Recommendations & Conclusions
6 items
2
Conclusion
Ninth Report - Investment for developme…
Deferred
Under the current arm’s-length relationship, BII holds some investments that conflict with the UK Government’s policies, such as those relating to fossil fuels and there have been few attempts by BII to adapt its legacy investment portfolio to align with UK interests. The recent UK Government decision to expand BII’s …
Government response. The Government agrees on the need for effective collaboration between FCDO and BII, noting existing guidance and close work. Ministers will explore opportunities to strengthen this, including integrating collaboration into country business plans, but the response does not address the …
3
Conclusion
Ninth Report - Investment for developme…
Deferred
The FCDO and BII can both benefit from greater collaboration at the country office and regional levels.
Government response. The Government acknowledges the importance of monitoring BII's impact, detailing existing oversight arrangements and annual reviews. It commits to review the log frame for additional indicators and to review SMART targets for the next strategy period (2027), but rejects introducing …
6
Conclusion
Ninth Report - Investment for developme…
Deferred
The FCDO must incorporate SMART targets into its strategy documents that stretch the development impact that BII achieves, such as the number of quality jobs created through its gender lens investments. This must be done by March 2024 to achieve active governance over BII and to ensure that BII’s investments …
Government response. The Government agrees on the importance of measuring BIP impact and commits to publishing its British Investment Partnerships strategy by summer 2024, following consultation. However, it does not specifically commit to incorporating new stretching SMART targets for BII into FCDO …
9
Conclusion
Ninth Report - Investment for developme…
Deferred
A British Investment Partnerships strategy is urgently needed to drive effective co- ordination of actors within the BIPs and to ensure the International Development Strategy’s objective of delivering development in partnership achieves maximum impact. The FCDO must create this strategy, outlining its expectations of all parties involved in those partnerships, …
Government response. The Government's response addresses BII's internal processes for assessing additionality in its investments and its exit strategy, explaining how these ensure development outcomes. However, it does not address the urgent need for a broader British Investment Partnerships strategy or the …
11
Conclusion
Ninth Report - Investment for developme…
Deferred
BII must better distribute its investment across countries with different development needs and income status by capping the proportion of investments that it holds in middle-income countries, at a percentage determined by the Minister for Development, by 31 March 2025. The rate should be defined within BII’s investment policy and …
Government response. The government largely deflects the recommendation, describing existing oversight mechanisms and rejecting a 'full rolling audit'. It commits only to reviewing in 2024 whether additional spot checks of BII investments are required, rather than capping investments in middle-income countries.
14
Conclusion
Ninth Report - Investment for developme…
Deferred
BII must target nascent markets that struggle to stimulate investment from the private sector. BII must annually assess the value it adds to investee companies. Where BII has not proven its additionality to an investment or its case for additionality is no longer valid, BII should exit that investment. (Paragraph …
Government response. The government deflects the recommendation regarding additionality and market focus, focusing instead on BII's transparency and stating that BII will publish a Transparency Roadmap with milestones to become the most transparent bilateral DFI.