She said this British investment through CDC, the UK’s development finance institution, would help accelerate economic growth in the world’s poorest countries. Contributions will average up to £703m a year over the next five years.

This capital increase will create millions of jobs in the hardest-to-reach markets, the UK Department for International Development said.

Annoucing DfID’s continuing commitment to the growth of DCD, international development secretary Priti Patel said: “Advancing economic development in the world’s poorest countries is a hallmark of a global Britain and with this commitment to CDC the UK is leading by example, creating the vital jobs and economic stability that enable countries to leave poverty behind and stand on their own two feet.”  

Over the last three years, CDC-backed companies in Africa and South Asia have generated over 3 million new direct and indirect jobs and paid over $9bn (nearly £7bn) in taxes to national governments.

Patel said: “The international private sector must rise to the challenge of investing in and powering the growth that helps people to work and earn money, to transform economies and end aid dependency.”

The CDC Act was passed earlier this year, increasing the total limit of capital which the UK could invest in CDC. It increased the cap on DfID’s financial support from £1.5bn to £6.0bn.

The CDC “leads the way for other investors to follow” and mobilises capital from a large pool of private investors, DfID said.

CDC is fully owned by the UK government and invests in the poorest and most fragile countries in Africa and South Asia introducing capital, expertise and support, generating taxes and strengthening sectors such as infrastructure, manufacturing and agriculture.