1 April 2021 update
The Prosperity Fund, established in 2015 as a cross-government Prosperity Fund, was overseen by the National Security Council. It closed on 31 March 2021 and prosperity programming transferred to the Foreign, Commonwealth & Development Office.
It aimed to promote economic growth and reduce poverty in developing countries and contributed towards achieving the UN Sustainable Development Goals. The Fund was a response to an increasing demand from Middle Income Countries to build deeper trade, investment partnerships and economic relations with other countries, rather than rely on aid alone.
The Fund has shown how aid can be used in more experimental and innovative ways. It demonstrated how aid can be a catalyst for wider economic growth in partner countries, whilst also benefiting people and business elsewhere, including in the UK.
Read the 2019 to 2020 Prosperity Fund annual report. Prosperity is a main priority in the government’s Integrated Review.
The Prosperity Fund is a £1.2 billion portfolio of programmes over seven years. The Fund also looks to create opportunities for international business including UK companies as a result of this economic growth, as a secondary benefit.
The Funds focus is on ODA-eligible (Official Development Assistance) middle-income countries where around 60% of the world’s poor live and where 60% of global growth will come from by 2030 (OECD). The Fund includes a small non-ODA component of £33 million, split over 4 years (2016 to 2020)
The Fund provides expertise and technical assistance in sectors and countries where there is the highest potential for inclusive growth, to:
- promote economic reforms and remove barriers to trade
- strengthen policy capacity and build strong institutions
- reform key sectors such as infrastructure, energy, finance, education and healthcare
- tackle corruption
The Prosperity Fund forms a small but strategic proportion of the UK’s total ODA commitment of 0.7% of Gross National Income (GNI). It represents a strategic shift in the ODA resources spent on assisting countries to grow and develop by focusing on multi-year programmes in middle-income countries, which will help to make the world a more prosperous place.
All aid projects and programmes comply with the International Development Act 2002, the International Development (Gender Equality) Act 2014, the OECD Development Assistance Committee (DAC) criteria, and UK Government transparency commitments on ODA spend. All UK ODA is untied.
For more detailed information on the Fund’s direction and priorities read the further information on the Prosperity Fund.
Programmes and activities
For more information on current Prosperity Fund programmes and activities, see our programmes and activities page.
The Fund held its first Business Forum on 20 July, where ministers and business leaders came together to discuss building economic partnerships with the developing world.
Also see the previous Annual Reports:
Delivering the Fund
The majority of Prosperity Fund programme spend is via commercial contracts and Memorandums of Understanding (MoUs). For commercial contracts we tender through the Cross-Government Prosperity Framework, as the preferred route to market.
The Prosperity Fund Framework was tendered through open competition in 2018 with winning suppliers notified and award notices published. The Foreign, Commonwealth & Development Office (FCDO) administer the framework on behalf of the Fund. For further information on the procurement processes within the FCDO see the Bravo e-Sourcing Portal or contact Prosperity.Procurement@fcdo.gov.uk.
Programmes not tendered through the FCDO-based framework will be available through multiple routes, including other FCDO or other government frameworks as appropriate.
Information on commercial opportunities for the Prosperity Fund will be available to registered suppliers on relevant departmental procurement portals and Contracts Finder as they occur. All are tendered via the Official Journal of the European Union (OJEU) process and published accordingly.
The Fund is committed to being as transparent as possible. As part of our commitment to the International Aid Transparency Initiative (IATI), we are working to publish more information as it becomes available. For current information, see our ODA spend data and the above programme and activities section.
For other general inquiries and feedback contact JointFundsUnit@fcdo.gov.uk.
The cross-Government Prosperity Fund is also referred to in the Capability Review of the cross-Government Funds.