British International Investment (BII) has stepped up its commitment to Africa with an ambitious new plan to unlock £9 billion in funding over the next five years. The move signals a sharper focus on frontier markets and a growing push to accelerate private-sector-led growth across the continent.
The UK’s development finance institution will deploy nearly £5 billion directly. At the same time, it plans to attract additional capital from global and local investors. This blended finance model aims to reduce risk and draw more private money into markets that often struggle to secure funding.
Notably, BII will direct at least 25 per cent of its total investments to Least Developed Countries. Many of these economies are in Africa and continue to face deep structural barriers. Countries like Sierra Leone and Zambia now sit at the centre of this strategy. BII intends to combine funding with policy support, technical expertise, and partnerships to strengthen their investment landscape.
Beyond geography, the institution is sharpening its sector focus. It will invest heavily in financial services, energy, transport, trade, and digital infrastructure. These sectors remain critical to unlocking Africa’s economic transformation. In addition, BII plans to back sustainable industries that can deliver long-term growth and resilience.
At the same time, climate finance is taking a bigger role. BII has increased its climate investment target to 40 per cent, up from 30 per cent. This shift reflects the urgent need to tackle Africa’s energy gap, where over 600 million people still lack access to electricity. As a result, the institution will support renewable energy projects, expand national grids, and scale off-grid solutions across underserved communities.
Gender-focused investment also forms a key pillar of the strategy. BII aims to ensure that 30 per cent of its investments meet the standards of the 2X Challenge. This global initiative promotes funding for women-led and women-owned businesses, helping to drive inclusive economic growth.
Meanwhile, the UK government has backed the strategy as part of its evolving development agenda. Development Minister Jenny Chapman emphasised the importance of long-term partnerships and investment-driven growth over traditional aid models.
From an operational perspective, BII is leveraging its deep roots across Africa. Chris Chijiutomi noted that the organisation’s long-standing presence positions it to deploy capital effectively in high-need markets. He added that partnerships will play a crucial role in attracting further investment into underserved regions.
Ultimately, the £9 billion strategy reflects a broader shift in how development finance works in Africa. Instead of relying solely on public funds, institutions are now using targeted capital to unlock larger private investments. This approach could reshape how Africa finances its future, especially in frontier markets where the need remains greatest.
