UK backs Africa’s mining industry

The UK has a long history of trade and investment with Africa, evolving from a focus on manufactured goods to oil and gas, and now into the services sector such as engineering and environmental services. John Humphrey, Trade Commissioner for Africa at the UK Department of Business and Trade, highlighted this shift during a conversation with CNBC Africa's Fifi Peters at the 31st Investing in African Mining Indaba in Cape Town. He emphasized the growing opportunities for both the UK and Africa in the mining sector, particularly in critical minerals essential for the global energy transition. With Africa holding about 30 percent of the world's mineral reserves, there is tremendous potential for the continent to harness these resources for sustainable development. The focus at the conference was on responsible mining practices, sustainability, and local value addition to ensure that countries benefit from their natural resources beyond exporting raw materials. Humphrey noted the urgency for African governments to capitalize on their resources and the willingness of mining companies to support local value addition initiatives. He highlighted the importance of stability in trade dynamics, emphasizing the need for consistent policies to attract investments. Humphrey also discussed the significance of the African Continental Free Trade Area (AfCFTA) in boosting intra-regional trade and value-added exports. The UK has shown support for AfCFTA by signing an MOU with the Secretariat and offering policy support. The Development Countries Trading Scheme provides tariff-free access for African exporters to the UK market, promoting trade and investment between the two regions. Humphrey expressed optimism about the opportunities in Africa, particularly with the formation of the Government of National Unity in South Africa and its G20 Presidency this year. He believes these developments create a positive environment for UK companies to engage in trade and investment in South Africa and the continent as a whole. The UK remains committed to fostering partnerships with African nations and supporting sustainable growth in the mining industry amid global uncertainties.