Terms of reference published: UK aid as a lender and investor

2 Nov 2026

The Independent Commission for Aid Impact (ICAI) has today published more information about its upcoming report examining the UK’s growing use of aid-backed lending and investment. 

In 2025, the UK government committed to a shift from being seen primarily as an aid donor towards becoming an “investment partner” in developing countries. This change was part of its new approach to international development set out in the context of significant aid budget reductions. It followed a series of changes in recent years aimed at making greater use of investment and other forms of development finance, alongside more traditional grants and technical assistance. 

Recent ICAI reviews have highlighted this changing landscape, including the growing use of guarantees such as those used to support Ukraine, and the role of different financial instruments in climate investment. 

This new information note will examine how the UK’s approach to aid-backed lending and investment has developed since 2022. It will seek to provide greater transparency on the size and scope of the UK’s portfolio as a lender and investor, and examine the governance, management and systems in place to monitor its risks and impact.  

The report will identify challenges the UK faces as it seeks to strengthen the role of UK aid as a lender and investor, and identify lines of future inquiry, including for a planned in-depth ICAI review of British International Investment (BII). 

Read the information note terms of reference.