This week, the United Kingdom announced its ambition to become the largest G-7 foreign direct investor in Africa by 2020. To make this happen it aims to generate up to £8 billion ($10.26 billion) of U.K. public and private investment in Africa. Over the next 3 years, CDC, the U.K.’s development finance institution, will aim to invest up to £3.5 billion in Africa while the U.K. government aims to mobilize a further £4 billion of private investment.
This announcement is the first tangible action announced by a G-7 country since the June 2018 Charlevoix Commitment on Innovative Financing for Development, where G-7 leaders committed to support innovative financing approaches for development.
It is also the latest example of a trend where governments are turning to innovative finance, mobilizing the private sector to make their development funds achieve larger impact. Other examples include Germany’s compact with Africa and Canada’s Feminist International Assistance Policy.
Read the rest in Devex.