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Tag: British International Investment

  • British International Investment and African Guarantee Fund sign $75 million programme to fund African SMEs

    British International Investment and African Guarantee Fund sign $75 million programme to fund African SMEs

    British International Investment (BII), the UK’s development finance institution and impact investor, and African Guarantee Fund (AGF), a leading Pan African guarantee provider, have today announced their partnership of a $75 million re-guarantee agreement for Small and Medium Enterprises (SMEs) across Africa.

    Through this facility, AGF and BII will provide credit guarantees to partner financial institutions for up to 75 per cent of the risk on SME loans, thereby increasing access to credit and reducing collateral requirements for these SMEs. As a result, the eight-year partnership is expected to facilitate up to $150 million in loans to 17,300 SMEs through partner financial institutions. This partnership will also encourage lending to SMEs that are women-owned or led as well as SMEs that are climate-focused.

    SMEs in Africa continue to face significant challenges in accessing credit. Financial institutions are often constrained by regulatory requirements, limited appetite for a segment that is perceived to be higher risk, a lack of adequate collateral available from SMEs, knowledge gaps by the lenders and skill gaps demonstrated by SME borrowers.

    Risk-sharing facilities are a key tool to support knowledge gaps by the lenders and in broadening their SME lending while mitigating risk and allowing them to build capabilities and track records in serving this market segment. As such, at least half of the overall facility will specifically target SMEs in the most fragile African economies to support promising businesses that can contribute to productive economic development over the long term.

    UK Foreign Secretary, James Cleverly said: “British International Investment is already a force for good in Kenya, supporting jobs and livelihoods in Africa. This investment shows that when we go together, we can go far.”

    Constant N’zi, Deputy Group Chief Executive Officer and Group Chief Risk Officer, African Guarantee Fund said, “Our partnership with British International Investment marks our first engagement with a UK Development Finance Institution and is the beginning of a journey that will positively impact Africa SMEs. Through this re-guarantee, our capacity to support lending institutions has been increased and we are certain of increased economic growth across the forty African countries wherein our guarantee products are utilized.”

    Jo Fry, Investment Director & Head of Intermediated Credit, British International Investment added: “We are delighted to partner with African Guarantee Fund, a deeply impact-focused African institution, on this critical mission. This investment will increase access to finance for SMEs across the African continent, with a focus on those in the most challenging contexts. The partnership, which will also target funding at climate-focused businesses as well as SMEs owned and led by women, will contribute toward increasing inclusive and sustainable development for Africa. The programme represents BII’s commitment to working with best-in-class local institutions who are deeply embedded in the countries and communities that they serve.”

    The joint facility contributes to the United Nations Sustainable Development Goal 8 on promoting inclusive and sustainable economic growth. The investment also qualifies under the 2X Challenge, an initiative by the development finance institutions (DFIs) of the G7 to mobilise capital to support increased economic empowerment for women in emerging economies.

  • Extreme Weather impact Emerging Economies in the last 12 months- BII

    Extreme Weather impact Emerging Economies in the last 12 months- BII

    …Survey by British International Investment shows accelerating impacts of the climate emergency

    The accelerating pace of the climate emergency has been underlined by a new report that revealed that over half of companies in emerging economies have been impacted by extreme weather events over the last 12 months. 

    The 2022 Emerging Economies Climate Report published today by British International Investment, the UK’s development finance institution, showed that 58 percent of companies in Africa and South Asia had been hit by events such as extreme flooding, storms or droughts over the last year, compared with just 48 percent of respondents in the previous year’s survey.

    The startling findings also revealed that:

    • 68 percent of respondents said climate change is affecting their business today.
    • 40 percent of respondents have been impacted by flooding, while 25 per cent have been affected by drought.
    • More than half (56 percent) thought climate change will affect the viability of their business in the next five years, while 72 per cent were concerned that climate change will impact plans to grow their business or investment portfolio over the next ten years. 
    • 91 percent agreed to some extent that organisations that take steps to reduce their carbon emissions and reduce vulnerability to physical climate change risks will be more successful in the long term – up from 82 percent last year. 
    • 92 percent agreed that better and more targeted investment is needed to reduce emissions and vulnerability. 

