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Labour vows to lift trade with Africa as Umunna warns of missed opportunities Labour vows to lift trade with Africa as Umunna warns of missed opportunities
(4 months later)
A future Labour government would seek to stimulate Britain's trade with Africa, the shadow business secretary, Chuka Umunna, has said, as he warned of the risks of missing out on the opportunities from the fast-growing continent.A future Labour government would seek to stimulate Britain's trade with Africa, the shadow business secretary, Chuka Umunna, has said, as he warned of the risks of missing out on the opportunities from the fast-growing continent.
On a visit to Nigeria, Umunna warned ministers against an over-concentration on the bigger emerging market economies – the so-called Bric nations of Brazil, Russia, India and China – as they sought to diversify exports away from a sluggish Europe.On a visit to Nigeria, Umunna warned ministers against an over-concentration on the bigger emerging market economies – the so-called Bric nations of Brazil, Russia, India and China – as they sought to diversify exports away from a sluggish Europe.
"A lot has been talked about the Bric economies and the vast opportunities they offer," Labour's business spokesman said. "And they do. But this must not be at the expense of talking about Africa – what it offers today and potential that it has for tomorrow.""A lot has been talked about the Bric economies and the vast opportunities they offer," Labour's business spokesman said. "And they do. But this must not be at the expense of talking about Africa – what it offers today and potential that it has for tomorrow."
Umunna said that Britain had been "behind the curve" in attempting to break into the Brics and it was important that the same mistakes were not made again. He called for an active industrial strategy to help UK companies and the City of London address the infrastructure needs of countries such as Nigeria, which will require $12bn (£7.8bn) of public investment in each of the next five years.Umunna said that Britain had been "behind the curve" in attempting to break into the Brics and it was important that the same mistakes were not made again. He called for an active industrial strategy to help UK companies and the City of London address the infrastructure needs of countries such as Nigeria, which will require $12bn (£7.8bn) of public investment in each of the next five years.
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. Umunna said he was also keen on a suggestion proposed by Labour's shadow business taskforce for "export hubs" in key cities in emerging markets that would help small and medium-sized companies to do more business.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. Umunna said he was also keen on a suggestion proposed by Labour's shadow business taskforce for "export hubs" in key cities in emerging markets that would help small and medium-sized companies to do more business.
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).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).
Just under half of UK goods exported go to the European Union, but the deep and prolonged recession has made life more challenging for UK firms. Between the first three months of 2012 and the first three months of 2013, exports to the EU dropped by almost 4%, prompting government efforts to forge closer trade links with the Brics.Just under half of UK goods exported go to the European Union, but the deep and prolonged recession has made life more challenging for UK firms. Between the first three months of 2012 and the first three months of 2013, exports to the EU dropped by almost 4%, prompting government efforts to forge closer trade links with the Brics.
Daniel Solomon, economist at the Centre for Economics and Business Research, said: "Accessing high-growth emerging markets could help offset weak demand from the eurozone, supporting the economy through its impact on exports. However, this is an area where UK goods exporters have struggled. Of the important Bric economies, China is the UK's largest goods export destination – ranked seventh. Russia, India and Brazil are ranked 12th, 18th and 27th respectively. The UK exports more goods to Ireland, the UK's fifth most important export partner, than to any of these key emerging Bric economies."Daniel Solomon, economist at the Centre for Economics and Business Research, said: "Accessing high-growth emerging markets could help offset weak demand from the eurozone, supporting the economy through its impact on exports. However, this is an area where UK goods exporters have struggled. Of the important Bric economies, China is the UK's largest goods export destination – ranked seventh. Russia, India and Brazil are ranked 12th, 18th and 27th respectively. The UK exports more goods to Ireland, the UK's fifth most important export partner, than to any of these key emerging Bric economies."
Umunna said: "Britain is in danger of missing out on the huge opportunities here in Africa. I was very struck by the warning given last year by former president Olusegun Obasanjo on how, in relation to Africa, Britain risks falling behind and how the energetic approach of the Chinese, the Indians and even the Brazilians risks trumping the strong historical and cultural ties we have. There can be no room for complacency."Umunna said: "Britain is in danger of missing out on the huge opportunities here in Africa. I was very struck by the warning given last year by former president Olusegun Obasanjo on how, in relation to Africa, Britain risks falling behind and how the energetic approach of the Chinese, the Indians and even the Brazilians risks trumping the strong historical and cultural ties we have. There can be no room for complacency."
He added: "In the first decade of this century, China's trade with Nigeria increased by a whopping 800%. By contrast, Britain exports more to the Czech Republic – a small country less than a 10th of the size and less than a 15th of the population – than it does to Nigeria. We are talking about the seventh largest country in the world. One in five of all Africans are Nigerian. Lagos is one of the largest cities in the world. Nigeria is not waiting around for anyone. It is closing in on South Africa to become the largest economy in Africa.He added: "In the first decade of this century, China's trade with Nigeria increased by a whopping 800%. By contrast, Britain exports more to the Czech Republic – a small country less than a 10th of the size and less than a 15th of the population – than it does to Nigeria. We are talking about the seventh largest country in the world. One in five of all Africans are Nigerian. Lagos is one of the largest cities in the world. Nigeria is not waiting around for anyone. It is closing in on South Africa to become the largest economy in Africa.
"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.""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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