BII Africa Strategy: £9B Fund Targets Frontier Markets

British International Investment (BII) has unveiled a new five-year BII Africa Strategy. The five-year plan targets £9 billion in total capital for Africa. BII commits nearly £5 billion of its own funds. Private investors will supply the rest.

The strategy sharpens focus on frontier markets. It addresses capital gaps in high-need areas. Investors eye de-risking in power and digital infrastructure.

Frontier Markets and Sector Focus

BII allocates at least 25% of investments to Least Developed Countries (LDCs). Sierra Leone and Zambia top the list. These nations face structural barriers to private capital. BII counters this with funds, policy work, and technical aid.

Key sectors include financial services, power, transport, trade, and digital infrastructure. Sustainable industries also gain priority. This mix drives economic growth and jobs. BII draws on eight decades of Africa experience.

Private capital mobilisation forms the core. BII uses its risk capacity to attract co-investors. The goal: boost inflows to underserved spots. Nigeria joins other frontiers in the push.

Climate and Gender Commitments

Climate finance rises to at least 40% of new investments. This tops the prior 30% target. BII backs renewable power and grid upgrades. An estimated 600 million people lack access to electricity. The plan supports efforts like renewable energy and grid expansion to address energy access.

BII strengthens gender lens investing. BII has extensive portfolio across Africa and beyond.

UK officials have supported BII’s strategy shift. It moves from aid to investment partnerships. BII leadership emphasizes frontier markets.

Investor Opportunities Ahead

The BII Africa Strategy signals blended finance gains. Public funds de-risk private bets in LDCs. Sectors like power offer high returns amid energy transitions.

Mobilisation hinges on £4 billion from privates. Success could double prior cycle impacts. Investors track 2027 reports for early flows. Frontier markets promise growth as barriers fall.

This plan positions BII as a pivotal player. It blends capital with expertise for Africa’s sustainable rise.

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