Sunak to put £32bn into global infrastructure

British Prime Minister Rishi Sunak has committed to increasing government spending on infrastructure projects as part of the G7 summit held in Hiroshima, Japan. The UK will allocate £32 billion over the next five years, surpassing its previous offer of £8 billion per year until 2025. The funding will be channeled through the Partnership for Global Infrastructure and Investment (PGII), a collaborative effort by the G7 to support infrastructure development in developing nations.

The financial support will be provided through the British Investment Partnerships, a government investment programme aimed at addressing the infrastructure needs of low- and middle-income countries. The funds will be used to construct essential infrastructure such as bridges, roads, and renewable energy grids. The initiative was launched during the UK’s presidency of the G7 in Carbis Bay in 2021, with the goal of advancing the United Nations’ Sustainable Development Goals and making progress in global infrastructure investment.

Speaking about the investment, Prime Minister Sunak highlighted the significance of responsible private investment in driving transformative change. He mentioned specific projects already supported by the UK, including port development in Senegal and Somaliland, hydropower projects in Rwanda, and offshore wind initiatives in India. Sunak reaffirmed the UK’s commitment to ensuring that the PGII provides the necessary financing to uplift communities out of poverty.

The G7 aims to mobilise up to £485 billion ($600 billion) by 2027 to bridge the infrastructure investment gap in partner countries. The allocated funds will contribute to various projects, including the expansion of tramway networks in Morocco, the establishment of a multi-modal ferry connecting Guyana and Suriname to neighboring regions, and investments in urban public transport in Surabaya. Additionally, the funds will be used to develop onshore wind power plants in Egypt.

As part of the broader global infrastructure initiative, the UK’s development finance institution, British International Investment, announced its initial investment in the Indo-Pacific region. The institution will provide £12 million in funding for the Susi Asia Energy Transition Fund, supporting renewable energy, energy storage, and microgrid projects across the continent. This investment demonstrates the UK’s commitment to promoting sustainable and clean energy solutions in the Indo-Pacific region.