British International Investment

UK Announces Investment in South African Wind Farms

November 29, 2023

British International Investment has announced a $6.7 million investment in two 140MW wind farms in the Northern and Eastern Cape of South Africa. The new funding was trailed at a business reception in Cape Town hosted by BII and the UK’s development finance institution (DFI) and impact investor, while they celebrated 75 years of investing for impact in Africa.

This is part of a three-project cluster co-developed by H1 Capital and EDF Renewables. Currently under construction, the two wind farms are expected to reach completion in 2024 and will provide clean, affordable energy to South Africa.

BII has invested in at least 150 South African businesses since 1995, amounting to over $2bn committed to South Africa, and its portfolio companies have supported over 54,500 jobs a year since 2014. By the end of 2022, BII’s portfolio value in South Africa had expanded to approximately $285 million.

South Africa faces a severe energy crisis, which affects the safety and productivity everyday life. In 2022, electricity cuts averaged eight hours per day. Outages experienced by South Africa cost the continent 2- 4% of its gross domestic product annually, according to the findings of the AfDB study.

Supporting a just energy transition, BII’s has partnered with H1 Holdings, a South African Broad-based Black Economic Empowerment (BBBEE) renewables investment and development company, and Scatec to launch three solar and battery storage facilities in Kenhardt under South Africa’s Risk Mitigation Independent Power Producer Procurement Programme (RMIPPPP).

Its backing of strategic energy platforms including Globeleq, Gridworks, ACWA and Redstone demonstrate the UK’s focus on actively helping economies to reduce emissions and maximise the delivery of consistent and clean power to South Africa’s cities, villages, townships, businesses and farms – providing a major boost to productivity and economic growth.

BII also hosted a gathering for the African venture capital community, Innovation for Impact, in Cape Town. The event brought development finance institutions, investors, fund managers, multinational corporations, venture capital firms, start-ups and founders together to advance the use of African venture capital in combating key development challenges and deepening collaboration across Africa and South Asia.

BII recognises that investing in digital infrastructure, digitally enabled businesses and tech-led innovation can have a disproportionately positive effect in addressing key development challenges. Particularly in South Africa where the digital gap is significant with broadband in only 10% of households. The DFI has partnered with South African based Liquid Intelligent Solutions which has 100,000km of fibre network Africa and Tyme Bank, South Africa’s leading digital bank that brings crucial banking services to the underbanked populations.

Digitalisation also advances climate technologies with renewable power, such as solar, wind, and battery energy storage systems (BESS). Marking its commitment to meaningfully increase energy access, last year, nearly half of BII’s investments were in climate finance, valued at £591m.

Mr Nick O’Donohoe, BII CEO, highlighted the DFI’s special relationship with South Africa and reiterated BII’s ambition to help solve pressing development challenges in South Africa including reliable clean energy.

Commenting on BII’s long term commitment to partner with promising businesses and ambitious entrepreneurs in South Africa, Nick O’Donohoe, CEO, BII said: “We committed over $5.5 billion to Africa in our last five year strategy period*. BII’s strategic objective in South Africa is to invest its patient, long-term capital to continue to meet the needs of those whose mission and purpose strive for equality, inclusive economic growth and a more sustainable future.”

British High Commissioner to South Africa, Antony Phillipson said:“The work the UK is doing with BII to help grow businesses in South Africa and in turn create thousands of local jobs, is absolutely fundamental in supporting our shared ambition with South Africa to build an inclusive, sustainable future for all.”

Kelechi Deca

Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry

British International Investment Launches in South Africa to Accelerate Clean Energy Investments

October 20, 2022

The British International Investment (BII), the UK’s development finance institution (DFI) and impact investor, launched its new name at a business reception in Johannesburg and reaffirmed its commitment to invest to accelerate South Africa’s economic dynamism. BII will deploy its patient long-term capital toward scaling climate finance and expanding the country’s clean energy capacity, increasing investments into economic transforming sectors, and backing productive and inclusive opportunities across the country.

Nick O’Donohoe, Chief Executive of BII, co-hosted the event on Tuesday alongside Adam Bye, Deputy High Commissioner to South Africa. Addressing the business leaders, key local stakeholders, ministers and BII partners in attendance, Mr O’Donohoe highlighted the DFI’s special relationship with South Africa and reiterated BII’s ambition to align its investment strategy to help solve pressing challenges in South Africa including urgently delivering reliable clean energy.

In 2021, BII’s portfolio in South Africa was valued at over $142 million. Having significantly scaled its investments into clean energy infrastructure in 2022, the DFI’s commitment today now stands at over $520 million.

These latest investments include BII’s partnership alongside Standard Bank and H1 Holdings in three Kenhardt projects under South Africa’s Risk Mitigation Independent Power Producer Procurement Programme (RMIPPPP). The projects represent Africa’s largest and South Africa’s first baseload renewable energy project, powered entirely by renewable sources. BII also invested in H1 Holding, a South African black-owned and managed renewables investment and development company –supporting the development of additional c. 2.4 GW of gross renewable capacity in the country.