    Amal-Lee Amin Managing Director, Climate, Gender & Diversity and Advisory, at British International Investment, said that the survey highlighted the significant impact that the climate emergency was already having on businesses, but also the increased steps that companies were taking to adapt their operations. 

    She said: “Developing countries – which are least responsible for causing climate change but among the most vulnerable to its impacts – are already feeling the brunt of the climate crisis. And many people living in these regions are already being affected.

    “This year we have seen severe droughts on both sides of the African continent, the persistent drought in Somalia, for example, demonstrates links between climate change and a humanitarian crisis, whereas extreme rainfall in South Africa and devastating floods in Pakistan have directly led to loss of many lives. These increasing extreme weather events will expose millions of people to acute food and water insecurity in Africa and South Asia in the years to come. It is clear we need urgent climate action. Incremental improvements in sustainability will not get us to net-zero and resilient economies.”

    “It is encouraging that nearly half of respondents reported that they are offering new climate-friendly products and a similar number are excluding investments that have a negative impact on the planet.”

    For the Emerging Economies Climate Report, BII surveyed senior executives working across its portfolio of 1,300 companies and funds in Africa and Asia. Questions in the survey were structured around the pillars of the Task Force on Climate-related Financial Disclosures (TCFD), which provides an international framework to help businesses disclose climate-related risks and opportunities.

    The full report can be found here

  • British International Investment and FMO commit $116 million to African Infrastructure Investment Fund 4

    British International Investment and FMO commit $116 million to African Infrastructure Investment Fund 4

    … Investment in the Fund will boost renewable energy, digital infrastructure, mobility and logistics sectors

     Development Finance Institutions (“DFI”) British International Investment (“BII”) and FMO have today announced a joint commitment to African Infrastructure Investment Fund 4 (“AIIF4”), managed by African Infrastructure Investment Managers (“AIIM”). Their investment aims to support AIIF4 in reaching its $500 million target fund size. The Fund had previously received a cornerstone investment from Old Mutual, the fund manager’s sponsor and a prominent African financial services group.

    Anchor investor BII, the UK’s development finance institution, has committed $76 million, and FMO, the Dutch Entrepreneurial Development Bank, has committed $40 million, to AIIM’s fourth pan-African fund.

    AIIM, an experienced fund manager with one of the longest track records in infrastructure investment in Africa, will invest in high-impact infrastructure projects across the continent through AIIF4. The Fund will see AIIM build on the successful performance of its predecessor funds by investing across three priority infrastructure sub-sectors: renewable energy such as rooftop solar; digital infrastructure including mobile telecoms towers, data centres, and fibre optic networks; and mobility and logistics such as ports, roads and other supporting infrastructure.

    AIIF4 will play a role in bridging the estimated infrastructure financing gap of c. $108 billion per year, by funding reliable infrastructure across the continent. AIIF4-backed projects will meaningfully boost productivity by creating jobs and stimulating economic activities, while the new and upgraded infrastructure will support inclusive development, improve standards of living for consumers and accelerate sustainable economic growth within many countries across the continent.

    Moreover, at least 20 percent of the capital committed to AIIF4 will be invested in climate finance qualifying projects which will directly contribute to reducing greenhouse gas emissions. Additionally, AIIF4 qualifies under the 2X Challenge based on AIIM workforce consisting of 50 percent women, and its commitment to working towards increasing entrepreneurship, employment, leadership, and consumption opportunities for women in 30 per cent of AIIF4’s portfolio companies.

    Ryan Wagner, Head of Infrastructure and Climate Funds, at British International Investment, said: “For over a decade, BII has proudly been an active partner to AIIM, an institutional fund manager with long-term industry expertise and on-ground knowledge of the Africa infrastructure space. We are pleased that our partnership alongside FMO and Old Mutual will serve to mobilise further capital to help meet AIIF4’s target size, playing a role in meeting Africa’s infrastructure needs. AIIF4 clearly aligns with BII’s core infrastructure strategy, and we are confident that our capital will help modernise cities and services and accelerate social and economic prosperity for people and communities across the continent.”

