Britain Wednesday announced to provide 20 million U.S. dollars over three years to the Africa Enterprise Challenge Fund (AECF).

The announcement was made by Baroness Amos, leader of the House of Lords, at a press conference at the World Economic Forum on Africa in Cape Town.

The AECF will provide match-funding for business innovations and support businesses to help people in Africa become economically active.

Amos said, "Business development is essential in the fight against poverty. Last week the G8 reaffirmed the importance of this in stimulating economic growth in developing countries and encourage businesses to improve the level of sustainable investment in those countries."

"The Africa Enterprise Challenge Fund will help to deliver this. It encourages innovation in trade and commerce to help those who are most excluded enter the world of business. The fund will become operation in 2008," she added.

Britain became one of the first donors to get behind the new fund. Other donors include the African Development Bank, the Consultative Group to Assist the Poor and the International Fund for Agricultural Development.

The AECF will become operational in early 2008. It will offer grants of up to 1.5 million dollars to businesses that provide innovative proposals for improving people's chances to take part in economic activity, particularly in the areas of finance and agriculture.

The World Economic Forum (WEF) on Africa is expected to open in Cape Town on Wednesday afternoon with a focus on addressing the capacity constraints and skills gaps that frustrate growth on the continent. This year's forum has attracted more than 700 participants from 42 countries, including five heads of state and a cross-section of CEOs, according to the organizers.

Source: Xinhua