UK impact investor and development finance institution (DFI), British International Investment (BII), invested £1.07-billion in Africa last year. 

The figure represents 59% of BII’s total investments for the year.

BII has also announced that its climate commitments have exceeded $1-billion in a single year.

Over the last four years, BII made $3.3-billion (£2.6-billion) in climate finance investments.

Climate finance qualifying investments included a range of commitments, from utility-level renewable energy generation projects in countries such as Egypt, to e-mobility startups in Kenya.

Egypt, Kenya, South Africa and Nigeria remain BII’s four largest African markets in terms of portfolio size.

As part of BII’s new strategy, unveiled earlier this year, at least 25% of its new investments will be made in frontier markets – those designated by the UN as the least developed countries in the world.

BII said its yearly portfolio level return over a seven-year weighted average was 3.8%, and it now had investments in nearly 1 700 companies.

“BII has been supporting African businesses for nearly eight decades,” says BII Africa head Chris Chijiutomi.

“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.”

BII-related climate finance deals in 2025 included the Allianz ACE Fund, which is a BII-anchored blended finance fund with $150-million of DFI commitments that is set to mobilise $850-million from private institutions.

It also included the Gulf of Suez Wind Farm and the Obelisk solar and battery storage development in Egypt, as well as ARC Ride, an electric motorbike manufacturer and battery-swapping company in Kenya.

Earlier this year, BII deepened its climate finance commitments with the launch of British Climate Partners, a £1.1-billion initiative designed to mobilise large-scale institutional capital into climate solutions across fast-growing and coal-dependent economies in Asia.

“The past year has been defined by global shifts that are reshaping the landscape for development finance,” says BII chairperson Diana Layfield.

“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,” adds Layfield.

“And the urgency of tackling climate change is greater than ever. This context underscores the need for more effective partnerships, greater mobilisation of private capital and investment that delivers sustainable economic growth.”