Exports: Africa and the Commonwealth

Lord Risby Excerpts

Monday 27th November 2017 Lords Chamber

[Lord Risby (Con)]

My Lords, I thank my noble friend Lord Popat for so effectively introducing the debate this evening. It is so timely. As we leave the EU, it is absolutely necessary that we forge new relationships with countries abroad. My noble friend is, like me, one of the Prime Minister’s trade envoys. He brings immense experience of the real world of business that is so valued in his role.

It is also a profound pleasure to welcome my noble friend the Minister to the Front Bench. She brings to your Lordships’ House immense professional experience. We greatly look forward to her contributions to our debates and discussions, born of her considerable professional experience, and, of course, to her maiden speech this evening.

There are 28 Prime Minister’s trade envoys across the party divides and in both Houses of Parliament. Indeed, it is an honour and privilege to be one of them, in my case in Africa, specifically Algeria. In the five years I have undertaken this role I have seen a much greater drive to make our exports more coherent and efficient, but, as my noble friend Lord Popat observed, we continue to run a trade imbalance.

In trying to remedy this, and simply as an example of real life, I will touch on our commercial activities in Algeria. Very well-known energy-related companies have been operating there for years, such as BP and Petrofac. Of BP’s five major international projects, two are in Algeria. In addition, there is at hand and on offer British experience on renewables and our unique experience in the North Sea. But the dramatic fall in the price of petrol and oil was a wake-up call for Algeria. This is now a reason for it to want to diversify its economy. Indeed, that is exactly the advice the IMF gave it: to increase fiscal revenues from non-hydrocarbon sources.

There is one area of our national life where we are simply the world’s best. No country—this applies to a number of African countries—can fully realise its potential without a fully functioning financial sector. In October, the Lord Mayor of London generously threw open Mansion House to welcome the Algerian Minister of Finance and his highly professional team to a conference identifying key areas for financial innovation and reform. Specific visits were made to the London Stock Exchange, with its excellent outreach programme, Lloyd’s and Tech City. As a result, three weeks later, we together in Algiers identified key areas such as stock exchange development, Islamic finance, which is of growing importance, and regulatory reform proposals. That was a very important moment in our exemplary bilateral relationship. No other country in Europe can offer what we do in this key area for any country that wishes to develop and have a more sophisticated economic base.

Another area where we can offer the highest-quality guidance and state-of-the-art technology is the defence sector. I thank the DSO for its drive and skill, which I saw in action recently when 20 British companies engaged with their Algerian counterparts. So many countries, not least in Africa, realistically face threats from terrorism and cyberwarfare, and they often have porous borders. I see all the time outstanding companies, such as Rolls-Royce and BAE Systems, offering the highest-quality solutions to those challenges, as do so many smaller, specialised companies. The expansion of UK Export Finance is welcome and has enhanced our capacity to provide financial support. I applaud the Secretary of State for advancing so dynamically the interests of small and medium-sized companies. Our start-up rate, particularly in digital and communications technology, is outstanding. In this country, we have developed fiscal and employment incentives and know-how we can readily share with business partners abroad. Tech City is a shining example to the world; it is open and welcoming.

However, it is worth making some other observations. In our efforts to promote British goods and services, we need to reflect on the additional pressure that it is putting on our embassies abroad. As the Prime Minister’s trade envoy, I see what it adds to the embassies’ workload. There is a debate to be had about the size and scope of our overseas aid budget, but I point out the disproportionality of our commitment to foreign aid relative to the funding and proper staffing of our embassies, which respond magnificently in my experience, despite the far more comprehensive funding of embassies and trade personnel by our trade rivals.

In addition, over the years our visa-granting system has become centralised. For Africa, it is in Johannesburg, with much reduced flexibility being given to our ambassadors. This has led to excruciating and sometimes embarrassing delays in granting visas, if at all, to key individuals who are important to us in promoting trade and in political partnerships. This issue needs to be revisited.

Penultimately, I pay fulsome tribute to my noble friend Lord Howell, who has unrivalled understanding of the world at large and who so effectively champions the cause of the Commonwealth and its potential. There are many countries, such as Algeria, that would like to have associate status—something I have raised with the Secretary-General of the Commonwealth—which would add to the force and influence of the Commonwealth, which is a compelling international asset for all its members.

I also applaud the significant energy and efforts of my noble friend Lord Marland. All African countries have enormous young populations who easily grasp modern technologies. We can and should do more to assist in training programmes and in encouraging the right fiscal framework to stimulate new business activity. We have the major asset of the English language—the language of modern-day expression and communication.

With the excellent back-up I have received from DIT and the Foreign Office, the brilliance of UK goods and services is now becoming much more recognised. The opportunities for us in Africa are enormous, and I am proud that we are increasingly seizing the opportunity to engage and encourage British businesses to exploit the considerable market opportunities there.