As my plane touches down in Cape Town this morning it represents an important milestone. Arriving for the G20 finance ministers and central bank governors’ meeting, I am the first UK finance minister to visit Sub-Saharan Africa since 2016. And now, more than ever, productive and successful collaboration with the UK’s international partners is front of mind.
Ahead of my meetings with SA finance minister Enoch Godongwana and our G20 counterparts — as well as best-in-class British businesses finding success in SA markets — I’m visiting as the UK government’s standard bearer for our key mission: growth.
Since taking office as the UK’s chancellor of the exchequer in July last year I have been going further and faster to deliver economic growth to the UK. And there is more to do, both at home and abroad. The UK’s relationship with SA is key to the delivery of our growth mission and to improved prosperity in both of our great countries.
The UK is the largest investor in SA — half of our investment in Africa is here. SA is our largest trading partner on the continent — annual trade of R250bn represents a quarter of all UK-Africa trade.
I am proud of the role UK businesses play in SA; it is a sign of our strong partnership. UK companies such as Anglo American and Rio Tinto play a significant role in the mining industry; Vodafone’s Vodacom subsidiary is the biggest mobile network operator; and a range of UK financial and professional services firms operate here — including Barclays, KPMG, PwC and Standard Chartered. And there is scope to grow this.
We have been working at pace to mutually grow both our economies. My colleague, foreign secretary David Lammy, visited SA last November to agree a partnership via which we will work together to deliver inclusive and sustainable economic growth.
As part of this delivery, last month our trade policy minister, Douglas Alexander, was also in SA to agree a review of our economic partnership agreement, which governs UK trade with the region, to unlock more opportunities to drive economic growth between us.
In a world with ever-growing uncertainty, we need strong economies and solid partnerships to serve our people.
To further this work, the UK’s Infrastructure & Projects Authority has worked closely with Infrastructure SA to share best practice in planning and assessing infrastructure spending. I was pleased to see last week that my colleague, the UK foreign secretary, agreed to support for SA’s department of transport in rail reforms to help firms — including those from the UK — in SA access global markets. I am in Cape Town to build on these commitments.
Infrastructure is a major theme at the G20 meetings I am attending this week. We need to ensure not only that financing is available where governments are keen to build new and improved airports, railways and roads, but also that countries are able to put forward investable projects to use that money and get building. And we know that infrastructure that makes it easier for people to do their jobs and get around is what facilitates economic growth.
This is why I will visit Cape Town’s historic V&A Waterfront. I will see how the UK has played a role in its development so far, and how we can support the continued expansion of this iconic part of Cape Town. I am pleased to see UK companies, including Arup, Heatherwick Studio and Turner & Townsend, continue to be involved in the Waterfront’s development, winning new contracts and showcasing UK expertise in designing, planning and building infrastructure around the world.
But we are not stopping there. Through our plan for change, we will go further and faster to deliver economic growth and put money in the pockets of working people. I also welcome news that British engineering firm Arup has won key contracts to support SA’s ambitions to boost green and sustainable growth across the country, not only contributing to the design of more resilient infrastructure but also working with public and private sector clients to improve the energy efficiency of buildings here in Cape Town and across SA.
I can also announce the next stage of the UK programme to boost urban economic development in SA, unlocking opportunities through improved urban planning and infrastructure in disadvantaged areas of the country’s municipalities. This will strengthen our co-operation with local governments in SA, building their financial and technical capabilities.
We recognise the importance of municipalities in building much-needed infrastructure and delivering the services every citizen relies on. In the UK, we, like SA, are taking concrete steps to make our infrastructure serve the needs of our people. We need to use it as a tool to kick-start economic growth. That’s why at home we are taking on the blockers to get Britain building again, including 1.5-million new homes and a third runway at Heathrow.
We are investing in Britain to rebuild our roads, rail and energy infrastructure — including a new Oxford-Cambridge Growth Corridor that could add up to £78bn to the UK economy. And we are backing businesses to create wealth and opportunity for all by boosting trade across the world and ripping up unnecessary regulatory barriers.
In a world with ever-growing uncertainty, we need strong economies and solid partnerships to serve our people. I am working to unlock this at home and abroad.
• Reeves is UK chancellor of the exchequer.
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