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British International Investment (BII), the UK’s development finance institution and impact investor, is committing $65 million across Zambia and Zimbabwe.
The funding includes a bond anchor investment in Zambia, a bank facility for farm businesses in Zimbabwe and a new support programme for Zambian companies.
The announcement marks the local launch of BII’s new five-year strategy in Zambia. The funding is paired with technical assistance for local financial institutions.
“Our investments in Zambia and Zimbabwe demonstrate how we are putting our new strategy into action in frontier markets. Through partnerships with local financial institutions and targeted technical assistance, we are expanding access to long-term finance, strengthening capital markets and helping businesses invest, trade and grow. By doing so, we aim to create the conditions for more private capital to follow,” said Chris Chijiutomi, Managing Director and Head of Africa at BII.
BII is putting $15 million into Zanaco’s debut $100 million Sustainability Bond Programme. It will be the first sustainability bond issued by a bank in Zambia. About 40% of the capital is expected to come from investors that are not development finance institutions.
In Zimbabwe, BII is providing a combined $50 million facility to Central Africa Building Society (CABS) and NMB Bank. The money will go to agriculture businesses under BII’s Zimbabwe Agriculture Finance Programme.
BII is also launching Horizon Zambia, a programme to help local businesses prepare for investment and to help investors find deals.
“British International Investment shows how the UK is moving from donor to investor, using our capital and expertise to unlock opportunities that can attract even more private investment. BII’s new investments in Zambia and Zimbabwe demonstrate its ongoing commitment to frontier markets, helping these countries to grow and prosper in the long-term. This will create jobs and support climate-resilient agriculture, renewable energy, and women-owned businesses, while helping to create future trade opportunities for the UK,” said Kirsty McNeill, UK Minister for International Development.
BII is owned by the UK government and invests in businesses in Africa, Asia and the Caribbean. Its work in Zambia and Zimbabwe involves banks and local financial institutions, including Zanaco, CABS and NMB Bank.
Horizon Zambia is part of BII’s wider Horizon platform, which also runs country programmes in Sierra Leone, Nepal and Ghana. The platform sits alongside the Africa Resilience Investment Accelerator (ARIA), which builds a pipeline of deals across several frontier markets.
Money raised through the Zanaco program will support climate-friendly farming, renewable energy, small and medium-sized businesses, women-owned businesses, and social infrastructure. BII has collaborated with Zanaco since 2023 to improve its sustainable finance practices and standards.
In Zimbabwe, $50 million will be available as long-term loans and trade finance for businesses to purchase equipment, invest in assets, and trade internationally. The program also offers guidance to banks on managing environmental, social, and climate risks.
Horizon Zambia will provide technical support, policy engagement, and partnerships. This builds on a successful pilot launched last year that assisted 15 SMEs and attracted $8 million in investments.
Last month, BII committed $20 million to the Africa50 Infrastructure Acceleration Fund, joining the African Development Bank Group, the International Finance Corporation (IFC) and more than 20 African institutional investors in backing the vehicle.
