UK Turns to Francophone Africa for Trade with $1.3B in Guarantees
TLDR
- UK Export Finance (UKEF) boosts business presence in French-speaking West and Central Africa, with transactions worth £1 billion by 2023-24.
- UKEF's support for British exports in francophone Africa sees remarkable growth, increasing from £3 million in 2017-18.
- Francophone countries now make up 13% of UKEF's Africa portfolio, signaling a strategic expansion into new markets.
The UK has significantly expanded its business presence in French-speaking West and Central Africa, targeting new markets for its exports. UK Export Finance (UKEF), the state body that supports British exports, had backed transactions in francophone Africa worth £1 billion ($1.3 billion) by the end of the 2023-24 financial year.
That's a sharp rise from £3 million in 2017-18, according to Steven Gray, UKEF’s regional lead for West Africa. Francophone countries now account for 13% of UKEF’s portfolio in Africa, despite historical language barriers.
Africa has become UKEF’s largest market for new business, with recent projects including a £106 million drainage upgrade in Benin and a £68 million road construction project in Togo. Rising interest rates have increased reliance on loan guarantees for such investments.
Key Takeaways
The UK is positioning itself as a key player in francophone Africa’s economic landscape through UKEF’s increased financial backing. With the European Union’s reduced trade engagement post-Brexit, UKEF has aggressively pursued opportunities in Africa, now the largest market for its new business. Major investments in infrastructure projects in Benin and Togo underscore the role of government-backed financing in these efforts. While the UK makes inroads, France’s Bpifrance and China’s Sinosure remain active, creating a competitive environment for investment in the region. Both the UK and French agencies are focusing on building local partnerships to support economic development, signaling an ongoing race to capture Africa’s growing markets.
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