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UK Export Finance provided £8.8 billion in new financing last year, helping 650 UK companies to export.
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Up to 41,000 jobs and £3.3 billion to national GDP supported by UKEF’s provision of financial support for UK exporters.
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Detailed in UKEF’s new annual report for 2023 to 2024, support for UK businesses helps turbocharge the economy and deliver growth opportunities across the country.
Hundreds of UK businesses benefited from £8.8 billion in support underwritten by UK Export Finance (UKEF) in the financial year 2023/24.
As the UK government’s export credit agency, UKEF provides loans, guarantees and insurance to help businesses sell their products around the world.
UKEF’s support in the last financial year enabled 650 UK companies to win or deliver export contracts last year – an average of almost two businesses securing crucial export financing every day of the year.
It is estimated that the UKEF-backed activity of these businesses and their suppliers contributes up to £3.3 billion towards UK GDP and supports up to 41,000 FTE jobs.
Over half of the businesses supported by UKEF were small and medium-sized enterprises (SMEs), something enabled by the agency’s work making its trade finance products more accessible. Last year, for example, UKEF increased the value and tenor of financing which it could automatically approve for lenders signed up to select guarantee schemes.
80% of those small businesses which UKEF supported with a product were based outside of London, demonstrating the department’s commitment to delivering growth opportunities across the United Kingdom.
Two guarantee products launched by UKEF in recent years have also continued to help exporters secure financing which might otherwise be out of reach:
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The Export Development Guarantee helped companies like SeAH Wind UK and UK-listed PLC Trifast to unlock large loan facilities supporting investment and jobs. Thanks in part to UKEF support, SeAH is now building one of the world’s largest factories to support construction of wind turbines, whilst Trifast, a manufacturer of industrial fastenings, will be able to build a 75,000 square foot distribution centre in the Midlands.
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The General Export Facility (GEF) unlocked over £575 million in financial support for UK businesses in 2023/24: a record for the product. Last year, UKEF expanded the range of lenders which could offer financing backed by a GEF guarantee.
UKEF’s international impact was also supported by a commitment to sustainable financing. Last year, UKEF became the first ECA to offer climate-resilient debt clauses, which help small-island developing states and low-income countries respond to climate shocks by pausing sovereign debt repayments. In December 2023, UKEF also became a founding member of the Net Zero Export Credit Alliance – a coalition of ECAs aiming to decarbonise export finance.
Tim Reid, CEO of UK Export Finance, said:
UKEF has a crucial role to play in helping UK firms bridge any financing gaps which might be a barrier to their exporting plans.
Our results from 2023 to 2024 show that we are stepping up to this challenge, with our highest level of support for UK businesses since the end of the COVID pandemic and our largest ever volume of financing guaranteed through our GEF product – a cornerstone of our offering to small businesses.
Successes like these are part and parcel of the government’s work to ensure a stable and growing economy.
While much of UKEF’s financing is not specific to individual export contracts, it did support a high volume of contract-specific business with African buyers (£1.3 billion), followed by the Middle East (£419.5 million) and Indo-Pacific (£376 million), reflecting the strong trade links between these regions and the UK.
Marcus Dolman, Vice-President of the British Exporters Association (BExA), said:
Growth in international trade is critical in growing the UK economy. UK exporters need a government focused on trade to help them achieve this growth. We are delighted to see that UKEF continues to deliver impressive results.
Their support in providing financial products to exporters and their overseas customers is key to providing a low-risk environment for UK companies to export in.
BExA is pleased to see the continued strong support for SMEs as access to finance is often cited as a barrier to export. We and our members look forward to continuing to work with UKEF to achieve the aims of their business plan and to fine tune and develop their product range to drive UK export growth.
Marco Forgione, Director General of the Chartered Institute for Export & International Trade, said:
UK businesses have enormous potential and are recognised around the world for their quality. That is why the Chartered Institute of Export & International Trade is dedicated to empowering businesses with the skills and knowledge they need to ensure that they can trade effectively, sustainably and competitively around the world.
Making trusted international trade easier and helping more UK businesses expand their international markets is central to getting growth into the UK economy. UKEF’s latest annual report is a welcome sign that supporting exporters of all sizes continues to be a priority for the government.
In April, UKEF launched its new 2024-29 Business Plan, which includes ambitious targets for increasing the size, scope and impact of its support by 2029. The department is aiming to support over 1,000 small and medium enterprises a year by the end of the decade.