    Diana Wesselius, Manager Private Equity Energy said: “FMO is thrilled to support AIIM in the first close of AIIF4 as a cornerstone investor and appreciates the commitment shown by the AIIM team toward climate finance and gender equality. Having also invested on the two predecessor funds, we see AIIM as a long-term partner in supporting infrastructure development in line with our strategy and look forward to supporting the advancement of the African continent’s infrastructure.”

    This commitment from BII, FMO and Old Mutual contributes to UN Sustainable Development Goals 7 (Affordable and clean energy), 8 (Decent work and growth) and 9 (Industry, innovation, and infrastructure).

  • British International Investment launches new name in Nigeria with US $20m commitment to mobility fintech Moove

    British International Investment launches new name in Nigeria with US $20m commitment to mobility fintech Moove

    British International Investment (“BII”), the UK government’s Development Finance Institution (DFI), formerly known as CDC Group, introduced its new name and announced a US $20 million, 4-year structured credit investment in Moove – a mobility fintech democratising access to vehicle ownership in Africa.

    The investment reflects BII’s focus on mobilising capital to build self-sufficiency and market resilience in Nigeria, and improve access to inclusive economic opportunities while helping to catalyse the country’s boundless entrepreneurial ambition.

    Last night, the British High Commissioner in Nigeria, H.E. Catriona Laing CB and CEO of BII, Nick O’Donohoe, co-hosted a business reception in Lagos to celebrate the launch of BII’s new name and reiterate the DFI’s continued ambition to scale up investment that will boost key economic sectors in Nigeria.

    The event was held at the British Deputy High Commissioner’s Residence in Ikoyi, bringing together key leaders in business and BII’s investment partners from across the country. BII’s leadership outlined the organisation’s strategy to deliver productive, sustainable and inclusive investment and pledged to deepen its capital commitments to support the emergence of more breakthrough Nigerian businesses providing progressive solutions to urgent and complex development challenges.

    British High Commissioner, H.E. Catriona Laing CB, said: “It’s a pleasure to be in Lagos to mark the launch of British International Investment, and to host Nick O’Donohoe during his visit to Nigeria.”

    “BII forms an important part of the UK’s package of tools and expertise to help Nigeria build their pipeline for investment and scale up infrastructure investment, in particular to achieve clean, green growth.”

    “The launch of BII marks a continuation of this partnership, and we look forward to seeing BII’s support expand and diversify in Nigeria.”

    In his keynote speech, Nick O’Donohoe highlighted BII’s 74-year history in Nigeria, from its first investments in 1949, in West African Fisheries and Cold Store, to the organisation’s pioneering role in supporting Nigeria’s first private equity fund – African Capital Alliance’s Capital Alliance Private Equity Fund I (CAPE I).

    On how BII’s new five-year strategy is driving its investment in the world’s first mobility fintech, Moove, O’Donohoe comments: “Investing in the prosperity of Nigeria’s growing population requires innovative new partnerships that can leverage the country’s abundant capabilities and expertise. In Moove, BII has a partner that aligns with our commitment to back dynamic tech-enabled businesses that can help accelerate impact in Nigeria by strengthening the country’s informal transport industry.

    “I am delighted that not only will BII’s investment help to create jobs and provide entrepreneurial self-starters with the means to own their vehicles, but Moove’s clear focus on gender diversity will foster inclusive economic opportunities for women, both within the company’s workforce and among its drivers.”

    Founded by serial entrepreneurs, Moove is democratising access to vehicle ownership by providing revenue-based vehicle financing and financial services to mobility entrepreneurs. The mobility fintech is creating sustainable employment opportunities to empower those otherwise excluded from financial services by embedding its alternative credit scoring technology onto ride-hailing, e-logistics and instant delivery platforms, and using proprietary performance and revenue analytics to underwrite vehicle loans.

