- Mike Freer to highlight the opportunities created for business by the UK’s new free trade agreements
- Minister to present plan to harness UK’s £ 50bn export finance capacity to spur an export revolution
- The UK’s leading non-bank lender, Newable is accredited to UKEFGeneral export facility to increase options for small businesses
- UKEF signs new partnership with General Electric to support industries of the future and boost UK renewable energy job growth
The Exports Minister will say today that UK companies must exploit the opportunities created by the trade deals the UK has signed with 70 countries plus the EU as he sets out his ambition to use UK export finance (UKEF) £ 50 billion in finance capacity to boost UK trade.
At the 4th Annual UK Trade and Export Finance Forum hosted by UKEFMike Freer will kick off an export revolution fueled by the UK’s rejuvenated Export Credit Agency.
This is a key part of the UK’s new ‘Made in UK, sold globally’ strategy to set the stage for an ambitious export target of £ 1 trillion in goods. British products sold abroad, seizing the opportunities presented by an expected quadrupling of world trade by 2050.
Minister Freer will say:
There are huge areas of untapped export potential across the UK. One in seven businesses with a turnover of over £ 500,000 does not and could be. UKEF is here to help change that.
He will underline how UKEF provided vital support to businesses during the pandemic, bridging the gap in private sector supply at a time of seismic changes in the global economy. He will say that UKEF is now ready to support the economic recovery by helping businesses to rebuild better than ever.
He will add:
In the last 18 months, UKEF was agile and responsive to market needs. The department has undergone radical changes and has emerged stronger. But he has billions of pounds left. I’m here to say there is more he can do. It is open for business.
The speech will highlight the success of innovations already introduced 2 years ago to rejuvenate UKEFoffer and announcement:
- £ 123million has now been issued to over 60 companies as part of UKEFthe new General Export Facility (GEF) since March 2021. Minister Freer will announce that Newable has become the first non-bank lender accredited under the program, expanding UKEFthe reach of among UK SMEs.
- The Export Development Guarantee (EDG), which allows UKEF to finance a company’s export activities, has been transformed to support companies that do not export but could and offers more generous terms to green exporters. Since its launch in 2019, it has backed more than £ 10 billion in commercial loans to UK exporters.
- UKEF today signed a new memorandum of understanding with General Electric (GE). The agreement will engage UKEF to support more renewable energy projects with GE, building on contracts worth over US $ 3.6 billion (£ 2.7 billion) already delivered since 2015, including financing for Turkey’s largest solar power plant in November.
A 20% increase in its budget, financed by turnover UKEF generates for the taxpayer, finance the expansion of UKEFand its staff overseas to help the ministry achieve net zero and increase support for green projects.
Additional support for renewable businesses
Clean industries already support 410,000 jobs across the country. That number is growing rapidly, with the clean growth sector estimated at £ 170 billion for the UK economy by 2030.
As part of a permanent focus on the industries of the future, keeping the promises made at COP26, UKEF makes access to finance easier than ever for UK exporters of clean growth services.
The minister will say:
From carbon capture to green hydrogen, from offshore wind to green bonds, the UK is immensely strong. And we need to export our expertise to the world. This is why agreements like the one signed today between UKEF and GE are so important. It will harness British expertise to help build a better world.
The Minister will end by emphasizing UKEFthe role of the UK in implementing the UK’s new export strategy and the need for greater financial support for exporters.
He will conclude:
We have set ourselves the ambitious goal of reaching one trillion pounds of exports per year by 2030. But behind that big number lie countless businesses, communities and people. And vital to deliver for all three, will be an expanded and re-energized UKEF – turbocharging exports and ensuring that what is made in the UK is sold around the world.
About UK Export Finance
UK Export Finance is the UK’s export credit agency and a government department, working alongside the Department for International Trade as part of its strategy and operations.
Established in 1919, it exists to ensure that no viable UK export fails for lack of private market funding. It provides financing and insurance to help exporters win, complete and get paid for export contracts.