The Government is committed to protecting consumers and maintaining the integrity of UK financial markets. The Financial Conduct Authority and the Prudential Regulation Authority have robust powers to ensure that individuals carrying out regulated financial services activities are fit and proper.

Assessments of fitness and propriety include consideration of honesty, integrity and reputation, and may take account of criminal convictions where relevant. The Financial Conduct Authority and the Prudential Authority can also make prohibition orders preventing individuals who are not fit and proper from carrying out functions relating to regulated activities, alongside other supervisory and enforcement action where appropriate.

Financial Sector Deepening Africa (FSDA) expected net internal rate of return of zero per cent is a portfolio-level benchmark in sterling, reflecting its mandate to provide patient capital where returns may take time to materialise. No specific exchange-rate forecast or assumption about currency hedging was used in setting the benchmark. Currency risk is assessed when individual investments are appraised and structured and is monitored across the portfolio.

As of 31 March 2025, FSDAi's reported net internal rate of return was -3.05 per cent. Depreciation of the US dollar against sterling reduced the return reported in sterling because most assets are dollar-denominated while returns are reported in sterling. Other factors included write-offs on earlier investments, equivalent to 96% of the negative Internal Rate of Return, along with unrealised valuation movements reflecting the early stage of some recent equity investments. However, these are interim valuations, not realised losses.

Financial Sector Deepening Africa (FSDA) expected net internal rate of return of zero per cent is a portfolio-level benchmark in sterling, reflecting its mandate to provide patient capital where returns may take time to materialise. No specific exchange-rate forecast or assumption about currency hedging was used in setting the benchmark. Currency risk is assessed when individual investments are appraised and structured and is monitored across the portfolio.

As of 31 March 2025, FSDAi's reported net internal rate of return was -3.05 per cent. Depreciation of the US dollar against sterling reduced the return reported in sterling because most assets are dollar-denominated while returns are reported in sterling. Other factors included write-offs on earlier investments, equivalent to 96% of the negative Internal Rate of Return, along with unrealised valuation movements reflecting the early stage of some recent equity investments. However, these are interim valuations, not realised losses.

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.

The annual review concluded that Financial Sector Deepening Africa Platform (FSDA) continued to represent good value for money as a use of Official Development Assistance, including through FSDA Investments. The Foreign, Commonwealth & Development Office (FCDO) assessed this investment model as offering value for money because of its role in addressing market failures and mobilising additional finance that would not otherwise be available on the same basis.

The programme received an A+ output score. Effectiveness was assessed as adequate: results were well-linked to the theory of change, with strong delivery against planned activities and outputs, although some outcomes were taking longer than expected to materialise.

The finding that around one third of assessed interventions delivered outputs within the available resources and timeframe was one element of the programme's efficiency assessment, not its overall value-for-money judgement. The proportion of interventions that were significantly under- or over-budget, or delivered less than half of agreed targets, fell from 32 per cent to 17 per cent. The FCDO uses these findings to strengthen programme oversight.

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.

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.

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.

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.

The annual review concluded that Financial Sector Deepening Africa Platform (FSDA) continued to represent good value for money as a use of Official Development Assistance, including through FSDA Investments. The Foreign, Commonwealth & Development Office (FCDO) assessed this investment model as offering value for money because of its role in addressing market failures and mobilising additional finance that would not otherwise be available on the same basis.

The programme received an A+ output score. Effectiveness was assessed as adequate: results were well-linked to the theory of change, with strong delivery against planned activities and outputs, although some outcomes were taking longer than expected to materialise.

The finding that around one third of assessed interventions delivered outputs within the available resources and timeframe was one element of the programme's efficiency assessment, not its overall value-for-money judgement. The proportion of interventions that were significantly under- or over-budget, or delivered less than half of agreed targets, fell from 32 per cent to 17 per cent. The FCDO uses these findings to strengthen programme oversight.

The annual review concluded that Financial Sector Deepening Africa Platform (FSDA) continued to represent good value for money as a use of Official Development Assistance, including through FSDA Investments. The Foreign, Commonwealth & Development Office (FCDO) assessed this investment model as offering value for money because of its role in addressing market failures and mobilising additional finance that would not otherwise be available on the same basis.

