How can investors support economic opportunities for all?

No country has ever escaped poverty without developing a thriving private sector. But building successful economies depends on investment. And the people and places most in need of capital often end up receiving the least.

At British International Investment our investments include those in vulnerable and fragile countries. One example is our investment in Sierra Leone, where we’ve backed Planet Solar to help boost clean energy in a country with one of the lowest rates of electricity access in the world.

We are also committed to reaching marginalised and disadvantaged communities within the countries where we invest, including those on low incomes. We invest in businesses that will create jobs and supply goods and services to these communities. Our latest guidance on inclusive investing aims to help other investors to do the same.

Of course poverty alleviation requires a range of public and private investments to reinforce each other, and different institutions to play complementary roles.?Our latest paper looks at the relationship between economic growth and poverty reduction, and the role of DFIs alongside other institutions in tackling poverty.

Find out more about these initiatives below.

How to invest for inclusion

By backing inclusive businesses that focus on low-income consumers, workers and entrepreneurs, investors can help to improve livelihoods and expand access to essential, affordable goods and services.

Our new guidance, developed in partnership with IFC - International Finance Corporation and FMO - Dutch entrepreneurial development bank , offers practical advice to investors on integrating an inclusive lens across the investment lifecycle.

Scaling up solar power in Sierra Leone

Only 23 per cent of Sierra Leone’s population have access to electricity. This has a significant impact on health and education outcomes and hinders job creation and poverty reduction.

We’ve backed Planet Solar, the first large-scale solar project to be connected to the grid, to address this challenge. It will increase the country’s electricity supply by 30 per cent.

When does growth reduce poverty?

High rates of private investment are historically associated with faster reductions in extreme poverty. But that does not mean investment and economic growth always reduce poverty.

Our new report explores the circumstances where growth is most likely to lead to poverty reduction.

Investing in frontier economies

The Africa Resilience Investment Accelerator (ARIA) is unlocking investment opportunities in frontier economies in Africa such as DRC and Liberia. It does this by improving both a country’s readiness to benefit from DFI investment and DFIs’ abilities to invest in these economies.

Find out more about their approach in this video. ARIA is funded by our technical assistance facility, BII Plus.

Supporting MSMEs with digital financial services

Digital financial services bring opportunities to include those historically excluded from traditional financial systems, including low-income people, rural populations, and women. ?

Our new report outlines the challenges and opportunities of digital financial services for women-owned and -led MSMEs. It guides financial service providers on adopting digital financial services so they can support access to much-needed capital.

If you would like more information about BII, please do not hesitate to contact us. You can also follow BII on Twitter/X and LinkedIn, and receive the latest news on our activities and investments by signing up here.