UK Government Launches Room 2 Run Guarantee Program with Initial Projects in Egypt and Senegal

Strategic Insights -

The UK government has announced the launch of the Room 2 Run guarantee program, with the first two projects focusing on water supply and sanitation in Egypt and Senegal. The projects aim to benefit millions of people in their respective African countries, with a total investment of $37 million and $80 million, respectively. The Room to Run Guarantee is a $2 billion guarantee provided to the African Development Bank by the UK, with City of London insurers covering $400 million.

The two projects, announced at a joint press briefing in Sharm El Sheikh, will enable the African Development Bank to provide an additional $2 billion of climate finance to Africa by 2027, with a 50-50 split between adaptation and mitigation. In Egypt, the Water Recycling for Agriculture - Gabel El Asfar Wastewater Treatment Project aims to increase arable lands by 70,000 acres and create jobs, benefiting 5 million people. In Senegal, the Access to Safe Water and Sanitation Services project will reach 1.45 million people, out of which 51% are women who will benefit from improved access to drinking water and sanitation.

Key Takeaways:

  • The Room 2 Run Guarantee program is a $2 billion guarantee provided to the African Development Bank by the UK, with City of London insurers covering $400 million.
  • The first two projects under the program are in Egypt and Senegal, focusing on water supply and sanitation, with a total investment of $37 million and $80 million, respectively.
  • The projects in Egypt and Senegal aim to benefit 5 million and 1.45 million people, respectively, with a 50-50 split between adaptation and mitigation.
  • The projects will increase arable lands by 70,000 acres in Egypt and create jobs, while providing improved access to drinking water and sanitation services in Senegal.
  • The UK government's investment is expected to meet the Nationally Determined Contributions and support the African Development Bank Group's objective of creating headroom for multilateral development banks to extend financing to emerging economies for climate action.

Statistics:

  • The total investment under the Room 2 Run Guarantee program is $2 billion.
  • The program aims to provide an additional $2 billion of climate finance to Africa by 2027.
  • The two initial projects in Egypt and Senegal have a total investment of $117 million ($37 million and $80 million, respectively).
  • 5 million people in Egypt and 1.45 million people in Senegal are expected to benefit from the projects.
  • The Senegal project has a 51% female beneficiary rate.
  • The Water Recycling for Agriculture - Gabel El Asfar Wastewater Treatment Project in Egypt produces up to 60% of the electricity it needs for running the plant.

Sources:

  • Euclid Infotech Pvt. Ltd., distributed by Contify.com (2023)