Africa: UK Development Finance Arm Targets £9bn Investment Push into Africa

British International Investment (BII) has unveiled a new five-year strategy aimed at mobilising £9 billion in fresh capital for Africa, signalling a stronger shift toward investment-led development across the continent.

At the core of the strategy is a plan to unlock greater private sector participation. BII will commit nearly £5 billion directly, while the remaining capital is expected to be mobilised from both African and international investors. The institution intends to leverage its long-standing presence and risk-bearing capacity to channel funding into markets and sectors that have traditionally struggled to attract private capital.

A significant portion of this effort will target frontier markets—countries classified by the United Nations as least developed. BII has committed to allocating at least 25% of its new investments to these markets, where over a billion people live but access to capital remains limited due to structural challenges.

The strategy also outlines a more concentrated geographic approach, with countries such as Sierra Leone and Zambiaidentified for deeper engagement. In these markets, BII plans to combine investment with policy support, technical assistance, and partnerships to strengthen local investment ecosystems.

Across the continent, funding will be directed toward high-impact sectors including financial services, energy, transport, trade, digital infrastructure, and sustainable industries—areas seen as critical to driving inclusive economic growth.

The UK government has framed the strategy as part of a broader shift away from traditional aid toward long-term, partnership-driven development. According to Minister for Development Jenny Chapman, the approach integrates investment, expertise, and international collaboration to support business growth, job creation, and locally driven reforms.

BII’s leadership emphasised that the strategy builds on decades of experience operating in Africa. Chris Chijiutomi noted that the institution is refining its focus to deploy capital where it can deliver the greatest economic and social impact.

Climate finance is also a major priority, with at least 40% of new investments earmarked for climate-related projects—up from 30% in the previous cycle. With nearly 600 million people in Africa still lacking access to electricity, BII plans to support renewable energy development, grid expansion, and clean power access initiatives. These efforts align with broader goals such as Mission 300, which aims to connect 300 million people to electricity by 2030.

In addition, BII will expand its “market-level impact” approach—investing not only in individual companies but in strengthening entire sectors. The institution is also increasing its focus on gender-lens investing, targeting 30% of new investments to meet the criteria of the 2X Challenge, a global initiative aimed at advancing women’s economic empowerment.

The strategy positions BII as a key catalyst in bridging Africa’s investment gap, combining public capital with private sector participation to drive long-term, sustainable growth.