As part of the local launch of its new five-year strategy in Zambia, British International Investment (BII), the UK’s development finance institution and impact investor, is committing $65 million across Zambia and Zimbabwe to unlock investment in frontier markets. The investments combine innovative financing with technical assistance and support for local financial institutions to address barriers that limit business growth, trade and investment.
Across the two markets, BII is using its capital to strengthen financial institutions, deepen local capital markets and mobilise private investment into productive sectors including climate and agriculture. The approach reflects BII’s focus on using its capital and expertise to tackle market barriers and create the conditions for sustainable economic growth.
Zanaco Sustainability Bond Programme
BII is anchoring Zanaco’s debut $100 million Sustainability Bond Programme with a $15 million commitment, helping to deliver Zambia’s first bank-issued sustainability bond and demonstrate how domestic capital markets can mobilise investment into projects with environmental and social impact.
Funds raised through the Programme will support climate-resilient agriculture, renewable energy, SMEs, women-owned businesses and critical social infrastructure. Around 40 per cent of capital is expected to come from non-DFI investors, helping to build confidence in Zambia’s sustainable finance market.
Since 2023, BII has worked with Zanaco to develop the Programme, providing technical assistance and expertise to strengthen the bank’s sustainable finance framework, build its green financing pipeline and enhance environmental and social standards.
Zimbabwe Agriculture Finance ProgrammeAgriculture Finance Programme
In Zimbabwe, BII is providing a combined $50 million facility to Central Africa Building Society (CABS) and NMB Bank as part of its Zimbabwe Agriculture Finance Programme, which is designed to address structural financing gaps within the country’s agriculture sector.
Agriculture is a critical driver of jobs, exports and food security in Zimbabwe, but many businesses struggle to access the long-term capital and trade finance needed to invest, grow and participate in international trade. Through a combination of long-term lending and trade finance, the Programme will help businesses access the financing required to invest in productive assets, import essential equipment and inputs, and unlock growth across the agricultural value chain.
The Programme is unique as it combines long-term loan facility with trade finance alongside technical assistance to strengthen environmental, social and climate risk management within Zimbabwe’s banking sector. Together, the transactions will support local financial institutions, improve access to finance and demonstrate the investment potential of frontier markets such as Zimbabwe.
Horizon Zambia
As part of the strategy launch, BII is introducing Horizon Zambia, a country-focused programme with technical assistance to help address wider market constraints and strengthen the investment ecosystem.
Horizon Zambia will help businesses become investment-ready, support investors to identify opportunities and foster a more dynamic investment ecosystem through a combination of technical assistance, policy engagement and strategic partnerships.
The programme builds on the pilot launched last year, which provided support to 15 SMEs and helped facilitate investments worth $8 million. It forms part of BII’s wider Horizon platform, which includes country programmes in Sierra Leone, Nepal and Ghana, alongside the Africa Resilience Investment Accelerator (ARIA), a pipeline-building initiative operating across multiple frontier markets.
UK Minister for International Development Kirsty McNeill said: “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.”
Chris Chijiutomi, Managing Director and Head of Africa, British International Investment, added: “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.”