FCO Prosperity Fund Overseas Development Assistance
Source: data.gov.uk (2020-12-11)

The cross Government Prosperity Fund promotes the economic reform and development need in underdeveloped countries.
These dataset are cummulative files and provide the spend data since 2016.

The Prosperity Fund: Annual Report 2016/17

The Prosperity Fund: Annual Report 2016/17 
December 2017
2
Foreword by the National 
Security Adviser
The Prosperity Fund will help 
improve lives in the developing 
world—creating jobs, developing 
skills, investing in infrastructure, 
and supporting the technologies of 
the future. As the UK Aid Strategy 
2015 sets out, promoting growth 
and prosperity in developing 
countries contributes to poverty 
reduction and also strengthens 
UK economic opportunities. As 
we leave the European Union, an 
even more outward-looking global 
Britain investing and trading with 
the fastest growing markets is good 
for the UK and good for the world.
The Prosperity Fund is a new and 
innovative instrument of government 
policy. This first annual report shows 
how the Prosperity Fund was set up 
and how its strategy was developed. 
Initial projects focused on preparing 
for future multi-year programmes. 
Projects included improving the 
environment for business, access 
to financial services, urban planning 
and energy infrastructure. Work 
is focused on countries with 
large numbers of people living in 
poverty, where there is the potential 
for inclusive growth, and where 
there is a chance for the UK both 
to make a real difference and to 
create opportunities for business.
The report also underlines our 
commitment to ensuring that 
the Fund is run in an open and 
transparent way. In line with that 
commitment, we are increasing 
the amount of programme 
information available on gov.uk.
Mark Sedwill 
National Security Adviser
Contents
Foreword by the National Security Adviser........................................................................2
Executive Summary..............................................................................................................3
What is the Prosperity Fund?...............................................................................................4
What are the objectives of the Prosperity Fund, and how will it deliver change?...........5
Primary Purpose: Poverty reduction and development in partner countries................... 5
Secondary Benefit: Creation of opportunities for business, including UK business........ 5
Prosperity Fund Theory of Change................................................................................. 5
The Prosperity Fund Theory of Change Model..................................................................6
The Prosperity Fund and the Sustainable Development Goals:.......................................8
Country and sector focus of the Prosperity Fund 2016/17—2021/22...............................9
The Prosperity Fund’s governance, accountability and scrutiny...................................10
Governance...................................................................................................................10
The International Development Act and Official Development Assistance.....................10
Evaluation and Oversight...............................................................................................10
Ministerial Board members............................................................................................11
The first year of the new Prosperity Fund.........................................................................12
Examples of Prosperity Fund work in 2016/17...............................................................12
Business Environment....................................................................................................12
Infrastructure..................................................................................................................12
Healthcare......................................................................................................................13
Urban planning...............................................................................................................13
Financial services...........................................................................................................14
Low Carbon Energy.......................................................................................................14
How the major programmes are being established.........................................................16
Portfolio management....................................................................................................16
Non-ODA.......................................................................................................................16
Notes....................................................................................................................................20

The Prosperity Fund: Annual Report 2016/17 
3
Executive Summary
The UK Aid Strategy 2015 set out how the Government 
will use Official Development Assistance (ODA) to 
promote economic development and prosperity 
in the developing world. This will contribute to a 
reduction of poverty and create opportunities for 
international business, including UK companies.
The Prosperity Fund aims to remove barriers to economic 
growth in order to reduce poverty—the Fund’s primary 
purpose. It supports the United Nation’s Sustainable 
Development Goals, particularly SDG 8, to “Promote 
inclusive and sustainable growth, employment and 
decent work for all”. Removing barriers also creates 
opportunities for international trade, some of which will 
be with the UK—a secondary benefit of the Fund.
The Fund ran 395 projects in its first year (2016/17) 
spending a total of £63 million, of which £5 million 
was non-ODA. These included technical assistance, 
capacity building and research on a range of 
economic policy, trade, business environment, anti-
corruption and green growth issues. The projects 
laid the groundwork for the larger multi-year 
programmes operating from 2017/18 onwards.
Ministers have directed the Fund to concentrate 
on countries and sectors with stubborn poverty 
and development challenges, significant economic 
potential, and where the UK has comparative strength. 
Priorities include improving the business climate, 
competitiveness and operation of markets, energy, 
financial sector reform and tackling corruption.
Ministers have endorsed 24 multi-year programmes 
totalling close to £1.3 billion, operating from 2017/18 
onwards. These are set to deliver substantial 
development impact and present economic 
opportunities for international business. All programmes 
will consider opportunities for promoting gender 
equality and inclusion, and the Fund is monitoring 
and evaluating progress against SDG 5, to “Achieve 
gender equality and empower all women and girls”.
The Independent Commission for Aid Impact (ICAI) 
and National Audit Office (NAO) jointly reviewed 
the Fund in February 2017. The recommendations 
were agreed and have been acted upon.
Further information on the Prosperity Fund is available at:
www.gov.uk/government/publications/cross-
government-prosperity-fund-programme

