SA has been at the centre of global economic diplomacy this year, hosting three G20 meetings in Durban, Skukuza and George in July alone. UK ministers have been present at all of them, part of the UK’s commitment to SA’s G20 but also its economic success.
The UK is already SA’s largest international investor, with £24bn invested — half of all UK investment in Africa. Our trade relationship is worth more than £11bn a year, making SA our most important trading partner on the continent. UK companies employ more than 100,000 South Africans, sustaining the livelihoods of many more. But we are not stopping there.
We are investing in SA’s future because we believe in its potential. And we know that when SA grows the UK benefits too. That’s why foreign secretary David Lammy launched the UK-SA Growth Partnership — the first of its kind globally — with international relations & co-operation minister Ronald Lamola during his visit to SA last November. This partnership is about more than trade deals and investment figures. It’s about creating jobs, driving inclusive growth and building a greener, more resilient economy.
Since then, we’ve been busy delivering on that promise. In February UK chancellor of the exchequer Rachel Reeves visited Cape Town for the G20 finance ministers’ meeting, but also took the opportunity to meet British companies involved in urban redevelopment. This month she returned for the finance ministers’ meeting in Durban and launched a new government-to-government infrastructure partnership with public works & infrastructure minister Dean Macpherson. This initiative will help accelerate the delivery of major infrastructure projects and improve the use of public assets, bringing in UK expertise to deliver better value for the SA people.
Infrastructure is a key driver of economic growth, and UK companies are ready to help build the roads, railways and housing SA needs. We’re not just offering finance, we’re offering partnership. From Crossrail International’s support on rail reform to our work to improve energy and water services in municipalities in Mpumalanga, we’re helping to unlock the full potential of SA’s infrastructure pipeline.
We’re also investing in the sectors that matter most to South Africans. As part of the Just Energy Transition Partnership we’re supporting SA to liberalise its energy market, achieve emission reductions and provide the energy security needed to grow the SA economy. Through $117m of innovative guarantee facilities to energy trading companies, we are unlocking new renewable power development, in turn increasing energy security and affordability and providing jobs.
Most recently the UK’s minister for employment, Alison McGovern, saw how the UK is working to address economic exclusion and spatial inequality in Cape Town. Through development finance institution British International Investment, the UK has invested in Divercity, an SA developer building affordable, safe housing close to jobs in economic centres. In Cape Town’s Salt River, Divercity’s Herringbone development offers nearly 400 rental apartments — half of them rented by women, double the market average. This is how we support inclusive growth: not just by investing in buildings but by investing in people.
We’re also helping SA entrepreneurs go digital. Our UK-SA Tech Hub has partnered with Takealot to help small businesses in underserved communities reach new customers online. Over 7,500 SMMEs now sell through Takealot, which has created more than 6,500 direct and 15,000 indirect jobs. Together, we’re building a digital economy that works for everyone.
And we’re not just investing in SA — we’re opening our markets too. Last month we began negotiations to enhance our existing trade deal with SA, aiming to improve access for SA exports and boost UK imports. An ambitious deal will be a win-win for both economies. We’re working with SA companies to help them make the most of trade with the UK, with the UK Trade Partnership programme funding trade shows and trade missions to link SA’s exporters with UK buyers.
The UK is proud to be SA’s largest international investor and a key trading partner. We’re here to grow with SA — to support its ambitions, share our expertise and build a future that benefits both our nations.
This is a partnership built on trust, shared values and mutual respect. It’s a partnership that recognises the challenges SA faces and seeks to be part of the solution. That’s what has guided our work on supporting SA’s Just Energy Transition since 2021. And it’s a partnership that is delivering real results, from the farms of Mpumalanga to what is on the shelves in British supermarkets.
As we look ahead, the UK-SA Growth Partnership is a model for how two nations can work together to build a better future, not just for themselves but for the region and the world. Because when we invest in each other’s success, we unlock growth for both.
• Phillipson is British high commissioner to SA.
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