The programme received an A+ output score. Effectiveness was assessed as adequate: results were well-linked to the theory of change, with strong delivery against planned activities and outputs, although some outcomes were taking longer than expected to materialise.

The finding that around one third of assessed interventions delivered outputs within the available resources and timeframe was one element of the programme's efficiency assessment, not its overall value-for-money judgement. The proportion of interventions that were significantly under- or over-budget, or delivered less than half of agreed targets, fell from 32 per cent to 17 per cent. The FCDO uses these findings to strengthen programme oversight.

The annual review assessed the programme as broadly on track to achieve outcomes and impacts overall, while reporting uneven progress against individual outcome milestones. Progress towards the climate-adaptation outcome was below the expected level for the review year: Financial Sector Deepening Africa Platform supported 181,111 people to adapt to climate change against a milestone of 800,145.

The review noted that several relevant interventions were still in early delivery, with measurable impact anticipated later in the programme cycle. It also recognised that some links between outputs and outcomes may take longer than originally expected. Greenhouse gas emission reductions and job creation exceeded milestones, supporting the overall assessment that the programme remained broadly on track.

The Foreign, Commonwealth & Development Office is monitoring this outcome through programme governance and future annual reviews. This will test whether interventions now in early delivery translate into improved adaptation results later in the programme cycle.

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.

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.

The annual review concluded that Financial Sector Deepening Africa Platform (FSDA) continued to represent good value for money as a use of Official Development Assistance, including through FSDA Investments. The Foreign, Commonwealth & Development Office (FCDO) assessed this investment model as offering value for money because of its role in addressing market failures and mobilising additional finance that would not otherwise be available on the same basis.

The programme received an A+ output score. Effectiveness was assessed as adequate: results were well-linked to the theory of change, with strong delivery against planned activities and outputs, although some outcomes were taking longer than expected to materialise.

The finding that around one third of assessed interventions delivered outputs within the available resources and timeframe was one element of the programme's efficiency assessment, not its overall value-for-money judgement. The proportion of interventions that were significantly under- or over-budget, or delivered less than half of agreed targets, fell from 32 per cent to 17 per cent. The FCDO uses these findings to strengthen programme oversight.

The Foreign, Commonwealth, Development & Office's (FCDO) assessment is that fraud and misuse-of-funds risks are real in Financial Sector Deepening Africa's Platform (FSDAP) operating context, but exposure of the public purse is mitigated and is not measured simply by the number of suspected cases reported.

Since 2017, 14 instances of suspected fraud or misuse of funds have been identified through the programme, of which only two involved FSDAP directly. Each instance is reviewed, with follow-up action taken or considered to reduce the risk of recurrence. The FCDO and FSDA maintain a zero-tolerance approach to fraud, supported by risk and compliance systems, training, due diligence, audit and whistleblowing arrangements.

Exposure of UK taxpayers depends on whether cases affect FSDAP Investments' assets, portfolio value or obligations to the FCDO. In no case has the value or recoverability of the FCDO's equity been directly affected, as verified by an independent valuation. The FCDO's direct exposure is also mitigated by its senior preference equity position, which ranks ahead of other equity.

The gross, pre-mitigation misuse-of-funds risk assessment applies to the FSDA (Financial Sector Deepening Africa) programme as a whole, and therefore to the full programme value for risk-assessment purposes. It reflects the inherent risk of operating in complex financial markets before controls are applied, not a finding that fraud or misuse is expected across the programme.

The annual review shows that the use of appropriate controls materially changes the risk profile and that, after mitigation, residual financial and fiduciary risk is moderate. The Foreign, Commonwealth & Development Office (FCDO) manages this risk through programme governance, regular risk reporting, due diligence, audit and compliance processes, and engagement with FSDA.

Fraud prevention and management measures are integral to normal programme and fund management. These costs form part of the wider operating, assurance, risk management and governance costs of FSDA and FSDA Investments, and are not accounted for as a separate consolidated cost category for the period since 2017.