    Since its launch in 2020, Moove has rapidly expanded its operations within Nigeria and has entered into new African markets including Ghana, Kenya, Uganda and South Africa, as well as Europe, Middle East and Asia markets. Currently, mobility marketplaces such as Uber face difficulty meeting rising rider demand, due to limited access to car supply and onerous and inflexible auto leasing products for aspiring drivers. The funding from BII will enable Moove to purchase and import brand new fuel-efficient cars into Lagos, which will be leased to drivers who can then earn their way to asset-ownership, over a three to four-year period. This will also alleviate one of the key blockages to the development of ‘ride-hailing’ transportation infrastructure in Nigeria’s commercial capital.

    Ladi Delano, co-founder and co-CEO at Moove, said, “We’re incredibly proud to welcome onboard a world-class partner such as BII, whose strategic support will play a key role in our mission to build the world’s largest integrated vehicle financing platform for mobility entrepreneurs.

    With our new funding, we’re now in an even stronger position to use our technology and productivity data in creating a more inclusive financing ecosystem, whilst also tackling the unemployment problem affecting over a third of Nigerians by generating the opportunity for more seamless and sustainable employment.”

    Nigeria is the BII’s biggest investment market in Africa, with a portfolio of nearly US $570 million, through more than 100 businesses and 43 funds, which collectively support almost 45,000 jobs across the country in 2020.

    The DFI’s investments in Nigeria, both direct and indirect through various impact-led funds and intermediaries, cover a variety of sectors from clean infrastructure and energy to digital infrastructure, food and agriculture, financial services, manufacturing and logistics. A highlight of BII’s key investment activities in Nigerian include:

    Backing Nigeria’s private equity industry by investing in Capital Alliance Private Equity Fund I (CAPE I), managed by African Capital Alliance (ACA); CardinalStone Capital Advisors Growth Fund; Nigerian-led Synergy Private Equity Fund II, Fund for Agricultural Finance in Nigeria (FAFIN), Verod Growth Fund III, Uhuru Growth Fund, among others.

    –       Bolstering Nigeria’s financial institutions to boost financial inclusion through a US $100 million loan to First Bank of Nigeria to support women and small business owners; a US $75 million investment in Stanbic IBTC Bank in 2020 to expand lending to businesses in critical sub-sectors; and helping to fund a $162.5 million syndicated loan package to Nigeria’s Access Bank Plc to increase funding to local micro, small, and medium-sized enterprises.

    –       Supporting the country’s food and agriculture sector through US $140 million investment in Indorama Eleme Fertilizer and Chemical Limited which is boosting fertilizer production in Nigeria and supporting local jobs. 

    –       Catalysing early-stage innovation and entrepreneurial activities in Nigeria by investing in Venture Capital funds including US $25 million invested in TLcom, US $5 million in TradeDepot and US $5 million in TeamApt.

    –       Expanding access to clean and affordable clean energy through investments such as Gridworks, a pan-continental equity investment platform; M-KOPA, the world’s largest pay-as-you-go solar energy companies; and Lumos, an off-grid solar company that offers access to affordable and reliable electricity to homes and businesses in Nigeria.

    British International Investment has an office in Lagos, Nigeria, which is led by Benson Adenuga.

  • British International Investment and Symbiotics partner to launch first ever Green Basket Bond across Africa, South and Southeast Asia

    …the innovative green lending programme is expected to set a new market standard and help scale climate finance across Asia and Africa

    British International Investment (“BII”), the UK’s development finance institution (DFI), has subscribed to a $75 million Green Basket Bond arranged by Symbiotics, a leading emerging markets access platform and financial lender. The green lending programme is structured to direct much-needed financing through MSME banks to support small-scale green projects across Africa, South and Southeast Asia.

    BII and Symbiotics have partnered on this innovative lending programme to help accelerate the origination and funding of green projects through MSME banks, particularly those requiring smaller ticket sizes than BII is mandated to fund directly. Loans provided through the basket bond to local MSME banks will unlock capital for existing small-scale green projects such as rooftop solar/off-grid electricity, sustainable agriculture, energy-efficient appliances, energy efficiency improvements, electric vehicles and more.

