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UK to expand development finance investment to boost growth -Breaking


© Reuters. One person walks with a mask on their face over the Westminster Bridge, London, UK, 22 November 2021. REUTERS/Henry Nicholls

LONDON, (Reuters) – Britain is expanding the reach and size of its development finance institution in order to invest billions in technology and infrastructure in Asia, Africa, and the Caribbean.

The Foreign Office announced a plan for rebranding government-owned development company CDC under British International Investment (BII). This was in line with a global strategy to strengthen economic, security, and development ties.

Before Thursday’s event at London Stock Exchange, Foreign Secretary Liz Truss stated to Reuters that too many countries are indebted to strings-attached investments. She also said she wanted to offer an honest and reliable solution to help these countries grow.

Truss stated that BII would have 9 billion pounds (or $12 billion) in finance by 2025. BII will continue to support CDC’s Africa and South Asia remit, and also invest in countries with low or middle income in the Indo-Pacific region and Caribbean.

The President of EMEA Partnerships, Google (NASDAQ:) Diana Layfield will lead it. She will partner with capital markets, sovereign wealth funds, and other financial institutions to increase financing.

CDC was established in 1948 and has invested in over 1,000 companies in emerging countries. Its total net assets are 6.8 billion pounds, while its portfolio is 5.2 billion.

Truss indicated that the BII would invest heavily in transitioning to clean energy, as well as the infrastructure needed to do so. Truss also stated that she expects the investments to have trade benefits over time for Britain.

She stated, “It goes very closely with our trade agenda.”

This is about helping other countries to get the investment and trade they require to become self-sufficient. We want to be able give people the opportunity to start businesses, grow and develop, ultimately making them more successful.

($1 = 0.7503 pounds)

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