British International Investment (BII), the United Kingdom\u2019s development finance institution, plans to invest about \u00a32.25 billion ($3 billion) in Africa\u2019s frontier markets and least-developed countries over the next five years, targeting economies that struggle to attract funding from major institutional investors.<\/p>\n
Bloomberg reported the plan on Monday, noting that the allocation forms part of BII\u2019s 2026\u20132031 strategy.<\/p>\n
The institution intends to work with local partners to strengthen financial markets and address barriers preventing capital from reaching businesses and infrastructure projects.<\/p>\n
The commitment represents 25% of BII\u2019s planned \u00a39 billion investment in Africa over the period.<\/p>\n
BII Chief Executive Officer Leslie Maasdorp said many African countries remain outside the investment criteria of major global asset managers because they are rated well below investment grade or have no credit rating.<\/p>\n
He said the institution intends to maintain its presence in markets where private capital remains limited, using domestic resource mobilisation and local partnerships to support investment.<\/p>\n
He added that the institution was allocating a quarter of its planned African investment to frontier markets and least-developed countries.<\/p>\n
Maasdorp also said BII has a relatively high exposure to low-income countries and frontier markets compared with other development finance institutions.<\/p>\n
The strategy is designed to channel funding into economies that face greater challenges attracting commercial investment, particularly for projects that require substantial capital and long-term financing.<\/p>\n
Under its latest strategy, BII plans to provide \u00a35 billion directly and mobilise another \u00a34 billion from partners for investment primarily in Africa\u2019s infrastructure and productive sectors.<\/p>\n
The funding will support projects including power generation, ports, railways and digital infrastructure such as telecommunications towers and data centres. Across Africa and other markets in which it operates, BII has set a total investment target of \u00a315 billion.<\/p>\n
The institution also plans to support financial inclusion and manufacturing, including businesses involved in electric mobility.<\/p>\n
Seema Dhanani, BII\u2019s regional director for East Africa, said financial services would remain an important part of its investment portfolio.<\/p>\n
She identified small and medium-sized enterprises, agriculture, women-owned businesses and climate finance as areas the institution could support through its banking investments.<\/p>\n
The investment plan comes amid wider UK-backed efforts to increase financing for African businesses, including initiatives focused on Nigeria.<\/p>\n
The initiative forms part of broader efforts to improve access to capital for businesses that face funding constraints.<\/p>\n