UK Export Finance boosts deals in Francophone Africa to £1 billion, expanding British exports amid competition from China’s Belt and Road Initiative-backed projects.The UK is ramping up its business activities in French-speaking West and Central Africa, expanding its export finance portfolio in the region. UK Export Finance (UKEF), the government body that supports British exports through loans, insurance, and credit guarantees, increased its exposure in francophone Africa to £1 billion ($1.3 billion) by the end of the 2023-24 financial year, up from just £3 million in 2017-18, according to Steven Gray, UKEF’s West African regional lead.
These francophone markets now account for 13% of UKEF’s African portfolio. Despite language barriers, Gray noted that the common language of commerce is driving deeper UK engagement in the region, especially as France’s investment arm, Bpifrance, faces challenges in its relations with former colonies.
With a global credit exposure limit raised to £60 billion, UKEF has been aggressively expanding its reach across Africa. In the financial year ending March 2024, the agency supported £1.3 billion of new business across the continent, making Africa its largest market for new transactions, followed by the Middle East.
Recent UK-backed projects include a £106 million drainage upgrade in Benin and £68 million road construction in Togo, both francophone countries. The rise in interest rates has increased reliance on loan guarantees or credit insurance to finance such infrastructure projects.
While the UK competes with China’s Sinosure, which backs projects aligned with China’s Belt and Road Initiative, UKEF and Bpifrance are focusing on forging local partnerships and building relationships in Africa. Both agencies are preparing for future events to enhance their presence in the region.
China remains dominant, having brought over $120 billion in construction contracts to Africa through the Belt and Road Initiative, while the UK and France operate under OECD rules, requiring a percentage of each project to involve their own national businesses.
With major financing institutions increasingly combining diplomacy, technical expertise, and trade deals, export credit agencies (ECAs) like UKEF are playing a crucial role in positioning developed countries for success in African markets.
