Poised to significantly boost African exports, offer great benefits to consumers and drive economic growth within the continent, the United Kingdom has unveiled sweeping trade reforms.
This is coming on the heels of a 10 per cent tariff imposition on Nigerian exports to the United States, which is supposed to go into effect from August 1, 2025.
These new measures, primarily through an upgraded Developing Countries Trading Scheme (DCTS), are designed to simplify market access for African businesses, foster robust economic growth across the continent and deepen the UK’s partnerships with developing nations, signalling a shift from traditional donor-recipient dynamics to a more equitable trading relationship.
Unveiled in 2023 following the UK’s departure from the European Union, the DCTS serves as the UK’s flagship trade preference scheme, encompassing 65 countries and extending reduced or zero tariffs on thousands of product lines.
A cornerstone of these reforms is the simplification of rules of origin within the DCTS. This crucial change will empower all DCTS countries, including those with more developed manufacturing sectors like Nigeria, to source inputs for finished goods from across the entire African continent while maintaining tariff-free access to the UK market.
This innovative approach is projected to not only enhance trade directly with the UK, but also significantly bolster intra-African commerce, thereby helping to unlock the immense $3.4 trillion potential of the African Continental Free Trade Area (AfCFTA).
Last year, over £3.2 billion worth of goods imported into the UK from Nigeria and other African nations already benefited from the preferences granted by existing UK development trading arrangements, a figure expected to rise substantially under the new scheme.
UK Minister for International Development, Jenny Chapman, underscored the evolving nature of global relationships, stating that the world is changing and countries in the global south want a different relationship with the UK as a trading partner and investor, not as a donor.
She added that the new rules will make it easier for developing countries to trade more closely with the UK, noting that this is good for their economies and the UK consumers and businesses.
This sentiment was echoed by UK Minister of State for Trade Policy, Douglas Alexander, who emphasised the historical role of commerce in development and reinforced the transformative power of accessible and equitable trade.
“No country has ever lifted itself out of poverty without trading with its neighbours. Over recent decades, trade has been an essential ingredient in lifting hundreds of millions of people out of poverty around the globe.”
Beyond the critical DCTS enhancements, the UK also outlined additional strategic initiatives to bolster trade relationships with African partners. These include providing targeted support mechanisms designed to help African exporters meet UK standards and navigate complex customs procedures more efficiently.
Furthermore, the reforms seek to significantly ease trade in services such as digital, legal and financial services by proactively strengthening future trade agreements.
