Latest
Mobilising Capital for Impact: British International Investment, Emerging Markets, and the Strategic Role of the Isle of Man
I had the privilege of attending a session at the House of Lords as a guest of the Isle of Man Chapter of the South African Chamber of Commerce, where development finance, global investment trends, and the evolving role of institutions such as British International Investment (BII) were discussed in depth. The event provided a valuable forum for understanding how the UK, alongside other international partners, is approaching long‑term investment in fragile economies. I have written this from an Isle of Man perspective, and how a strong regulatory environment and pension‑fund management expertise can contribute to this agenda. The insights shared—particularly those from Leslie Maasdorp—form the basis of the strategic overview set out below.
Overview of BII’s Strategy and Key Themes
1. BII’s Strategic Direction
British International Investment (BII) is pursuing a long‑term development strategy aimed at promoting economic stability and resilience in fragile and emerging markets. This includes:
Deploying £1.8bn (USD 2.0bn) into fragile economies.
Implementing a refreshed five‑year strategy centred on development finance.
Mobilising private capital to scale development impact.
Prioritising investments in renewables, digital infrastructure, and financial services.
Operating with a commercial mindset, typically with a 10‑year investment horizon.
2. Global Development Finance Context
The USA is retreating from certain development commitments, despite its historic leadership role.
Only the Nordic countries and the UK continue to meet the 1971 Gross National Income commitment for development contributions.
There is rising concern that funding may decline as domestic pressures increase.
The UK’s commitment remains firm through BII, reinforcing its international development role.
3. Shift Toward Private Capital
BII is increasingly focused on building alliances to attract institutional and private sector capital into emerging markets.
Examples include:
Norfund Global Electricity: solar and green‑power projects with returns in the high single to low double digits.
A notable case study:
BII invested USD 150m in a 500kW green power project, which was sold for USD 2.0bn in April 2025, delivering a significant return.
BII’s reach currently supports over 1,600 companies globally.
4. Core Investment Sectors
Infrastructure
Renewable energy, micro‑grids, and off‑grid solutions.
Partnerships with institutions such as IDC.
Digital
Expansion of telecoms and data centres.
Example: BII’s investment in Ethiopia helped reduce mobile data costs through increased competition.
Financial Services
Strengthening local banking systems.SME financing initiatives (e.g., Growth Investment Partners - Zambia), with co‑investment from the National Pension Scheme Authority.
5. Regional & Geopolitical Insights
BRICS Dynamics
China continues to grow its influence, likely becoming the world’s largest economy within 10–15 years, and India is expected to follow as the second.
The Ukraine war has delayed momentum toward the Yuan as an international reference currency.
Russia remains uninvestable due to geopolitical contamination.
South Africa
Energy supply remains constrained; load shedding will persist.
Coal‑plant closures require proactive planning to mitigate job losses.
No new fossil‑fuel or mining investment under BII’s climate commitment.
Agricultural vulnerabilities are increasing (e.g., cocoa supply risks)
The Importance of the Isle of Man (IOM)
The strategic value of the IOM as a jurisdiction is to support responsible development finance. Key strengths include:
A globally recognised, well‑regulated financial environment.
Strong reputation in pension administration and fund management.
Political stability and robust governance standards.
Trusted structures for deploying long‑term capital into emerging markets.
A credible platform for partnerships with institutions like BII.
The IOM’s positioning is particularly relevant as development finance increasingly seeks to mobilise institutional capital—an area in which the island has longstanding expertise.