The Prosperity Fund: Annual Report 2016/17 
December 2017
4
What is the Prosperity Fund?
The Prosperity Fund was announced in 
the 2015 Strategic Defence and Security 
Review, and represents a key component of 
the prosperity pillar of the UK Aid Strategy. 
It is a cross-government Fund that aims to 
reduce poverty through inclusive economic 
growth. It was originally allocated £1.3 billion 
to deploy. This was subsequently revised 
to £1.2 billion from 2016/17 to 2021/22 
following revisions to HMG aid allocations.
Many developing countries, including middle 
income countries where around 70%1 of 
the world’s poor live, still face considerable 
challenges such as rapid urbanisation, climate 
change and high and persistent inequality 
(including gender inequality) which can lower 
long-term growth prospects. The Prosperity 
Fund supports the broad-based and inclusive 
growth needed for poverty reduction.
The UK has expertise in a range of sectors 
that are key for countries as they develop, 
including education, healthcare, finance and 
infrastructure. Helping partner countries 
develop in these areas and improve their 
business environment will give people and 
businesses greater opportunities to work in 
a stronger and more productive economy.
The Fund seeks to improve trade links between 
partner countries and the rest of the world, 
including the UK. Higher growth in partner 
countries offers greater trade opportunities for 
international and UK business. It is estimated 
that emerging and developing economies will 
account for nearly 60% of world GDP by 20302.
The Prosperity Fund forms a small but 
strategic proportion of the UK’s total 
Official Development Assistance (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.
The Fund looks to support an outward looking, 
global Britain investing and trading with fast 
growing markets. There is a small non-ODA 
allocation through the Fund in order to support 
the government’s ongoing prosperity goals.

The Prosperity Fund: Annual Report 2016/17 
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What are the objectives of 
the Prosperity Fund, and how 
will it deliver change?
Primary Purpose: Poverty reduction 
and development in partner countries
The focus of the Fund is on reducing 
poverty in ODA-eligible partner countries. 
The only long-term solution to this 
is sustained and inclusive economic 
growth and development. Economic 
growth has been one of the key factors 
in lowering global poverty over the 
last century. The Fund targets long-
term barriers to economic growth, 
barriers which if not addressed can 
hold back a country for generations.
Secondary Benefit: Creation 
of opportunities for business, 
including UK business
The UK has world-leading expertise 
in key sectors required for country 
development such as education, 
healthcare, infrastructure, financial 
services and effective regulation. By 
removing barriers in these sectors, the 
Fund seeks to encourage inclusive 
growth and access in these markets, 
benefiting both the partner countries and 
its economic partners, including the UK.
Prosperity Fund Theory of Change
The Fund has developed a ‘Theory of 
Change’ to identify the key drivers of 
poverty reduction and ways in which 
the Prosperity Fund can help to address 
these. Five types of intervention have been 
identified: investment in infrastructure and 
human capital; innovation and knowledge 
transfer, including low-carbon technology; 
trade, financial and economic reform; 
policy and regulatory capacity; and ease 
of doing business. These five themes, 
aligned with the Commission for Growth 
and Development Growth Report (2008)3, 
provide the basis for improved growth.
The Theory of Change explains the 
journey from near-term inputs and 
activities through to long-term poverty 
reduction. In-depth evaluations will 
review how programme activities have 
fed directly into intermediate outcomes. 
Beyond intermediate outcomes, 
economic theory will demonstrate that 
the Fund contributes positively to the UN 
Sustainable Development Goals. This 
approach is typical of large development 
portfolios and is used by organisations 
like the World Bank and United Nations.

