BII Targets £9bn Africa Investment Drive, Expands Focus on Frontier Markets

British International Investment (BII) has unveiled a new five-year strategy to unlock £9 billion in fresh capital for Africa, marking a stronger commitment to frontier markets and private sector-led growth across the continent.

Under the plan, the UK’s development finance institution will commit nearly £5 billion of its own funds, while attracting additional capital from domestic and international private investors. The move reflects a growing emphasis on blended finance—using public funds to reduce risk and encourage private investment in underserved markets.

A central pillar of the strategy is increased support for Least Developed Countries (LDCs), with at least 25 per cent of total investments earmarked for these economies. Many of these countries, particularly in Africa, face persistent challenges in attracting capital. BII highlighted Sierra Leone and Zambia among priority markets, where it intends to combine funding with policy engagement, technical assistance, and strategic partnerships to strengthen local investment environments.

The institution will focus on sectors critical to economic transformation, including financial services, energy, transport, trade, digital infrastructure, and sustainable industries. It also plans to scale investments that deliver broader market-wide impact, aiming to drive systemic improvements beyond individual businesses.

BII is also increasing its climate finance commitment to 40 per cent of total investments, up from 30 per cent, in response to Africa’s significant energy gap. With an estimated 600 million people lacking access to electricity, the organisation plans to support renewable energy projects, grid expansion, and off-grid solutions to improve power access.

In addition, gender-focused investment remains a priority. BII aims to direct 30 per cent of its investments toward initiatives that meet the 2X Challenge criteria, which promotes funding for women-owned and women-led businesses.

UK Minister for Development, Jenny Chapman, said the strategy aligns with the government’s evolving approach to development, which prioritises long-term partnerships, investment mobilisation, and policy support over traditional aid.

Chris Chijiutomi, Managing Director and Head of Africa at BII, said the organisation’s longstanding presence on the continent provides a solid foundation for its renewed focus. He noted that the strategy is designed to deploy capital more effectively in high-need markets while leveraging partnerships to attract further investment.

The initiative highlights a broader trend among development finance institutions to use limited public funds to unlock larger volumes of private capital for Africa’s most underserved economies.