British International Investment (BII) has announced a new five-year strategy designed to unlock £9 billion in fresh capital for Africa, signaling a stronger focus on frontier markets and private-sector-led growth across the continent. The UK's development finance institution will commit nearly £5 billion of its own capital, while mobilizing the remaining amount from domestic and international private investors.
Blended Finance Approach
The approach reflects a broader shift toward blended finance, where public capital is used to de-risk investments and attract private funding to underserved markets. A key feature of the strategy is an increased allocation to Least Developed Countries (LDCs), with at least 25 percent of total investments earmarked for these economies. Many of these LDCs are in Africa and continue to face structural barriers to attracting capital.
Priority Markets and Sectors
BII identified countries such as Sierra Leone and Zambia as priority markets, where it will combine financing with policy engagement, technical support, and partnerships to strengthen investment ecosystems. Sectorally, the institution will channel funds into areas 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-level impact, targeting systemic improvements beyond individual firms.
Climate Finance and Energy Access
The strategy raises BII's climate finance ambition to 40 percent of total investments, up from 30 percent previously, as it seeks to address Africa's energy deficit. With an estimated 600 million people lacking access to electricity, the institution will back renewable energy projects, grid expansion, and off-grid solutions, aligning with efforts to expand power access across the continent.
Gender-Focused Investing
Gender-focused investing is another priority, with BII targeting 30 percent of investments to meet the criteria of the 2X Challenge, a global initiative that promotes capital flows toward women-owned and women-led businesses.
Government Alignment
UK Minister for Development, Jenny Chapman, said the strategy aligns with the government's evolving development agenda, which emphasizes long-term partnerships, investment mobilization, and policy support over traditional aid models.
Leadership Perspective
Chris Chijiutomi, Managing Director and Head of Africa at BII, noted that the institution's longstanding presence on the continent provides a foundation for the renewed focus. He said the strategy is designed to deploy capital more effectively in high-need markets while leveraging partnerships to attract additional investment.
The plan underscores growing interest among development finance institutions in leveraging limited public funds to catalyze larger pools of private capital into Africa's most underserved economies.