The Prosperity Fund: Annual Report 2016/17 
December 2017
6
The Prosperity Fund Theory of Change Model
Outcomes
Improved conditions for growth in partner countries
Increased capacity  
for trade and economic growth 
in partner countries
Improved environment
for trade and economic growth 
in partner countries
Secondary UK benefits
New opportunities and mutually 
beneficial economic relationships 
are developed in sectors where the UK 
has a comparative advantage.
Impact
SDSR and
Export strategy
Growth-promoting relationships
Higher rates of 
sustainable growth
Improved conditions and reforms 
promote sustainable economic 
growth—as per SDG8
Greater investment flows
Improvements in the business 
environment lead to higher investor 
confidence and greater investment flows
Greater trade flows
Businesses explore new opportunities 
in PF economies and internationally
UK businesses 
are key partners/
service providers 
in target sectors.
Intermediate 
outcomes
Financial and 
economic reform
PF countries have better 
financial and economic 
systems, which supports 
business growth.
Trade
Reforms bring tangible 
benefits to the economy 
and opportunities for trade 
growth, building the case 
for further openness.
Human capital, 
innovation and 
technology
Improvements in human 
capital, innovation and 
knowledge transfer drive 
productivity growth and the 
adoption of new technologies.
Investment in 
infrastructure
Improvements in infrastructure 
support business growth 
and facilitate participation 
in the global economy.
Ease of doing 
business
PF countries are on paper 
and in practice easier places 
to do business. Positive 
experiences of investors 
and other private sector 
actors become well known.
Partnerships in the delivery 
of intermediate outomes lead 
to a greater understanding 
of sectoral best pratice, UK 
expertise and opportunities 
for mutually beneficial 
economic relationships.
Three-pillar understanding of sustainability runs through 
programming design—green, self-financing and inclusive.

The Prosperity Fund: Annual Report 2016/17 
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Intermediate 
outcomes
Financial and 
economic reform
Trade
Human capital, 
innovation and 
technology
Investment in 
infrastructure
Ease of doing 
business
Supporting SDG 9 through:
Stronger, more appropriate physical 
infrastructure based on greater ability 
to implement infrastructure projects
Supporting SDG 7 through:
Expanded and more 
sustainable energy supply
Supporting SDGs 9&11 through:
Cities supported and developed 
to meet future needs
Supporting SDG 3&4 through:
Healthier, better educated and 
more skilled population/workforce
Supporting SDG 12 through:
Preparation for free trade 
agreements between UK 
and partner countries
Supporting SDG 9 through:
Enhanced ability to develop 
and adopt new technologies
Non-tariff barriers to trade removed 
by partner country governments
More efficient financial sector 
and access to finance
Increased transparency 
and reduced corruption
Supporting SDG 16 through:
Strengthened policy and regulatory 
environment including IP rights 
and international standards
Multi-year country projects
Prosperity Fund finances a range of projects across 
different countries and different thematic areas
Multi-year thematic projects

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December 2017
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The Prosperity Fund and the Sustainable Development Goals:
Achieving the UN Sustainable Development Goals 
is an important aim of the Prosperity Fund.
At impact level, the Fund is particularly focused on:
•	 SDG 8—Promote sustained, inclusive and 
sustainable economic growth, full and productive 
employment and decent work for all
The Fund also supports other 
Sustainable Development Goals:
•	 SDG 3—Ensure healthy lives and promote 
well-being for all at all ages
•	 SDG 4—Ensure inclusive and equitable 
quality education and promote lifelong 
learning opportunities for all
•	 SDG 5—Achieve gender equality and 
empower all women and girls
•	 SDG 7—Ensure access to affordable, reliable, 
sustainable and modern energy for all
•	 SDG 9—Build resilient infrastructure, promote inclusive 
and sustainable industrialisation and foster innovation
•	 SDG 11—Make cities and human settlements 
inclusive, safe, resilient and sustainable
•	 SDG 12—Ensure sustainable consumption 
and production patterns
•	 SDG 14—Conserve and sustainably use the oceans, 
seas and marine resources for sustainable development
•	 SDG 16—Promote peaceful and inclusive societies 
for sustainable development, provide access 
to justice for all and build effective, accountable 
and inclusive institutions at all levels

