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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 the FCDO annual review of the FSDA - Financial Sector Deepening Africa Platform, reviewed on 17 October 2025, whether analysis has been conducted on whether the programme's objectives could be achieved through alternative forms of UK development assistance.

Answer

Between 2021 and 2025, Financial Sector Deepening Africa (FSDA) Investments, the investment arm, secured £726 million of first-level co-funding from other investors into businesses and funds in which it invested, of which £222 million was private capital.

Commercial finance alone would not normally take the same risk at an early stage, before financing models and potential investments have been tested. Official Development Assistance therefore helps demonstrate viable investment opportunities that would not otherwise attract commercial finance at an early stage and can later attract wider commercial investment.

The original business case appraised alternative delivery channels and grant-only support, and selected a FSDA model combining grants, technical assistance and investment instruments, including loans, equity and guarantees, to address market failures in African financial systems and mobilise private capital.

FSDA has also diversified its funding and partnerships, including with institutional, philanthropic, and private-sector partners. In its current year budget, non-Foreign, Commonwealth & Development Office partners contribute one third of the total budget and close to half of salaries and overheads.

Secondary information

Type
Written question
Reference
30193
Session
2026-27
Grouped for answer
Yes
Subjects
Development aid Africa Financial markets
Link
View this Written question on www.parliament.uk