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.
As announced by the UK Prime Minister at the UN General Assembly 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.
Alongside this work, as part of the FCDO-BII Evaluation and Learning Programme, in 2024 we welcomed the publication of two independent reports investigating BII’s role in mobilising public and private investment. The reports, commissioned by the FCDO, focus on renewable energy investments and equity funds respectively, including Ayana Renewable Power, which is now a leading provider of renewable energy in India. Each report contains key takeaways and lessons, which help to refine our understanding of when and how we can most effectively mobilise capital.
It is vital that DFIs encourage private sector capital to invest alongside them. In 2024, we made gross commitments of $2.23 billion and mobilised $1.55–$1.59 billion of private sector capital into our investments. Using the Organisation for Economic Co-operation and Development (OECD) methodology, this meant mobilising $71 from the private sector for every $100 of our own commitments. Using the multilateral development bank (MDB) methodology, this meant mobilising $70 for every $100 of our own commitments.
Our innovative funding approach is supporting independent sustainable energy trading while giving South Africa more reliable electricity.
clean energy will be added to South Africa’s grid
Investment name: Etana Energy
Location: South Africa
Investment type: Catalyst Portfolio
