UK development finance institution British International Investment (BII) committed £1.09-billion to African companies in 2024 to create jobs, reduce aid dependency and combat the climate emergency, it said in its financial results.

This was nearly 40% more than its 2023 total of £725-million, despite the difficult investment environment caused by macroeconomic headwinds.

Further, about 62% of investments were made in African companies while businesses in Asia received 36%, or £626-million. Commitments to companies with operations on both continents received £29-million.

BII’s total net assets increased to £9.9-billion, up from £8.5-billion in 2023, while post-tax profits improved to £213.3-million compared with a £44-million loss in 2023, the organisation said in its annual review.

BII's total investment in climate finance was $903-million in 2024, which represents 41% of its overall commitments for the year, up from £708-million climate finance investment in 2023.

The organisation’s climate finance assets now make up over 26% of its entire portfolio, up from more than 15% in 2020. Over the past three years, BII has invested over $2-billion in climate finance, it said.

Additionally, based on all direct renewable energy investments in BII’s 2023 portfolio, 1.5-million tons of CO₂-equivalent emissions were avoided on an attributed basis, which is a 54% year-on-year increase.

This was driven by a growing renewable asset base in the portfolio and increases in the amount of renewable power produced, BII said.

“In a constrained financial environment, BII’s ability to put capital to work repeatedly to secure development impact, while also delivering a financial return for the UK taxpayer, is particularly valuable,” said BII chairperson Diana Layfield.

“In an increasingly unpredictable geopolitical environment, our investments, which support emerging economies to grow, create jobs and develop sustainable infrastructure to mitigate climate change and its impacts, are critically important.”

BII also made £499-million of gender finance commitments in 2024 and £880-million of commitments to the poorer and most fragile countries across the regions where it invests.

“BII is a trusted and long-term partner to African nations and the continent’s world class community of entrepreneurs and business leaders,” said BII Africa MD and head Chris Chijiutomi.

“Our 2024 investment performance demonstrates our unwavering commitment to supporting African companies at a time when investment to create quality jobs, reduce aid dependency and meet the challenge of the climate emergency has never been more vital,” he said.