Overall, UKEF – the government’s export credit agency – provided £6.5bn in new direct support to UK exporters in 2022-23. The financing, provided through loans, guarantees and insurance policies, has supported up to 55,000 domestic jobs and added £4.1bn (gross value added) to the UK economy.
The £1.1bn provided to construction exporters has support up to 5,000 jobs – a 25% increase on last year’s figures, says UKEF.
The agency is now supporting more SMEs than at any time in the past 30 years. It says that 84% of firms directly supported with a UKEF product were small and medium-sized businesses, while 82% are located outside London.
Minister for exports Lord Offord said: “The construction sector has encountered many challenges over the last year in the face of world-wide economic turbulence. I am proud to see UKEF play its part in helping firms in this hugely important sector to capitalise on export growth opportunities which are bringing innovative British products and services to countries across the globe.”
To illustrate how British companies can benefit from UKEF support, the agency cites the example of ASGC UK. After UKEF provided £130m support for construction of a new specialist burns hospital in Angola, ASGC UK won a management contract to oversee the build – around 40% of which is expected to be delivered by UK firms supplying building materials, electrical equipment, medical supplies and more.
ASGC UK is the UK arm of Al Shafer General Contracting, a Middle-Eastern construction conglomerate headquartered in Dubai. It has two employees in the UK. ASGC UK is not a construction company but a financial services agency. Managing director Paul Woodman’s role is described on the company’s website as “oversee[ing] relationships with UAE-based customers who are seeking UKEF-supported financing for their forthcoming projects”.
Another UKEF beficiary last year was Hitech Construction Africa Limited, which has a registered office in Great Portland Street, London, but no actual employees in the UK. It received UK tax payer backing for road refurbishment in Togo.
Then there is ACC UK Group Ltd, which is received UKEF support to build government offices in Benin. This company also shows that it has no employees in the UK in its latest accounts, just an office registered to the Building Centre in Store Street, London. ACC stands for Arabian Construction Company. It is based in Abu Dhabi.
UKEF says that its aim is to ensure that no viable UK export fails for lack of finance or insurance. It provides financing support to businesses wishing to export, helping them to seek and win contracts by providing attractive financing terms to their buyers. The agency also helps them to fulfil export contracts by supporting working capital loans and contract bonds and provides insurance against buyer default to ensure that exporters get paid for deals.
No UK construction company is cited in the UKEF annual report, nor is there any evidence given of a UK supply chain benefiting.
UKEF’s latest annual report and accounts can be viewed here. (link opens in new page)
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