My noble Friend the Minister of State for International Development and Africa has today made the following statement:
I wish to update the House on British International Investment’s new five-year strategy for 2026-2031, launched today. BII is the UK’s development finance institution, investing in private sector businesses in developing countries to support productive, sustainable and inclusive economic development. Its investments improve peoples’ lives and help protect the planet, while making a positive financial return, which it reinvests to support even more businesses. BII’s portfolio of investees support over 1 million jobs and in 2024 paid $2.5 billion in taxes.
The world around us is changing rapidly, reshaped by global instability. Faced with growing global security threats, the Government last year took the difficult decision to reduce official development assistance to the equivalent of 0.3% of gross national income by 2027. We are modernising our approach to development to have the greatest impact abroad and secure the best value for money for taxpayers at home. Our work will be underpinned by a focus on economic development, supporting greater resilience in partner countries and reducing dependencies.
BII’s new strategy will deliver on the UK’s modernised approach to development. As our main bilateral vehicle for investing in the private sector, BII is central to the UK’s shift from “donor to investor”, partnering closely with countries to unlock growth, jobs and trade, and drive private sector development. BII will also play a key role in delivering UK-backed climate investments.
Over the next five years, BII will make £7 billion to £8 billion in new investment commitments, increasing the proportion of its climate finance investments to at least 40%, and targeting at least 30% of its core investments to improve economic opportunities for women. BII will continue to prioritise investments in Africa, Asia, the Caribbean and Ukraine, delivering investment where it is most needed. BII will invest across a wide range of sectors—including financial services; power, trade and digital infrastructure; and sustainable industries—ensuring that it can support the varied needs of partner countries. BII will continue to support critical minerals value chains by investing in the enabling infrastructure and supply chains necessary for long-term, resilient growth.
The Government have agreed three key shifts that will underpin BII’s approach over the next five years:
Focus on what matters most to development—BII will increase its focus on investments which go beyond delivering direct results, to shape and strengthen wider markets to make them work better for the people they serve.
Sustain UK commitment to least developed countries—BII will commit at least 25% of its new core investments to least developed countries. In a smaller number of focus LDCs—Nepal, Sierra Leone and Zambia to begin—BII will strengthen its work by combining policy engagement and technical assistance alongside its investments.