London: British International Investment (BII), the UK’s development finance institution and impact investor, has announced a landmark commitment of £1.75 billion for the year 2024, with a record-breaking £708 million channelled into climate-focused initiatives.
The announcement was made as part of BII’s 2024 Annual Review, released in London. The report outlines the institution’s efforts to drive job creation, reduce dependence on foreign aid, and confront the global climate crisis. Despite a turbulent investment climate shaped by global economic instability, this year’s funding reflects a 33 per cent increase from 2023.
BII’s total net assets surged to £9.9 billion in 2024, up from £8.5 billion the previous year. The institution also saw a dramatic turnaround in its financial performance, posting a post-tax profit of £213.3 million after reporting a loss of £44 million in 2023.
Africa remained the key beneficiary of BII’s funding, receiving £1.09 billion accounting for 62 per cent of total commitments. Asian businesses secured £626 million, while cross-regional ventures received £29 million. Notably, BII invested £708 million (approximately $903 million) in climate finance alone, representing 41 per cent of its total investments. This marks a significant rise from just £80 million in 2020, with climate-related investments now making up over a quarter of BII’s entire portfolio.
The impact of these investments is measurable. In 2023, BII’s energy projects helped prevent 1.5 million tons of CO₂ equivalent emissions, a 54 per cent year-on-year increase, driven by growth in renewable energy assets and enhanced clean energy production.
In addition to climate action, BII deepened its commitment to social impact. In 2024, it allocated £499 million toward gender finance and £880 million to projects in low-income and fragile states across its operating regions.
Speaking at the review launch, Diana Layfield, Chair of BII, stated “In a constrained financial environment, BII’s ability to put capital to work repeatedly to secure development impact, while also delivering a financial return for the UK taxpayer, is particularly valuable. In an increasingly unpredictable geopolitical environment, our investments, which support emerging economies to grow, create jobs, and develop sustainable infrastructure to mitigate climate change and its impacts, are critically important.”
Leslie Maasdorp, BII’s Chief Executive, echoed the sentiment, adding “BII represents a unique platform to take development finance to the next level at a time when that is most needed. Now more than ever, we need to be bold about the impact we can have, ensuring we bring others along with us. We need to find ways to deploy finance to drive development impact. We need to mobilise the private sector as an engine for change and transformation.”
BII’s 2024 report paints a compelling picture of a development finance institution not just growing in scale, but evolving to tackle the dual challenges of climate change and social equity with renewed purpose and ambition.
