My Lords, the Government are committed to maximising the success of the next UK-African Investment Summit. The successful 2020 summit laid foundations for new partnerships between the UK and African nations, based on trade, investment, shared values and mutual interest. The Government are committed to building on that, ensuring attendance from Governments and British and African businesses eager to harness the benefits of our trading relationships. New dates will be announced in due course.
My Lords, I have heard the reasons why the summit was postponed. When this date was chosen, it was known that there were multiple elections this year, which was an excuse for why it was changed, and that there were other conferences around this time, particularly between Europe and Africa. Until recently, those plans were going ahead, and the Minister seems to imply that they still are. However, if the UK is indeed to engage fully with a continent of the future, which he indicates that he wishes to—obviously, the middle classes there are growing rapidly, and the EU, the US, Russia and China are fully engaged—then postponement, or, in effect, cancellation, does not really show the United Kingdom in the right light, does it?
We are committed to this event, but it should not be seen as the only action we are taking. It is part of a continuous engagement with African businesses and with British businesses that want to trade more in Africa, and to build on the success of the recent past. She is right: by 2050, 2 billion people will live on that continent, half of them under 25. They will all want the kind of lifestyle that they see happening elsewhere, and we want to assist that through trade. The UK is the largest investor in African countries by investment stock. Direct investment flows from the UK to the continent were more than £2.4 billion in 2022, and we want to see the increases in bilateral trading continue in future years.
My Lords, will my noble friend bear in mind that an increasing number of African countries are showing an interest in association or involvement with the Commonwealth, including recently, I understand, the Kingdom of Morocco? Will he also bear in mind that, if we do not stay closely engaged, the Russians and the Chinese certainly will and are moving in all the time?
My noble friend is absolutely right. Using our contacts through the Commonwealth, we are seeing huge advantages for British companies and for greater prosperity in Africa. The UK has nine trade agreements with 18 countries in Africa, a combination of association agreements with north African markets and economic partnership agreements with sub-Saharan African countries. These include many Commonwealth countries, and we want to see that continue. The work of the Commonwealth investment organisation, which is supported by many noble Lords in this House, will continue to be a focus of trade in the future.
The last summit was a great success and the initiative is a very positive one; it is certainly something that we should focus on. However, the Minister ignored the question about the damage that this cancellation is doing. We raised hopes, we engaged, we appointed a former ambassador 12 months ago, and we invested in sites for the conference. Media reports in Africa suggest that the Government are turning much more to domestic issues rather than delivering on these important international strategic objectives. What is the cost of this cancellation, and what impact does he believe it will have on our relationships with Africa?
I have to say that has not been my experience when I have been travelling in Africa. Last week I was in Angola, where I saw a £440 million UKEF investment unlocking an extraordinary corridor of prosperity from the port of Lobito into the DRC and Zambia. It is that kind of investment that we want, and we can continue to do that with or without an African investment summit. Still, we want to have that summit and we will announce a date shortly.
My Lords, Africa currently represents 2.8% of global GDP but a material 19% of the world’s population. Only 2.1% of imports to Africa originate from the UK. In addition to the summit, what will the Government do to focus on promoting UK exports to the region in line with its expected GDP growth?
I thank my noble friend. There is the world’s largest free-trade area initiative, the African Continental Free Trade Area, with 54 signatures. There is abundant potential for renewable energy and resources critical to the economies and energies of the future. For example, the DRC has almost 70% of global cobalt resources, and will benefit from the investment that we have made in the Lobito corridor. My noble friend is right that it has to be a focus for government support to get businesses to trade. I am delighted to see a 6% increase in trade from the UK to Africa of £46 billion. That has been reflected in recent years and will continue in future years. This is an absolute priority for the UK Government. There are huge advantages, not least through our Commonwealth connections, and we want to build on those.
I was in Ghana at the time as the trade envoy when this was announced, and I have to say to the Minister and His Majesty’s Government that there was huge disappointment and indeed a bit of anger that this happened and at such short notice, with no real reason being given. I still have not found a real reason why it was done. Other countries have elections coming this year, including Ghana. Will the Minister try to answer exactly what the noble Baroness, Lady Northover, was asking: why was it cancelled and who made the decision? Presumably it was Downing Street.
There has not been any suggestion that it is because elections are being held in any country. That was certainly not part of the communique at the time. This will be a major event involving up to 25 Heads of State and around 1,500 people, but it will not be the only show in town. There is continuous activity to increase the amount of trade from Britain and Africa and in reverse. We believe there is huge potential. We want to look to the future and make sure this event is a success and that the continuing activities we carry out will increase trade further between us.
The Government are making a strong case, but the reality is that damage that has been done by the dramatic cuts in aid and the disengagement at short notice of this conference. All this indicates to Africa that Britain is not focused. We have seen in francophone Africa the influence of Wagner, now reinvented as Africa Corps, where Russia is offering support to autocratic regimes to defend them against democracy in exchange for mineral rights. What assurance are we getting that it is not doing that in the countries where we are trying to build partnerships?
The noble Lord is right to point to the malign actions of some state actors and their proxies. We, a country that bases itself on the rules-based order, believe that trade can be a massive bilateral advantage, and that it can lift people out of prosperity.