The Prosperity Fund: Annual Report 2016/17 
9
ODA country and sector focus of the Prosperity Fund 2017/18–2021/22
Sectors
Anti-corruption
Business Environment
Digital
Education and Skills
Energy
Financial Services
Future Cities
Healthcare
Infrastructure
Insurance
Regulatory Reform
Trade Reform
Countries 
Bangladesh
Brazil
Burma
China
Colombia
Egypt
Ethiopia
India
Indonesia
Kenya
Lebanon
Malaysia
Mexico
Morocco
Mozambique
Nigeria
Pakistan
Philippines
South Africa
Sri Lanka
Vietnam
Thailand
Turkey
Estimated spend 
2017/18–2021/22
	
+£50m 
	
£10-£50m
	
£0-£10m
	
No Allocation

The Prosperity Fund: Annual Report 2016/17 
December 2017
10
The Prosperity Fund’s governance, accountability and scrutiny
Governance
The cross-government Fund is accountable to the National 
Security Council and overseen by a Ministerial Board. 
Their responsibilities include: setting the strategic direction 
of the Fund; endorsing programme proposals; reviewing 
impacts; and ensuring value for money. The Fund’s Senior 
Responsible Owner is the National Security Adviser, Mark 
Sedwill. A Portfolio Board comprised of senior officials 
representing stakeholder departments makes decisions on 
portfolio composition and delivery issues. The Prosperity 
Fund Management Office provides strategic management 
and corporate support. Delivery departments are 
responsible for: designing credible programmes; ensuring 
effective spend and delivery; financial accountability and 
reporting on progress. Governance of the Fund may be 
revised as part of the National Security Capability Review.
The International Development Act and 
Official Development Assistance
The International Development Act 2002 (IDA), 
and 2007 amendment provide the legal basis for 
the Fund. The Act requires that all UK aid money 
be focused on poverty alleviation and incorporate 
work to improve gender equality. All Prosperity 
Fund aid programmes must be IDA-compliant.
The Organisation for Economic Co-operation and 
Development (OECD) Development Assistance 
Committee (DAC) defines ODA as “those flows to 
countries and territories on the DAC List of ODA 
Recipients and to multilateral institutions which are:
1.	 provided by official agencies, including state and local 
governments, or by their executive agencies; and
2.	 each transaction of which:
a)	 	is administered with the promotion of the 
economic development and welfare of 
developing countries as its main objective; and
b)	 is concessional in character and conveys a 
grant element of at least 25 per cent (calculated 
at a rate of discount of 10 per cent).”
All Fund programmes are required to meet the DAC 
definition of ODA in order to contribute to the UK’s legal 
requirement to ensure that 0.7% of Gross National 
Income is directed towards overseas development, 
as enshrined in the International Development (Official 
Development Assistance Target) Act (2015). All Fund 
programmes must also consider the potential to 
reduce gender inequality. Design and delivery involve 
consultation with a range of stakeholders, including 
businesses and civil society organisations, and consider 
social and environmental, as well as economic impact.
Evaluation and Oversight
The Fund is periodically reviewed by the Independent 
Commission for Aid Impact (ICAI), which publishes its 
reports and recommendations. The most recent review, 
conducted jointly with the National Audit Office (NAO), was 
in February 2017. The review acknowledged the progress 
made to date and made constructive recommendations 
for improvements including: adjusting the planned rate 
of expenditure; refining the Fund’s strategic objectives; 
improving transparency; and greater clarity on how 
programmes will deliver both development impact in 
partner countries (the Fund’s primary purpose), and 
help to promote trade and business opportunities 
(secondary benefit). The Fund has responded to the 
recommendations and benefited from the wider guidance 
of the ICAI Secretariat. These external reviews are helping 
the new Fund to evolve and incorporate lessons learnt.
Independent evaluations will take place in Years 2017/18 
onwards at both portfolio and programme level.
Prosperity Fund evaluations and other documents will 
be published as part of the commitment to achieve a 
“good” rating on transparency from the International 
Aid Transparency Initiative (IATI). Transparency is 
vital for aid to be effective and the Fund is working 
closely with IATI to ensure we meet this standard.
The Fund is also answerable to Parliament 
through the cross-party International 
Development Committee Select Committee.

