British International Investment (BII), the UK’s development finance institution and impact investor, committed more than £1.07 billion to businesses across Africa in 2025, accounting for 59 per cent of its total investments during the year.

The investment, disclosed in BII’s 2025 Annual Review due for publication on Friday, underscores the institution’s continued focus on supporting business growth, job creation and sustainable development across the continent.
Overall, BII invested £1.8 billion in 2025, with £712 million directed to businesses in Asia and approximately £40 million committed to projects in Ukraine.

The institution also announced that its climate finance commitments exceeded $1 billion in a single year for the first time. Over the past four years, BII has invested $3.3 billion (£2.6 billion) in climate-related projects, spanning utility-scale renewable energy developments, electric mobility and other low-carbon initiatives.
Major climate investments during the year included the Allianz ACE Fund, a blended finance vehicle anchored by BII with $150 million in development finance institution commitments expected to mobilise an additional $850 million in private capital.

Other investments included the Gulf of Suez Wind Farm, the Obelisk solar and battery storage project in Egypt, and ARC Ride, an electric motorcycle manufacturer and battery-swapping company in Kenya.
Egypt, Kenya, South Africa and Nigeria remained BII’s largest African markets by portfolio size.

Under its new investment strategy unveiled earlier this year, BII said at least 25 per cent of its future investments will target frontier markets, classified by the United Nations as the world’s least developed countries.
The institution reported a seven-year weighted average annual portfolio return of 3.8 per cent and said its investments now support nearly 1,700 companies globally.

Commenting on the investment performance, Managing Director and Head of Africa, Chris Chijiutomi, said BII’s latest commitments reflect its long-standing confidence in Africa’s growth potential.
“BII has been supporting African businesses for nearly eight decades. Our 2025 commitment further underlines our unwavering support to the continent as we continue to focus on supporting the growth of businesses and helping to create quality jobs across the continent,” he said.

BII also strengthened its climate investment strategy this year with the launch of British Climate Partners, a £1.1 billion initiative aimed at mobilising institutional capital into climate solutions across rapidly growing and coal-dependent economies in Asia.
In the Annual Review, BII Chair Diana Layfield said growing development financing gaps and the increasing impacts of climate change require stronger partnerships and greater mobilisation of private capital.

She noted that the evolving global economic landscape has made long-term investment more critical, particularly for countries most vulnerable to climate change and conflict, adding that sustainable economic growth will depend on increased collaboration between public and private investors.