British International Investment (BII), the UK’s development finance institution and a leading impact investor, has announced its commitment to Africa with a substantial £725 million investment to foster sustainable development across the continent.
This pledge forms part of BII’s broader global commitment of £1.31 billion for 2023.
In its recently released Annual Review titled “Creating Impact Together,” BII outlined its mission to bolster private sectors in developing countries, particularly those underserved by traditional investors. The institution’s investments are designed to uplift communities and support economic growth, targeting sectors such as agriculture, financial services, green infrastructure, and digital technology.
BII’s efforts in Africa have resulted in a portfolio size of $5.6 billion spread across 812 businesses. These investments directly contribute to nearly half a million jobs, providing a significant boost to local economies, and generate substantial tax revenues amounting to $1.46 billion, thereby contributing to the public sector’s capacity to deliver essential services.
Climate finance remains a cornerstone of BII’s strategy. £449 million was allocated in 2023 alone, marking a cumulative total of over £1 billion over the past two years. This commitment underscores BII’s proactive stance in addressing climate change impacts in vulnerable regions.
Critical investments highlighted in the review include £21.8 million in AFEX, a commodities platform expanding storage facilities for farmers in Nigeria, Kenya, and Uganda, and £8.5 million in Planet Solar to enhance solar power access in Sierra Leone.
Despite financial challenges, including a £44.0 million loss after tax in 2023, BII’s financial prudence is evident in its ability to exceed its portfolio return target of 2 percent over a rolling seven-year period. This ensures sustained support for economic stability and development initiatives in regions facing significant socio-economic challenges, providing stakeholders with confidence in BII’s resilience.
Diana Layfield, Chair of British International Investment, emphasized the critical role of sustainable finance in addressing global inequalities and climate crises. She underscored BII’s commitment to bridging investment gaps in regions with disproportionately low foreign direct investment.
Chris Chijiutomi, Managing Director and Head of Africa at BII, reaffirmed the institution’s unwavering dedication to driving positive change across Africa. He highlighted BII’s pivotal role in creating employment opportunities and fostering resilient economies amid the climate emergency, inspiring hope and confidence in BII’s mission.
The investment review is pivotal as global development challenges intensify, underscoring BII’s pivotal role in shaping sustainable futures through strategic investment and partnership.
