The programme will provide technical assistance and support to facilitate free trade and open markets for key Middle Income Countries (MICs), enabling greater investment and interaction with global value chains to create jobs and prosperity, and help reduce poverty. The programme’s budget will be implemented across three main activity strands. Management Services (research and analysis across multiple regions and countries), Advisory Services (including design and development of sub programmes) and Delivery Services (delivery of interventions that have been scoped and contracted from the Management and Advisory Services). This programme will help to meet one of the four strategic objectives of the UK Aid strategy 2015: to use ODA to promote economic development and prosperity in the developing world. This will contribute to the reduction of poverty and strengthen trade and investment opportunities globally – including, as a secondary benefit, for the UK.
The NIIF sub-fund will use UK government finance to catalyse private sector investments from global/UK investors, through the City of London to infrastructure projects in India. To help India address a key constraint to inclusive growth by boosting investment into infrastructure - which will lead to growth, job creation and poverty reduction in India. The fund is fully attributed to climate change mitigation - ie low carbon development, reducing greenhouse gas emissions. The fund will primarily invest in sectors like Renewable Energy, Clean Transportation, Water Treatment, and Waste Management. The success of this intervention will lead to follow on private investment that will have a transformational impact on India's economic development.
The Prosperity Fund cross-HMG 'Digital Access Programme' is a DFID-led partnership with FCO and DCMS. It aims to catalyse more inclusive, affordable, safe and secure digital access for excluded and underserved communities in Kenya, Nigeria, South Africa, Brazil and Indonesia. Increased digital inclusion in the programme countries will form the basis for more thriving digital ecosystems that generate high-skilled jobs, opportunities for local digital entrepreneurship focused on country-specific development challenges, as well as potential partnerships with international and UK business aimed at mutual prosperity. The Digital Access programme will also focus on learning about sustainable models and enablers for digital inclusion. The learnings will be shared with key stakeholders and other partner countries, thereby amplifying the impact of the programme.
Prosperity Fund work in China consists of a portfolio of seven thematic programme areas, separated into three phases. The seven programmes are directly complementary, aligned with China’s key economic priorities and are in areas where the UK has expertise. They are designed to address market failures and weaknesses that impede China’s inclusive economic growth and will help China’s ongoing transition to an inclusive, sustainable and productive economy. The first phase comprises four programmes covering Business Environment, Financial Services, Energy and Low Carbon Economy, and Infrastructure. These programmes are expected to lead to an improved business environment for all firms, a more efficient and inclusive financial system less exposed to significant shocks; China making a quicker transition to a low carbon economy; and increased and more sustainable investment in China and ODA-eligible third markets in higher quality infrastructure projects. As a secondary benefit, the programmes will also produce commercial benefits for international companies, including UK businesses, through an improved business environment in China for firms and investors, as well as through additional trade and investment opportunities in these sectors, where the UK has competitive advantages.
The programme aims are to increase life expectancy, improve productivity and deliver economic growth in the partner countries set out above. To achieve this high level impact it has two overarching health goals: • To tackle the issue of premature death and illness due to Non-Communicable Diseases (NCDs) like diabetes and heart disease, which account for 74% of premature fatalities in lower and middle income countries (LMICs). • To reduce incidents of premature mortality (e.g. infections contracted in hospitals) by improving health care outcomes. Meeting these objectives will help advance economic development in the partner countries but will also create opportunities for international and UK businesses as a secondary benefit. It also helps advance our National Security Strategy and UK Aid Strategy objectives.
This programme’s primary purpose is to overcome constraints to economic development in Mexico to help build long-term inclusive growth and lift people out of poverty. As a secondary benefit, it is also aims to produce greater opportunities for global trade and investment, including between Mexico and the UK. The programme will help increase productivity, including through technology and innovation (e.g. digital financial services), skills development and stronger regulation. It will strengthen the economy and expand markets in Mexico with a focus on four strategic strands of activity: Energy, Future Cities, Financial Services and Anti-corruption & Rule of Law. The programme will be delivered by working with the public and private sectors, as well as civil society, to achieve both primary and secondary benefits, as set out above.
These services provide specialist monitoring, reporting, evaluation and learning provisions to Prosperity Fund programmes, they also enable effective portfolio management at Fund level. We use these systems to help drive value for money, learning and effective delivery of the Fund's objective.
At the ninth UK-China Economic and Financial Dialogue (EFD) in Beijing on 16 December 2017, the Chancellor of the Exchequer signed a Contribution Agreement with the AIIB, formalising the UK’s commitment, made at the previous EFD in 2016, to provide US$50m to the AIIB’s Special Fund for Project Preparation. This fund provides grant support to developing Asian countries to prepare infrastructure projects for the Bank to finance. The UK's contribution is through the Prosperity Fund.
