UK risks missing out on African opportunities

Britain risks missing out on opportunities in Ghana and other fast-growing African countries if it ignores their potential in favour of other markets, the UK's shadow business secretary has said.

The rest of the article has been taken from the Guardian newspaper:

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, according to an article which appeared in the UK's Guardian newspaper yesterday.

"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 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).

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, told the Guardian newspaper: "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."