Question to the Foreign, Commonwealth & Development Office:

To ask the Secretary of State for Foreign, Commonwealth and Development Affairs, with reference to PM launches new initiative to take Green Industrial Revolution global, published on 1 November 2021, and HCWS779, made on 25 April 2022, for what reason the value of the guarantee to the African Development Bank has reduced from $2 billion equivalent to $1.6 billion equivalent.

In November 2021, the Prime Minister announced that the UK would provide a guarantee to the African Development Bank that would unlock up to $2 billion of additional climate finance for Africa.

Since November, the FCDO has been working with the African Development Bank (AfDB), the African Trade Insurance Agency (ATI) and Credit Rating Agencies to finalise the financial structure of the guarantee. The impact of the guarantee remains the same, with the guarantee expected to unlock up to $2 billion of climate finance for Africa. In the final structure, the FCDO will provide $1.6 billion of cover and ATI will provide $400 million of cover.