UK's BII commits £2.25bn to Africa's riskiest markets over five years
British International Investment (BII), the UK's development finance institution, commits £2.25 billion ($3 billion) to Africa's frontier markets and least-developed countries over the next five years, Bloomberg reported Monday. The allocation represents 25% of BII's planned £9 billion total African investment through 2031 and targets economies that major institutional investors avoid due to below-investment-grade ratings or no credit rating at all.
BII CEO Leslie Maasdorp said the institution will maintain presence in markets where private capital remains limited, using domestic resource mobilisation and local partnerships. "We're not going to get BlackRock to come and invest in Burundi or in the DRC," Maasdorp noted. The strategy directs £5 billion directly and aims to mobilise another £4 billion from partners for power generation, ports, railways, and digital infrastructure like telecom towers and data centres.
For Nigeria specifically, the UK has committed $335,000 to establish the RiTA Investment Network, a platform channelling domestic investment into women-led businesses. BII's regional director for East Africa, Seema Dhanani, said banking investments will target SMEs, agriculture, women-owned businesses, and climate finance. Deeper capital markets could further mobilise financing for Nigerian businesses and infrastructure.
With development finance stepping in where commercial investors won't, which frontier-market opportunities should Nigerian entrepreneurs and investors watch as BII builds local partnerships?