Sub-Saharan Africa (Report from the International Relations and Defence Committee) Debate
Full Debate: Read Full DebateViscount Waverley
Main Page: Viscount Waverley (Crossbench - Excepted Hereditary)(2 years, 11 months ago)
Grand CommitteeMy Lords, I give many congratulations to the committee; its report will be referred to for many a year. I would have welcomed an inclusion regarding the Maghreb countries, given their role in continental affairs. Many consider that Morocco, for example, makes for an excellent springboard when wishing to impact francophone Africa, and then there is the getting to grips with the reasoning and consequences behind the migration exodus through the third countries of Mauritania and Libya or the Spanish enclaves. Other downsides exist, given the serious challenges of the security situation in Africa’s central belt of countries, including the Sahel, to which I will refer later.
I must declare with pride having been honoured with a Yoruba chieftaincy and my interest as co-chair of the APPG for Trade and Export Promotion. We are to engage on matters of Africa. I approach African affairs overall with a sense of optimism, particularly as regards Africa’s remarkable performance over the last decades and its prospects for substantial growth.
The African Agenda 2063 tracks a course for the continent becoming:
“An integrated, prosperous and peaceful Africa, driven by its own citizens, representing a dynamic force in the international arena”.
The African Continental Free Trade Area represents the latest step towards achieving that objective. I too encourage the Minister to shed light on the MoU referred to earlier. With 54 contracting parties, the free trade agreement brings together a combined population of more than 1 billion people and a combined GDP of over US $2.6 trillion, with the potential to lift 30 million people out of extreme poverty and 68 million people from moderate poverty, and increase real income gains by 7% by 2035.
While trade and investment between the UK and Africa have barely advanced over the last decade, we have the potential to be Africa’s partner of choice. A comprehensive vision by the UK therefore needs to be put in place that would position us as a powerhouse for services, an investment environment, standard-setting and good governance that would contribute to Africa’s economic and social development. Promoting a rules-based trade system in Africa, forging investment and advancing partnerships and technology would bring tremendous growth potential for both sides. A regrettable fact remains that in an age of increasing protectionism, isolationism and nationalism, certain countries wish not to share but to prioritise what they perceive to be protecting their interests.
The UK has a strong internationally-acknowledged and respected regulatory environment, recognising that the true benefit to Africa will come when standardised, rationalised and reusable processes, customs and regulatory legislation become common across all nations, facilitating fairer trade. The Government should embark on a “training, knowledge and sharing” approach across the continent.
Work remains to be done, however, to reinvigorate existing commercial ties. The UK does not have any trade agreement with 40 of the African nations. It has rolled over the EU’s former trade agreements with 15 African states but has lost former EU trade agreements with four African states. We therefore have catching up to do, and HMG should be focused on delivering a comprehensive and detailed UK-Africa strategy that addresses the challenges and needs of the continent in a systematic way.
The UK will have to compete with established and emerging partners. China has used its belt and road initiative to restrengthen its presence across the continent, having invested in 52 out of the 54 African countries; it is about to enter the São Tomé market. China’s FDI stock in Africa totalled US $110 billion in 2019, contributing to over 20% of Africa’s economic growth.
The UK should also take note of the efforts of the traditional development part of the European Union, which last year issued its briefing Towards a New EU Strategy with Africa: A Renewed Focus on Outreach. It aims to boost economic relations, create jobs on both continents and generally deepen the EU-Africa partnership across the board by aiming to not only reduce tariff barriers, which are already low, but minimise and remove non-tariff measures while harmonising domestic regulations and good regulatory practice.
Further negotiations between standard-setting bodies should take place to assist African firms to export products to the UK, not just agricultural goods but manufacturing and advanced products. Open markets for African goods and services, increased mobility and the enhanced reallocation of resources should lead to economic and industrial diversification, structural transformation, technology improvement and improved human capital.
Innovation in Africa already abounds—for example, in the health sector in countries such as Rwanda and Ghana, and in the fintech industry. I note with interest the plans to turn Nairobi into a world-class financial centre. That is further illustrated by mobile banking, which is transforming the lives of Africans in both rural and urban centres.
A word on the downside. We must be cognisant of the political instability faced by a number of African countries, most notably in the Sahel and the west and central Africa region. Added to the increasing security threats resulting from the ongoing expansion of ISIS and al-Qaeda affiliated groups, and the activities of disaffected non-state armed groups in many of these countries, the economic disparity and political instability by coups in Chad, Mali and, most recently, Guinea, are an illustration of this. Even Niger, which experienced relative calm during the recent presidential election, is bedevilled by the infiltration of ISIS-supported dissidents from southern Algeria into the northern border area around Agadez, by incursions across its eastern border with Nigeria by elements of Islamic State West Africa Province, and by the increase in similar turmoil created by terrorist groups on its borders with Burkina Faso and Mali.
The UK must do its part to assist these countries by continuing to participate both in humanitarian assistance initiatives and security endeavours, and by continuing to support, for example, the military component of the UN’s Multidimensional Integrated Stabilization Mission in Mali operations. France’s decision to replace the extensive Barkhane military operations in the Sahel with a Special Forces contingent, involving greater international participation but with significantly reduced boots on the ground, makes MINUSMA of crucial importance.
I must add in conclusion that Africa has helped itself with significant improvements in leadership and governance, while signalling increasing demands for stronger accountability, checks and balances from its leaders. Over the period 2008 to 2014, 34 countries had improved their national governance, and since 2016 meaningful elections have led to changes in numerous countries, including Benin, Comoros, Ghana, Lesotho, Liberia, São Tomé and Sierra Leone. Africa is about much to do and much to be gained for all, but there is also the risk of much to be lost if the economic disparity and security concerns are not addressed.