British International Investment

Overview

British International Investment (BII), formerly known as CDC Group, is the UK's development finance institution. It was founded in 1948 and is headquartered in London, United Kingdom. BII is owned by the UK government and manages a portfolio of over £8 billion, investing in over 1,470 businesses across Africa, Asia, and the Caribbean. The institution aims to promote sustainable economic development by funding businesses in developing countries, with a focus on renewable energy, infrastructure, and other impactful sectors. Key figures involved in its founding include various efforts by the British government to support post-war economic development. More recently, BII has been expanding its investment reach and focusing on climate finance, poverty alleviation, and promoting gender equality.

Recent Developments

May 2025: BII maintains a substantial portfolio related to fossil fuels, totaling nearly $700 million. Critics have raised concerns about these investments' alignment with UK climate goals.
March 2025: BII announced a $50 million partnership with Ghana International Bank, targeting cross-border trade in Africa's frontier economies.
February 2025: BII partnered with Mercer to position the City of London as a leader in climate finance.
December 2024: BII collaborated with GuarantCo to unlock renewable power projects in South Africa.
November 2024: During COP29, BII declared various deals and initiatives to support energy transition in Africa and Asia.
July 2024: BII released its 2023 Annual Review, reporting £1.31 billion in new sustainable development commitments, with £449 million in climate finance.
April 2024: BII completed investments in renewable energy projects, including the operational Kenhardt solar + battery plant in South Africa.
Early 2024: BII faced scrutiny over its remaining investments in fossil fuels, which were reported to account for 6% of its assets, although efforts to reduce these holdings continue.

Attribute	Information
Founding Date	1948
Headquarters	London, United Kingdom
Founders	British Government
Revenue	Estimated £1.31 billion in 2023
Profits	Not publicly disclosed
Key Investors	UK Government
Industry	Development Finance
Number of Employees	Approximately 500

Early History

Established in 1948, the British International Investment began as the CDC Group, reflecting the UK's commitment to fostering economic development in Commonwealth nations post-World War II. Initially, the institution focused on directly investing in agriculture, infrastructure, and industry in these regions. Its mission was to stimulate economic growth, reduce poverty, and accelerate industrialization in less-developed countries. By the 1970s, BII expanded its investments into private equity and venture capital, adapting to the changing global economic landscape. In the ensuing decades, the institution revamped its strategies, shifting focus towards sustainability and development goals aligned with international climate agreements. These foundational steps set the stage for BII to evolve into a pivotal instrument for UK international development strategy.

Company Profile and Achievements

British International Investment operates as the UK’s main development finance institution, aiming to deliver impactful and sustainable investments across Africa, Asia, and the Caribbean.

Business Strategy: BII’s investment strategy emphasizes sectors like renewable energy, infrastructure, agribusiness, and healthcare, focusing on markets identified by high growth and developmental need.
Milestones:
- 2020: Transition from CDC Group to BII marked a strategic shift towards a climate-focused investment approach.
- 2023: 75th anniversary celebrated with significant achievements in renewable energy and climate finance.
- 2024: Launched first investments in Southeast Asia, marking an expansion beyond traditional markets.
Research Partnerships: Collaborates with global entities to enhance financial and developmental impacts.
Innovative Projects: Initiatives include the Kenhardt solar plant and Ethiopia's first large-scale independent power projects.
Gender Financing Commitments: Committed £297 million to empower women under the 2X Challenge initiative.

Current Operations and Market Position

BII continues its role as a pivotal player in development finance, emphasizing transformative investments that align with the Sustainable Development Goals (SDGs). The institution boasts assets totaling over £8.1 billion and is known for integrating climate finance and gender equity into its investment ethic. Its widespread portfolio in over 1,500 businesses showcases diversified engagement in developing countries. BII's strategic initiatives aim to boost local economies, improve access to electricity, and foster renewable energy projects. Have successfully transitioned several investments towards low-carbon solutions while retaining a smaller, continuously winding down, fossil-fuel portfolio.

British International Investment India

BII has significantly expanded its footprint in India, investing over £2 billion in sectors such as renewable energy, healthcare, and financial services. With a strategic office in Mumbai, BII collaborates with local enterprises to foster economic growth and address critical infrastructure needs, contributing to over 475,000 jobs in the region.

British International Investment Offices

BII operates strategic offices across key regions including London, Nairobi, and Mumbai, enabling it to manage its comprehensive portfolio effectively. These regional offices support BII’s mission to enhance direct, sustainable investments in projects aligned with local economic and social needs.

Conclusion

British International Investment stands as a pivotal instrument of the UK’s foreign aid strategy, driving significant change in emerging markets. Its focus on sustainable, impactful investments aligns with broader global efforts to address climate change, poverty, and gender disparity. Looking forward, BII aims to strategically pivot further towards climate-positive investments while managing its historic fossil fuel commitments responsibly. As development finance becomes an increasingly vital component of international aid, BII's role in fostering sustainable growth will likely expand, with continued efforts to impact positively on a global scale.