The United Kingdom is targeting £9 billion in fresh capital inflows into African frontier markets, including Nigeria, as part of a new five-year investment strategy led by British International Investment (BII).
The plan, disclosed in a statement seen by Nairametrics, outlines a shift towards mobilising private capital to support economic growth across underserved markets.
Under the strategy, BII will contribute nearly £5 billion, while the remaining funds are expected to be raised from private investors across Africa and globally.
What they are saying
The UK said the initiative is designed to attract investments into sectors and markets where funding remains limited.
UK Minister for Development, Jenny Chapman, said the approach marks a shift from traditional aid to long-term partnerships.
- “This means moving from traditional aid grants to long-term partnerships that bring investment, expertise and international finance reform together,” she said.
Chapman added that the strategy would combine investment tools, research, and diplomacy to help businesses grow and create jobs.
Chris Chijiutomi, Managing Director and Head of Africa at BII, said the institution will deepen its focus on frontier markets, with at least 25% of new investments directed to least developed countries.
He noted that BII’s long-standing presence in Africa provides the experience needed to navigate complex markets and support business growth.
Get up to speed
Frontier markets remain underserved despite significant investment potential.
These markets are home to over one billion people but face structural barriers that limit access to private capital.
- BII plans to allocate at least 40% of its investments to climate finance, up from 30% in its previous strategy.
- The institution will support renewable energy development, electricity networks, and clean energy access.
- The effort aligns with Mission 300, which aims to connect 300 million Africans to electricity by 2030.
The strategy reflects growing global interest in sustainable investments and infrastructure development across Africa.
More insights
BII said it will focus on high-impact sectors and selected frontier markets to maximise development outcomes.
Priority sectors include financial services, power, transport, trade, digital infrastructure, and sustainable industries.
The institution will also combine investment with policy engagement and technical support to improve investment environments.
Countries such as Sierra Leone and Zambia have been identified as key focus markets alongside broader regional efforts.
BII also plans to pursue “market-level impact” investments aimed at developing entire sectors rather than single companies.
The approach is expected to strengthen capital markets and unlock broader economic opportunities across the continent.
What you should know
The investment push comes amid growing UK-Nigeria economic engagement following the recent high-level meeting.
The Nigeria Investment Promotion Council recently engaged experts from 30 UK companies to advance trade deals signed during President Bola Tinubu’s State Visit in March.
- The engagement followed the UK’s first trade and investment mission to Nigeria since the visit.
- The mission brought together 43 delegates from British companies to explore business opportunities across key sectors.
- The initiative is aimed at translating bilateral agreements into tangible investments and partnerships.
The £9 billion strategy is expected to further strengthen economic ties between the UK and Nigeria while supporting long-term development across African frontier markets.
