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UK Unveils £100M Seed Fund to Spur Sustainable Development and Private Investment

Hanaa Siddiqi



The UK government is shifting its approach to international development, moving away from traditional aid towards catalyzing private sector investment. On Monday, the Foreign, Commonwealth & Development Office (FCDO) will unveil a £100 million seed fund aimed at businesses tackling poverty and climate change, designed to unlock £400 million to £600 million in additional private sector funding.


Development Minister Anneliese Dodds will announce the initiative at the London Stock Exchange, underscoring the government's ambition to integrate financial expertise into global development efforts. She will highlight the "expertise, experience, and dynamism" of the UK’s financial sector as a key driver in accelerating the United Nations’ Sustainable Development Goals (SDGs).


The funding will primarily support companies in emerging markets across Asia, Africa, and Latin America while providing British businesses opportunities to expand into these regions. Officials emphasize that this strategy directly responds to developing nations' demand for greater access to private capital, reinforcing the UK’s goal of forging stronger economic partnerships with the Global South.


A significant portion of the funding will be allocated to the FCDO’s Mobilist programme, which provides anchor funding and advises businesses on listing on international stock exchanges, including in London. This approach is designed to attract long-term investment, offering businesses the financial runway needed to scale sustainable solutions in climate resilience, infrastructure, and poverty alleviation.


By embracing a market-driven development strategy, the UK aims to blend financial innovation with global impact, positioning its economic and investment power at the core of international development efforts.


 Julia Hoggett, chief executive of the London Stock Exchange, said: “London’s capital markets have long played a leading role in driving flows of capital to where they need to go, and we welcome the focus on fuelling growth and supporting the just transition to net zero.”

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