UK’s British International Investment Unveils £9 Billion Africa Strategy, Prioritises Frontier Markets and Climate Finance

British International Investment (BII), the UK’s development finance institution and impact investor, has launched a new five-year strategy aimed at mobilising £9 billion of investment into Africa, with a strong emphasis on frontier markets, climate finance, and private capital mobilisation.

Under the strategy, BII will contribute nearly £5 billion, while the remaining capital is expected to be mobilised from domestic and international private investors. The initiative reflects a broader effort to channel funding into underserved markets where access to private capital remains limited.

A key highlight of the strategy is BII’s commitment to allocate at least 25% of its investments to Least Developed Countries (LDCs), particularly in Africa. These frontier markets, including countries such as Sierra Leone and Zambia, are expected to benefit from a combination of investment, policy engagement, technical assistance, and strategic partnerships aimed at strengthening local investment ecosystems.

The organisation will focus on high-impact sectors such as financial services, power, transport, trade, digital infrastructure, and sustainable industries, targeting long-term economic growth and development across the continent.

UK Minister for Development Jenny Chapman stated that the strategy aligns with the government’s evolving approach to international development, shifting from traditional aid-based models to investment-led partnerships. She emphasised the importance of combining financial tools, expertise, and policy support to drive sustainable economic growth and job creation.

Chris Chijiutomi, Managing Director and Head of Africa at BII, highlighted Africa’s long-standing importance in the institution’s portfolio. He noted that the new strategy builds on decades of investment experience, with a renewed focus on mobilising private capital and directing resources toward sectors and regions where impact can be maximised.

Climate finance forms a significant component of the strategy, with at least 40% of new investments earmarked for climate-related projects, up from 30% in the previous cycle. BII aims to support Africa’s energy transition by investing in renewable power, strengthening electricity infrastructure, and expanding access to clean energy. This aligns with broader initiatives such as connecting 300 million people in Africa to electricity by 2030.

Additionally, BII plans to scale up its gender-focused investments, with a target of 30% of new commitments qualifying under the 2X Challenge, which supports women’s economic empowerment.

The strategy also introduces a “market-level impact” approach, moving beyond individual investments to foster broader sectoral and market development across African economies.

With investments spanning over 1,600 businesses across 66 countries and total net assets of £9.87 billion, BII continues to play a critical role in addressing poverty, supporting sustainable development, and accelerating climate action in emerging markets.