Leverages the UK’s unique position as the world’s leading financial centre to increase access to finance for firms and individuals, promoting shared prosperity through inclusive economic growth overseas, and the development of new markets
This programme aims to improve the business environment in middle-income economies by stimulating growth and creating jobs, helping to lift people out of poverty. It is worth £30 million over 4 years, and aims to support reforms that improve the business environment in a range of middle-income countries. It also aims to unlock inclusive growth for women, who can be disproportionately affected by a poor business environment. The programme will provide technical assistance to national governments and sub-national authorities to support their reform programmes by improving capacity in areas like investment promotion and fostering competition. Middle income countries are widely recognised as engines of global growth. However weak institutions and inadequate regulations often constrain growth and exacerbate challenges such as low productivity levels. Global growth improves opportunities for international business, including UK companies, to contribute to and benefit from economic growth in other countries.
Investment in the Horn of Africa’s to support full and inclusive trade and economic growth potential of the region by developing and improving key roads, enabling trade cross borders and enhancing local economic development.
To protect poor and vulnerable people, save lives and help developing countries to get back on their feet more quickly after a disaster by working with governments to strengthen planning, embed early action, and use “risk financing” tools like insurance and contingent credit to finance more cost-effective, rapid and reliable response to emergencies. It aims to empower governments to build resilience to natural disasters and climate change, and take ownership of their risks, with more assistance delivered through pre-financed government-led systems. Funded by the UK Government Prosperity Fund.
The Programme aims to develop the capacity of middle-income countries to develop major successful infrastructure projects in the partner countries above. To achieve this impact, the programme will: train officials in UK best practice methodologies in infrastructure project planning, preparation and delivery; encourage long-term adoption of these methodologies via policy and process changes; support a number of specific pilot infrastructure projects, using the methodologies, in selected partner countries to demonstrate effectiveness and embed their use Meeting these objectives will assist the countries to develop the economic and social infrastructure they need to sustain inclusive economic growth. They will also increase the number of good infrastructure projects coming to market as viable investment propositions, helping to reduce the infrastructure gap (increasing the number of proposed projects being completed). It will also attract investors and lenders to deliver the infrastructure projects offering opportunities to international business as a secondary benefit, including from the UK.
The UK Prosperity Fund for Colombia, is designed to support economic development, unlock economic opportunities and drive growth in the country’s post-conflict and conflict-affected regions. It will benefit more than 3 million people with a focus on women and girls in Colombia’s poorest regions. The programme is expected to result in £1.99 billion of primary benefits to Colombia over 10 years. The potential secondary benefits to the UK of Prosperity Fund engagement, set within the context of a peaceful, prosperous Colombia, are £265 million by 2026. The main objectives of the programme are to achieve inclusive growth, poverty reduction and gender equality, contribute to improving the commercial environment so that international business, including UK companies, can compete favorably in new markets. It will do this by targeting three sectors across post conflict and conflict-affected regions; institutional strengthening, infrastructure, agriculture
The ASEAN Economic Reform programme is designed to tackle two fundamental constraints to growth – a poor business environment and underdeveloped financial markets. Improving the business environment is a key enabler for inclusive economic growth and can provide a significant positive impact on poverty and inequality. It will also positively impact companies in all sectors, providing a more solid foundation for international companies to invest and operate throughout the region. Broadening and deepening financial markets reduces the cost of doing business, increases financial inclusion and reduces constraints on investment, thereby increasing competitiveness and growth potential. The programme will operate in Burma, Indonesia, Malaysia, the Philippines, Thailand and Vietnam and is due to start its inception in November 2018, with some areas of the programme already being delivered through multilateral partners. Finance providers, FinTech companies and accountancy firms – where the UK has particular strength – are amongst those who stand to benefit directly, along with a wider indirect benefit supporting growth across all business sectors.
Barriers to South East Asia’s low carbon transition are hindering its economic development, which in turn hampers progress in areas such as health, gender equality and reducing poverty. The £15m ASEAN Low Carbon Energy Programme is designed to tackle these barriers, focusing on the two areas with the greatest needs and where the UK has particular strengths: Green Finance and Energy Efficiency. The programme will strengthen policy and regulatory frameworks for green finance and energy efficiency; facilitate greater investment in low carbon technologies, including improved green finance flows; increase innovation and knowledge transfer in energy efficiency and low carbon technologies; and facilitate more efficient use of energy in target countries. As a secondary benefit the programme also opens up commercial opportunities for international, including UK, business, through increased “green” trade and investment, including in energy-efficient goods and services. The programme, which will operate in Burma, Indonesia, Malaysia, the Philippines, Thailand and Vietnam, is due to start its inception phase in early 2019.
The Indonesia Regulatory Reform programme will strengthen the regulatory environment in Indonesia, to overcome key obstacles and help create a better business environment in the country. These obstacles include: a complicated regulatory environment, which can deter investors; difficulty securing finance for energy infrastructure projects; and insufficient cross-government coordination/collaboration between public and private sector. The programme will work with the Government of Indonesia to put into place systems and structures for improved central oversight and co-ordination of regulatory reform, and a suite of tailored tools and guidance to support the delivery of regulation. It leads to economic growth, poverty reduction and improved gender inclusion in Indonesia by reducing barriers for local and international business, including UK companies.