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United Kingdom Partnering African Countries to Remove Trade Barriers for Economic Growth – UK Trade Commissioner
John Humphrey is His Majesty’s Trade Commissioner, HMTC, for Africa. As HMTC for Africa, he works closely with the wider diplomatic network and other colleagues to coordinate the UK government effort to promote UK trade and investment across the African continent given that he has full responsibility for all Department for Business and Trade (DBT) work in Africa including the growing the overall bilateral trade and investment relationship between the UK and Africa; improving market access for British companies, including small- and medium-sized businesses (SMEs); and developing finance and trade policy. In his first ever visit to Nigeria since his appointment in 2022 as HMTC, amongst other things, he exclusively shared plans to boost the volume of trade deals with Africa, His Majesty’s wider prosperity agenda, as well as the partnership with Nigeria to unlock new opportunities and drive sustainable development for both nations, with Chiemelie Ezeobi
As His Majesty’s Trade Commissioner for Africa, what are the plans to boost the volume of trade deals with Africa, especially in Nigeria?
Africa matters. We want to foster opportunities for mutual-long term benefit. By 2050, Africa’s population will reach 2.4 billion – a quarter of the world’s population – with a median age of just 19. African markets will grow in real GDP terms by nearly 5% per annum between now and 2050.
We have nine trade agreements with 18 African countries, and a further 34 countries, including Nigeria, have access to the UK’s market through the Developing Countries Trading Scheme.
And we already have close ties with Nigeria. The UK-Nigeria Enhanced Trade & Investment Partnership, which launched in February 2024, aims to strengthen bilateral trade and investment relations between Nigeria and the UK by prioritising specific sectors and areas of economic co-operation.
Our approach has always been built on understanding African buyer needs, helping to match real projects with UK companies and UK capability. And this process works. We have supported about100 substantial deals over the last year or so. We have also built a team that has extensive UK sectors expertise, to offer African buyers a better set of links into UK companies, and more expertise on UK solutions. We are also increasing our activities with UK SMEs interested in Africa.
In helping British businesses export and invest in Africa, a responsibility you have been handling since 2022, what have been the challenges and how have you been navigating it?
From Cairo to Cape Town, the African continent is evolving and changing rapidly. However, African markets can be complex and bureaucratic, with businesses facing multiple hurdles and unpredictable business environments. In the last ‘ease of doing business’ survey, the average score for Africa was just over 50, compared to the global average of 63.
To navigate through these challenges, we’re supporting African countries to remove longstanding barriers which limit economic activities. We have a network of colleagues across Africa who focus on building these partnerships and collaborating with relevant stakeholders to navigate through and improve the business environment.
Covid-19 and the sovereign debt crisis that many African countries continue to face have impacted our activities, and we have worked patiently in these circumstances to increase awareness of the great opportunities that Africa offers. We have also engaged our African partners in Governments on improvements that can be made to ease access into African markets and are forging partnerships to help to drive this work forward. The Nigeria ETIP is an example of the progress that we can make together when we share priorities and match African buyer needs.
Given the global economic crisis, especially in Africa, do you think this has affected HMG’s “wider prosperity agenda”?
Many countries around the world have experienced challenging economic circumstances, which has been further exacerbated by Covid-19 and the wars in Europe and the Middle East. Despite this, HMG’s commitment to supporting economic development and global prosperity remains resolute.
The UK is a leading investor in Africa, and we have seen strong progress in creating new investments from the UK – in some of the most important sectors that will spur Africa’s growth – in:
– renewable energy (e.g. Gridworks projects being finalised in Mozambique, Uganda and Ethiopia)
– agriculture (e.g. United Green in Ethiopia and upcoming in Zimbabwe, Angola, potentially Ghana)
– mining (e.g. De Beers has increased its exploration supporting potential further investment in Botswana, Rio Tinto has increased furnace and energy investments in SA etc).
With your regional responsibility to Africa, on your visit to Nigeria, are there any trade and investment policies that are coming to Nigeria, and how will this partnership unlock new opportunities and drive sustainable development for both nations?
Deeper, closer partnership is what matters. For example, more trade missions in key sectors like construction and targeted engagements to meet Nigeria’s needs. I’m very pleased that Nigeria has firmed up its regulatory environment for international partnerships in education – this will lead to new partnerships between universities here in Nigeria. And there is so much scope across many sectors,with the Afreximbank hospital investment in Abuja a great example of a new partnership with Kings College Hospital NHS Foundation Trust. We also see new opportunities in listing on the London Stock Exchange to help raise the capital companies need to grow.
