British International Investment (BII) has committed $65 million across Zambia and Zimbabwe as the UK development finance institution rolls out its new five-year strategy in the two frontier markets.

The investments include a $15 million commitment to anchor Zanaco’s $100 million Sustainability Bond Programme in Zambia and a combined $50 million financing package for Central Africa Building Society (CABS) and NMB Bank in Zimbabwe.

In Zambia, BII’s investment will support what it said is the country’s first bank-issued sustainability bond. Proceeds from Zanaco’s programme will finance areas including climate-resilient agriculture, renewable energy, SMEs, women-owned businesses and social infrastructure.

Around 40% of the programme’s capital is expected to come from non-development finance institution investors, with the transaction intended to help attract more private capital into Zambia’s sustainable finance market.

BII has worked with Zanaco since 2023 to develop the programme, providing technical assistance to strengthen its sustainable finance framework, build a pipeline of green financing opportunities and improve environmental and social standards.

In Zimbabwe, BII is providing a combined $50 million facility to CABS and NMB Bank through its Zimbabwe Agriculture Finance Programme.

The programme combines long-term lending and trade finance to address financing gaps across Zimbabwe’s agriculture sector. Funding will support businesses seeking to invest in productive assets and finance imports of equipment and other inputs.

The financing is accompanied by technical assistance intended to strengthen environmental, social and climate risk management within Zimbabwe’s banking sector.

“Our investments in Zambia and Zimbabwe demonstrate how we are putting our new strategy into action in frontier markets,” said Chris Chijiutomi, Managing Director and Head of Africa at BII.

“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.”

As part of the strategy launch, BII is also introducing Horizon Zambia, a country-focused programme aimed at improving investment readiness and addressing constraints within the local investment ecosystem.

The programme will provide technical assistance to businesses, help investors identify opportunities and support investment through policy engagement and strategic partnerships.

Horizon Zambia builds on a pilot launched last year that supported 15 SMEs and helped facilitate $8 million of investments.

The initiative forms part of BII’s wider Horizon platform, which includes programmes in Sierra Leone, Nepal and Ghana, alongside the Africa Resilience Investment Accelerator, which focuses on developing investment pipelines across frontier markets.