British International Investment (BII), the UK’s development finance institution and impact investor, has launched its new five-year strategy, with the aim to drive £9 billion of new capital into Africa to support economic growth.
A central pillar of the strategy is a focus on accelerating the flow of private capital into African countries. Of the £9 billion, BII will contribute nearly £5 billion, with the balance expected to come from private institutions in Africa and globally.
BII also announced that it will enhance its commitment to frontier markets – those identified by the UN as Least Developed Countries – with at least 25% of new investments by value going to these countries. Frontier markets are home to more than a billion people and have the greatest investment need yet remain underserved by private capital due to structural barriers to investment.
Furthermore, BII will focus on a select number of frontier markets in Africa, including Sierra Leone and Zambia, combining investment, policy engagement, technical assistance and partnerships to strengthen investment environments and capital markets.
Chris Chijiutomi, MD and Head of Africa at BII, said: “Africa has been at the heart of BII’s work since our inception. That long track record has given us deep experience of investing through economic cycles and a clear understanding of what businesses need to grow in some of the continent’s most challenging markets. This strategy builds directly on that experience. By sharpening our focus on frontier markets, investing in high-impact sectors and mobilising domestic and international private capital, we are concentrating our efforts where our capital and expertise can make the greatest difference for African economies.”
At least 40% of BII’s new investments are expected to be in climate finance – up from the target of 30% in the last strategy period. With nearly 600 million people still without access to electricity, BII will support countries in Africa with transitioning to renewable power, strengthening electricity networks and delivering clean energy to millions of households. This will be done in partnership with others to help deliver Mission 300’s goal of connecting 300 million people in Africa to electricity by 2030.
In a further evolution of its approach, BII will also seek to make “market-level impact” investments that go beyond a commitment to a single company and help to develop a wider sector or market.
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