The United Kingdom has ramped up its business presence in French-speaking West and Central Africa, expanding into new markets with the help of UK Export Finance (UKEF), the state agency dedicated to promoting British exports.
By the end of the 2023-24 financial year, UKEF had backed transactions in the region worth £1 billion ($1.3 billion), a substantial leap from the mere £3 million recorded in 2017-18.
UK’s focusing on tapping into the lucrative potential of francophone African markets. Historically, language barriers limited the UK’s engagement with this part of the continent.
However, Francophone Africa now makes up 13% of UKEF’s total African portfolio, showing how aggressively the UK is moving to bridge that gap.
Major Infrastructure Projects
Africa has become UKEF’s largest market for new business, and this push is reflected in several major infrastructure projects. Among the most prominent are:
– £106 million drainage system upgrade in Benin.
– £68 million road construction project in Togo.
These developments are key components of UKEF’s efforts to finance large-scale projects that fuel economic growth, helping establish a more robust British presence in the region.
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With rising interest rates, businesses and governments are relying more heavily on loan guarantees to fund such infrastructure ventures, making UKEF’s backing all the more crucial.
Strategic Timing: Post-Brexit Expansion
The UK’s intensified focus on Africa comes in the wake of Brexit, which led to reduced trade engagement with the European Union.
This shift has prompted UKEF to pursue more aggressively opportunities beyond Europe, with Africa emerging as a critical region for British exports and investments.
While the UK’s investments are gaining traction, it faces competition from France through its export credit agency Bpifrance, and China, through Sinosure, are both heavily involved in financing infrastructure and other large-scale projects across the region.
This has created a competitive landscape, with each nation seeking to build strategic partnerships and support economic development.
As African economies continue to grow, opportunities in the region are becoming more attractive to international investors.
