UK Export Finance Boosts 650 UK Firms’ Overseas Sales
Last year, UK Export Finance (UKEF) played a pivotal role in energizing the UK economy by providing an impressive £8.8 billion in new financing. This substantial support facilitated 650 UK companies in reaching global markets, significantly boosting their export potential.
According to the latest UKEF annual report for 2023 to 2024, the organization’s efforts not only helped turbocharge the economy but also opened up vast growth opportunities across the nation. The financial year saw a notable achievement with hundreds of businesses benefiting from UKEF’s backing, securing their positions in global markets through a variety of loans, guarantees, and insurance.
This strategic financial assistance has had a remarkable impact on the UK’s Gross Domestic Product (GDP) and employment rates. It is estimated that the activities supported by UKEF, including those of the businesses and their suppliers, contribute up to £3.3 billion towards the UK GDP and underpin around 41,000 full-time equivalent (FTE) jobs.
Particularly noteworthy is UKEF’s focus on small and medium-sized enterprises (SMEs), which accounted for over half of the businesses supported. In an effort to make trade finance products more accessible, UKEF increased the value and tenure of financing it could automatically approve for lenders participating in select guarantee schemes. Remarkably, 80% of these SMEs were based outside of London, showcasing UKEF’s commitment to fostering growth across the entire United Kingdom.
Two of UKEF’s financial products have proven to be especially instrumental in assisting exporters: The Export Development Guarantee and The General Export Facility (GEF). These guarantees have enabled companies, from wind turbine constructors like SeAH Wind UK to industrial fastening manufacturers like Trifast, to secure significant loan facilities for expansion and development.
The report also highlights UKEF’s pioneering work in sustainable financing. Last year marked UKEF’s adoption of climate-resilient debt clauses and its founding membership in the Net Zero Export Credit Alliance, aiming to decarbonize export finance.
Tim Reid, CEO of UK Export Finance, emphasized the critical role of UKEF in bridging financing gaps that might deter UK firms from exporting. With the largest financing volume guaranteed through the GEF product and an increased level of support since the end of the COVID pandemic, UKEF is at the forefront of the government’s efforts to stabilize and grow the economy.
The support was not limited to UK borders; UKEF backed a substantial volume of business with African buyers, followed by engagements in the Middle East and the Indo-Pacific, strengthening trade links between these regions and the UK.
Endorsements from key industry figures like Marcus Dolman, Vice-President of the British Exporters Association (BExA), and Marco Forgione, Director General of the Chartered Institute for Export & International Trade, further underscore the critical role of UKEF in enabling UK exporters to thrive in global markets.
Looking ahead, UKEF’s ambitious new Business Plan for 2024-29 sets bold targets to broaden its support framework, aiming to assist over 1,000 SMEs annually by the end of the decade. This plan reaffirms UKEF’s pivotal role in propelling UK businesses onto the global stage, ensuring that the nation’s export capacity continues to grow and flourish.
