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British International Investment (BII), the UK’s development finance institution, has launched a new five-year strategy for Bangladesh, reaffirming its commitment to supporting sustainable economic growth, private sector development and climate-focused investment.

The 2026–2031 strategy, unveiled on Monday, builds on more than four decades of investment in Bangladesh and aims to deepen the UK’s economic partnership with the country by supporting businesses that create jobs, strengthen resilience and accelerate the transition to a low-carbon economy.

BII, which has been investing in Bangladesh since the early 1980s, currently manages a portfolio of more than $270 million in the country.

Under the new strategy, the institution will prioritise investments in financial services, manufacturing, micro, small and medium-sized enterprises (MSMEs), digital infrastructure and renewable energy, while seeking to mobilise greater private capital into high-growth sectors.

The initiative comes as Bangladesh seeks to diversify its economy, strengthen industrial competitiveness and attract more foreign direct investment amid global economic uncertainty and increasing climate challenges.

“Bangladesh has made remarkable economic progress over recent decades, underpinned by a dynamic private sector and entrepreneurial talent,” said Srini Nagarajan.

“Through our new strategy, BII is reaffirming its strong commitment to Bangladesh’s long-term development by backing businesses that expand opportunity, strengthen resilience and support the green transition.”

He added that the institution aims not only to invest directly but also to mobilise larger pools of private capital into sectors that will drive Bangladesh’s future growth.

BII said its future investments will place greater emphasis on employment generation, gender inclusion and environmentally sustainable business practices.

Among its previous investments, the institution highlighted financing for Jinnat Textile Mills, which helped create more than 900 direct jobs, with women accounting for over 44 percent of new recruits while improving workplace standards and promoting sustainable manufacturing.

It also cited its partnership with BRAC Bank, which has supported around 3,500 entrepreneurs, particularly MSMEs and women-led businesses with limited access to formal financing.

The strategy is also aligned with BII’s global commitment to frontier markets. The institution said at least 25 percent of the value of its new investments worldwide during the strategy period will be directed to countries classified by the United Nations as Least Developed Countries (LDCs), including Bangladesh.

Sarah Cooke said the strategy reflects the UK’s confidence in Bangladesh’s long-term economic prospects.

“The United Kingdom believes in Bangladesh’s economic future. BII’s new strategy will help create jobs, attract private investment and support economic transformation,” she said.

The announcement underscores the UK’s broader effort to strengthen its role as a long-term development and investment partner for Bangladesh by mobilising private capital alongside public investment to support the country’s next phase of economic growth.