    To further drive impact, BII is providing an additional c. $520,000 through its technical assistance (TA) facility which will be managed by Symbiotics’ provider Symbiotics Association for Sustainable Development (SASD). The TA facility will support these MSME banks to develop their green financing capabilities by enhancing their ability to identify and manage green assets.

    This dynamic investment instrument is the first of its kind issued in BII’s markets – covering the African continent, India, Pakistan, Bangladesh, Sri Lanka, Nepal, Indonesia, Philippines, Vietnam, Cambodia, and Laos. It is designed with an ambition to attract increased climate investment that fund green projects and sustainable practices, in addition to reducing greenhouse gas emissions and increasing access to clean energy.

    The success of such a green lending programme will serve as a proof of concept to other investors, bolstered by BII’s 74-year track record as an impact investor, along with Symbiotics’ expertise as an asset manager with an extensive relationship network. It will demonstrate the viability of this alternative investment instrument and attract increased capital from investors seeking to develop and scale climate finance across Africa and Asia.

    Jo Fry, Investment Director & Head of Intermediated Credit, British International Investment, added: “This partnership is a testament to BII’s commitment to create and catalyse new funding structures that can help address the greatest challenges in our market. We are delighted to partner with Symbiotics, a trusted impact-focused asset manager, on this pioneering programme that will accelerate inclusive access to climate finance for small-scale entrepreneurs and businesses that are developing green projects or adapting climate-conscious practices in their operations. This innovative green lending programme will ensure BII’s capital can go further to support businesses and projects that otherwise lack access to capital, ensuring that they can continue to grow and deliver positive impact locally and broadly across their communities.”

    Daniel Schriber, Head of Investments, Symbiotics, said: “Symbiotics is delighted to structure its first green basket bond in partnership with BII. Adding green use of proceeds to our emerging market investments will broaden the impact of our funding in addressing different Sustainable Development Goals (SDGs). This innovative product will also increase the awareness of climate finance in emerging markets and support financial institutions in further developing and managing their green product range.”

    This Green Basket Bond issuance contributes to the United Nations Sustainable Development Goals (SDGs) 7 on Affordable and Clean Energy and 13 on Climate Action.

  • British International Investment and Citi agree US$ 100 million risk-sharing facility, to unlock supply chain finance for African businesses.

    British International Investment and Citi agree US$ 100 million risk-sharing facility, to unlock supply chain finance for African businesses.

    …New partnership to increase financial access for underserved businesses, including women-owned and Broad-based Black Economic Empowerment (BBBEE) enterprises, promoting productivity and economic inclusion across the African continent.

    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 that 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.”

    The investment aligns with SDG 8 – Decent Work and Economic Growth and SDG 17 – Partnerships for the Goals.

  • CDC Group, Africa’s oldest development finance institution, transforms into British International Investment

    CDC Group, Africa’s oldest development finance institution, transforms into British International Investment

    …British International Investment has a portfolio of more than $4billion in Africa, and over 600 valued partnerships with ambitious businesses

    CDC Group, the UK’s development finance institution and impact investor, has been formally renamed British International Investment (BII). Watch here.  

    The organisation will invest between £1.5 and £2 billion per year in green infrastructure, technology and other sectors to support countries in Africa, Asia and the Caribbean. Situated in seven locations across the Continent, BII has a portfolio value of over $4billion, with over 600 local businesses. Portfolio highlights include: Global Partnership for Ethiopia, FirstBank Nigeria, 14Trees, ETG, AfricInvest, Novastar, Zambeef, Equity Bank, Access Bank plc, Redstone Concentrated Solar Power Project among many more.

    Nick O’Donohoe, the Chief Executive, British International Investment, said: “This is an incredibly significant milestone in the history of our company. British International Investment will build on CDC’s legacy by inheriting its unparalleled experience of impact investing and deep-rooted knowledge of the markets in which it invests.

    We will continue to solve the biggest global development challenges by investing patient, flexible capital to support private sector growth and innovation. And, we will help to alleviate poverty by building productive, sustainable and inclusive economic outcomes for those that need fair and transparent investment the most.” 

