UK Development Finance Institution BII earmarks $3 billion for Africa’s frontier markets

British International Investment (BII), the UK's development finance institution, announced plans to invest $3 billion (£2.25 billion) in Africa's frontier markets and least-developed countries over the next five years. This investment forms part of BII's strategy from 2026 to 2031 and represents 25% of its planned £9 billion investment in Africa during the same period.

BII CEO Leslie Maasdorp explained that many African countries are excluded from investment criteria by major global asset managers due to their low credit ratings or absence of credit ratings. BII aims to maintain its presence in these markets by working with local partners to strengthen financial markets and overcome barriers preventing capital from reaching businesses and infrastructure projects.

The institution will allocate a quarter of its planned African investment to frontier markets and least-developed countries, focusing on projects requiring significant capital and long-term financing, such as power generation, ports, railways, and digital infrastructure. BII has a relatively high exposure to low-income countries and frontier markets compared to other development finance institutions.

The institution's strategy also includes supporting financial inclusion, manufacturing, and climate finance, with a total investment target of £15 billion across Africa and other markets it operates in.