British International Investment (BII) has significantly increased its footprint in Africa, investing £1.09 billion ($1.45 billion) in 2024—nearly 40% more than the previous year. Africa now accounts for around 60% of the DFI’s new investments, with a strong focus on early-stage ventures, technology startups, renewable energy, and off-grid solutions.

Key sectors driving BII’s investments include Decentralised Renewable Energy (DRE), with projects such as Odyssey Energy Solutions ($7.5 million) and InfraCredit ($30 million) expanding electricity access in Nigeria and beyond. The venture capital and tech space also remains a priority, spanning fintech firms like Moniepoint and TymeBank, e-commerce, agritech, climate technology, and mobility solutions including electric vehicles.

BII is supporting MSMEs through tech-enabled solutions that streamline logistics, payments, and inventory management. In agritech, the focus is on East Africa, improving farmers’ access to inputs, market data, and climate information to boost productivity.

The firm’s investment approach emphasizes alignment between fund managers, startups, and BII’s strategic priorities, while backing strong founders and teams with proven track records. Governance, market understanding, and long-term sustainability remain central to its decision-making.

Profitability is also key. BII balanced impact goals with commercial returns, moving from a £44 million loss in 2023 to a £213 million profit in 2024, aided by matured investments and partial exits, such as Moniepoint. Profitable exits and capital raises have increased portfolio value and positioned BII to mobilise further investment from local and international sources.

Exciting areas for BII include financial inclusion through fintech, commerce solutions for small businesses, agritech innovations, and climate tech and EVs addressing Africa’s energy and mobility challenges.

Selection of investments focuses on alignment with BII strategy, the quality of founding teams, market understanding, governance, and strong partner ecosystems. The DFI continues to prioritise local African entrepreneurs and VC managers, combining impact-driven initiatives with commercially sustainable growth.

In essence, BII’s Africa strategy blends social impact with profitability, targeting tech, renewable energy, and MSME-focused solutions to drive sustainable growth across the continent.