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Government invests more in British and foreign companies as part of aid

Fundraising | Celina Ribeiro | 11 Nov 2011

The International Development Secretary has announced plans to boost the amount of money directed to companies in order to spur economic growth in Africa and other developing countries.

Andrew Mitchell yesterday announced a fresh injection of funds into three programmes which direct money to British and foreign companies in poorer countries in the hope of promoting local commerce and reducing such communities’ dependence on aid.

The role of the private sector in international development and aid has taken a higher profile under the Coalition Government. A statement from the Department for International Development said: “The projects will help promising businesses in Africa and Asia as well as British businesses that are looking to expand their work in the developing world and opening up new markets for British goods and services."

The three programmes include the Africa Enterprise Challenge Fund, which will run for seven years and aims to create jobs and provide low-cost energy to African households. The government will be doubling its support for the Food Retail Industry Challenge Fund, which aims to bring African food products to UK British consumers. And it will invest an additional £2m in the Business Innovation Facility programme, now worth £5.5m, which will pilot in five developing countries and will encourage local companies to change and scale up their business models.

“Stimulating economic growth is the surest way to help people pull themselves out of poverty,” said Mitchell.

“To businesses I say this: we will support you to grow and move into new markets if you can prove that you will help improve the livelihoods of the poorest.

“Africa is booming, with predicted growth of 6 per cent next year. Our aid will help ensure the poorest are not left behind. This will help Britain as well, opening up new markets and trading partners for British goods.”

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