British International Investment (BII) has unveiled a new five-year strategy aimed at unlocking £9 billion in fresh capital for Africa, signalling a stronger tilt toward frontier markets and private-sector-led growth across the continent.

The UK’s development finance institution said it will commit nearly £5 billion of its own capital, while mobilising the balance from domestic and international private investors. The approach reflects a broader shift toward blended finance, where public capital is used to de-risk investments and crowd in private funding to underserved markets.

A key feature of the strategy is an increased allocation to Least Developed Countries (LDCs), with at least 25 per cent of total investments earmarked for these economies—many of which are in Africa and continue to face structural barriers to attracting capital. BII identified countries such as Sierra Leone and Zambia as priority markets where it will combine financing with policy engagement, technical support and partnerships to strengthen investment ecosystems.

Sectorally, the institution will channel funds into areas considered critical to economic transformation, including financial services, energy, transport, trade, digital infrastructure and sustainable industries. It also plans to scale investments that deliver broader “market-level impact,” targeting systemic improvements beyond individual firms.

The strategy raises BII’s climate finance ambition to 40 per cent of total investments, up from 30 per cent previously, as it seeks to address Africa’s energy deficit. With an estimated 600 million people lacking access to electricity, the institution will back renewable energy projects, grid expansion and off-grid solutions, aligning with efforts to expand power access across the continent.

Gender-focused investing is another priority, with BII targeting 30 per cent of investments to meet the criteria of the 2X Challenge, a global initiative that promotes capital flows toward women-owned and women-led businesses.

UK Minister for Development, Jenny Chapman, said the strategy aligns with the government’s evolving development agenda, which emphasises long-term partnerships, investment mobilisation and policy support over traditional aid models.

Chris Chijiutomi, Managing Director and Head of Africa at BII, noted that the institution’s longstanding presence on the continent provides a foundation for the renewed focus. He said the strategy is designed to deploy capital more effectively in high-need markets while leveraging partnerships to attract additional investment.

The plan underscores growing interest among development finance institutions in leveraging limited public funds to catalyse larger pools of private capital into Africa’s most underserved economies.