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Foreign Secretary promises honest, reliable UK investment in Africa

The Foreign Secretary James Cleverly has announced new UK support to Africa during a visit to Kenya.

 

the Foreign Secretary pledges to build “mutually beneficial partnerships of the future” on a visit to Kenya and Ethiopia

 

James Cleverly will announce new UK support to the Africa Development Fund to tackle climate change, strengthen food security and boost Africa’s growing economies

 

he will break ground on the Railway City regeneration project – a high-tech green development, designed by British architects and supported by UK export finance

 

The UK will announce new support for the African Development Fund (ADF) today to help the poorest communities in Africa grow their economies, create jobs and improve healthcare.

 

The Foreign Secretary will confirm the funding in Kenya as a key plank of the UK’s honest, reliable investment offer, on his first visit to Sub-Saharan Africa since becoming the Foreign Secretary.

 

The UK will contribute £650 million as part of a wider international financing package of $9 billion for the ADF over the next 3 years, providing high impact and low-cost finance to Africa’s poorest countries. This includes £200 million provided to the ADF’s new Climate Action Window that was announced at COP27.

 

The UK funding will help deliver electricity for almost 20 million people, improved sanitation for over 30 million people and create over 2.3 million new jobs across the continent. The fund supports 37 of the most vulnerable countries across the African continent.

 

The Foreign Secretary said:

 

We hugely value working with our allies and friends across Africa. Such relationships benefit us all. The UK offers honest, reliable investment that does not load countries with debt, but instead unlocks huge potential for economic growth, while boosting global health and tackling climate change.

 

The UK’s contribution to the African Development Bank shows our long-standing commitment to the continent. We will go far when we go together.

 

Arriving in Kenya today (7 December) the Foreign Secretary will also see how the UK’s support is helping to grow Kenya’s green economy.

 

Just 1 month after the Prime Minister and President Ruto promised to fast-track green British investment, the Foreign Secretary will break ground on the construction of Railway City – Nairobi’s renovated central station, designed by British architects with the latest green technology. The Kings Cross London-style development, backed by £80 million of UK Export Finance, will regenerate Nairobi’s bustling central business district as a green urban environment of the future.

 

And ahead of the Railway City launch, the UK’s development finance institution British International Investment (BII) will sign a new risk-sharing agreement with the African Guarantee Fund (AGF), to support green economic development and job creation across Africa.

 

The agreement will unlock $150 million of affordable finance for small and medium enterprises – expected to facilitate up to 17,300 loans for businesses across Africa. BII and AGF will each underwrite 25% of the loans.

 

It is reflective of the UK’s ongoing support to small businesses in Africa to create jobs and transition to green energy, while helping vulnerable countries to deal with the adverse impacts of climate change.

 

During a climate reception at the British High Commission the Foreign Secretary will congratulate a winner of the Earthshot Prize, launched 2 years ago by Prince William and David Attenborough. He will announce that the UK is supporting new re-forestation projects in Kenya through the UK PACT (Partnering for Accelerated Climate Transitions) programme with an £3.8 million investment.

 

The Foreign Secretary will head to Ethiopia on Thursday 8 November, where he will see first-hand the devastating impacts of climate change, conflict and food insecurity.

 

In both countries, the Foreign Secretary will meet with key government figures where he will reiterate his vision of stronger partnerships between the UK and African countries, built on mutual respect and benefits, and supporting populations in Africa, the UK and beyond to be more prosperous, healthier and greener.

 

Background

 

the UK has contributed a total £650 million to the African Development Fund. This includes £200 million announced at COP for the Climate Action Window, and an additional £450 million for the core replenishment, which will be announced in Kenya

 

the $9 billion package announced by the ADF for the next 3 years is the largest replenishment of the fund to date (this is the 16th replenishment)

 

the UK is one of the top donors to the Fund. It is expected that results the UK funding will help deliver will include:

 

new or improved electricity connections for 18.9 million people (9.2 million women)

500MW of additional renewable energy generation capacity

agriculture improvements for 23.6 million people (11.3 million women)

new or improved sanitation for 31.2 million people (15.4 million women)

improved access to transport for 14.3 million people (7.2 million women)

over 2.3 million new jobs (1.1 million women)

the ADF is part of the African Development Bank: Africa’s only AAA-rated financial institution, which is majority-owned by African countries. The Bank is an important partner for the UK in Africa

 

ADF projects are helping to boost Kenya’s economy and promote livelihoods for the poor, by for example, helping to deliver access to cheaper electricity, increase renewable energy, double forest cover, and provide seeds, fertiliser and increased access to water to increase food production and farm incomes

 

the Fund is helping Ethiopia to become wheat self-sufficient this year by facilitating access to drought resistant seeds and other agricultural technologies. It is also increasing farm incomes, generating jobs, and promoting trade through better transport links and cross-border electricity networks

 

in addition to our support for the ADF, we are also providing a guarantee, which was announced at COP26, that will increase the Bank’s financing for tackling climate change by up to $2 billion in countries such as Egypt and South Africa

 

our collaboration with Kenya continues to build on the ambitious UK-Kenya Strategic Partnership, a 5-year agreement that is unlocking mutual benefits for the UK and Kenya

 

 

Source: Government of the United Kingdom

Author Since: Dec 08, 2021

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