The Prosperity Fund: Annual Report 2016/17 
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Ministerial Board members
•	 Her Majesty’s Treasury (HMT): Chief 
Secretary to the Treasury (Chair)
•	 Foreign & Commonwealth Office (FCO): Minister 
of State for Africa (also Minister of State for 
International Development at DFID)
•	 Department for International Development (DFID):  
Minister of State for International Development (also 
Minister of State for the Middle East at the FCO)
•	 Department for International Trade 
(DIT):  Minister of State for Trade and 
Investment (also Minister for London)
•	 Department for Business, Energy & Industrial 
Strategy (BEIS): Minister of State at the Department 
for Business, Energy and Industrial Strategy
•	 Department for Digital, Culture, Media & Sport 
(DCMS): Parliamentary Under Secretary of 
State for the Arts, Heritage and Tourism
•	 Department for Environment, Food & Rural Affairs 
(DEFRA): Parliamentary Under Secretary of State 
for the Environment and Rural Life Opportunities 
•	 Department of Education (DoE): Minister of State for 
Universities, Science, Research and Innovation 
•	 Department of Health (DoH): Parliamentary Under-
Secretary of State for Public Health and Primary Care
•	 Home Office: Minister of State for Security
•	 Ministry of Defence (MoD): Parliamentary 
Under Secretary of State and Minister 
for Defence Procurement
•	 Cabinet Office: National Security Adviser (SRO)
National Security Council
Ministerial Board
Senior Responsible Owner
National Security Adviser
Portfolio Board
including Prosperity Fund 
Management Office support
Spending Departments
DFID, DIT, FCO, HMT, BEIS, 
DCMS, DEFRA, DoE, DoH, MoD

The Prosperity Fund: Annual Report 2016/17 
December 2017
12
The first year of the new Prosperity Fund
The Fund ran 395 programmes globally in 
2016/17, falling into four areas of work:
•	 Targeted project interventions to trial new 
technologies, systems, or methodologies. 
Evidence gathered from these projects will be 
used to inform larger interventions in the future.
•	 Capability and capacity building to make 
government entities, businesses and the labour force 
more effective. Examples include improved regulation, 
better deployment of technology and skills training.
•	 Research and analysis to identify opportunities 
for improvements in industrial sectors or 
government policy in partner countries, and 
map out the way to achieve those benefits.
•	 Knowledge transfer to forge partnerships between 
UK and host country bodies such as regulatory bodies 
or educational institutions to aid knowledge transfer.
Much of the work in Year 2016/17 was designed to achieve 
impact and also help form an effective strategy for running 
programmes from 2017/18 onwards—helping to build 
productive relationships with key stakeholders in partner 
countries, and enable the Fund to deploy its resources 
to the greatest opportunities. The Prosperity Fund 
2016/17-2021/22 succeeds a previous project mechanism 
run by the FCO, also called the Prosperity Fund.
Examples of Prosperity 
Fund work in 2016/17
Below are some examples of Prosperity 
Fund work in 2016/17.
Business Environment
Lack of transparency and accountability is a major 
obstacle to doing business in developing countries. 
In Indonesia, a project trained over 100 government 
finance officers in public sector accounting and business 
skills to improve capacity and strengthen business 
environment regulation. These skills and qualifications 
are now being built in to local municipality training 
and development schemes. This will help to support 
inclusive growth and women’s economic empowerment 
by addressing challenges faced by female small and 
medium enterprise (SME) owners. Discussions are 
going on with several Indonesian cities to roll out more 
comprehensive capacity building programmes.
In Thailand, funds were used to develop the country’s 
first Public Procurement Act. The Act, which was 
approved in December 2016, standardises the 
system of public procurement and provides greater 
transparency and integrity. Expected tenders on mass 
transit and airport expansion mean that international 
firms, including from the UK, will now compete for 
£1 billion of business using the new system.
In India, funds were used to strengthen anti-money 
laundering through building the capacity of 60 officials 
from government and the private sector. The project 
promoted UK anti-bribery policy and initiated discussions 
with Indian MPs about passing anticorruption legislation 
containing features similar to the UK’s Bribery Act. 
The Fund also helped develop a Memorandum of 
Understanding between India and the UK to share 
best practice on ease of doing business reforms. 
This included the first ever UK-India Ease of Doing 
Business Conference, where UK experts engaged 
with Indian officials from across the country.
Developing countries need to harness trade, growth 
and investment to enhance prosperity and reduce 
poverty. Supporting countries to improve their enabling 
environments for business will make it easier for 
companies—including from the UK—to enter and 
invest. The UK-hosted Anti-Corruption Summit in May 
2016 was supported by programme funds. It brought 
together world leaders, business and civil society and 
agreed measures to reduce corruption, which in turn 
aim to improve the environment for doing business.
Infrastructure
No economy can achieve high sustained growth 
without the right infrastructure. Energy, transport, water 
and communications infrastructure are vital for private 
sector investment to stimulate economic growth.
Funds were used to improve electricity infrastructure in 
South Africa. One intervention field-tested technology 
to support the management of the electricity grid. This 
showed how technology can eradicate the need for 
widespread load-shedding, increase grid capacity and 
Anti-Corruption Summit in May 2016

