The fund supports 37 of the most vulnerable countries across the African continent…reports Asian Lite News
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 £650million as part of a wider international financing package of $9 billion for the ADF over the next three 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 2.3million 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 one 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 £80m 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 $150million 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 two 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 programme with an £3.8million 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.
ALSO READ-India’s growing Africa ties