-
UK’s export credit agency provides £6.8 billion worth
of backing for exports, supporting 47,000 British jobs in
record year
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UKEF backing for infrastructure
development across Africa reaches £600 million
-
UKEF pledges additional £2
billion in capacity for loans from 2020-21 to capitalise on
growing appetite to buy British
UK Export Finance (UKEF)
has published its results for 2018-19, revealing it provided £6.8
billion in support for UK exports, a record since 1991. Analysis
shows these exports have also supported an estimated 47,000 UK
jobs as demand for British goods across the globe continues to
grow.
Last year the department directly supported 181 companies’ making
exports to 72 countries. A further 81 UK companies secured
business by supplying to a project supported by UKEF, and thousands more benefited
through exporters’ supply chains.
At the heart of the Government’s Export
Strategy, UKEF provides guarantees,
insurance and loans to help British firms establish themselves in
some of the world’s fastest growing markets. ONS figures show UK
exports to emerging markets have grown by 62.2% over the last
decade to £76.5 billion in 2018 and UKEF support enables many of
these countries to buy British goods.
UKEF’s support is provided
in partnership with over 100 private sector providers and is
repaid over time, with the department charging a premium to cover
its costs and the risk it takes on. In 2018-19, UKEF generated more than £330
million in premium income for the Exchequer.
MP, Secretary of State for
International Trade, said:
Over the course of the last 100 years UK Export Finance has led
the way in delivering innovative finance to help British
companies achieve international success across a wide range of
industries across the world.
I am delighted UKEF is marking its centenary
with a record year, and as it continues into its second century
is supporting not only the UK’s exporters, which are growing in
number all the time, but also transformational projects which
have a direct impact on the lives of citizens across the globe.
During the year UKEF supported its largest ever
transaction, providing a £5 billion package to support BAE
Systems’ and MBDA UK’s contract with the government of Qatar. It
also connected more than 300 companies with opportunities on
overseas projects, and provided over £600 million in support for
projects in sub-Saharan Africa as the Government looks to boost
trade links between the UK and African countries.
MP, said:
The UK government’s Export Strategy recognises the importance
of UKEF’s support
as we make the UK a 21st century exporting superpower.
The strategy outlines a streamlined and targeted offer from
government for businesses of all sizes, and sets a new ambition
to increase exports as a proportion of gross domestic product
from 30% to 35%.
Looking ahead, UKEF will continue to innovate,
introducing a new general export facility designed to make its
support for exports more flexible for the needs of smaller
companies, as well as further enhancements to its product range.
UKEF’s direct lending
facility provides a source of highly efficient long-term fixed
rate financing, which can give UK exporters a competitive edge.
In response to the continued importance of direct lending to UK
exporters, the Chancellor announced in the 2018 Budget an
additional £2 billion of lending capacity for UKEF, up from £3 billion today.
Background
UKEF’s other business
highlights included:
- 79% of companies supported with finance and insurance were
small and medium-sized enterprises
- Providing its first ever support for Angola – £419 million to
build 3 new hospitals and upgrade 2 power stations
- Deploying £587 million in Direct Lending to support UK
exports, while making an additional £2 billion in capacity
available in 2020-21 and 2021-22
- Connecting more than 300 UK suppliers with opportunities on
projects in Africa and the Middle East through its supplier fair
programme
- Generating £332 million in premium income for the Exchequer,
more than the previous 3 years combined
- Being named best export credit agency for 2018 by Global
Trade Review and Trade Finance Global
- Latest statistics from the ONS show UK firms sold more
overseas in the 2018-19 financial year, £639.9 billion, than at
any time since records began
- The UK has now achieved 36 consecutive months of export
growth on an annual rolling basis
- It comes as separate OECD data reveals UK exports grew faster
than Germany, France and Italy between 2016 and 2018
To find out more about UKEF, or see if finance and insurance
from UKEFcould give
you an exporting edge, visit great.gov.uk.
