British International Investment (BII), the UK’s development finance institution, plans to deploy approximately £2.25 billion ($3 billion) into African markets considered higher risk over the next five years, targeting economies that face persistent difficulties in attracting private capital, particularly for businesses and infrastructure projects.
The allocation represents one quarter of the £9 billion that BII intends to channel into Africa under its 2026–31 investment strategy, which centres on mobilising capital and deepening financial markets across the continent.
According to BII Chief Executive Leslie Maasdorp, the institution aims to strengthen partnerships with local entities to overcome the barriers that impede financing for businesses and infrastructure, especially in countries with unfavourable credit ratings or no assessment from international rating agencies.
“We are realistic and acknowledge that we are not going to get BlackRock to come and invest in Burundi or the Democratic Republic of Congo,” Maasdorp said, illustrating the challenges of attracting large institutional investors to some African economies.
Under the strategy, BII plans to invest £5 billion directly on the continent and mobilise a further £4 billion from external partners, with priority given to infrastructure and productive sectors.
Among the planned investments are power generation projects, the modernisation of ports and railways, and the development of digital infrastructure, including telecommunications towers and data centres. The financing is also expected to cover financial services and industrial activities, with the aim of improving business access to capital.
The push comes against a backdrop in which elevated investment risks, currency vulnerability, and a scarcity of long-term financing continue to constrain private capital flows into a number of African economies. BII intends to counter these challenges through partnerships with local financial institutions and by mobilising resources from other investors.
In this context, the institution has expressed interest in participating in an investment fund being prepared by the manager of Nigeria’s sovereign wealth fund and a Japanese development agency, seeking to broaden cooperation with African and international partners.
Beyond Africa, BII has set a global mobilisation target of approximately £15 billion by 2031, encompassing the other markets in which it operates.
Through this strategy, the institution aims to expand the financing available to economies that hold limited appeal for commercial investors, deploying its own resources and partnerships to support projects that face the greatest difficulties in securing capital.
Source: Diário Económico
Original article: https://www.diarioeconomico.co.mz/?p=557607