British High Commissioner to South Africa, Antony Phillipson, said: “I am delighted that BII are making such a strong commitment to enhancing their presence and impact in South Africa. I particularly welcome BII’s focus on investments that will help to build South African businesses, and create more economic opportunities for people and communities that urgently need them. This is a vital part of the partnership between South Africa and the UK in key sectors like renewable energy, healthcare and infrastructure. These are critical to helping South Africa achieve its ambitions to create inclusive economic growth, and to deliver a Just Energy Transition through investment in a green, sustainable and job creating economy.”

O’Donohoe also highlighted BII’s investment focus on helping to reduce inequality in South Africa. The DFI’s recent investment in Lona Foods is increasing productive and inclusive economic opportunities for low-income workers – particularly women. BII backed Summit Fund, a black-owned and managed private equity fund that is investing in underserved areas, and the DFI’s commitment to H1 Capital marked its first direct investment in a Broad-based Black Economic Empowerment (BBEE) company in South Africa.

Commenting on BII’s future ambitions in the country, Chief Executive Officer Nick O’Donohoe said: “BII will continue to partner with key players whose work help to promote inclusive opportunities and stimulate productive and sustainable growth.”

“We are committed to championing the expansion of South African firms into other African markets, to facilitate knowledge sharing and deliver best-in-class technical and operational expertise that will accelerate national and continental prosperity. As we advance through our new strategy period, BII remains determined to leverage our expertise as Africa’s largest climate finance investor to invest in nascent renewable technology, and water supply projects and help mobilise more commercial capital to grow South Africa’s economy.”

BII first invested in South Africa in 1995 when it backed a 440 km motorway between Witbank and Maputo – the N4 road and toll plazas. Today, its investments in South Africa supports over 49,000 jobs in over 42 businesses and 26 investment funds.

BII’s additional investment activities in South Africa include:

Delivering clean power to South Africa’s grid through:

Globeleq, a BII majority-owned company and one of South Africa’s leading independent renewable energy providers.

Gridworks, a BII-owned electricity transmission and distribution platform.

ACWA Power’s Redstone Concentrated Solar Power Project – a project using pioneering energy storage technology to help increase South Africa’s renewable energy supply.

Investing $18.5 million in TymeBank – a digital banking group, to support the creation and launch of a new partnership channel and credit products that will increase services to under-served populations.

Backing Liquid Telecom with a $220 million investment in 2019 to improve access to affordable and high-quality internet and accelerate the company’s Cape-to-Cairo fibre network connection.

Partnering with South Africa’s Vodacom Group in the Global Partnership for Ethiopia consortium to improve access to affordable and high-quality internet in Ethiopia, and expand productivity and social inclusion across the country.

The DFI has an office in Johannesburg, which is led by Thithi-Kuhlase-Maseko, Head of Office and Coverage Director for South Africa.

Kelechi Deca

Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry

British International Investment Commits New $100 Million to Egyptian Startups

September 8, 2022

British International Investment (BII), the UK’s development finance institution (DFI) and impact investor, has announced its plan to invest $100 million in local startups over its current strategy period at a business reception launching its new name in Egypt, and highlighted its ‘Innovation for Impact’ Venture Capital (VC) summit.

British Ambassador to Egypt, Gareth Bayley

The DFI, formerly known as CDC Group, has reiterated its commitment to strengthening its cooperation with Egypt and increasing climate funding to help the country achieve green growth.

“We have a new name for an established partner — British International Investment’s presence and impact in Egypt has never been more apparent. Egypt is one of BII’s priority markets, given the growth potential this country has to offer. BII’s investment deals, whether in financial services, health or clean energy, illustrate the strength of the UK-Egypt trade and green partnership. I wish the UK’s development finance institution every success, as it supports Egypt’s green transformation ahead of COP27 in November,” British Ambassador to Egypt, Gareth Bayley, said.

Here’s What You Need To Know

The DFI announced new commitments to Algebra Ventures and Endure Capital, two leading local VC firms that support and partner with the most promising early-stage businesses to build transformative companies across sectors such as fintech, agritech, edtech, logistics, and healthcare, as part of BII’s ambition to strengthen Egyptian VC.

Following the success of Fund I, which includes market-leading startups such as Khazna, Mozare3, and Shift EV, the funding will support Algebra Ventures’ second fund. Endure Capital’s most recent fund, Endure21, has also sponsored high-impact firms including Brimore, Pylon, and Cassbana.

The DFI has also made an investment in MaxAB, a well-known B2B e-commerce platform in North Africa. The money will help MaxAB create 4,000 jobs and expand throughout Egypt and Morocco, allowing the firm to reach an additional 73,000 micro-retailers in the area. Furthermore, by adopting financial solutions that expand access to credit and streamline payments for small-scale and low-income shops, the investment will assist alleviate supply-chain inefficiencies.

In addition, the BII will be hosting the “Innovation for Impact” summit in Cairo this week. This summit is the first major event that is specifically dedicated to venture capital in developing economies. The goal of the summit is to help foster new relationships and greater collaboration across markets; explore important themes such as climate tech and food security; facilitate knowledge sharing across BII’s portfolio; and share best practise on ESG and impact measurement. The summit will bring together local VC managers from across Africa and Asia.

