BII targets £9bn investment push into Africa under new five-year strategy

British International Investment (BII) has unveiled a new five-year strategy aimed at mobilising £9 billion into Africa.

This indicates commitment to frontier markets and a shift toward unlocking private capital across the continent.

Under the plan, BII will deploy nearly £5 billion directly, while the remaining capital is expected to be mobilised from domestic and international private investors.

The strategy places strong emphasis on attracting private sector funding into underserved markets and sectors where capital has historically been limited.

Speaking on the strategy, Jenny Chapman, minister for development, said the UK government is shifting from traditional aid models toward long-term development partnerships anchored in investment and collaboration.

“BII sits right at the heart of this approach,” Chapman said, noting that the institution’s strategy aligns with the government’s broader objective of combining finance, expertise and diplomacy to drive sustainable development outcomes.

A key component of the approach is a renewed focus on Least Developed Countries (LDCs), with BII committing at least 25 per cent of its investments to these economies.

Many of these frontier markets, particularly across Africa, face structural barriers that have constrained investment despite significant growth potential.

BII said it would prioritise selected African frontier markets, including Sierra Leone and Zambia, combining capital deployment with policy engagement, technical assistance, and partnerships to strengthen local investment ecosystems and capital markets.

The institution will channel funding into high-impact sectors such as financial services, power, transport, trade, digital infrastructure and sustainable industries, which are areas seen as critical to driving inclusive economic growth.

Chris Chijiutomi, MD and head of Africa, BII, noted that decades of experience have shaped its strategy to better address the needs of businesses operating in challenging environments.

“This strategy builds directly on that experience,” Chijiutomi said. “We are focusing our capital and expertise where they can deliver the greatest impact for African economies.”

Climate finance will play a larger role under the new plan, with at least 40 per cent of investments earmarked for climate-related projects, up from 30 per cent in the previous cycle.

BII aims to support renewable energy expansion, improve electricity networks and increase access to clean power across the continent, where nearly 600 million people still lack electricity.

The strategy also aligns with the broader goal of connecting 300 million Africans to electricity by 2030 under the Mission 300 initiative.

BII is also expanding its gender-lens investing efforts, targeting that 30 per cent of new investments qualify under the 2X Challenge, which promotes economic opportunities for women.

The institution said it will also pursue ‘market-level impact’ investments designed to strengthen entire sectors rather than individual companies.