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Written question asked by James McMurdock (Independent (affiliation)) on Tuesday, 15 September 2026, in the House of Commons. It was due for an answer on Monday, 12 October 2026. It was answered by Kirsty McNeill (Labour) on Monday, 12 October 2026 on behalf of the Foreign, Commonwealth and Development Office.

Africa: Financial Markets

Question

To ask the Secretary of State for Foreign, Commonwealth and Development Affairs, with reference to page 23 of his Department's annual review of the FSDA - Financial Sector Deepening Africa Platform, published in January 2026, what the financial return to date has been on the £82.2 million in commitments signed by FSD Africa Investments.

Answer

The annual review reported that, as at 31 March 2025, Financial Sector Deepening Africa Investments (FSDAI) had £82.2 million of signed investment commitments. Its net internal rate of return was -3.05 per cent. This was below the programme's target of preserving the capital. However, these are interim valuations, not realised losses. Performance also reflected US dollar depreciation against sterling, as returns are measured in sterling while most assets are denominated in dollars.

Financial return is one measure of effectiveness, but not the primary one. The annual review concluded that FSDAI continued to represent good value for money overall. It described FSDAI as deploying patient capital to businesses, funds and financial intermediaries that address market failures and support investment in development and climate objectives. Development impact, mobilisation of additional finance and financial returns are expected to take time to materialise.

The review did not report the proportion of commitments generating a positive return, and no separate estimate has been made of a cost to the public purse on that basis.

Secondary information

Type
Written question
Reference
30181
Session
2026-27
Grouped for answer
Yes
Subjects
Africa Investment Financial markets FSD Africa
Contains statistics
Yes
Link
View this Written question on www.parliament.uk