British International Investment (BII), 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. Drawing on nearly eight decades of investing experience in Africa, BII will use its capital, partnerships and risk-bearing capacity to attract private investors into markets and sectors where capital remains scarce.
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 per cent 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.
BII stated that it 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.
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“Across Africa, we will concentrate its capital on high-impact sectors where it can deliver the greatest benefit for people, businesses and the planet. These include financial services, power, transport, trade, digital infrastructure and sustainable industries,” BII said.
Minister of State for Development of the United Kingdom, Jenny Chapman said, “over the past few months, I have been setting out the need for a new UK approach to development, one moving from traditional aid grants to long-term partnerships that bring investment, expertise and international finance reform together.
“It also means investing responsibly: bringing everything the UK can offer, from our work through international organisations and our investment tools, to research, practical advice and diplomacy. Used together, this can help businesses grow, create jobs and support the reforms and policies our partners choose for themselves.
“BII sits right at the heart of this approach, and its new strategy is pulling in the same direction we have set as a government. I know BII will lead from the front in turning our joint ambitions into genuine results over the next five years.”
MD and head of Africa, BII, Chris Chijiutomi 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.
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“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.”
