British International Investment (BII) committed £1.07 billion to Africa in 2025, accounting for 59% of its total investments during the year. The figures, published in BII’s Annual Review, highlight the institution’s continued focus on Africa, where it has invested for nearly eight decades.
BII reported that its climate finance commitments exceeded US$1 billion in a single year. Over the past four years, the organization has invested US$3.3 billion (£2.6 billion) in climate-related projects and businesses. Climate investments during 2025 included commitments to the Allianz ACE Fund, a blended finance vehicle expected to mobilise US$850 million from private investors alongside US$150 million from development finance institutions, as well as the Gulf of Suez Wind Farm and Obelisk solar and battery storage projects in Egypt.
BII also supported ARC Ride, an electric motorbike manufacturer and battery-swapping company based in Nairobi. This focus on clean energy aligns with a broader trend in development finance, where institutions are increasingly forced to balance the immediate need for economic stability with the long-term imperative of decarbonisation. Unlike traditional aid models that often prioritize immediate relief, BII’s model attempts to leverage private capital to achieve both financial and environmental returns.
Geographic and Strategic Focus
BII made total investments of £1.8 billion in 2025, with £712 million committed to businesses in Asia and approximately £40 million invested in Ukraine. Egypt, Kenya, South Africa and Nigeria remain BII’s largest African markets by portfolio size. Under its new strategy, announced earlier this year, at least 25% of new investments will be directed towards frontier markets classified by the United Nations as least developed countries.
BII said its annual portfolio-level return over a seven-year weighted average was 3.8%, with investments spanning nearly 1,700 companies. “BII has been supporting African businesses for nearly eight decades,” said Chris Chijiutomi, Managing Director and Head of Africa at BII. “Our 2025 commitment further underlines our unwavering support to the continent as we continue to focus on supporting the growth of businesses and helping to create quality jobs across the continent.”
Development Finance in a Changing World
Earlier this year, BII launched British Climate Partners, a £1.1 billion initiative aimed at mobilising institutional capital into climate-related investments across fast-growing and coal-dependent economies in Asia. In the Annual Review, BII Chair Diana Layfield said the development finance setting was becoming 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,” she 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.”
“Financing for development is changing. At the same time, the gap between countries – particularly the most climate- and conflict-vulnerable – is widening. And the urgency of tackling climate change is greater than ever.”
“This context shows the need for more effective partnerships, greater mobilisation of private capital and investment that delivers sustainable economic growth.”
