The UK is aiming to pump up about £8 billion of investment in both public and private sectors in Africa to create more opportunities and jobs so as to advance development in the coming four years.
- The UK’s Development Finance Institution or the CDC Group plans to put in about £3.5 billion in Africa to support thousands of new opportunities and jobs.
- The UK also aims to pump up additional private investment of £4 billion only for African nations, especially from the City of London.
The UK is coming up with many steps to improve the investment in various enterprises and infrastructure all across Africa. This includes raising an additional £4 billion investment from the private sector by collaborating closely with the City of London.
The Prime Minister also has set a new target for the UK to be known as one of the biggest G7 foreign direct investor in Africa by the year 2020.
As per statistics, Africa will see its population doubling by 2050 and to cater to that, approximately 18 million additional jobs every year would be required. It is of utmost importance that the private and public investments give rise to improved opportunities in this country to avoid the future generation to face poverty, instability or mass migration, which could impact Britain in a huge manner.
This development also implies that the level of this opportunity across Africa is humungous. As per IMF data, Africa’s GDP is going to touch $3.2 trillion in the coming five years and this is also the right time for company formation in Africa.
International Development Secretary, Penny Mordaunt was of the view that Africa’s promising markets pose as a huge and unexploited potential to the UK. There is a huge scarcity of investment, required infrastructure and also jobs in here and the City of London is well-positioned to assist in filling this gap and also reaping benefits for the economy of UK.
Some mutually-beneficial collaborations are being built, which will help in enhancing long-term revolutionary growth and also create more and more superior jobs, while also enabling the investors in UK to reap benefits of this opportunity.
In addition to the announcement of a huge investment coming through CDC and PIDG, the UK is also aiming to pump up another £4 billion of private investments, especially from the City of London. So, it would sum up to about £8 billion (around $10 billion) of investment aiming to assist the African countries from the year 2018 till 2021.
This collaboration aims to mobilise more capital out of pension funds, other investors, and insurance companies so as to help the City to take on a bigger role as Africa’s partner of choice in terms of financial services as the UK leaves the EU.
This will also generate the prospect to advance the returns out of investments for the UK’s pension pot, while boosting the important long-term investment for all African businesses, thus transforming the poorest nations of the world into the UK’s trading partners.