British International Investment (BII), the UK’s development finance institution, has unveiled a new five-year strategy for Bangladesh, reaffirming its long-term commitment to supporting sustainable economic growth, private sector development and climate-focused investment in one of South Asia’s fastest-growing economies.
The 2026-2031 strategy, launched on Monday, builds on more than four decades of investment in Bangladesh and signals Britain’s intention to deepen its economic partnership with the country by supporting businesses that generate employment, improve resilience and accelerate the transition to a low-carbon economy.
BII, which has invested in Bangladesh since the early 1980s, currently manages a portfolio worth more than $270m in the country. Its new strategy prioritises investment in financial services, manufacturing, micro, small and medium-sized enterprises (MSMEs), digital infrastructure and renewable energy, while seeking to attract greater volumes of private capital into high-growth sectors.
The move comes as Bangladesh seeks to diversify its economy, strengthen industrial competitiveness and attract foreign investment amid global economic uncertainty and mounting climate challenges.
“Bangladesh has made remarkable economic progress over recent decades, underpinned by a dynamic private sector and entrepreneurial talent,” said Srini Nagarajan, managing director and head of Asia at BII.
“Through our new strategy, BII is reaffirming its strong commitment to Bangladesh’s long-term development and will build on more than 40 years of partnership in the country by backing businesses that expand opportunity, strengthen resilience and support the green transition.
“Our ambition is not only to invest, but to help mobilise greater pools of private capital into the sectors that will shape Bangladesh’s future growth.”
The institution said its future investments would place greater emphasis on job creation, gender inclusion and environmentally sustainable business practices.
Among its previous investments, BII highlighted its financing for Jinnat Textile Mills, which helped create more than 900 direct jobs, with women accounting for more than 44% of new recruits while also improving workplace standards and promoting more sustainable manufacturing.
It also pointed to its lending partnership with BRAC Bank, which has supported approximately 3,500 entrepreneurs, particularly MSMEs and women-owned businesses that often face difficulties accessing formal finance.
The strategy also aligns with BII’s broader commitment to frontier markets. The institution said at least 25% of the value of its new investments globally during the strategy period would be directed towards countries classified by the United Nations as Least Developed Countries, including Bangladesh.
British High Commissioner to Bangladesh Sarah Cooke said the initiative reflected the UK’s confidence in Bangladesh’s long-term economic prospects.
“The United Kingdom believes in Bangladesh’s economic future,” she said. “British International Investment’s new strategy will help create jobs, crowd-in private sector investment and support economic transformation.
“As a reliable, long-term economic partner, it demonstrates our commitment to a modern UK-Bangladesh partnership built on trade, investment, knowledge partnerships and shared prosperity.”
The announcement underscores Britain’s continuing effort to position itself as a long-term development and investment partner for Bangladesh, with a growing focus on mobilising private capital alongside public investment to support the country’s next phase of economic transformation.
