Theresa May will axe UK aid to Africa to make it ‘unashamedly’ benefit British private sector firms
The Prime Minister will make a speech in Cape Town, where she will vow to tackle how the £13.9billion development budget is being used by African nations
THERESA May is to rip up UK aid to Africa to make it “unashamedly” benefit British private sector firms.
The Prime Minister wants to spend Britain’s £13.9billion development budget giving companies greater confidence to invest in Africa as Britain expands its global outlook after Brexit.
The money would be diverted from charities and NGOs to help states tackle corruption and invest in infrastructure and security.
In a speech in Cape Town today, Mrs May will vow pledge to divert British taxpayer handouts to the continent and use it instead to roll the pitch for the UK to become the world’s “number one investor in Africa” by 2022 - overtaking the US.
She will order Ministers to spend the cash helping countries set up proper rules based trading terms “to see strong African economies that British companies can do business with in a free and fair fashion” .
Sub-saharan states like Ethiopia, Nigeria and South Sudan make up half of the top ten countries the UK pours Billions into every year.
Downing Street believes helping young people in Africa secure jobs will stabilise the continent while also slashing the appeal of dangerous crossings to Europe by boat - helping to solve the migrant wave.
Mrs May will say: “I am unashamed about the need to ensure that our aid programme works for the UK. So today I am committing that our development spending will not only combat extreme poverty, but at the same time tackle global challenges and support our own national interest.”
Her vow comes at the start of a three-day trade mission to South Africa, Nigeria and Kenya.
Mrs May is expected to use her speech to also outline investment in Britain’s diplomatic network in Africa amid growing influence on the continent from other countries including China and France.
Speaking at the First National Bank in Cape Town on Tuesday, Mrs May is expected to say the private sector is key to driving growth in labour markets and “unleashing the entrepreneurial spirit” in Africa.
She will say: “However, for a variety of reasons the private sector has not yet managed to deliver the level of job creation and investment that many African nations need.”
Downing Street cited data from the United Nations Conference on Trade and Development (UNCTAD) as showing UK direct investment in Africa was 55 billion US dollars in 2016 compared to 57 billion US dollars from the US.
France followed in third with 49 billion US dollars and China fourth with 40 billion US dollars.
The Sun Says
THERESA May will visit sub-Saharan Africa this week to drum up interest in trade.
A major factor of the Leave vote was for Britain to become an independent nation, free to strike global trade deals with fast-growing, emerging economies.
So the Prime Minister is absolutely right to start outlining trade policy with our Commonwealth allies South Africa, Nigeria and Kenya.
She is also right to call for funds from our bloated foreign aid budget to be diverted from frivolous handouts and used instead on developing infrastructure and security in Africa.
As we unshackle ourselves from Brussels, it is clear Africa presents us with huge opportunities.
It is the world’s second biggest continent, home to 16 per cent of the global population. Its GDP is growing rapidly. Similar to India, its middle classes are rocketing. And its workforce is estimated to be larger than China’s by 2035.
Over 17 millions Brits voted for a Brexit that would make us a freer, richer country.
This is exactly the type of buccaneering move that will make that vision a reality.
Mrs May will outline her ambition for the UK to be the G7’s “number one investor in Africa”, adding Britain’s private sector should invest the billions that will see “African economies growing by trillions”.
The PM will add: “It is in the world’s interest to see that those jobs are created, to tackle the causes and symptoms of extremism and instability, to deal with migration flows and to encourage clean growth.