The Prosperity Fund: Annual Report 2016/17 
13
reduce operational costs. UK companies are now in 
the process of investing in South Africa and exploring a 
partnership to deploy the technology in innovative new 
ways. Another intervention in South Africa introduced 
700 small and medium enterprises (SMEs) to a new 
waste-to-energy business solution which reduces 
emissions costs and the strain on the national grid.
In Kenya, support was provided to the Lamu Port-South 
Sudan-Ethiopia Transport Corridor project. An integrated 
planning and investment framework was created to align 
stakeholders and unlock funding to make the project 
more viable and sustainable. The Kenyan Government 
has legally adopted the framework which will help unlock 
private funding in future. This will provide opportunities 
for international, including UK businesses, to invest in the 
construction of a pipeline, roads and railway lines; water 
and sanitation services; and building resort cities along 
the corridor. When complete, the project will be Kenya’s 
second major transport corridor, with the potential to 
contribute significantly to the country’s development.
In India, funding was used to initiate an India-UK 
Memorandum of Understanding on energy cooperation. 
This included activities to support solar energy, energy 
storage, industrial energy efficiency, and to encourage 
green leadership by legislators. UK support on green 
bonds contributed to an Indian public sector company 
committing US$4 billion to finance clean energy 
infrastructure in India. This commenced with a first tranche 
of $300 million worth of green ‘masala’ bonds issued on 
the London Stock Exchange. This generated an estimated 
$2 million of returns to UK financial services providers 
and will co-finance an estimated $1.2 billion worth of new 
clean energy projects in India, opening opportunities for 
companies including from the UK. Indian Minister Piyush 
Goyal has agreed to accelerate the issuance of $1 billion 
of green bonds in London by the end of 2017. Since 
2016, UK funding to prepare Indian companies for bond 
issuances has resulted in $950 million worth of bonds 
being issued on the London Stock Exchange. One billion 
dollars of bonds are estimated to generate $4 billion of 
opportunities in clean energy infrastructure projects in 
India, for which companies can compete to deliver.
In Brazil, programming has promoted sustainable 
alternatives to wastewater treatment and forged research 
links with Cranfield University, which has started research 
on an anaerobic wastewater treatment reactor based 
on Brazilian experience. Building this link will enable 
knowledge and technology exchange in the future.
Healthcare
Improved healthcare systems make an important 
contribution to economic progress. Healthy 
populations live longer and are more productive.
Prosperity funding in Brazil has supported work 
on public health policy related to primary care in 
Recife, to improve patient care. The project focused 
on improving access, responsiveness, quality and 
a range of care services in local communities. It 
also analysed state telehealth systems, aiming to 
increase the efficiency and effectiveness of health 
administration. The project’s recommendations 
were embraced by the local government and are 
being built into a four year implementation plan. The 
partnership has identified areas where the UK can 
assist Brazil, including: developing indicators to monitor 
the performance of hospitals and health systems; 
setting up monitoring and improvement functions; and 
training on data and performance management.
Another intervention in Brazil involved working with the 
Department of Health of the State of São Paulo and the 
government’s innovation unit. It involved designing a new 
Health Innovation Policy that promotes and improves 
cooperation between public, private and civil society 
organisations. Piloting of the new policy resulted in the 
launch of a public call for partners to co-develop a new 
molecular diagnostic kit for tuberculosis. Following 
international competition, a UK company won the 
challenge, and is now negotiating a partnership to develop 
the diagnostic kit to help the state tackle the disease.
Urban planning
There has been a phenomenal shift towards urbanisation 
globally, with six out of every ten people in the world 
expected to reside in urban areas by 2030. Over 90% of 
this growth will take place in Africa, Asia, Latin America, 
and the Caribbean. Designing cities intelligently gives 
people better access to services and employment 