Can you share the regional trade plan deliverables, especially as the region is important in global markets?
We want to use trade and investment to drive forward economic growth. Nigeria will be a key partner in allowing us to achieve this mission, and we’re looking forward to working with businesses who share these ambitions.
Our mission is to drive forward sustained incremental growth over the years to come, in terms of new export contracts and business investments made across our key sectors – aerospace, agriculture/food, healthcare, FPS, mining, infrastructure, renewable energy, and education. All these sectors that are vitally important for Africa’s growth.
While continuously trying to strengthen trade ties with Africa through various initiatives such as the UK’s new Developing Countries Trading Scheme, can you shed more light on how the scheme intends to boost international commerce?
The DCTS is the UK’s simpler and more generous preferential trading scheme for developing countries. It benefits 65 countries which collectively export over £20bn in goods to the UK each year and came into force on 19 June 2023.
The DCTS has been designed to boost trade with developing countries, to support their development, build the markets of the future and strengthen our economic security.
The DCTS cuts tariffs, removes conditions and simplifies trading rules for developing countries that are home to 3.3bn people.
As an independent trading nation, we have been able to implement one of the most generous preferential trading schemes in the world, surpassing those of the EU and USA.
Under the Developing Countries Trading Scheme, which African countries have been offered quota and tariff-free to access to the UK market, and what was the selection criteria for?
33 out of 37 DCTS recipients have duty-free quota-free access to the UK under the DCTS’s Comprehensive Preferences Scheme. Nigeria, Algeria, Cape Verde and Congo have at least 92% duty free quota free access. The full list can be found via https://www.gov.uk/guidance/preference-tiers-under-the-developing-countries-trading-scheme#find-out-your-country-preference-tier.
The UK is one of the largest economies in the world with a diversified economy, how do you intend to make this trade process become more seamless and build value chain?
You are right that the UK is a major exporter – 4thoverall and 2nd largest in services and a major investor in global terms. We plan to increase trade by supporting new businesses to enter African markets, from SMEs in the UK with new products and services, to large firms and new investors. We also want to strengthen the links between the City of London and Africa, helping African companies to raise finance for their businesses. As you know, UK firms such as Unilever, Diageo and the many others that have a presence in Africa, all have a strong reputation for building local value. This could be in terms of local production, links in with the science base, or in employment and Governance standards. UK production in mining is important too, through the activities of Rio Tinto and Anglo American.
What other benefits are there for Nigeria as a Commonwealth nation, do they benefit from lower trade costs?
The Commonwealth’s 56 members include many of the world’s fastest growing economies, with a combined market worth of $13.1 trillion in 2021 and projected to reach $19.5 trillion in 2027. Thanks to shared language, cultural ties and similar legal systems, Commonwealth members benefit from an average of 21% reduction in trade costs and 27% higher investment flows when trading bilaterally with other Commonwealth members (the “Commonwealth advantage”). To capitalise on this, the UK will work to enhance cooperation and boost intra-Commonwealth trade.
On your visit to Nigeria, you have engaged with different stakeholders. How did you position the UK as an investment hub in Africa that will reflect the shared goal of economic growth and prosperity for both nations?
The UK is one of the most popular destinations for international investment. Our stock of investment into the UK – assets owned by foreign companies –is worth more than $3trn, which is larger than France and Germany combined (UNCTAD WIR 24). This number reflects the appetite of the UK economy for international investment. Repeated investments and expansions over many years show that the UK is one of the most investable economies in the world. Not only is it a great place to raise finance, but also to help build a global business. Kuda Bank is a great example of a fintech that has benefited greatly from having a presence in both Nigeria and the UK, taking advantage of UK markets to accelerate international growth. There is real growth in African interest for investing in the UK, and we will help them to grow those businesses, in ways that will reinforce their success back home.
About John Humphrey is His Majesty’s Trade Commissioner, HMTC, for Africa. Prior to joining the Department for Business and Trade (DBT), he was the Group Chief Executive Officer of Kent HoldCo Limited (KHL) and between 2012 and 2019, he was with the UK Hydrographic Office (an MOD Trading Fund).
From 2015, he was Chief Executive and Accounting Officer. Before that he was Chief Commercial Officer and Deputy Chief Executive. Earlier in his career, John worked in the technology sector in a variety of commercial, general management and executive roles in the UK and overseas.
He is a Younger Brother of Trinity House and was until recently a Lay Trustee of the Royal College of Speech and Language Therapy.
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John Humphrey, His Majesty’s Trade Commissioner, HMTC, for Africa
