Africa: Commercial Opportunities and Exports

Lord Swire Excerpts

Thursday 12th September 2024 Grand Committee

[Lord Swire (Con)]

My Lords, I add my thanks and congratulations to the noble Lord, Lord Popat, on initiating this timely debate. It is early days for this Government, but we have been told that they are coming up with a plan for Africa, and that is something we will look out for closely. It was disappointing that we had to cancel the trade and investment summit before the general election was announced. I hope this new Government will reinstate that as soon as is practicable.

I will divide my limited remarks between two things: the politics and the economics of Africa, addressing the issue of how British SMEs and others can take advantage of the African market. We have inevitably had much discussion already about China and Russia. The noble Lord, Lord Popat, is right: Africa is changing, and so are the Chinese in the way they are handling it. They have seen the results of the indebtedness they have created. The tax rises in Kenya, which resulted in riots over the summer, were in large part a response to the £8 billion-worth of Chinese loans that the country is obliged to repay.

President Xi, at his recent summit in Beijing last week, has now pledged £50 billion in new funding for African nations. That is on top of China’s existing £182 billion of loans to the continent. The Chinese are beginning to do Africa differently: they are talking much more about soft power and educational and military exchanges. We should be aware of that.

There is also the Wagner Group. Since Yevgeny Prigozhin died, it has become an arm of the Russian state, and it continues to be a destabilising factor in Libya, where it is propping up Field Marshal Khalifa Haftar, and in other countries such as the Central African Republic, Mali, Sudan, Mozambique, Chad and Burkina Faso. Those are the two large powers we are dealing with.

So how should the UK address its relationship with Africa, and how can we push our companies to do trade there? I declare my interest in the register as the deputy chairman of the Commonwealth Enterprise and Investment Council. It would be good if the Government could announce who the Commonwealth Minister will be; perhaps they have already, but I have not noticed if so.

We have ramped up our efforts in Africa big time. We now have offices in Ghana, Nigeria, Kenya and Cameroon. There are 21 Commonwealth countries in Africa, with a combined GDP of more than $1 trillion and a combined population of around 650 million people—that is about 40% of Africa’s entire population —so Commonwealth Africa presents a real opportunity and an open market for British businesses. The Commonwealth’s next Secretary-General—some of us are going out to Samoa next month—will be African. There are three African candidates, meaning that the SG will take an increased interest in the continent. What a wonderful opportunity for the UK to get on the front foot.

I highlight one opportunity for British companies in Africa. One of our key supporters in Kenya, under the inspired leadership of James Mwangi, is the Equity Bank. It has come up with an astonishing Africa recovery and resilience plan, which would industrialise the whole of east Africa and other parts. It addresses everything from climate change to education and infrastructure, with plenty of opportunities for British companies to take advantage of it. I would be happy to pledge to make it available to the Government because it is, I think, something that could do amazing things for our British companies.