This week the shadow business secretary of UK’s Labour Party; Chuka Umunna, is to leading a joint LCCI and UKTI North West trade mission to Nigeria and Ghana.
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Taking place between 13th-17th of May, the LLCI is London’s largest and most representative business organisation, with members ranging in size from multi-national companies to SMEs and sole traders; and coinciding with UKTI’s export week, designed to help businesses export. It was a fitting time to discuss how the UK can go forward in developing business partnerships in a range of emerging markets, with West Africa being one of them.
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“The primary message I want to give to the business community, Government and everybody in Lagos and beyond, is that the UK is speaking in one voice when it says that it wants to be part of Nigeria’s growth agenda.” Chuka Umunna
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In my recent post discussing the growth of Africa’s luxury fashion industry, I described that at 6%, Africa’s GDP growth rate has surpassed that of Asia – making it the world’s fastest-growing continent and a promising target for emerging-market investors, accompanied by a burgeoning middle class with a rising disposable income. Therefore it was encouraging to hear Chuka Umunna warn ministers against the over concentration on bigger emerging BRIC economies, therefore missing trade opportunities in Africa.
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Related blog post: Talking African luxury brands with AriseTV
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“As Europe’s economies struggle to see any growth the IMF expects Nigeria’s economy to grow by 7% next year alone,” he added. “The Nigerian middle class is growing fast. With it is coming rapid growth in demand for consumer goods. The export opportunities for British firms are vast and growing.”
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Umunna identified Nigeria, Ghana, Mozambique and Ethiopia as four of the biggest growth markets in sub-Saharan Africa, none of which currently feature in the top 30 destinations for UK exports. Moreover, Government figures show that in 2012, only five African countries featured in the top 50 list of markets for UK exported goods – South Africa (22), Nigeria (34), Senegal (40), Egypt (41) and Morocco (46).
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In the first decade of this century, China’s trade with Nigeria increased by a phenomenal 800%, and I’m not surprised that Britain is beginning to feel left out of the fun.
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However, in more informal settings I’ve discussed with friends and peers that China’s relationship has been more transactional, unlike that of Britain, where a history of exploitation and dominance has set the tone for business relationships. With the threat of Britain falling behind what has been described as the ‘energetic approach of the Chinese’, I am interested to see how trade between Africa and Britain, will take shape under this shifting paradigm, and if and/or how Africa will exercise its bargaining power under its shifting position.
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