New Bond analysis finds BII investments bypass world's most marginalised despite development mandate

Today, Bond has published a briefing examining British International Investment (BII), the UK’s development finance institution, raising questions about whether the institution is fulfilling its core mission to contribute to economic growth for the benefit of the world’s Least Developed Countries (LDCs).

Despite receiving nearly £6 billion in UK government funding over the past decade, (around 4% of the UK’s Official Development Assistance) BII is failing to direct the majority of its investments towards those who need it most, according to the new analysis.

The briefing reveals a disconnect between BII’s stated mandate “to contribute to economic growth for the benefit of the poor” and its actual investment patterns. While BII prioritises investments in Africa and Asia, only 17% of its portfolio in 2024 reached the world’s Least Developed Countries, with just 12.6% (just 5% excluding Nigeria) invested in the most fragile states where poverty is most acute.

The briefing also reveals that:

Although BII has committed to net-zero by 2050, to support country net-zero plans and to move away from the dirtiest forms of energy, as of 2024, 6% of BII’s portfolio is still exposed to fossil fuels. We consider the 2050 deadline for net-zero as unambitious.
BII continues to channel significant volumes of investments to businesses registered in tax havens and its policies in this area have done little to address this challenge.
Although BII has made some progress on promoting women’s economic empowerment, the proportion of jobs it has created for women has declined in recent years (from 30% in 2018 to 24% in 2024) and it conducts inadequate analysis of the real-world gender impact of its investments.
While BII has committed to “promoting and increasing representation of black African-owned and led businesses”, it is yet to report systematically on implementing this commitment (despite a commitment to do so in its 2022-26 strategy).
BII has also failed to collect adequate data on whether its investments actually reach low-income groups, women and other people who are marginalised, making it difficult to confirm whether the institution is fulfilling its core mandate.
Other areas the briefing discusses include: BII’s approach to responsible investing, transparency, and its investments in private education and health.

Over the coming months, BII and the Foreign Commonwealth and Development Office (FCDO) are working to develop BII’s 2027-31 strategy, which will be published in 2026. This strategy presents a crucial opportunity to address the challenges identified in this review.

Gideon Rabinowitz, Director of Policy and Advocacy at Bond, the UK network for NGOs, said:

“Despite receiving almost £6 billion of taxpayer funding over the past decade, BII is failing to target those who need support the most. Given the significant constraints facing the UK aid budget following repeated cuts in recent years, with programmes that address women’s health, girl’s education and education for children with disabilities already bearing cuts, British taxpayers deserve assurance that every pound of development spending directly serves its core purpose, to maximse efforts to alleviate poverty.

This analysis makes clear that reform cannot wait. Any future government funding should be conditional on BII implementing fundamental reforms to its approach to promoting development, reducing poverty and tackling climate change.”

Rachel Noble, Head of Research and Publications at Oxfam GB said:

“In a period of wider rollbacks on women’s rights, it is deeply disappointing to see that the proportion of jobs BII’s investments are creating for women is declining, despite their stated commitments to gender equality. Broader questions also remain about the mechanisms BII has in place to ensure its investments are meaningfully tackling gender equality. In fact, rather than advancing women’s rights, BII’s privatised for profit investments in health are also detrimental impacts on gender equality, across access to services, care quality, and workers’ rights.

It is vital BII is generating decent, dignified jobs for women, including women from the most marginalised groups and communities. We also urge new guardrails for where BII’s investments should not go, and this includes private healthcare.”

ENDS.

Notes for editors

Read the briefing which evaluates BII’s changing mandate and impact.
A second briefing will be released later this year, looking at role of BII in advancing locally led development and economic transformation.
The term ‘Least Developed Countries’, is used in this briefing in line with the UN term of the designated group of the lowest income and most vulnerable countries.
The FT recently published a letter from Bond discussing how Development Finance Institutions (DFIs) like BII are not a substitute for international development programmes.
Earlier this year, BII improved its ranking on the DFI Transparency Index 2025. Read Bond’s reaction.
Read The Committee for International Development (IDC) report on BII published in September 2023, Investment for Development: The UK’s Strategy Towards Development Finance Institutions.
Bond is the UK network for organisations working in international development. Bond unites and supports a diverse network of 350 civil society organisations from across the UK, and allies to help eradicate global poverty, inequality and injustice.
For further information or interviews, please contact Jess Salter at [email protected] or call 07392972411