The UK-Japan partnership has struck gold in its bid to boost investment in Africa and emerging Asia, with the two nations' development finance institutions signing a landmark Memorandum of Cooperation (MOC) on 14 June. This deal is expected to inject an estimated £2.5 billion in private capital into the region over the next five years, according to forecasts from British International Investment (BII). The agreement marks a significant step forward in the UK and Japan's efforts to strengthen their cooperation on development finance, with the ultimate goal of driving sustainable growth and poverty reduction across the region.
This new initiative builds upon the existing partnership between BII and JICA, which has already seen successful co-investments and co-financing ventures in Vietnam and various African countries. The two institutions have also collaborated at high-profile events such as the 9th Tokyo International Conference on African Development (TICAD9). For BII, this expanded partnership represents a strategic effort to deepen long-term relationships with Japanese businesses and investors seeking new opportunities across Southeast Asia and Africa.
The UK's Foreign, Commonwealth & Development Office has welcomed the strengthened commitment to closer cooperation. Liz Patterson, Deputy Director of the International Finance Directorate at FCDO, stated that by bolstering collaboration between BII and JICA, new avenues are being created to attract private investors and accelerate development impact and sustainable growth across Africa and Asia.
This renewed focus on development finance is part of a broader strategy by both countries to advance essential multilateral reforms, promote cooperation in third countries – particularly concerning energy resilience – and coordinate on stabilisation and reconstruction efforts in Ukraine and Palestine. BII invests in businesses in developing countries with the aim of improving lives and protecting the planet, targeting the underlying causes of poverty and the climate crisis to help nations move away from aid dependency.
BII has pledged that between 2026 and 2031, at least 40 per cent of its total new commitments by value will be allocated to climate finance. As a founding member of the 2X Challenge, an initiative that has raised over $33.6 billion globally to empower women's economic development, BII plays a significant role in international development, working alongside partners like JICA on investments in over 1,600 businesses across 66 countries with total net assets amounting to £9.87 billion.