Locally led development and development finance institutions: the case of British International Investment

This report assesses British International Investment’s (BII) approach to localisation using an analytical framework adapted for application to development finance institutions (DFIs).

This framework is based on the ODI localisation model and allows to examine whether, and to what extent, BII’s current strategy, policies, governance and investments align with a locally led development approach. It offers a set of recommendations for BII and other DFIs to strengthen their role in supporting locally led development, which is a precondition for economic resilience and transitioning away from ODA dependence in the medium term.

The report also assesses BII’s performance, drawing on publicly available data, policy analysis and focus group discussions with civil society representatives from BII partner countries. The analysis focuses primarily on two core localisation principles: agency (who defines priorities and makes decisions) and resources (who receives finance, on what terms, and to what ends).