FOREIGN AID BUDGET
THERESA May has pledged to use Britain’s overseas aid budget to boost post-Brexit trade with Africa.
She told an audience in Cape Town that she is “unashamed” of her ambition to ensure the multibillion-pound pot “works for the UK”.
The Prime Minister said that from now on Britain’s foreign aid budget will not only help combat poverty, but support “our own national interest”.
It comes after the bloated aid budget – now standing at almost £14billion a year – has come under fire as officials struggling to spend the money quickly enough have donated to a series of increasingly controversial projects.
Mrs May said funds will be specifically used to “support the private sector to take root and grow”. This means Britain will employ its aid to help create the conditions for UK businesses to have confidence to invest in Africa.
She also said the funds should go towards boosting security and tackling terrorism in the continent – a move to which she insists will make the UK safer.
The money will also be used to encourage potential migrants to stay in Africa so they are not tempted to make the dangerous journey to Europe.
The commitment comes amid the UK’s huge foreign aid budget struggling to maintain public support. Critics have long opposed David Cameron’s controversial policy and target of spending 0.7 per cent of national income on overseas aid.
The target has meant huge increases in aid spending in recent years – and guarantees it will continue to grow.
Public anger has grown given some of the examples of how the money is spent. These include a £5.2million grant to girl band Yegna, nicknamed the “Ethiopian Spice Girls”, whose funding was only halted last year.
Downing Street will now hope that the announcement of a realignment of spending will help convince voters of its worth.
The Department for International Development gives around £2.6billion a year in bilateral aid to Africa. The Prime Minister has also announced a new ambition to make Britain the G7’s largest investor in the continent within four years.
At present the U.S. is the largest contributor to African investment, but Mrs May aims to leapfrog it by 2022.
In Cape Town, the Prime Minister talked about changing the face of the UK’s aid spending in Africa both to reflect the continent’s rapid growth and to benefit Britain. There is a huge opportunity for British trade in a post-Brexit world. Mrs May’s three-day trip to the African continent will also take in visits to Nigeria and Kenya.
The PM said: “It is the private sector that is the key to driving that growth – transforming labour markets… And the UK has the companies that can invest in and trade with Africa to do just this.
“The private sector has not yet managed to deliver the level of job creation and investment that many African nations need.
“So I want to put our development budget and expertise at the centre of our partnership as part of an ambitious new approach – and use this to support the private sector to take root and grow.
“I am unashamed about the need to ensure that our aid programme works for the UK.
“I am committing that our development spending will not only combat extreme poverty, but at the same time tackle global challenges and support our own national interest.
“This will ensure that our investment in aid benefits us all, as is fully aligned with our wider national security priorities.”
The Prime Minister also set out why working with Africa to deliver jobs, investment and long-term stability is in the interests of Britain and the wider world.
Mrs May pointed out that Africa needs to create millions of new jobs every year to keep pace with its rapidly growing population, adding: “The challenges facing Africa are not Africa’s alone.
“It is in the world’s interest to see that those jobs are created, to tackle the causes and symptoms of extremism and instability, to deal with migration flows and to encourage clean growth. If we fail to do so, the economic and environmental impacts will swiftly reach every corner of our networked, connected world.
“And the human impacts . . . will be similarly global.”
Addressing the issue of British trade, Mrs May said: “As Prime Minister of a trading nation whose success depends on global markets, I want to see strong African economies that British companies can do business with in a free and fair fashion.
“Whether through creating new customers for British exporters or opportunities for British investors, our integrated global economy means healthy African economies are good news for British people as well as African people.
“I want the UK to be the G7’s number one investor in Africa, with Britain’s private sector companies taking the lead in investing the billions that will see African economies growing by trillions.”