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11. Promoting growth and jobs
What we agreed at Gleneagles
How is the UK doing?
 The
UK spearheaded the development of the Investment Climate Facility (ICF), in
order to promote investment, growth and job creation in Africa. Launched in June
2006 with the UK contributing $30 million for its first phase, it will help
governments and businesses to lower the costs of doing business in Africa, and
support projects to bring about more business-friendly policies, laws and
regulations. The ICF is now fully operational and funding is being considered
for a series of projects focusing on commercial justice, business and land
registration, telecoms regulation and legislation, legal reform, taxation and
customs.
We have also provided £133 million over five years to the
 Comprehensive
African Agriculture Development Programme, an AU/NEPAD-led initiative that
will enhance the productivity of agriculture, ensuring that there is sufficient
food – as well as improving livelihoods and reducing poverty.
The UK is contributing funding and staff to support the establishment of a
secretariat for the
Infrastructure
Consortium for Africa, which was launched in 2005. We are also providing
funding for infrastructure projects to meet Africa’s energy and transport needs.
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How the International Community is doing
$120 million has been raised for the Investment Climate Facility (ICF),
including commitments from the UK, the Netherlands, Ireland, Norway, the IFC,
the African Development Bank and seven private sector companies. Significant
additional commitments are expected to be made by other agencies during 2007.
Alongside UK support for the work of the Infrastructure Consortium for
Africa, funding and staffing have been contributed by Japan, the African
Development Bank and Public Private Infrastructure Facility. The Consortium
brokers donor financing for infrastructure, and in 2006 Consortium members
contributed $7.7 billion to the development of infrastructure in Africa.
The
Financial
Sector Reform and Strengthening (FIRST) Initiative – currently supported by
the UK, Canada and several other donors – is helping to improve financial market
access in areas such as banking, pensions, insurance and capital markets in
developing countries.
What should happen next?
The UK has committed $20 million towards the establishment of an
Africa Enterprise Challenge Fund (AECF).
The AECF is one of the UK’s responses to calls at Gleneagles for improving
access to financial services for poor people and small entrepreneurs - and
boosting agricultural productivity.
The G8 should support the second phase of the successful FIRST Initiative,
which is playing an important role in strengthening financial markets.
The UK has launched the multi-donor Better Regulation for Growth Programme,
which promotes best practice in regulatory reform and complements the ICF. The
G8 should support this initiative as its central focus is on improving
governance and could help African countries implement
African
Peer Review Mechanism recommendations.
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Where it is making a difference:
- The
Kenya
Tea Development Agency (KTDA), representing small holder tea farmers
in Kenya, and Lipton, part of the Unilever Group, are promoting the
adoption of improved farming practices. They are working at farmer level
through field schools, and improved systems in the tea factories. DFID’s
Business Linkages Challenge
Fund is supporting this initiative, which will expand to cover
30,000 farmers in the pilot stage. As KTDA has 58 tea factories in
Kenya, scaling up the initiative will reach 400,000 smallholder KTDA tea
farmers, helping them to maintain market access and increase incomes
through improved yields and marketing.
Last updated: 12 March 2008
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