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Climate change

UK Pledges £650 Million to Africa's Development Fund to Tackle Climate Change and Boost Economies

Strategic Insights

— 2 min read

On a visit to Kenya and Ethiopia, the UK's Foreign Secretary, James Cleverly, has announced significant support to the Africa Development Fund (ADF) to combat climate change, strengthen food security, and stimulate Africa's growing economies. The UK's commitment includes a £650 million contribution to a wider international financing package of $9 billion over the next three years, aiming to deliver high-impact and low-cost finance to Africa's poorest countries. This initiative is part of the UK's "honest, reliable investment offer" to the continent, focusing on mutually beneficial partnerships.

Key Takeaways:

  • The UK will contribute £650 million to the Africa Development Fund (ADF) over three years as part of a $9 billion international financing package.
  • The UK funding will focus on delivering electricity for almost 20 million people, improved sanitation for over 30 million people, and creating over 2.3 million new jobs across Africa.
  • The ADF supports 37 of the most vulnerable countries across the African continent.
  • The UK's support includes £200 million to the ADF's Climate Action Window announced at COP27.
  • The Foreign Secretary 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 also sign a new risk-sharing agreement with the African Guarantee Fund to support green economic development and job creation across Africa, unlocking $150 million of affordable finance for small and medium enterprises.
  • The agreement is expected to facilitate up to 17,300 loans for businesses across Africa.
  • The Foreign Secretary will congratulate a winner of the Earthshot Prize and announce new re-forestation projects in Kenya through the UK PACT program with an £3.8 million investment.
  • The Foreign Secretary will reiterate the UK's commitment to ending climate change, conflict, and food insecurity in the region, aiming to create stronger partnerships between the UK and African countries.

Statistics:

  • £650 million: UK's contribution to the Africa Development Fund (ADF) over three years.
  • $9 billion: Wider international financing package for the ADF over the next three years.
  • 20 million: Number of people who will receive electricity due to the UK's funding.
  • 30 million: Number of people who will receive improved sanitation due to the UK's funding.
  • 2.3 million: Number of new jobs created across Africa due to the UK's funding.
  • 37: Number of countries across the African continent supported by the ADF.
  • £200 million: UK's funding to the ADF's Climate Action Window.
  • $150 million: Affordable finance unlocked for small and medium enterprises through the risk-sharing agreement with the African Guarantee Fund.
  • 17,300: Number of loans expected to be facilitated for businesses across Africa through the risk-sharing agreement.
  • £3.8 million: UK's investment in re-forestation projects in Kenya through the UK PACT program.

Sources:

  • Distributed by APO Group on behalf of Government of UK.

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