2024 was a year of considerable uncertainty, growing geopolitical tension and increasing macroeconomic challenges around the world. The effects of these were felt acutely in our markets, testing the relevance and responsiveness of development finance institutions. Against this backdrop I am proud that BII has demonstrated strong delivery on both its impact and investment goals.
In a constrained financial environment, BII’s ability to put capital to work repeatedly to secure development impact, while also delivering a financial return for the UK taxpayer, is particularly valuable. In an increasingly unpredictable geopolitical environment, our investments – which support emerging economies to grow, create jobs, and develop sustainable infrastructure to mitigate climate change and its impacts – are critically important. These are modern partnerships that build prosperity and independence, helping to improve the lives of millions of people and create a more stable and secure world. They also create new opportunities for us to work with the City of London and beyond to mobilise private capital and multiply the impact of our investments.
2024 marked the third year of our five-year strategy to deliver productive, sustainable and inclusive development, and we have made significant strides in meeting these ambitions. BII’s focus on impact and delivery has enabled us to commit £1.7 billion in investments which will make a meaningful difference to people’s lives and on the planet. In addition to this 33 per cent year-on-year increase in commitments, the wider metrics have also been strong. Critically, we again grew the impact of our investments, with our aggregate Impact Score, which helps us manage performance against our development impact objectives, rising to 7.0. We also extended our reach into lower-income markets and grew the depth and breadth of our capability in tackling the climate challenges which are impacting our markets.
I am particularly proud of our achievements in climate finance, an area of UK leadership on the international stage, and one which has a disproportionate effect on the most vulnerable markets and is central to the future of development. We are on track to meet the ambitious targets we set for ourselves – with 41 per cent of our commitments being made in climate finance last year.
During the year, I witnessed first-hand the transformative impact of our investment in Zephyr Power, a renewable energy company in Pakistan that has developed a 50-megawatt wind-power plant. Not only is the company generating clean, green power to help address energy poverty and the climate emergency, it is also addressing climate adaptation and resilience by restoring and nurturing mangroves.
These have transformed the landscape and livelihoods, improved fishing stocks, and created a nascent crab industry for the local community as well as guarding against tidal erosion which is predicted to increase as sea levels rise.
We exceeded our target for investing in women, with 29 per cent of our commitments qualifying as dedicated gender finance, and investments spanning an increasing array of sectors and geographies. We have also increased our focus on female representation and development across our entire investment portfolio, and continued to show leadership by further strengthening 2X Global as the recognised standard for gender-lens investing by our fellow DFIs and private capital investors.
As we move into 2025, a worsening macroeconomic environment and global geopolitical challenges are placing twin pressures of greater need but ever more constrained resources in the world of development. In the face of these challenges, it is more important than ever that we make our capital work harder, delivering even greater impact. We will do this by focusing on the core themes of climate finance, mobilisation of private capital, development in the most challenging markets, partnership and innovation. The CEO statement outlines the key highlights from 2024 in these areas, as well as how we plan to build on these achievements.
A key milestone in 2024 was appointing a successor to Nick O’Donohoe, who stepped down as CEO in November 2024. Following an extensive global search, I was delighted to welcome our new Chief Executive, Leslie Maasdorp. He will lead BII into our next strategy period, supported by our Board and the BII team. Leslie’s background, which spans development finance, banking and government, and his early experience of the transition to democratic government in South Africa, position him exceptionally well to lead BII. His lived experience of many of our markets, his values and his personal passion for development will be immensely valuable as we continue to respond to the environmental, economic and social needs of our markets.
I would like to express my heartfelt thanks to Nick for his outstanding leadership and commitment to the organisation. Nick led over seven years of transformation and growth at BII. His contributions have been invaluable in shaping BII’s direction and impact, and his integrity and passion for development have driven what will be an enduring legacy.
On behalf of the Board, I would like to thank our shareholder, the FCDO, as well as all our other colleagues across the UK Government for their partnership and support. Thank you also to the multiple stakeholders who take an interest in our work for your continued support, interest and robust challenge.
We take our duty as part of the UK’s development strategy seriously, and that comes with a responsibility to ensure we are accountable, particularly to Parliament. Over the past year we have delivered on the commitment to be more transparent, achieving the goals set out in our 2024 Transparency Roadmap. These efforts have been recognised externally with BII placing first among bilateral development finance institutions in the World Benchmarking Alliance’s recent Financial System Benchmark. The benchmark ranks institutions’ efforts towards a just and sustainable economy, as well as how transparent they are. While we know there is always more to do, this achievement underlines the progress we are making.
My gratitude goes to my fellow Board members for their invaluable insights and guidance over the last year. I also want to welcome to Daniel Hanna, who joined the Board this year as a shareholder-nominated Director, bringing a wealth of experience in climate and sustainable finance.
Finally, I want to thank all the dedicated staff at British International Investment for their unwavering commitment and hard work over the past year. They are truly extraordinary. The bold thinking and tireless efforts of our employees are helping to address some of the world’s biggest development problems and build a better future for all.
In a constrained financial environment, BII’s ability to put capital to work repeatedly to secure development impact, while also delivering a financial return for the UK taxpayer, is particularly valuable.”
I am particularly proud of our achievements in climate finance, an area of UK leadership on the international stage, and one which has a disproportionate effect on the most vulnerable markets and is central to the future of development.”
In an increasingly unpredictable geopolitical environment, our investments are critically important.”