British International Investment on how to address Africa’s financing gap

British International Investment has been making significant strides in addressing the financing gap in Africa through its Africa Resilience Investment Accelerator (ARIA) initiative. ARIA, which aims to bring together development finance institutions to unlock investment opportunities in frontier markets, is currently in its pilot phase, focusing on six key countries including Sierra Leone, Liberia, Burkina Faso, the Democratic Republic of Congo, Ethiopia, and Benin. Since its inception, ARIA has been working closely with 16 development finance institutions to identify and assess investment opportunities in these countries. The coalition, which initially started with seven DFIs from the G7, has now expanded to include other active DFIs such as Sweat Fund from Sweden and FMO from the Netherlands. Viviane Infante, the Director of Africa Resilience Investment Accelerator at British International Investment, highlighted that while ARIA is still relatively young, several opportunities are already being assessed in investment pipelines. The goal is to leverage development capital to support investment activities in markets that are often perceived as having limited opportunities. One key focus of ARIA is to enhance investment readiness for projects in these frontier markets. Through deep market mappings and engagements with businesses and regulators, the Accelerator aims to identify opportunities and challenges while providing technical assistance funding to companies to make them 'DFI investable'. ARIA has also introduced country representatives in the target countries to facilitate a better understanding of local economic landscapes. Infante emphasized the importance of recognizing that there is no one-size-fits-all approach to investment in these countries. Each country presents unique opportunities and challenges based on its political, economic, and social environment. For instance, while food and agriculture may be key sectors in Sierra Leone, investment in financial services and energy may be more relevant in countries like Ethiopia. Looking ahead, ARIA plans to continue its focus on developing and implementing its initiatives in the target countries. With recent investments like the joint venture into Dashen Bank in Ethiopia, ARIA is poised to drive further foreign direct investments in frontier markets. Infante stressed the long-term perspective of ARIA and its commitment to supporting the growth and development of companies in these markets. In conclusion, British International Investment's Africa Resilience Investment Accelerator is playing a crucial role in unlocking the untapped potential of African markets. By fostering collaboration among DFIs, providing technical assistance, and adapting strategies to suit the specific needs of each country, ARIA is paving the way for sustainable and inclusive economic growth in frontier markets. The initiative's long-term vision and dedication to supporting local businesses set a positive precedent for future investments in Africa.