London, September 15, 2024 — Francois Pannetier, Africa Regional Head of Global Business Origination at UK Export Finance (UKEF), spotlighted the pivotal role of UK-backed infrastructure projects in Uganda during his address at the UK-Africa Trade Summit. He described Uganda as a “poster child” for UKEF’s success in Africa, showcasing the agency’s commitment to fostering economic development through robust infrastructure investments.

UKEF’s £500 Million Exposure in Uganda

Pannetier revealed that UKEF currently holds an exposure of £500 million in Uganda, with a strong pipeline of upcoming projects. He outlined UKEF’s mission to help UK businesses secure contracts in Africa by offering flexible financing solutions. “Africa accounts for roughly one-third of our global exposure, and Uganda plays a critical role in our strategy,” Pannetier emphasized, positioning Uganda as a key focus area for UKEF’s ongoing and future projects.

Key Sectors: Airports, Roads, Healthcare, and Agriculture

Pannetier highlighted UKEF’s involvement in Uganda’s key infrastructure sectors, including airports, ports, and rail. He noted UKEF’s financing of an airport in Uganda several years ago and announced their funding for Pen by Airport in Tanzania. He also touched on UKEF’s work in roads, agriculture, and healthcare, though some project details remain confidential.

These projects underline UKEF’s commitment to enhancing Uganda’s infrastructure, promoting economic growth, and supporting the country’s broader development goals.

Flexible Financing Solutions and UK Content

One of the critical strengths of UKEF, Pannetier explained, is its flexibility in terms of UK content requirements. UKEF often starts with a 20% UK content ratio but can reach up to 40-50%, providing ample room to work with non-UK contractors while ensuring significant UK involvement in the supply chain. “Contracts may be signed with other countries, but UK content can still be integrated,” Pannetier noted, offering insight into how UKEF accommodates various project demands.

Supporting Diaspora Entrepreneurs

Pannetier also highlighted UKEF’s openness to funding projects led by diaspora entrepreneurs, particularly those based in the UK. He affirmed that UKEF is keen to support initiatives that create value and jobs in the UK, regardless of the project size. “We’re happy to look at any project, whether large or small, starting from as little as £500,000,” Pannetier remarked, encouraging diaspora-led businesses to take advantage of UKEF’s resources to drive growth in Uganda and beyond.

Market Risk Appetite of £1-2 Billion

Pannetier concluded by highlighting UKEF’s substantial market risk appetite for Uganda, which currently stands between £1-2 billion. This demonstrates the agency’s readiness to support transformative projects and underscores its long-term commitment to Uganda’s infrastructure development. With significant financial capacity, UKEF is well-positioned to continue playing a major role in the expansion of infrastructure across Uganda and East Africa.