The United Kingdom and Japan have agreed on a new development finance partnership aimed at increasing investment flows into Africa and emerging Asia, through deeper cooperation between their respective development finance institutions.
The agreement was formalised via a Memorandum of Cooperation signed between British International Investment and Japan International Cooperation Agency during Japanese Prime Minister Sanae Takaichi’s visit to Downing Street on June 14.
The initiative establishes a structured framework for collaboration focused on mobilising institutional and private capital into developing markets, with emphasis on projects that drive sustainable and inclusive economic growth.
Strengthening UK–Japan development finance ties
Under the new partnership, both institutions will expand cooperation in co-investment, co-financing, and knowledge sharing.
The goal is to scale successful models already tested through joint investments in Africa and Vietnam, and to build on engagements at the Tokyo International Conference on African Development.
Officials say the collaboration is part of a broader effort to deepen strategic economic ties between London and Tokyo, particularly in emerging markets where infrastructure and climate-related financing needs remain significant.
Focus on private capital and sustainable growth
A key objective of the partnership is to “crowd in” private investors by reducing risks and improving financing structures in developing economies.
The framework will also support engagement with institutional investors to scale impact-driven investments across sectors such as energy, infrastructure, and climate resilience.
Liz Patterson, Deputy Director at the International Finance Directorate of the Foreign, Commonwealth & Development Office, welcomed the agreement, describing it as a step toward stronger coordination between development finance institutions.
She noted that closer UK–Japan cooperation would help accelerate sustainable growth and expand investment opportunities across Africa and Asia.
Building on existing cooperation
The agreement builds on earlier collaborations between BII and JICA, including co-financing arrangements and joint development initiatives in Africa and Southeast Asia.
It also aligns with wider UK–Japan commitments outlined in their Strategic Dialogue framework, which includes cooperation on multilateral reform, energy resilience, and reconstruction efforts in conflict-affected regions.
About the institutions
British International Investment is the UK’s development finance institution, investing in businesses across emerging markets to support economic growth, climate action, and poverty reduction.
It currently operates across more than 60 countries and maintains a broad investment portfolio focused on long-term development impact.
Japan International Cooperation Agency delivers Japan’s official development assistance through loans, grants, and technical cooperation programmes aimed at advancing socioeconomic development globally.
