British International Investment targets £9 billion of new capital for Africa

British International Investment (BII), the UK's development finance institution, has unveiled an ambitious five-year strategy designed to mobilise £9 billion into African economies. The strategy represents a significant commitment to addressing financing gaps across the continent, with BII itself contributing nearly £5 billion while mobilising the remainder from private sector investors in Africa and internationally. This capital deployment approach leverages BII's balance sheet, partnerships, and risk-bearing capacity to attract private investors into markets and sectors where capital remains structurally constrained.

A cornerstone of the initiative is the institution's enhanced focus on frontier markets and Least Developed Countries (LDCs), with a mandate that at least 25% of new investments by value flow to these underserved regions. Frontier markets, home to over one billion people, face significant unmet investment demand yet remain largely bypassed by private capital due to structural barriers. BII plans to employ integrated interventions combining direct investment, policy engagement, technical assistance, and partnerships to strengthen investment environments and capital markets across selected African frontier economies. Nigeria is positioned as a priority market within this framework.

Climate finance represents a material expansion within the strategy, with BII targeting at least 40% of its investment portfolio to support climate-related projects, an increase from 30% in the previous planning cycle. This shift reflects the continent's critical energy infrastructure needs, with approximately 600 million people still lacking electricity access. BII will prioritise renewable energy deployment, grid modernisation, and clean energy expansion while contributing to Mission 300, a broader continental initiative targeting electricity access for 300 million Africans by 2030. Beyond energy, BII will concentrate capital across high-impact sectors including financial services, transport, trade, digital infrastructure, and sustainable industries considered essential for job creation and long-term economic stability.

The strategy also incorporates expanded gender-focused investment criteria, with 30% of new investments expected to align with the 2X Challenge framework supporting women's economic participation. BII intends to shift toward "market-level" interventions designed to develop entire industries and ecosystems rather than supporting individual firms. UK Minister for Development Jenny Chapman characterised the strategy as aligned with the government's transition from traditional aid grants toward long-term development partnerships integrating investment, expertise, and international finance reform. BII's deep institutional experience across African economic cycles positions it to lead this capital mobilisation effort over the five-year planning horizon.