    Founded in 1948, the UK’s development finance institution (DFI) invests patient, flexible capital to support private-sector growth and innovation. In 2022, the DFI announced that it exceeded its pledge to invest £2 billion in Africa over the last two years. British International Investment has a portfolio value of $4.2bn in Africa, with over 600 businesses in the portfolio.

    British International Investment is at the heart of the UK Government’s international financing offer to Africa and other emerging economies. It builds on a 74-year track record of forming strong partnerships with thousands of ambitious businesses to create positive social and economic outcomes for the countries in which it operates. The impact investor will play a key role in the UK Government’s wider plans to mobilise up to £8 billion a year of public and private sector investment in international projects by 2025. 

    Mr O’Donohoe added: “British International Investment is a strong, modern identity, which captures who we are and what we do. It communicates the increased breadth of what we do as an organisation. It also clearly defines us as a British institution that is working to bring not just capital but high standards and transparency to our investments. And it highlights our critical role as part of the UK Government’s international financing offer.”  

    Foreign, Commonwealth and Development Secretary, Liz Truss, said: “The revamped British International Investment is at the heart of Britain’s financing offer to low and middle income countries and our ambitious plan to mobilise up to £8 billion of investment a year by 2025. We will provide reliable and honest sources of finance to low and middle income nations including in Asia, Africa and the Caribbean and at the same time deliver for people in the UK, creating jobs and export opportunities.” 

    British International Investment has a clear focus on helping to address the huge challenge that climate change presents across Africa. At least 30 percent of its total investments over the next five years will be in climate finance – making it one of the largest such investor in African economies. It has also set a new ambition to scale investment into a range of vital sectors, including clean infrastructure, digital transformation and earlier-stage, disruptive businesses that offer radical solutions to the key development challenges on the African continent.

    The name change was first announced by the UK’s Foreign Secretary, Rt Hon Liz Truss MP, in November and comes into effect on 4th April 2022.  

    BII is also a founding member of the 2X Challenge which has raised $10 billion to empower women’s economic development.     

  • FirstBank Partners with CDC/BII to Support Women and Small Business Owners with a US$100 million Credit Facility

    FirstBank Partners with CDC/BII to Support Women and Small Business Owners with a US$100 million Credit Facility

    …the facility adds US$100 million to CDC/BII’s contribution to the 2XChallenge 

    First Bank of Nigeria Limited, Nigeria’s premier and leading financial inclusion services provider, has announced its partnership with CDC Group, the UK Government’s development finance institution on a US$100 million finance facility to FirstBank. This new facility will direct funding to women-owned and led businesses as well as to local small and medium-sized enterprises (SMEs) in Nigeria. 

    The deal will support FirstBank to deliver financial solutions that help to address the challenge of limited access to capital faced by underbanked and underserved groups in the country. As part of the new facility, a minimum of US$30 million will be allocated in the form of credit lines to women entrepreneurs. The facility will also support FirstBank’s ‘FirstGem’ gender-focused services offering, which takes steps to promote gender inclusion by improving lending and support to female entrepreneurs.

    The new partnership between CDC, which will be renamed British International Investment in April, and FirstBank demonstrates a shared mission to spur sustainable, productive and inclusive growth in Nigeria.

    CDC’s commitment will facilitate an expanded offer by FirstBank to its clientele, which will accelerate financial inclusion and increase opportunities for marginalised groups, including an estimated 59 million unbanked Nigerians, to participate in the country’s formal economy. As such, the partnership will capitalise on the FirstBank’s expansive network of over 700 branches and 150,000+ agents, leveraging its market-leading expertise to scale financial solutions to underbanked entrepreneurs and populations.

    In addition, CDC/BII will support FirstBank with a technical assistance programme which will build on the Bank’s knowledge base of the women-led and women-owned businesses in its portfolio, strengthening the Bank’s technical capabilities and ability to reinforce its commitment to gender-based initiatives. This will enable the Bank to further leverage the facility to provide vital funding to scale business growth across Nigeria’s market – increasing job creation and improving livelihoods throughout the country.

