British International Investment (BII), the UK’s development finance institution formerly known as CDC Group, has announced a new five-year strategy aimed at mobilising £15 billion of capital into developing countries. The shift reflects its transition from traditional aid-style financing toward a model focused on attracting private investment and supporting long-term economic development. Of the total, BII will contribute up to £8 billion, while the rest is expected to come from private investors, with the institution aiming to crowd in roughly an equal amount of private capital for every pound invested.
A central objective of the strategy is to accelerate private capital flows into emerging markets to support job creation, poverty reduction, and economic growth. The initiative is designed to increase overall investment compared to the previous strategy period and strengthen BII’s role in structuring blended finance deals, often in partnership with institutional investors. This approach is intended to make high-impact investments more attractive while addressing funding gaps in the world’s most underserved economies.
BII has also launched a major climate-focused initiative called British Climate Partners, with £1.1 billion earmarked to reduce emissions in coal-dependent economies across Asia, including India, Indonesia, Vietnam, the Philippines, and others. These countries face significant financing needs for their energy transition, with India requiring an estimated $160 billion annually and Southeast Asia needing around $210 billion per year to meet net-zero targets.
The climate initiative will use blended finance tools such as equity platforms and mezzanine financing to reduce risk and attract private investors into clean energy projects. By combining public capital with private investment, BII aims to scale climate solutions, improve project viability, and support the transition away from coal, which still dominates energy consumption across much of Asia.
Alongside its climate focus, BII is increasing its emphasis on frontier markets, including Least Developed Countries identified by the United Nations. At least 25% of new investments will be directed to these regions, which face significant development challenges but remain underserved by private capital. Priority countries include Sierra Leone, Zambia, and Nepal, where BII plans to combine financing with policy engagement and technical assistance to improve investment conditions.
The strategy also expands BII’s focus on broader “market-level impact” investments that aim to develop entire sectors rather than individual projects. In addition, it strengthens commitments to gender-lens investing, with a target of ensuring that 30% of core investments support women’s economic participation. Overall, the strategy reflects a stronger emphasis on climate action, private capital mobilisation, and inclusive growth across developing regions.
