British International Investment (BII), the UK’s development finance institution and impact investor, committed £1.07 billion to Africa in 2025. This figure represents 59% of the organization’s total investments for the year, according to data released in its Annual Review. BII has maintained a physical presence on the continent for nearly eight decades, a history that continues to inform its current lending strategy.
BII recorded total investments of £1.8 billion in 2025. While Africa received the largest share of funds, the institution also allocated £712 million to businesses in Asia and approximately £40 million to projects in Ukraine. Climate finance commitments exceeded US$1 billion in a single year, a milestone that highlights the institution’s focus on environmental sustainability alongside economic growth.
Countries like Egypt, Kenya, South Africa and Nigeria remain BII’s largest African markets by portfolio size. Under a new strategy announced earlier this year, the institution plans to direct at least 25% of new investments toward frontier markets classified by the United Nations as least developed countries. This shift aims to target regions that often struggle to attract standard private sector funding.
The sheer volume of capital flowing into these regions can help bridge the gap between ambitious climate goals and the reality of on-the-ground infrastructure. When institutions like BII deploy blended finance vehicles, they often lower the perceived risk for private investors who might otherwise hesitate to enter emerging markets. This dynamic can accelerate the rollout of green technologies in places where government budgets are stretched thin and the need for sustainable development is immediate.
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Performance and outlook
BII reported that its annual portfolio-level return over a seven-year weighted average was 3.8%. The investments span nearly 1,700 companies. The organization’s Chair, Diana Layfield, noted that the development finance setting has become increasingly complex amid widening economic and climate-related challenges.
“The past year has been defined by global shifts that are reshaping the setting for development finance,” Layfield said. “As we conclude our current strategy period and look ahead to the next, it is clear the world in which we operate has become more complex and more demanding of long-term investment.”
Layfield emphasized that financing for development is changing. She pointed out that the gap between countries—particularly those that are most climate- and conflict-vulnerable—is widening. The urgency of tackling climate change, she argued, is greater than ever, creating a demand for more effective partnerships and greater mobilization of private capital.
This shift requires new tools. BII recently launched a new investment readiness toolkit to help businesses in emerging markets prepare for funding. The group is also looking at how technology can help manage these challenges.
