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The UK foreign ministry will unveil £100mn in seed funding for businesses focused on tackling poverty and climate change on Monday, in a pivot to the way the UK government approaches international development.
Development minister Anneliese Dodds will announce the anchor funding as part of the UK’s move towards financing businesses with a focus on development rather than the traditional approach of handing out aid.
In a speech at the London Stock Exchange, Dodds will say that the money will unlock an extra £400mn-£600mn of private sector investment towards delivering the UN’s sustainable development goals (SDGs).
The Foreign, Commonwealth and Development Office funding is intended to help companies in emerging markets in Asia, Africa and Latin America, as well as assist British businesses wanting to export to these markets.
Officials say the initiative answers developing nations’ call for better access to private as well as public finance, as part of the UK’s desire to build partnerships with the global south.
In her speech to pension funds, insurers, banks and development finance organisations, Dodds will praise the “expertise, experience and dynamism” of the UK’s financial services sector.
She will pledge to put such expertise “at the heart of how we meet the opportunities and challenges of our time”, including accelerating delivery of the SDGs.
The funding announced by the development minister will go towards the FCDO’s public markets programme Mobilist.
In addition to providing anchor funding, Mobilist also offers advice to businesses about listing on stock exchanges around the world, including in London, to help them to attract additional private investment.
Julia Hoggett, chief executive of the London Stock Exchange, said: “London’s capital markets have long played a leading role in driving flows of capital to where they need to go, and we welcome the focus on fuelling growth and supporting the just transition to net zero.”
