British International Investment (BII) and ILX have completed their first joint transaction, a US$15 million investment to expand access to finance for small and medium-sized enterprises (SMEs) and agricultural businesses in East Africa.
Announced in February 2026, this marks ILX’s inaugural sub-participation in a BII-originated investment since the two institutions formalised their collaboration to mobilise institutional capital into high-impact sectors in developing economies.
The capital will support a leading East African financial institution in scaling lending to micro, small, and medium enterprises, as well as actors in agricultural value chains.
These businesses play a significant role in regional GDP and livelihoods but frequently encounter barriers to affordable credit due to perceived risks and limited collateral.
Structure and Purpose of the Transaction
The US$15 million facility is structured as a sub-participation within a BII-originated loan to a regulated East African financial institution.
This blended approach allows ILX, as a specialised investor in development finance private debt, to gain exposure to high-quality, impact-oriented lending opportunities originated by BII.
The financing supports:
- Expansion of credit to underserved SMEs.
- Increased lending to agricultural value-chain participants, including farmers, processors, and agribusinesses.
- Strengthening of local financial systems through greater availability of productive capital.
Completing our first transaction with ILX under this partnership demonstrates how BII can originate high-quality opportunities that attract institutional investment into the sectors that matter most for inclusive and sustainable growth in our markets. By working together, we are creating a pathway to increasing capital availability to our markets that can deliver development impact at scale
Holger Rothenbusch, Managing Director and Head of Infrastructure and Climate at BII
Completing our first transaction with BII demonstrates the scalability and strength of the development finance private debt asset class. BII’s longstanding expertise, resources and approach to originating high-quality opportunities provide pension funds with the confidence to invest in impactful, well-structured investments across emerging markets
Manfred Schepers, CEO of ILX
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Significance for Institutional Investors
The transaction signals several important trends in development finance:
- Growing Institutional Appetite: Pension funds, insurers, and other institutional investors increasingly seek exposure to private debt in emerging markets, attracted by risk-adjusted returns and impact alignment. The partnership provides a credible, well-structured entry point.
- Scalability of Blended Finance: By combining BII’s origination capabilities with ILX’s institutional mobilisation expertise, the model demonstrates a scalable mechanism for increasing capital flows to underserved sectors.
- Risk Mitigation: BII’s rigorous due diligence and structuring expertise reduce perceived risks, enabling institutional capital to participate in opportunities that might otherwise remain inaccessible.
- Alignment with Development Priorities: The focus on SME and agricultural financing directly supports economic inclusion, job creation, and food security, comprising priorities that resonate with institutional mandates.
The deal exemplifies how development finance institutions can serve as originators and catalysts, unlocking greater volumes of private capital for high-impact projects in emerging markets.
Broader Implications for East Africa
The US$15 million facility will enable the partner financial institution to extend more affordable credit to SMEs and agricultural value-chain actors, addressing persistent financing gaps. This supports:
- Business expansion and productivity gains.
- Job creation across the value chain.
- Improved resilience in agricultural supply chains.
- Greater inclusion of underserved segments in formal financial systems.
The collaboration reinforces the role of blended finance in mobilising institutional capital to accelerate sustainable development outcomes.
Looking Ahead
The first joint transaction between BII and ILX, a US$15 million investment in East African SME and agricultural financing, illustrates a maturing model for attracting institutional capital to development finance.
By leveraging BII’s origination expertise and ILX’s access to pension funds and other institutional investors, the partnership creates a scalable pathway for increased capital availability in high-impact sectors.
This deal highlights growing institutional interest in private debt opportunities that deliver both financial returns and meaningful development impact in emerging markets.
For the most current details on the transaction and its outcomes, refer to official announcements from BII or ILX.
ILX Overview
ILX Capital refers to the investment firm that manages specialised private investment funds focused on growth opportunities in Africa.
ILX Fund II is the second fund managed by the group, typically geared toward scaling mid-stage companies across technology, financial services, and broader growth sectors.
ILX Management is the team of investment professionals, analysts, and partners responsible for sourcing deals, performing due diligence, and managing portfolio companies within the ILX funds.
BII Investment refers to British International Investment, formerly CDC Group; it is a major development finance institution that invests across Africa and South Asia to support private sector growth, job creation, and sustainable development.
BII often co-invests with regional private equity and venture capital firms, including funds like ILX’s vehicles.
Ronnie Paul is a seasoned writer and analyst with a prolific portfolio of over 1,000 published articles, specialising in fintech, cryptocurrency, climate change, and digital finance at Africa Digest News.
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