I am delighted to introduce BII’s Annual Review for the first time. I’ve always admired the work of BII from a distance, so to be asked to lead this institution is a huge privilege and honour. This is even more the case during this critical period when development finance can play an important role as the world faces interconnected challenges.
We all know these challenges require significantly more capital than is currently available to tackle them. Emerging and developing economies face a chronic lack of private investment. These countries need as much as $2.5 trillion per year of climate finance by 2030, according to the Independent High-Level Expert Group on Climate Finance. The annual investment gap to meet the Sustainable Development Goals in developing countries is now about $4 trillion.
Against this backdrop, development finance institutions (DFIs) have a powerful role to play. 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.
We’re committed to leading the way at BII, and our investment activity in 2024 reflects this. In 2024 we committed £1.7 billion in companies seeking to make a positive difference on people’s lives and on the planet, with 62 per cent of those commitments in Africa and 36 per cent in Asia.
Beyond those numbers, it’s important to highlight the individual examples of exciting, innovative companies that are making a difference. Since joining the organisation in October 2024, I’ve been energised by the opportunity to see first-hand the difference that BII can make in supporting economies to grow, create jobs and raise living standards in Africa, Asia and beyond. I’ve been privileged to have the chance to touch and feel the pulse of those businesses having an impact on people’s lives.
In South Africa, for example, I met customers of Too Much Wifi, which offers low-cost, high-speed internet in townships. It was remarkable to see this company, started only a few years ago by a local entrepreneur with a vision to make an impact, and to see that vision in action. This is how BII impacts people’s lives. We are committed to unearthing innovative entrepreneurs and backing their companies to grow and make a difference.
As I write this statement, I reflect both on the achievements of BII and our investee companies over the last year, as well as the opportunities this offers as we move forward in these challenging global times. There are some distinct themes that emerge.
First, we know that the climate emergency is one of the biggest challenges that humanity, and the development finance community, faces. Over the last few years, including in 2024, we have stepped up our climate finance leadership to respond to this challenge. In 2024, we exceeded our target, with 41 per cent of our commitments in climate finance. These figures serve as markers of success, but we aspire to go further. Backed by the UK’s leadership on climate, there is potential for us to play an even greater role.
As part of these ambitions, addressing the clean energy transition remains a key priority, particularly in markets where decarbonisation is crucial. For example, in India, we have launched a new co-investment platform, EnerGrid, to develop power transmission and standalone battery storage projects. This will help to accelerate the country’s progress towards net zero. Ensuring that clean energy reaches those who need it most is a central focus. 2024 has seen new investments in this area – in Nigeria, our investment in InfraCredit supports decentralised renewable energy projects, such as solar mini-grids.
A global transition to net zero requires the adoption of green solutions across all sectors, not just the energy sector. That includes investments like Africa Go Green Fund, which is expanding access to finance for e-mobility, energy efficiency and clean cooking.
My second reflection is that if DFIs are not to be submerged by the enormity of today’s – and future – climate and development challenges, we need to galvanise private capital at scale. The best way for BII and other DFIs to further scale our impact is to better harness private dollars. Unlocking investment opportunities for private capital and making public finance go further was a priority in 2024 and will continue to be a priority in future years.
This is why, as announced by the UK Prime Minister in 2024, we launched a new Mobilisation Facility to unlock hundreds of millions of pounds of private investment into emerging economies. Since then, as part of the facility, we’ve been working with investors, including from the City of London, in a call for proposals to develop solutions to boost this investment.
We’re pursuing other innovative forms of finance, too. Together with GuarantCo, we’ve provided guarantee financing to Etana Energy in South Africa, a company which supplies renewable energy to business customers. This will unlock an estimated $500 million of investment into renewable energy projects.
Another key focus for BII is investing in those frontier markets that are often outside the investment horizon and geographic focus of commercial investors.
In 2024, through the Africa Resilience Investment Accelerator (ARIA), we have continued to work with development partners to de-risk private sector investments in fragile and conflict-affected regions. We were delighted to see the first investment to be made under ARIA – a new facility with Ecobank in Sierra Leone, which will provide much-needed capital for ambitious local businesses.
Another example of our work in frontier markets last year is in Ethiopia, where our investment to help establish Safaricom Ethiopia has led to 4G coverage doubling, and prices of mobile data falling by up to 70 per cent.
My final reflection is the importance of collaboration and partnership, in a world where the scale of the challenges we face requires collective action. I’m pleased there are examples of where we are already doing this. Our Mobilisation Facility and our partnership with GuarantCo are just two examples. These initiatives will contribute over time to systemic change and a retooling of the business models of the development finance industry.
As we look to the future, we will build on strategic collaboration with other DFIs and multilateral development bank partners. To increase investment, we need to ensure companies seeking support do not have to navigate complex metrics that take them away from running their businesses. We will continue working with our partners to explore how we can jointly simplify the investment process.
I would like to extend my gratitude to the dedicated team of professionals and creative thinkers at BII. Since joining the organisation, I have been struck by the passion of my colleagues, who I know are deeply committed to our mission of supporting sustainable development. Their dedication and hard work are the driving force behind our success.
We’re committed to leading the way at BII, and our investment activity in 2024 reflects this.”
Now more than ever, we need to be bold about our impact and ensure we bring others along with us.”