Commenting on BII’s latest commitments in Egyptian startup ecosystem, Nick O’Donohoe said:

“These investments form a critical part of BII’s new five-year strategy and reflect our local priorities to continuously explore opportunities to back local venture capital fund managers and direct our capital toward stimulating entrepreneurship and innovation among native businesses in impactful sectors. We believe local investors are ideal partners to identify the next generation of high-potential entrepreneurs whose unique solutions help solve development challenges, including climate solutions. I am particularly excited to welcome many of our VC partners at tomorrow’s Innovation for Impact summit. This is an event that further demonstrates BII’s commitment to help foster partnerships within the VC ecosystem and across markets, and help mobilise more capital to back market-shaping companies that are making societies more productive, sustainable and inclusive.”

British International Investment Egypt British International Investment Egypt

Egypt Launches “Pre-IPO” Fund To Support Companies Going Public

Charles Rapulu Udoh

Charles Rapulu Udoh is a Lagos-based lawyer, who has several years of experience working in Africa’s burgeoning tech startup industry. He has closed multi-million dollar deals bordering on venture capital, private equity, intellectual property (trademark, patent or design, etc.), mergers and acquisitions, in countries such as in the Delaware, New York, UK, Singapore, British Virgin Islands, South Africa, Nigeria etc. He’s also a corporate governance and cross-border data privacy and tax expert.
As an award-winning writer and researcher, he is passionate about telling the African startup story, and is one of the continent’s pioneers in this regard. You can book a session and speak with him using the link: https://insightsbyexpert

British International Investment Partners Citi on $100m Risk-Sharing Facility on Supply Chain Finance for Africa.

May 26, 2022

Admir Imami, Director, Head of Trade & Supply Chain Finance, British International Investment

The British International Investment (BII), the UK’s development finance institution (DFI) and impact investor, has signed a US$ 100 million risk-sharing facility for supply chain finance with Citi, a global leader in trade and supply chain finance solutions.

The new facility will provide systemic liquidity and help Citi grow its supply chain finance product across Africa. The facility will enable Citi to increase supply chain finance facilities to existing customers and offer them to new customers. These facilities bring much-needed working capital to supply chains as they allow suppliers to Citi’s corporate clients to be paid early and at a beneficial rate of finance.

The facility will be targeting SME suppliers and those underserved or excluded businesses. It will boost Citi’s annual supply chain finance volumes in Africa by up to US$ 400 million, with amplified capital support that will enable businesses to better manage cash flow and onboard new suppliers to the supply chain, ensuring the continued flow of goods and services. This will help expand the scope of local businesses and ensure productive and inclusive economic opportunities for diverse groups and communities.

The partnership between Citi and BII, formerly known as CDC Group, will help bring flexible capital in local currency to markets where access to finance can be limited for businesses, due to the risk which local and international financial institutions attach to lending to the SME space in Africa, and exacerbated by the Covid-19 pandemic. The facility uses an innovative structure that is a first in this market.

Under the facility, BII will act as a guarantor for supply chain finance facilities provided by Citi, mitigating the financial risks involved. BII and Citi have agreed to set impact criteria to ensure that flexible capital is being directed toward underserved groups and BBBEE enterprises for whom access to capital can be limited. The increased working capital will promote financial inclusion, support SMEs and improve the resilience for diverse suppliers and buyers, which will help strengthen Africa’s supply chain and keep trade flowing across the continent.

Admir Imami, Director, Head of Trade & Supply Chain Finance, British International Investment, said: “BII’s Trade and Supply Chain Finance (TSCF) programme has supported US$ 20.9 billion of trade across Africa and South Asia through partnerships with regional, international financial intermediaries. Our partnership with Citi presents an opportunity to help catalyse greater commercial capital to African businesses, bolstering trade and supply chain activities throughout the continent.

This agreement demonstrates the potential for flexible British finance combined with strategic partnerships to help reinforce Africa’s supply chains, foster dynamic UK-Africa trade links, and accelerate sustainable economic growth across the continent.”

Chris Cox, Global Head of Trade & Working Capital Solutions, Treasury and Trade Solutions, Citi said: “We are delighted to come together with BII to support the growth of supplier financing in Sub-Saharan Africa. Citi is committed to helping economic progress in the communities in which we operate. This agreement will enable us to expand our supply chain finance offering and increase credit to suppliers most in need, in particular the small and medium size enterprises that normally have limited access to financing.”

Kelechi Deca

Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry

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Tag: British International Investment

UK Announces Investment in South African Wind Farms

Kelechi Deca

British International Investment Launches in South Africa to Accelerate Clean Energy Investments

Kelechi Deca

British International Investment Commits New $100 Million to Egyptian Startups

Here’s What You Need To Know

British International Investment Partners Citi on $100m Risk-Sharing Facility on Supply Chain Finance for Africa.

Kelechi Deca