- Sogea-Satom UK will source goods and services from the UK
supply chain and boost UK exports to the region
- the upgraded road will facilitate trade between West African
countries
Exports Minister today announced that UK
Export Finance (UKEF), the
government’s export credit agency, has provided over £100 million
of financing to support the refurbishment of a 114 mile
interstate road in Benin. This is a major deal for the UK
construction industry in West Africa and is the first transaction
supported by UKEF in the country.
UKEF will provide a
£100 million loan to the Government of Benin in support of a UK
contract for construction firm Sogea-Satom, to redevelop the
major interstate road, securing business for the UK supply chain.
The agreement follows six months on from the Africa Investment
Summit that took place in January of this year where the UK
committed to being the ‘partner of choice’ for African nations.
Total UK exports to Benin were worth £29 million in 2019 and this
deal is set to significantly increase that figure during the two
years of the road’s development.
, Minister for Exports,
said:
This deal will bring significant benefits to UK construction
exporters and suppliers at a time when we need to keep trade
flowing. It shows that UK businesses, with the right support
from government, can continue to export anywhere in the world.
That’s why UKEF’s
support has been, and will continue to be, vital in helping UK
exporters win deals, fulfil orders and get paid during the
Coronavirus pandemic and beyond.
More trade will be essential if the UK is to overcome the
unprecedented economic challenge posed by Coronavirus.
Construction company Sogea-Satom UK, part of one of the world’s
largest construction group VINCI, will undertake the works on the
road between Bohicon and Parakou to better connect Benin to
neighbouring Niger.
The rehabilitated road provides essential infrastructure for
businesses in Benin. It will improve access to landlocked African
countries to the north, helping to transform the country’s
trading potential and allow the free flow of commercial traffic
in the region.
The refurbishment of the road has been named Project Spine
because the new straight road that runs through the middle of
Benin will be the backbone of the country’s economy.
In addition to this road project, Sogea Sotum UK is also
responsible for managing other large-scale projects in Benin.
These include civil works, construction of buildings,
refurbishment and development of roads and construction of marine
infrastructure. Sogea Sotum UK is strengthening its relationships
with UK suppliers to contribute to its project pipeline in the
region.
Jean-Michel Guelaud, CEO Africa at Sogea Satom UK, said:
We are excited about this project which help us expand our
overseas footprint and will have a profound impact on trade in
West Africa. UKEF’s
support was fundamental to the securing of this contact and
shows the UK government belief in the importance of trade with
dynamic, emerging economies.
The Benin Ministry of Finance said:
The government of Benin is proud to become the first country in
the West African Economic and Monetary Union area to benefit
from UKEF’s direct
lending arrangement, which has enabled us to finance the
rehabilitation of a critical infrastructure for the country at
attractive conditions.
This follows UKEF’s
announcement of £620 million worth of
support for critical infrastructure projects at the
UK-Africa Investment Summit in January.
