customs procedures, we can open up new opportunities for British businesses to expand into new markets, and for African countries to achieve greater economic growth and prosperity.

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• Category: Politics and Economics