British International Investment pledged almost £5 billion of its capital to Africa over five years, bringing the total mobilization campaign to £9 billion, 21% more than its current Africa portfolio, in the institution's largest-ever commitment to the continent.
British International Investment, a UK development finance institution with net assets of £9.87 billion and stakes in more than 1,600 businesses in 66 countries, has pledged almost £5 billion ($6.7 billion) of its capital to Africa for the period 2026 to 2031 – an amount 21% more than its entire current Africa portfolio of $5.53 billion.
The pledge sets a wider £9 billion Africa-wide target to be raised. The remaining £4 billion ($5.4 billion) is expected to come from private institutions based in Africa and globally, the BII said in a statement published on Thursday. Combined, the two tranches will generate approximately $12.1 billion of total investment impact across the continent over a five-year period – more than double the pace of the previous strategy cycle.
“By focusing our attention on frontier markets, investing in high-impact sectors and mobilizing domestic and international private capital, we are focusing our efforts where our capital and expertise can make the biggest difference to African economies.Chris Chiziutomi, BII's managing director and head of Africa, said in the statement. Chiziutomi has overseen the BII's Africa operations during a period when the institution has grown its annual deployment to the region to almost £1 billion.
This announcement marks a significant juncture for development finance in Africa. Aid flows from the United States have declined, and several major European donors have contracted sharply over the past two years, eliminating billions of dollars that governments had relied on for health, education and budget support. The World Bank has argued that only private capital and accelerated industrialization can bridge the resulting financing gap in response to current shocks – yet the cost of borrowing on international markets remains prohibitive for most sub-Saharan economies, limiting commercial flows into the markets the BII seeks to catalyze. Whether pledged capital reaches marginal economies or concentrates in more bankable markets will prove just as consequential as the headline figure.
marginal push
Africa already dominates BII's global book. According to the institution's latest portfolio data, the continent contributes $5.53 billion – accounting for 60% of the BII's total portfolio – compared to $3.25 billion in Asia and $370 million in the Rest of the World. Through 12 active direct investments and 90 active fund positions, BII has investments in 884 African businesses, ranging from payment processors and renewable energy platforms to agricultural finance vehicles. Its direct positions focus on financial services, infrastructure, food and agriculture and technology.
The new strategy marks the most intense formal ceiling commitment in the history of the BII, requiring at least 25% of new investment by value in countries designated by the United Nations as least developed countries. The statement said BII has designated Sierra Leone and Zambia as priority markets where it will combine capital with policy engagement, technical assistance and partnership building to eliminate structural barriers that deter commercial investors. At least 40% of the new commitments will qualify as climate finance – up from 30% in the previous period – as the institution steps up its support for Mission 300, a World Bank-led initiative to connect 300 million Africans to electricity by 2030.
Britain's Development Minister Jenny Chapman formulated the strategy as an operational expression of a deliberate shift away from grant-based aid. “Over the past few months, I have been highlighting the need for a new UK approach to development – moving away from traditional aid grants towards long-term partnerships that bring together investment, expertise and international finance reform.Chapman said in the statement. The BII, which receives capital from the UK government and operates at arm's length from the Treasury, sits at the center of that transition as London seeks to rebuild its growth profile.
Whether the BII reaches its £9 billion Africa target will depend on its ability to attract an estimated £4 billion from commercial co-investors – the institution aims to improve by 40% compared to the previous round. Its strategy document said the new deployment will focus on financial services, power, transport, trade, digital infrastructure and sustainable industries. The first full test of the new framework is expected in BII's 2027 annual report, as capital flows under the strategy begin in the current quarter.
Idris Linge