Africa opening for business: Prime Minister confirms UK support for Africa's investment climate facility (ICF)
17 November 2005

The UK today became the first country to make a financial commitment to a new facility designed to help lower the cost of doing business in Africa and promote a better investment climate across the continent.

Prime Minister Tony Blair and International Development Secretary Hilary Benn confirmed that the UK government will provide $30 million over three years to the Investment Climate Facility for Africa. Royal Dutch Shell plc and Shell Foundation also announced that they would contribute a combined total of $2.5 million over five years, and Anglo American confirmed that they would also contribute $2.5 million over the same period.

The Prime Minister said: “ Africa has started to make great strides in reforming its business environment, but deeper and wider reform is needed, if it is to take full advantage of the opening up of global trade markets. The ICF will help. It will make Africa a better place to do business. The UK 's $30 million contribution is our share to help get the Facility up and running. It is time for all in the international community and the private sector to get behind this African initiative and give it maximum support.”

Hilary Benn, the International Development Secretary, said: “If Africa is to achieve the 7% growth necessary to meet the key MDG of halving the number of people in poverty by 2015, the business environment must improve. Businesses face many obstacles in Africa. Many are real problems – excessive regulation, corruption or anti-competitive practices.

Then there is the perception that Africa 's security, health and infrastructure problems mean it is a poor place to do business. The ICF's activities will address both the real and perceived obstacles. It will be vital for investment, growth, jobs and sustainable poverty reduction in Africa.”

The ICF will help bring about more business friendly policies, laws and regulations across the continent, and strengthen the institutions that enable these to be administered. It will help bring about a more effective dialogue on investment climate reform between governments and the business community.

The ICF will support projects such as streamlining business registration and licensing systems, reforming customs administration and taxation and removing barriers to competition. It will learn from and build on earlier success stories, for example a successful pilot programme in Entebbe which led to Ugandan entrepreneurs needing just 30 minutes, as opposed to 2 days, to register a business, or in Mozambique, a customs reform programme which has meant that goods are now cleared up to 40 times faster than pre-reform. It will not finance commercial ventures or hard infrastructure.

The ICF was recommended by the Commission for Africa and supported by the G8 at Gleneagles.

Notes to Editors:

  1. The ICF will be a public private partnership, funded by companies, bilateral and multilateral donors, and working in close partnership with African governments and regional organisations such as NEPAD.
  2. The ICF is expected to be launched in Africa and become fully operational in mid 2006, once other donors and companies have also made their commitments.
  3. The ICF has a limited lifespan of seven years. It aims to raise US$120m for its first three years of operations. It is being established, in Africa, as an independent Trust, and will be governed by a Board of Trustees (the majority of whom will be African).
  4. Tony Trahar, Chief Executive of Anglo American plc announced the company's funding of $2.5m towards the ICF, and Jeroen van der Veer, the Chief Executive of Royal Dutch Shell plc, announced that Royal Dutch Shell plc and Shell Foundation will between them contribute funding of $2.5m towards the ICF. Contact: Bernadette Cunnane or Kurt Hoffman, Shell Foundation (020 7934 2713), Edward Bickham, Anglo American (020 7968 8547)
  5. Professor Firmino Mucavele (the Chief Executive of the NEPAD Secretariat) also took part in the event. A press release from NEPAD is available from the NEPAD Secretariat.
  6. Niall FitzGerald KBE, Chairman of Reuters and co-Chair Elect of the ICF, also participated in the event on behalf of the ICF. He can be contacted on 020 7542 2485.
  7. Case studies reflecting the type of work the ICF will do to build a better climate for investment are attached.
  8. For further information, please contact DFID Press Office 020 7023 0600 or Chris Darroll, Executive Director of SBP (ICF's Interim Principal Agent) +27 11 486 0797