British International Investment (BII) is the UK’s Development Finance Institution that provides financial services aiming to achieve development goals through private sector support in low- and middle-income countries.
This DFI was previously known as CDC and originally as CDC – the Colonial Development Corporation. In 2022, the organization was renamed as British International Investment to highlight its “role as part of the UK’s offer to help developing and emerging countries meet their significant needs for infrastructure and enterprise”.
The DFI was founded in 1948 and became part of the Association of bilateral European Development Finance Institutions (EDFI) in 1992.
With the goal of helping people living in African and Asian countries achieve better livelihoods, the organization invests most in these regions, thus assisting them to develop more efficient, eco-friendly, and inclusive businesses. Geographically, BII looks forward to extending its reach into several Caribbean nations as well as the Indo-Pacific area.
Every year, BII allocates from £1.5 to £2 billion (around US$1.8 – 2.4 billion) to business projects in the eco-friendly infrastructure and technology sectors and other industries that are most in need of funding.
The company plans to commit at least 30% of its portfolio to climate finance in the next 50 years. Currently, 60% of all commitments are made to support businesses in countries that are vulnerable and/or in conflict.
Today, BII boasts several overseas offices in a number of countries including Egypt, India, Kenya, Nigeria, South Africa, Zimbabwe, Bangladesh, Myanmar, Nepal, and Pakistan.
Sub-Saharan Africa accounts for a 50% share of BII’s portfolio, followed by South Asian countries with 33%.
Source: EDFI
To increase the private sector’s involvement in accomplishing the UN Sustainable Development Goals, BII concentrates on the key sectors whose poor state affect the economy: the financial sector, services, agribusiness, industry/manufacturing, and infrastructure (energy, telecommunications, transportation, water, and sanitation).
Source: EDFI
BII financial impact
The company’s total net assets are £7.7 billion, and its portfolio was valued at £6 billion as of 2021. To date, BII investments have created 2.36 million jobs indirectly and another over 930 thousand jobs have been created as a direct result of DFI’s investments in over 1,300 companies in more than 60 countries.
In 2021, BII committed investments totaled £1.87 billion, a 50% increase compared to 2020 when DevelopmentAid last reviewed the organization’s activity. Climate financing accounted for almost £480 million of this amount.
Here’s how the financing was spread across regions:
- 72% of investments in African countries
- 27% of investments in Asian countries
- 1% going to companies that work on both continents
Of the latest well-known projects that BII has been part of, two highlight the organization’s focus on climate and poverty reduction.
In February 2023, Invictus Trading, a major partner managing the import operations for the DAL Group, received a $50 million investment from BII. The agreement will make it possible for DAL Group to import 280,000 million tons of wheat each year, ensuring a vital food supply for millions of Sudanese urban residents.
In March 2023 it was announced that BII, together with Metito Utilities Limited, will launch the Africa Water Infrastructure Development (AWID) platform – “the first-of-its-kind platform to develop climate-smart water projects at scale and to increase water security across Africa”.
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