British International Investment (BII), the UK’s development finance institution and impact investor, has launched a new five-year strategy aimed at mobilising £9 billion of capital into Africa to support economic growth, with a stronger focus on frontier markets, climate finance and private sector development.

BII said it would contribute nearly £5 billion of the total, with the remainder expected to come from private investors in Africa and globally.

“Africa has been at the heart of BII’s work since our inception,” said Chris Chijiutomi, Managing Director and Head of Africa at BII.

“That long track record has given us deep experience of investing through economic cycles and a clear understanding of what businesses need to grow in some of the continent’s most challenging markets.

“This strategy builds directly on that experience. By sharpening our focus on frontier markets, investing in high-impact sectors and mobilising domestic and international private capital, we are concentrating our efforts where our capital and expertise can make the greatest difference for African economies.”

A central pillar of the strategy is accelerating the flow of private capital into African economies where financing remains scarce. BII said it would use its balance sheet, partnerships and ability to take risk to attract investors into underserved sectors and markets.

The institution also announced a deeper commitment to frontier markets, with at least 25% of new investments by value allocated to countries classified by the United Nations as Least Developed Countries.

These markets, home to more than one billion people, often face structural barriers that deter private investment despite significant demand for capital.

BII said it would focus particular attention on a select number of African frontier markets, including Sierra Leone and Zambia, combining investment with policy engagement, technical assistance and partnerships designed to strengthen investment climates and deepen capital markets.

Across the continent, BII plans to channel capital into sectors it believes can generate the greatest economic and social returns, including financial services, power, transport, trade, digital infrastructure and sustainable industries.

The strategy also raises BII’s climate finance ambition. At least 40% of new investments are expected to qualify as climate finance, up from a 30% target in the previous strategy period.

With nearly 600 million people in Africa still lacking access to electricity, BII said it would support renewable energy projects, grid improvements and clean energy access, while working with partners to advance Mission 300’s goal of connecting 300 million people in Africa to electricity by 2030.

Minister for Development Jenny Chapman said the strategy reflected a broader shift in the UK’s approach to development.

“Over the past few months, I have been setting out the need for a new UK approach to development – one moving from traditional aid grants to long-term partnerships that bring investment, expertise and international finance reform together,” she said.

“BII sits right at the heart of this approach, and its new strategy is pulling in the same direction we have set as a Government. I know BII will lead from the front in turning our joint ambitions into genuine results over the next five years.”

BII also said it would expand its use of “market-level impact” investments, designed to develop entire sectors rather than support only individual companies.

In addition, the institution plans to strengthen its gender-lens investing strategy, with 30% of new investments expected to qualify under the 2X Challenge, a global initiative aimed at increasing capital flows that support women.