    The facility’s target to increase financial inclusion and opportunities for women, qualifies this facility under the 2x Challenge – a commitment by the development finance institutions (DFIs) of the G7 to mobilise capital to support increased economic empowerment for women in emerging economies. Moreover, the US$100 million commitment aligns with the UN’s Sustainable Development Goal 5 Gender Equality and Goal 8 Decent Work and Economic Growth.

    Nick O’Donohoe, Chief Executive of CDC Group, said: “Promoting financial inclusion is a key component for advancing sweeping productive and sustainable growth across both rural and urban areas in Nigeria. This facility will channel CDC’s flexible and long-term capital toward expanding the financial solutions made available to women entrepreneurs, who are often the drivers of small business ideas and services to their communities.  

    “Our commitment demonstrates a deepening of the British partnership with Nigeria’s businesses, as we collaborate to unlock the potential for entrepreneurial success and economic growth across the country.”

    Adesola Adeduntan, Managing Director / Chief Executive Officer, FirstBank said: “Beyond themutual benefits this partnership offers to both organisations, this transaction offers yet, another occasion for FirstBank to contribute immensely, to the United Nation Sustainable Development Goals.

    “Enabling financial inclusion for SMEs has been a strategic priority for FirstBank over the last 128 years.  Similarly, FirstBank has been at the forefront of financially empowering women-owned and women-led businesses on the continent.  This partnership with CDC/BII offers a fantastic opportunity to accelerate the momentum.

    “At FirstBank, we remain ever committed to fostering financial inclusion, creating wealth for the underserved, enhancing access to quality education and health care, improving lives and empowering women.”

  • CDC/BII partners with FirstBank to support women and small business owners with a US$100 million credit facility

    CDC/BII partners with FirstBank to support women and small business owners with a US$100 million credit facility

    CDC Group, the UK Government’s development finance institution, announced today a US$100 million finance facility to First Bank of Nigeria Limited (FirstBank). This new facility will direct funding to women-owned and led businesses as well as to local small and medium-sized enterprises (SMEs) in Nigeria.

    The deal will support FirstBank, one of Nigeria’s largest banking groups, to deliver financial solutions that help to address the challenge of limited access to capital faced by underbanked and underserved groups in the country. As part of the new facility, a minimum of US$30 million will be allocated in the form of credit lines to women entrepreneurs. The facility will also support FirstBank’s ‘FirstGem’ gender-focused services offering, which takes steps to promote gender inclusion by improving lending and support to female entrepreneurs.

    The new partnership between CDC, which will be renamed British International Investment in April, and FirstBank demonstrates a shared mission to spur sustainable, productive and inclusive growth in Nigeria.

    CDC’s commitment will facilitate an expanded offer by FirstBank to its clientele, which will accelerate financial inclusion and increase opportunities for marginalised groups, including an estimated 59 million unbanked Nigerians, to participate in the country’s formal economy. As such, the partnership will capitalise on the FirstBank’s expansive network of over 700 branches and 150,000+ agents, leveraging its market-leading expertise to scale financial solutions to underbanked entrepreneurs and populations.

    In addition, CDC/BII will support FirstBank with a technical assistance programme which will build on the Bank’s knowledge base of the women-led and women-owned businesses in its portfolio, strengthening the Bank’s technical capabilities and ability to reinforce its commitment to gender-based initiatives. This will enable the Bank to further leverage the facility to provide vital funding to scale business growth across Nigeria’s market – increasing job creation and improving livelihoods throughout the country.

    The facility’s target to increase financial inclusion and opportunities for women, qualifies this facility under the 2x Challenge – a commitment by the development finance institutions (DFIs) of the G7 to mobilise capital to support increased economic empowerment for women in emerging economies. Moreover, the US$100 million commitment aligns with the UN’s Sustainable Development Goal 5 Gender Equality and Goal 8 Decent Work and Economic Growth.

    Nick O’Donohoe, Chief Executive, CDC Group, said: “Promoting financial inclusion is a key component for advancing sweeping productive and sustainable growth across both rural and urban areas in Nigeria. This facility will channel CDC’s flexible and long-term capital toward expanding the financial solutions made available to women entrepreneurs, who are often the drivers of small business ideas and services to their communities.   

