British International Investment (BII), the UK’s development finance institution and impact investor, has announced a remarkable surge in African investments, committing £1.09 billion to African companies in 2024 – nearly 40 percent more than the previous year’s £725 million. This exceptional growth comes despite challenging macroeconomic conditions, reinforcing BII’s position as a leading force in sustainable development finance across the continent.
Climate Finance Reaches Unprecedented Levels
The organization’s climate finance commitments have reached historic proportions, with $903 million (£708 million) invested in 2024, representing 41 percent of BII’s total commitments for the year. This represents a dramatic leap from the modest $104 million (£80 million) invested in 2020, demonstrating a compound annual growth rate that underscores the urgency of climate action in emerging markets.
Climate finance assets now constitute over 26 percent of BII’s entire portfolio, a significant increase from just over 15 percent in 2020. Over the past three years, BII has channeled more than $2 billion into climate finance initiatives, establishing itself as a pivotal player in financing Africa’s green transition.
Transformative Financial Performance
BII’s financial performance in 2024 tells a compelling story of resilience and growth. The institution’s total net assets expanded to £9.9 billion, marking a substantial increase from £8.5 billion in 2023. Perhaps most notably, BII achieved post-tax profits of £213.3 million, a remarkable turnaround from the £44 million loss recorded in 2023.
The geographic distribution of investments reflects BII’s strategic focus on Africa, with 62 percent of investments directed to African companies. Asian businesses received 36 percent (£626 million) of total commitments, while companies operating across both continents received £29 million.
Environmental Impact and Renewable Energy Success
The environmental impact of BII’s renewable energy investments has been substantial. Based on direct renewable energy investments in BII’s 2023 portfolio, 1.5 million tons of CO2e emissions were avoided on an attributed basis, representing a 54 percent year-on-year increase. This impressive growth stems from an expanding renewable asset base within the portfolio and increased renewable power generation capacity.
Gender Finance and Inclusive Development
BII’s commitment to inclusive development is evident in its gender finance initiatives, with £499 million committed to gender finance in 2024. This substantial investment targets women-led enterprises and businesses that promote gender equality, addressing systemic barriers that have historically limited women’s access to capital and economic opportunities.
Additionally, BII allocated £880 million to commitments in the poorest and most fragile countries across its investment regions, demonstrating its dedication to reaching the most vulnerable populations and markets where capital is most critically needed.
Strategic Leadership and Vision
Chris Chijiutomi, Managing Director and Head of Africa at BII, emphasized the organization’s role as a trusted partner to African nations and entrepreneurs. “BII is a trusted and long-term partner to African nations and the continent’s world class community of entrepreneurs and business leaders,” he stated. “Our 2024 investment performance demonstrates our unwavering commitment to supporting African companies at a time when investment to create quality jobs, reduce aid dependency and meet the challenge of the climate emergency has never been more vital.”
Diana Layfield, Chair of BII, highlighted the strategic importance of development capital in challenging economic conditions. “In a constrained financial environment, BII’s ability to put capital to work repeatedly to secure development impact, while also delivering a financial return for the UK taxpayer, is particularly valuable,” she noted. “In an increasingly unpredictable geopolitical environment, our investments – which support emerging economies to grow, create jobs, and develop sustainable infrastructure to mitigate climate change and its impacts – are critically important.”
BII’s Expanding Role in African Development
BII’s comprehensive approach to development finance extends beyond traditional investment models. The organization operates as both an impact investor and development finance institution, targeting the underlying causes of poverty and the climate crisis to help countries achieve sustainable, aid-independent growth.
The institution’s commitment to climate finance aligns with its strategic objective of ensuring that at least 30 percent of its total new commitments between 2022 and 2026 are directed toward climate initiatives. This target reflects the urgent need for climate adaptation and mitigation investments across developing economies.
As a founding member of the 2X Challenge, BII has contributed to mobilizing over $33.6 billion to empower women’s economic development globally. This initiative demonstrates the organization’s recognition that gender equality is fundamental to sustainable economic growth and poverty reduction.
Building Sustainable Economic Foundations
BII’s current portfolio encompasses investments in over 1,600 businesses across 70 countries, with total net assets of £9.87 billion. This extensive reach enables the organization to support diverse sectors including renewable energy, financial services, healthcare, agriculture, and digital infrastructure.
The institution’s approach combines patient capital with technical expertise, providing not just financial resources but also strategic guidance to help businesses scale sustainably. This model has proven particularly effective in challenging markets where traditional commercial financing may be insufficient or unavailable.
Looking Forward: Continued Impact and Growth
BII’s 2024 performance establishes a strong foundation for continued growth and impact across Africa and beyond. The substantial increase in both total commitments and climate finance specifically positions the organization to play an increasingly important role in addressing the continent’s development challenges.
The organization’s ability to maintain growth in commitments while achieving profitability demonstrates the viability of impact investing as a sustainable model for development finance. This success provides valuable insights for other development finance institutions seeking to scale their impact while maintaining financial sustainability.