The Prosperity Fund: Annual Report 2016/17 
December 2017
14
opportunities and increases economic growth and 
social development. Improved spatial planning and the 
creation of safe transport systems also help to drive 
women’s economic participation and therefore support 
increased levels of prosperity and inclusive growth.
China is experiencing the largest migration of people in 
history, with large numbers of people moving from rural 
areas to cities in search of work and a better life. China-UK 
cooperation has resulted in smart-cities standards being 
incorporated into China’s compulsory and people-centred 
“Smart Cities Evaluation Indicator”. The indicator evaluates 
cities’ performance and guides future development across 
urban planning, governance, and improved services for 
ordinary city dwellers. The Indicator will enhance market 
conditions and opportunities for international trade, 
including with the UK. Areas of focus include: strategic 
design, data sharing, smart transport, healthcare, 
water, sanitation and safe cyber—all areas where the 
UK is a world leader. According to UK Government 
estimations, annual investment in China’s smart cities 
market could reach £152 billion by 2030, providing 
significant commercial opportunities for UK firms.
Financial services
Financial inclusion is necessary to ensure that all 
households and businesses, regardless of income 
level, have access to and can effectively use the 
financial services they need to improve their lives 
and contribute to sustainable development.
A project in Mexico, through a partnership between 
the UK´s Behavioural Insights Team and Mexican 
partners, worked to pilot financial education for 60,000 
economically disadvantaged women. The pilot schemes 
focused on areas where banking infrastructure is 
inadequate, and where an increase in awareness and 
adoption of mobile financial technology would contribute 
towards poverty alleviation. In addition to education, 
the pilots gathered vital data required for the roll-out 
of mobile banking in the future; a mobile banking app 
is currently under development. Stakeholders want to 
expand the pilots to up to 3 million marginalised women 
by the end of 2018. As well as increasing prosperity in 
Mexico, greater access to financial services will create 
opportunities for business, including those from the UK.
Low Carbon Energy
Climate change is one of the biggest threats to global 
sustainable development. Climate funding can help 
developing countries mitigate and adapt to climate 
change, enhancing their potential for economic 
development. Women are disproportionately affected 
by the impacts of climate change. Programmes that 
build resilience and mitigate or reduce its impacts can 
particularly benefit women and support inclusive growth. 
The promotion of low carbon technology and energy 
efficiency also offers commercial trade and investment 
opportunities for business, including in the UK.
In Vietnam, technical support was provided for 
the implementation of the Vietnam greenhouse 
gas inventory system which will help the country 
fulfil its international reporting responsibilities.

