UK aid strategy
The UK’s aid strategy has a strong focus on promoting Global Prosperity through engagement in emerging and developing economies. To achieve this, alongside other spending, a new cross-governmental Prosperity Fund is being created, and investment into CDC, the UK’s development bank, increased. The government will also invest in a new Energy Africa campaign which will focus on scaling up the household solar market. Thematic priorities will include improving the business climate; competitiveness of markets, energy and financial sector reform; and increasing the ability of governments to tackle corruption.
Building on existing work to support growth and sustainable economic development in many of the poorest developing countries, the government will unlock private and public investment in energy, infrastructure, urban development, and commercial agriculture, and provide help to scale up financial inclusion by harnessing technology (e.g. mobile phone banking) in Africa, the Middle East and Asia.
DFID PSD strategies and related documents
- DFID’s Economic Development Strategy 2017: DFID’s 2017 Economic Development Strategy lists 11 priorities:
- Focusing on trade as an engine for poverty reduction.
- Stimulating investment to spur economic growth in developing countries, in particular through the UK’s development bank, CDC.
- Supporting countries to mobilise their own domestic resources by tackling corruption, improving tax systems, and enhancing the wider enabling environment for business.
- Focusing efforts on sectors that can unlock growth, including energy, infrastructure, urban planning, manufacturing, commercial agriculture and financial services.
- Making it easier for companies – including from the UK -to enter and invest in markets of the future.
- Supporting partner countries to harness new technologies for growth and look to emerging and innovative economic sectors, such as e-commerce and peer-to-peer business and finance.
- Working with, and challenging, the City of London to become the ‘development finance hub of choice’. DFID will help create stronger capital markets and financial services in our partner countries and will be a global leader in helping developing countries insure themselves against natural disasters.
- Using country presence, knowledge and expertise to bring economic opportunity to some of the world’s most fragile states, supporting livelihoods even in the hardest and most complex environments.
- Building a sharper focus on nutrition, human development and skills for work into economic development programmes and helping to build a healthy, educated and productive workforce for the future.
- Focusing on the poorest and most marginalised people, including women and girls, the majority of whom work in the informal sector.
- Establishing new links both in the UK and internationally with civil society organisations and other innovative partners to help deliver the ambition in this Strategy.
- DFID’s Operational Plan 2011-2016: Private Sector Development provides further details on how the organisation aims to achieve results in PSD.
- The Engine of Development: The Private Sector and Prosperity for Poor People, 2011
This document is primarily aimed at the public, business people and civil society, with a particular eye on those in the UK. It is not intended as a policy document, nor to give comprehensive coverage of all that DFID does or plans to do. Rather, it gives examples of activities outlined in the Operational Plans of DFID country, regional and central teams – and describes present and future activities aimed at transforming the environment for business and investment; at opening up economic opportunities for small businesses and poor women and men; and at providing them with better services.