Chancellor launches new Infrastructure Partnership with South Africa, opening up significant investment and export opportunities for UK firms.
- Best-in-class British expertise will speed up delivery of major projects in the country, helping to deliver growth and good jobs as part of our Plan for Change.
- Builds further on the first-of-its-kind UK Growth & Investment Partnership launched globally with the nation at the end of 2024.
British businesses will have more opportunities to expand, invest and export to South Africa through a flagship partnership launched today, 17 July.
At an event in Durban, Chancellor Rachel Reeves hailed the agreement as having the potential to be transformative for the best and brightest British firms doing business in the country who had long been looking for government support in unlocking commercial opportunities in areas like architectural design, engineering, and professional and business services.
The UK is the biggest international investor in South Africa, but businesses have faced challenges such as project delays due to blockers on infrastructure delivery. British expertise will be brought in to unblock these barriers on building, speeding up a pipeline of projects which British firms are well-placed to win tenders for. This will help growth and development in South Africa, and also help Britain get better return on its investments in the country.
This model of Government-to-Government (G2G) Infrastructure Partnership has previously delivered strong growth and jobs in countries such as Peru, with companies such as Arup and Turner & Townsend building a track-record of international delivery and bringing economic growth to the UK.
The Chancellor saw first-hand how those two businesses have already been showcasing British expertise in designing, planning and building infrastructure in South Africa during her visit in February to the V&A Waterfront in Cape Town - a site expansion project which Arup and Turner & Townsend won the contracts for.
Chancellor of the Exchequer, Rachel Reeves said:
This is exactly what our Plan for Change is all about - backing British businesses who have been held back for too long to compete and win on the global stage. By unlocking these opportunities, we're opening doors for British expertise in engineering, design and project management, creating a pipeline of work in South Africa to support good jobs paying decent wages.
When British businesses thrive abroad, it strengthens our economy at home - delivering security for working people and putting more money in their pockets. That's the foundation of sustainable growth that our Plan for Change is designed to deliver.
South Africa's Minister of Public Works & Infrastructure, Dean Macpherson, said:
This landmark partnership with the UK reflects our vision to ensure that public assets deliver real value for our people and to turn South Africa into a construction site which will help grow our economy and create jobs. By injecting technical expertise and delivery support into stalled projects within the Department of Public Works & Infrastructure, we are turning neglected buildings and land into opportunities for job creation, economic growth, and restored dignity.
This agreement is about far more than bricks and mortar; it's about ensuring every rand spent on public assets advances the public good, accelerates infrastructure delivery, and grows our economy.
Funded with a mix of UK ODA and non-ODA, the G2G Partnership will formalise UK support via technical assistance for new initiatives to improve South Africa's management of public assets, accelerate project delivery in selected local municipalities, and launch an initiative to bring in external consultants to drive major projects and override longstanding inefficiencies.
The G2G Partnership enhances the thriving collaboration between the UK's Department for Business and Trade, the Foreign, Commonwealth & Development Office and South Africa's Department of Public Works & Infrastructure. It builds on the close business relationship between both countries and paves the way to unlocking new export opportunities for UK businesses, primarily in the professional and business services and infrastructure sectors, bringing economic growth to the UK.
Today's announcement also further builds on the UK's Growth and Investment Partnership with South Africa, a first-of-its-kind collaboration initiated by Foreign Secretary David Lammy during his visit to Cape Town in November 2024. Projects announced to date through the Growth and Investment Partnership include initiatives around inclusive agriculture, export promotion, and rail reform delivered by Crossrail international.
It comes as Prime Minister Keir Starmer and German Chancellor Friedrich Merz signed the UK-Germany Treaty in London this afternoon. Included within this is a commitment for public financial institutions in the UK and Germany to work together in mobilising private capital into high-growth industries, opening up opportunities for innovative British businesses. Reeves will mark the agreement in a meeting with her counterpart Vice-Chancellor Lars Klingbeil, in Durban later this afternoon.
Coupled with the launch of the UK-SA Infrastructure Partnership, the agreements recognise infrastructure as key to growth and that cooperating with international partners to invest in that infrastructure is a route to delivering the UK Government's Industrial Strategy: with more good jobs and more money in the pockets of working people across our countries.
Business and Trade Secretary, Jonathan Reynolds said:
Our Modern Industrial Strategy, and Trade Strategy, are about playing to the UK's strengths.
Our businesses lead the way in engineering and major infrastructure projects, and partnerships like these help unlock new exports, investment and job-creating contracts.
This Government-to-Government Partnership builds on the UK's thriving business relationship with South Africa and shows how our Plan for Change is paving the way for growth at home by unlocking new opportunities abroad.
As the government unlocks infrastructure pipelines abroad, it has today published its pipeline of infrastructure projects at home through the National Infrastructure and Service Transformation Authority.
The 10-Year Infrastructure Strategy includes investment of at least £725 billion into infrastructure over the next decade across eight growth-driving sectors where Britain holds a cutting-edge on the world stage, while the landmark Planning and Infrastructure Bill will also speed up and streamline the delivery of new homes and critical infrastructure - cutting unnecessary red tape which stifles delivery. The measures in the Bill are expected to boost the UK economy by £7.5 billion over the next 10 years - with planning reforms having the largest positive growth effect from a single measure ever scored by the Office for Budget Responsibility.
