BII Unveils New Africa Investment Strategy Targeting KSh864 Billion

British International Investment (BII), the UK's development finance institution, has launched its 2026-2031 investment strategy in Nairobi, aiming to support sustainable economic growth, job creation, and climate resilience across Africa. The strategy sets out an ambitious programme to invest approximately KSh864.3 billion of its own capital and mobilise up to KSh683.7 billion in additional private investment across the continent. This approach focuses on using development finance to attract other investors, rather than relying solely on institutional funding.

The new strategy identifies three broad priorities: expanding economic opportunities, accelerating the climate transition, and strengthening markets and financial systems that enable businesses to grow. Climate finance is expected to account for at least 40% of BII's investments, with goals to help provide clean energy to 10 million households and support jobs and economic opportunities for 10 million people across Africa. Additionally, at least 30% of its core investments will target improved economic opportunities for women.

Kenya provides an established platform for this approach, with BII committing approximately KSh154.8 billion to the country during its previous five-year strategy period. Its portfolio currently supports more than 57,000 direct jobs across over 120 businesses, while those businesses have paid more than KSh62 billion in taxes. BII's investments in Kenya have covered sectors including manufacturing, agriculture, renewable energy, and digital connectivity.

One example of BII's successful investments is SunCulture, which provides solar-powered irrigation solutions to more than 16,000 smallholder farmers, helping them improve agricultural productivity while reducing water consumption. The new strategy also seeks to address a persistent constraint across African economies: the difficulty of directing domestic savings and institutional capital towards productive businesses and infrastructure.

To achieve its goals, BII will work with public and private-sector partners to strengthen financial markets, develop investment systems, and remove barriers that restrict investment flows. For African governments, the strategy presents an opportunity to deepen partnerships with development finance institutions while improving the conditions that attract long-term private investment.

However, the scale of the proposed capital mobilisation will ultimately depend on the quality of projects, policy consistency, institutional capacity, and the confidence of investors. The significance of the announcement therefore extends beyond the size of its financial targets, raising an important question for African economies: how can development finance be used to build stronger domestic businesses and institutions capable of attracting investment long after individual funding commitments have been made?

For Kenya and the wider continent, the test will be whether the strategy translates into productive enterprises, reliable infrastructure, better employment opportunities, and more inclusive economic growth. The implementation of this strategy will be crucial in determining its success and impact on Africa's economic development.

Key points

• BII aims to invest approximately KSh864.3 billion of its own capital and mobilise up to KSh683.7 billion in additional private investment across Africa.
• Climate finance is expected to account for at least 40% of BII's investments.
• At least 30% of BII's core investments will target improved economic opportunities for women.