How Will The G20 Summit Impact The UK?

The Prime Minister’s arrival in South Africa for the G20 summit comes with a long list of commercial activity that affects workers and companies across the UK. Downing Street has flagged more than £400 million in export deals that it says will support jobs in rail, aviation and defence. These numbers come from the Government’s own announcements ahead of the summit.

Officials say the Prime Minister will speak to leaders from Indo Pacific and African countries during the trip. They expect these meetings to open doors for British firms that want to work in fast growing regions. The Government has been keen to show that large rail and engineering firms in cities such as Derby stand to gain from these talks.

British workers in rail engineering are already feeling the impact of this push. The Prime Minister will stop at a train depot in Johannesburg to see Derby built trains running on South African tracks. Crossrail International, which is owned by the UK Government, will advise South Africa on new ways to draw private money into its rail network. Officials say this should help British consulting and engineering firms win more work in both freight and passenger rail fields.

What Rail And Steam Rules Matter Most For The UK?

The summit has brought a mix of rail agreements across three continents. In Vietnam, the Government says the UK and Vietnam have agreed to work together on a digital upgrade of Vietnamese railways. The deal will let Vietnam use British expertise drawn from the Elizabeth line project. It gives UK firms a way to reach one of Asia’s fastest growing rail markets.

British Steel will also send a further £35 million worth of products to Türkiye for its high speed rail network. This is in addition to a similar sized deal the company announced last year for the line that links Mersin with several southern cities. Officials believe this keeps British Steel tied into long term supply streams in the region.

These rail agreements help the Government present the G20 as a place where long running commercial ties can grow into more complex projects. UK firms in steel, rail design and engineering are positioned to gain new orders from these contacts.

How Does Aviation And Defence Activity Feed Into The UK Economy?

The Government says £370 million worth of aviation deals will move ahead through an agreement with Algeria. Rolls Royce will supply and service jet engines for 10 Air Algerie aircraft. These engines are built in Derby, where Rolls Royce employs 14,500 people, which means the order helps protect long term work in the East Midlands.

Defence firms are gaining ground as well. Babcock has secured its first defence contract in South Africa. The firm will assess the readiness of Type 209 submarines and carry out deep maintenance on at least one vessel. Officials believe this sets the stage for further maritime work in the region and signals that British defence expertise remains in demand among G20 partners.

The Government has also agreed to remove trade friction with South Africa through a new Authorised Economic Operator arrangement. Officials say this could add £400 million to £700 million in export openings for the UK economy over five years. Trade between the two countries stands at nearly £12 billion a year, and the new arrangement is expected to make movement of goods quicker and more reliable for accredited firms.

What Does This Mean For Long Term Ties With G20 Partners?

Nearly 600 UK businesses could gain from the new trade arrangement with South Africa. BMW and Chivas Brothers are among the firms named in the Government’s release. Ninety nine South African exporters sending goods into the UK will also benefit. This helps create a two way flow that officials hope will build trust between the two markets.

Financial cooperation is expanding as well. A Lloyds syndicate in Johannesburg will widen the reach of the London insurance market. Officials say it will be the first time Lloyds has placed underwriters on the ground outside the UK. This could steer more insurance activity between the two countries.

The Government says deeper ties are forming through new partnerships in South Africa with Anglo American, Telkom and the Johannesburg Stock Exchange. These projects aim to unlock investment and open entry points for UK firms.

There are moves further away from Africa as well… Pearson has completed £50 million worth of exports to Brazil. It will supply English language training, corporate and higher education services, digital platforms and assessment products. The company says this strengthens education links between the two countries and widens the UK’s reach in a large Latin American market.

Prime Minister Keir Starmer said: “Working with international partners to deliver jobs and opportunity at home is a one-way ticket to growth.

“The UK is a world leader in engineering, from steel welders in Scunthorpe to technicians in Derby, British workers are powering the world through their skill and profession.

“I am determined to open more doors for British businesses across the world so together we can drive growth, create highly skilled jobs to drive down the cost of living, and deliver opportunity to people across the United Kingdom.”

British Steel’s Chief Commercial Officer Lisa Coulson said: “We are proud to have already delivered £30m of our rail products into high-speed projects to help decarbonise travel in Türkiye and are delighted to be building upon this with a new supply agreement.

“Securing these prestigious contracts – with the support of UK Export Finance – was a major achievement and underlines British Steel’s ability to build the sustainable track systems of the future.

“We’re extremely grateful for the UK government’s support and are confident our partnership with the operators of Türkiye’s rail infrastructure will shortly secure additional orders and create new jobs in Scunthorpe.”