May to Visit Three African Nations to Strengthen Post-Brexit Trade
May is trying to strengthen ties with economies outside the EU as Britain inches closer to its official EU exit in March.
(Bloomberg) -- Prime Minister Theresa May this week will travel to three African nations as she seeks to emphasize the trading opportunities open to the U.K. as it leaves the European Union.
The premier will meet with her counterparts in South Africa, Nigeria and Kenya on a five-day visit accompanied by 29 business executives ranging from FTSE 100 bank Standard Chartered Plc to London-based start-up Farm.ink, which has created an information-sharing mobile platform for farmers.
May is trying to strengthen ties with economies outside the EU as the clock ticks down towards Britain’s scheduled departure from the world’s largest trade bloc in March. The U.K. sees potential in a continent with a young and growing population -- currently 16 percent of the world’s total -- but which attracts just 3 percent of foreign direct investment and accounts for just 3 percent of global goods trade.
“As we prepare to leave the European Union, now is the time for the U.K. to deepen and strengthen its global partnerships,’’ May said in a statement. “A more prosperous, growing and trading Africa is in all of our interests.”
Brexit Tensions
May departs as hardened euroskeptics in her ruling Conservative party are pressing to rip up her blueprint for keeping close ties to the EU goods market after Brexit. With just seven months left before the March 29 exit, concern is growing in the financial markets that negotiations could break down without an agreement.
The prime minister has ordered her top officials to attend a special cabinet meeting on Sept. 13, with a focus on contingency planning for a departure without an agreement, according to The Sunday Times. The meeting, first reported by Bloomberg News, will take stock of preparations so far and plan what further actions are needed.
U.K. ministers are split on the impact of a no-deal Brexit. Last week, Chancellor of the Exchequer Philip Hammond warned Britain would be 80 billion pounds ($103 billion) worse off without an agreement. But in an interview with The Sunday Times, Brexit Secretary Dominic Raab said such forecasts should be treated with “a measure of caution” because they’ve been “wrong” in the past.
Stemming Immigration
On her African tour, May will emphasize the importance to Europe of investing in stability and security in the continent to the south in order to stem the flow of migrants seeking refuge on European shores.
“It is in the world’s interest to help secure African stability, jobs and growth because conflict, poor work prospects and economic instability will continue to encourage migration and dangerous journeys to Europe,’’ her office said.
While it’s May’s first visit to the region as premier, she visited Tunisia as Home Secretary. It’s also the first visit by a U.K. premier to sub-Saharan Africa since 2013, and the first to Kenya -- a British protectorate until 1962 -- in more than 30 years.
Business Chiefs
May will meet with South African President Cyril Ramaphosa in Cape Town on Tuesday, before flying to Abuja on Wednesday to see Nigerian President Muhammadu Buhari, and then to Nairobi on Thursday for a meeting with Kenyan President Uhuru Kenyatta.
The business delegation includes Standard Chartered Chief Executive Officer Bill Winters, London Stock Exchange Group Plc CEO David Schwimmer and Scotch Whisky Association CEO Karen Betts. Other companies and organizations represented include Bechtel U.K., CDC Group, the City of London Corporation, the Financial Conduct Authority, JCB, Mabey Bridge Ltd. and Mott Macdonald Ltd.
To contact the reporters on this story: Alex Morales in London at amorales2@bloomberg.net;Tim Ross in London at tross54@bloomberg.net
To contact the editors responsible for this story: Flavia Krause-Jackson at fjackson@bloomberg.net, Steve Geimann, Rachel Graham
©2018 Bloomberg L.P.