The Prosperity Fund: Annual Report 2016/17 
15
Thematic breakdown of 
projects in 2016-17
Total no of projects: 395
Other: 23 
Trade Reform: 29
Insurance: 3
Infrastructure: 33
Healthcare: 22
Future Cities: 27
Financial Services: 40
Energy: Oil & Gas: 13
Anti-corruption: 39 projects
Business Environment: 38
Digital: 6
Education and Skills: 31
Energy: Low Carbon: 91
Africa 
Central/South America 
Asia Pacific 
Central Asia 
Europe (Turkey) 
South Asia 
Multi-country 
Offical Development Assistance spend by region 2016-17
£2m
£0m
£10m
£6m
£14m
£4m
£12m
£8m
£16m
Middle East/North Africa 

The Prosperity Fund: Annual Report 2016/17 
December 2017
16
How the major programmes are being established
The Prosperity Fund seeks to promote systemic 
changes in partner countries through a number of 
large programmes from years 2017/18 onwards. 
In order to build strong foundations for the future 
portfolio, the first year (2016/17) focused on building 
operational systems, effective governance, Fund 
Strategy and developing robust business cases.
The Fund spent £63 million in its first year (2016/17), 
with £1.2 billion to be spent from 2017/18 until 2021/22. 
Programmes in future years will focus either on a 
number of issues within a specific country, or a cross-
cutting theme in multiple countries. The Fund is moving 
from single-year projects to multi-year programmes 
so that it can target larger opportunities that take 
more time to achieve, but offer higher benefits.
The Ministerial Board decides the strategy of the 
Fund. This incorporates research to identify suitable 
countries whose constraints to poverty reduction are in 
areas where the UK can contribute most effectively.
Government departments (incorporating overseas 
UK posts) have a good knowledge of country/sector-
specific barriers and solutions which form the basis 
of programmes. They develop programme ideas 
which fit with the Fund’s “Theory of Change”, and 
submit ‘concept notes’ to the Fund which outline:
•	 Strategy and context
•	 Impact
•	 Value for money
•	 Delivery consideration
•	 How the changes it seeks to generate will be sustained
Concept notes that score well upon review can 
be developed into a more detailed business case, 
following the standard UK Government 5-case model 
(Strategic Case, Appraisal Case, Commercial Case, 
Financial Case, Management Case). This process 
involves consultation with external stakeholders, 
including businesses and civil society organisations.
Combining these approaches helps to contribute 
to the ambition for large-scale impact. Having ideas 
submitted from teams with specific sector and 
country knowledge ensures that a wide variety of 
ideas and potential programmes are generated. 
Direction from the overall strategy helps ensure 
coherence across the portfolio and informs how and 
where interventions should broadly be targeted.
The Prosperity Fund is implementing a gender strategy 
which informs programme selection, design, monitoring 
and evaluation. The multi-year programmes that will run 
from 2017/18 are required to include an assessment within 
business cases that demonstrates how programmes will 
address the issue of gender equality and inclusion. An 
external monitoring and evaluation mechanism is in place 
for all programmes that will provide information on the 
impact of programmes in relation to gender equality.
To date 24 programmes have been endorsed by the 
Ministerial Board and are now being developed into full 
business cases by UK Government departments.
Portfolio management
The Fund is adopting an ‘active portfolio management’ 
approach. This will use a range of tools, such as 
monitoring programme milestones, financial spend 
profiles, output/outcome key performance indicators, 
and in-depth reviews to monitor and evaluate its 
programmes. Having flexibility on portfolio allocation 
will allow the Fund to adapt to changing environments 
and priorities, move funding from underperforming 
programmes, and incentivising high performing 
programmes. This will contribute towards driving 
high impact and value for money for the Fund. A 
considered approach will be taken when considering 
portfolio balance, recognising that it may take varying 
lengths of time to achieve different types of impact.
Non-ODA
The Prosperity Fund includes a component of 
non-ODA funding worth £33 million from 2016 to 
2022. Ministers have agreed that the Fund’s non-
ODA monies should be used alongside Prosperity 
Fund ODA programmes and in support of the 
government’s post-Brexit trade policy ambition.
Ministers have further agreed that any activity 
must be strategic and impactful, provide value 
for money, and complement the Department for 
International Trade and wider government policies.

The Prosperity Fund: Annual Report 2016/17 
17
Notes
1	 http://www.worldbank.org/en/country/mic/overview
2	 http://www.oecd.org/dev/pgd/economydevelopingcountriessettoaccountfornearly60ofworldgdpby2030accordingtonewestimates.htm
3	 Commission on Growth and Development (2008), The Growth Report: Strategies for Sustained  Growth and Inclusive Development, www.growthcommission.org

The Prosperity Fund: Annual Report 2016/17 
December 2017
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