British International Investment unveils new five-year strategy
BII will focus on a select number of frontier markets, including Sierra Leone and Zambia.
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British International Investment (BII), the UK’s development finance institution and impact investor, today said it is aiming to drive £15 billion of new capital into developing countries as it unveiled its new five-year strategy.
A central pillar of the new strategy is a focus on accelerating the flow of private capital to developing countries.
Of the £15 billion, BII will contribute up to £8 billion, with the balance coming from private institutions. For every £1 of public money, BII expects to crowd-in around another £1 of private capital, a rise of up to 40% compared to its last five-year strategy. The company will use its experience of investing in emerging economies and its concessionary capital to generate opportunities for private institutions. It will work alongside life insurers, pension funds and other asset managers to make investments that deliver positive economic, environmental and social outcomes as well as risk-adjusted financial returns.
In addition, BII will enhance its commitment to frontier markets – those identified by the UN as Least Developed Countries – with at least 25% of new investments by value going to these countries. Frontier markets are home to more than a billion people and have the greatest investment need yet remain underserved by private capital due to structural barriers to investment.
Furthermore, BII will focus on a select number of frontier markets, including Sierra Leone, Zambia and Nepal, combining investment, policy engagement, technical assistance and partnerships to strengthen investment environments and capital markets.
Chris Chijiutomi, MD and head of Africa at BII, said: “Africa has been at the heart of BII’s work since our inception. That long track record has given us deep experience of investing through economic cycles and a clear understanding of what businesses need to grow in some of the continent’s most challenging markets. This strategy builds directly on that experience. By sharpening our focus on frontier markets, investing in high-impact sectors and mobilising domestic and international private capital, we are concentrating our efforts where our capital and expertise can make the greatest difference for African economies.”
In a further evolution of BII’s strategy, the company will also seek to make “market-level impact” investments. These are investments that go beyond a commitment to a single company, and help to develop a wider sector or market.
BII will also increase its commitment to gender-lens investing in support of women. The company intends that 30% of new core investments will qualify under the 2X Challenge, compared to 25% in the last strategy period.
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