To deepen the already strong economic ties with one of its key trade partners, UK Chancellor of the Exchequer Philip Hammond has committed up to £35-million for an ambitious new prosperity programme over the next four years, which will support inclusive economic development in South Africa, by working together to tackle barriers to trade and growth, increase competitiveness and improve ease of doing business.

South Africa is the UK’s biggest export market in Africa and bilateral trade reached nearly £8-billion in 2015.

During talks with his local counterpart Finance Minister Pravin Gordhan, International Relations and Cooperation Minister Maite Nkoana-Mashabane, other senior leaders and businesses this week, Hammond further said that £28-million would be committed to extend the UK–South Africa Newton Partnerships to 2021.

The Newton Fund uses science and innovation partnerships to promote economic development and the social welfare of partner countries.

The four-year extension to 2021 will further strengthen research and innovation ties between the two countries. The global Newton Fund was launched in 2014 and now has a total UK investment of £735-million. This is matched with resources from partner countries.

The meeting formed part of a series of international trips to showcase the UK’s commitment to forming even stronger global ties as it prepares to leave the European Union (EU) after the June 2016 Brexit vote. During his time in the country, Hammond will stop in Pretoria, Johannesburg and Cape Town.

A grant of £4.8-million for the African Risk Capacity Agency will also support the agency’s plans for expansion. The agency enables participating African governments to insure themselves against natural disasters and harvest failures.

This grant will support its expansion to insure more countries in coming years, reaching 150-million of the Group of Seven countries’ InsuResilience target of 180-million people for Africa by 2020.

The Chancellor also used the visit to committ to doubling the Premier Skills programme investment by the British Council and Premier League.

Premier Skills, in partnership with The South African Football Association, uses football to engage youth and develop their leadership and global citizenship skills by empowering grass-root coaches and young footballers across South Africa and help them achieve greater goals in their communities.

The commitment of £400 000 over the next three years will see the programme operate in KwaZulu-Natal for the first time, in support of the drive to increase participation in sport ahead of the Commonwealth Games in Durban 2022.

Since 2014, it has reached 219 coaches and referees and 13 663 young people.

UK'S GLOBAL TIES STRENGTHENED

Building on the close business ties between the UK and South Africa, the visit saw a number of commercial announcements including a Rolls Royce service contract with South African Airways (SAA) worth $180-million.

SAA signed a new TotalCare service order for Trent 700 engines manufactured by Rolls Royce that power five Airbus A330 aircraft. The Trent 700 engines are made in Derby, in the UK.

MTS, an LSE group company, has also been selected by the JSE to provide its industry-leading trading technology and services for the introduction of electronic market making and trading in South African government bonds.

The Chancellor will also use the visit to South Africa, followed by engagements of a similar nature in Japan and South Korea, to provide support to key industries for the UK economy such as financial services.

“As we leave the EU, Britain’s future prosperity depends on maintaining the strongest possible economic links with our European neighbours, while building on the already strong economic partnerships we have with the world beyond Europe.

“In the course of these visits, I’ll be discussing how the UK can deepen its economic and investment ties with these countries and make the most of the opportunities that lie ahead,” he stated.