CAPE TOWN, South Africa, March 5, 2025/APO Group/ –Trade relations between the UK and Africa are gaining momentum. Last month, UK Minister for Trade Policy and Economic Security Douglas Alexander visited South Africa and Botswana to strengthen trade ties and create opportunities for businesses on both sides. The UK aims to expand trade and investment across the continent, fostering mutually beneficial growth by addressing trade barriers, facilitating exports and supporting trade-focused development programs. With South Africa as the UK’s largest trading partner in Africa and set to assume the G20 Presidency, this marks an important moment for deepening economic collaboration.
This builds on the UK’s 2019 Economic Partnership Agreement (EPA) with the Southern African Customs Union member states – Botswana, Eswatini, Lesotho, Namibia and South Africa – and Mozambique. This agreement eliminates tariffs and quotas on all goods imported from these countries into the UK, facilitating smoother trade relations and economic cooperation. The EPA aims to bolster economic ties and create a conducive environment for investments, including in the energy sector.
The UK is expanding its engagement across Africa, including in West and North Africa. In February 2024, it signed the Enhanced Trade and Investment Partnership (ETIP) with Nigeria – the first such agreement with an African nation – marking a significant milestone. The partnership builds on a trade relationship valued at £7 billion in the year leading up to September 2023. The ETIP focuses on key sectors such as financial and legal services, fostering economic growth and attracting investment across industries, including energy.
Globeleq, a UK government-backed independent power producer, has been instrumental in advancing gas-powered energy projects across Africa. Alongside its 153 MW Red Sands project in South Africa – set to become the continent’s largest standalone battery energy storage system – the company recently acquired a stake in a solar plant at Egypt’s Benban Solar Complex and secured $99 million in debt financing for Mozambique’s first wind project. Supported by shareholders such as British International Investment and Norfund, Globeleq continues to invest in upgrading existing assets and developing new utility-scale power projects, strengthening Africa’s energy infrastructure.
These initiatives not only strengthen the UK’s economic ties with Africa, but also support the continent’s transition to cleaner, more reliable energy
In the oil and gas sector, bp achieved first gas from the Greater Tortue Ahmeyim LNG project offshore Senegal and Mauritania at the start of this year, marking a major step in boosting regional energy production and supply. Shell is advancing its $5 billion Bonga North deepwater project in Nigeria and, alongside bp, has agreed to cover operational costs for the buyer of South Africa’s Sapref refinery – a move that could revitalize the country’s largest refinery and secure oil supply. Meanwhile, Harbour Energy, one of the UK’s largest independent oil and gas companies, is looking to expand into African markets following its acquisition of concessions in Egypt’s Nile Delta and the Mediterranean Sea.
The UK is also a major investor in Africa’s clean energy sector and a key partner in the Mission 300 initiative to expand electricity access to 300 million people by 2030. Last month, British International Investment (BII) committed £5.3 million to UK cleantech firm MOPO to scale battery rental operations in the Democratic Republic of the Congo, where over 80% of the population lacks electricity. In December 2024, BII and GuarantCo announced a $500 million renewable power deal with South Africa’s Etana Energy, providing $100 million in guarantees to support the country’s largest energy wheeling framework and unlock new projects. Beyond direct investments, the UK government continues to provide funding and technical assistance for energy infrastructure projects across Africa, aiming to improve energy reliability and efficiency, drive economic growth, and enhance the quality of life for local communities.
As a G20 member, the UK plays a pivotal role in shaping global energy investment strategies, with Africa positioned as a key partner in its trade and energy agenda. The UK’s investments in oil and gas, renewables and energy infrastructure align with broader G20 goals of energy security, sustainability and economic growth.
“These initiatives not only strengthen the UK’s economic ties with Africa, but also support the continent’s transition to cleaner, more reliable energy. With African Energy Week: Invest in African Energies 2025 set to convene global stakeholders, the UK’s role in advancing energy partnerships will be in focus, offering a platform to drive further investment, policy collaboration, and infrastructure development across Africa’s energy landscape,” says Johnson Kayode Obembe, Director of Sales and Partnerships, African Energy Week.
AEW: Invest in African Energies is the platform of choice for project operators, financiers, technology providers and government, and has emerged as the official place to sign deals in African energy. Visit www.AECWeek.com for more information about this exciting event.
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