    “Our commitment demonstrates a deepening of British partnership with Nigeria’s businesses, as we collaborate to unlock the potential for entrepreneurial success and economic growth across the country.”

    Adesola Adeduntan, Managing Director / Chief Executive Officer, FirstBank said: “Beyond the mutual benefits this partnership offers to both organisations, this transaction offers yet, another occasion for FirstBank to contribute immensely, to the United Nation Sustainable Development Goals.

    “Enabling financial inclusion for SMEs has been a strategic priority for FirstBank over the last 128 years.  Similarly, FirstBank has been at the forefront of financially empowering women-owned and women-led businesses on the continent.  This partnership with CDC/BII offers a fantastic opportunity to accelerate the momentum.

    “At FirstBank, we remain ever committed to fostering financial inclusion, creating wealth for the underserved, enhancing access to quality education and health care, improving lives and empowering women.”

  • CDC/BII appoints four new managing directors

    CDC/BII appoints four new managing directors

    CDC, the UK’s development finance institution that will soon be renamed British International Investment (BII), has appointed four new managing directors. 

    The appointments have been made as CDC/BII enters its new five year strategy period in which it will prioritise investment in clean infrastructure and climate finance projects.

    Amal-Lee Amin, CDC’s Climate Change Director, becomes MD and Head of Climate. Dr Amin has led cross-firm initiatives to align investment strategies with the goals of the Paris Agreement. She has also positioned CDC/BII as a leader among the development finance community on climate finance, particularly the agenda for accelerating private investment for climate adaptation and resilience. 

    Chris Chijiutomi, Director, Head of Infrastructure Equity, becomes MD and Head of Infrastructure Equity, Africa and Pakistan. Mr Chijiutomi has led CDC’s Infrastructure Equity team since 2018 and in that capacity has been responsible for some of the company’s most important relationships and transactions. He sits on the boards of Globeleq and Gridworks, CDC’s key investments in Africa power. He also provided overall leadership and supervision of CDC’s joint venture with DP World in the creation of a platform to invest in ports and logistics assets in Africa.

    Yasemin Saltuk Lamy, Deputy CIO, Head of Asset Allocation and Capital Solutions becomes MD and Head of Asset Allocation and Capital Solutions. Under Ms Lamy’s leadership since 2018, CDC’s Catalyst portfolio has doubled in size, reaching $1 billion of commitments and helping more than 40 million people. In 2020, she stewarded CDC’s COVID-19 response, which was awarded Real World Impact Initiative of the Year by the UN Principles for Responsible Investment.

    Abhinav Sinha, Director and Head of Technology and Telecoms, Equity, becomes MD and Head of Technology and Telecoms. Since joining CDC in 2018, Mr Sinha has been responsible for leading his teams on some of the most significant investments at CDC/BII. These have included Liquid Telecom, the largest independent fibre and cloud service provider in Africa, the mobile partnership with Vodacom in Ethiopia and setting up Kelix bio, the cross-border pharmaceutical manufacturing platform.

    Nick O’Donohoe, Chief Executive at CDC/BII, said: “Each of our four new Managing Directors have demonstrated outstanding performance, skill and dedication to our values. They will play a key role in delivering BII’s strategy over the new five year strategic period.”

    1. CDC will formally become British International Investment plc on 4 April 2022. 
    1. British International Investment is a reliable and trusted investment partner to businesses in Africa, parts of Asia and the Caribbean. It will commit between £1.5 and £2 billion per annum between 2022 and 2026 to support the UK government’s Clean Green Initiative and to create productive, sustainable and inclusive economies in Africa, parts of Asia and the Caribbean.
    1. British International Investment plays a key role in the UK government’s wider plans to mobilise up to £8 billion a year of public and private sector investment in international projects by 2025.  
    1. Over the next five years, at least 30 percent of BII’s total new commitments by value will be in climate finance. This will make us one of the world’s largest climate investors in Africa.
    2. BII is also a founding member of the 2X challenge which has raised $10bn to empower women’s economic development.   
    1. The company has investments in over 1,000 businesses in emerging economies and total assets of £6.8 billion.