The United Kingdom (UK) government has announced an investment support package to back African transformation ahead of the UK-Africa Investment Summit.
The investment will be through the UK government’s support to the City of London to mobilse funds to African countries under initiatives to generate billions of pounds for private sector investment.
The announcement comes as African governments and business leaders arrive in London ahead of Monday’s UK-Africa Investment Summit.
In a statement copied to the Ghana News Agency by Alok Sharma, International Development Secretary of UK, said: “Africa’s substantial investment potential is clear, with many African countries outstripping global economic growth in recent decades.
“The UK is already the top financial exchange for Africa’s businesses and we want investors to seize the exciting opportunities that Africa offers.
“These new initiatives, announced ahead of the UK-Africa Investment Summit, will make it easier, greener and more secure to invest in Africa, mobilising billions of pounds of sustainable investment to help end poverty.”
The statement further stated that the three initiatives to be undertaken by the UK government to facilitate investment into Africa included the UK Financial Sector Deepening Platform, the New Investment Fund and IFC Cross-Border Risk Facility.
The UK Financial Sector Deepening Platform comprising a £320million UK aid will run over the next five years, supporting a further 22 million people and 3.9 million small businesses across 45 countries in Africa, including giving them access to mobile banking for remote communities.
The New Investment Fund, a new collaboration with the City of London will identify and develop new listed investment products which boost development in poorer African nations, with up to £45million UK aid support.
The IFC Cross-Border with an expected investment of £30million will help to build the market for local currency finance ensuring that international financial markets work better for the needs of developing countries and generate new opportunities for UK-based investors.