• The United Kingdom plans to mobilise £9 billion in investments into African frontier markets, including Nigeria
• The British International Investment will contribute £5 billion, with the rest coming from private investors
• The initiative aims to channel investments into sectors and regions where access to funding remains limited

The United Kingdom is targeting £9 billion in fresh capital inflows into African frontier markets, including Nigeria, under a new five-year investment strategy spearheaded by British International Investment (BII).

According to a statement, the strategy represents a shift toward mobilising private capital to drive economic growth in underserved markets across the continent.

BII is expected to contribute nearly £5 billion, while the remaining funds will be sourced from private investors both within Africa and globally.

The UK government said the initiative aims to channel investments into sectors and regions where access to funding remains limited.

UK Minister for Development, Jenny Chapman, described the plan as a move away from traditional aid models toward more sustainable 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 approach would integrate investment tools, research, and diplomacy to support business expansion and job creation.

Meanwhile, Chris Chijiutomi, Managing Director and Head of Africa at BII, noted that the institution would intensify its focus on frontier markets, with at least 25% of new investments earmarked for least developed countries.

He emphasised that BII’s longstanding experience across Africa positions it to navigate complex investment environments and support sustainable business growth.

Despite their vast potential, frontier markets, home to over one billion people, continue to face structural barriers that restrict access to private capital.

As part of the strategy, BII plans to allocate at least 40% of its investments to climate finance, an increase from 30% in its previous plan. This will include funding for renewable energy, power infrastructure, and clean energy access.

The effort aligns with Mission 300, which seeks to connect 300 million Africans to electricity by 2030.

BII said it would prioritise high-impact sectors such as financial services, power, transport, trade, digital infrastructure, and sustainable industries to maximise development outcomes.

The institution also plans to combine investments with policy engagement and technical support to improve the overall investment climate in target markets.

Countries like Sierra Leone and Zambia have been identified as key focus areas, alongside broader regional initiatives.

Additionally, BII will pursue “market-level impact” investments designed to develop entire sectors rather than individual companies, a move expected to strengthen capital markets and unlock wider economic opportunities.

The investment drive comes amid strengthening economic relations between the UK and Nigeria, following recent high-level engagements.

The Nigeria Investment Promotion Council recently engaged experts from 30 UK firms to advance trade agreements signed during the state visit of President Bola Tinubu in March.

This followed the UK’s first trade and investment mission to Nigeria since the visit, which brought together 43 delegates from British companies to explore opportunities across key sectors.

The initiative is aimed at translating bilateral agreements into tangible investments and long-term partnerships, with the £9 billion strategy expected to deepen economic ties while supporting sustainable development across Africa’s frontier markets.

UK leads global push to reopen Strait of Hormuz amid rising oil crisis

Meanwhile, TheRadar earlier reported that the United Kingdom announced plans to host a virtual meeting involving about 35 nations to deliberate on reopening the strategically vital Strait of Hormuz, which has been severely disrupted by the ongoing Middle East conflict.

Prime Minister Keir Starmer noted that the meeting would bring together key global stakeholders to address the crisis.

Key global players in the meeting including France, Germany, Italy, Japan, and the Netherlands pledged support.