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Tag: UK’s development finance institution

  • BII invests $20 million in Acumen’s Hardest-to-Reach Initiative to expand energy access in frontier African economies

    BII invests $20 million in Acumen’s Hardest-to-Reach Initiative to expand energy access in frontier African economies

    • It qualifies under the 2X Challenge with the commitment to promote gender equality in the energy sector and expand economic opportunities for women as consumers and employees.

    British International Investment (BII), the UK’s development finance institution and impact investor, has announced a $20 million commitment to Acumen’s Hardest-to-Reach (H2R) Initiative. Through the initiative’s debt-focussed vehicle, H2R Amplify, our investment will help expand access to affordable, reliable, and clean energy in frontier economies in Africa – where nearly 600 million people still lack access to electricity and women bear the disproportionate burden of energy poverty.

    As part of H2R’s dual-vehicle structure, H2R Amplify will deploy innovative financing to established off-grid solar companies in the most underserved countries in sub-Saharan Africa, accelerating energy access where national electrification rates range from just 59 to as low as 12 per cent. It will offer impact-linked loans and receivables backed financing to help solar companies manage working capital as they scale. H2R Catalyze, the initiative’s patient capital arm, has raised $57 million since 2023 and is already investing in early-stage companies.

    H2R Amplify, which was originally developed by Acumen with UK research and innovation support via the Transforming Energy Access (TEA) platform, has now has secured $123 million in commitments at first close. It is structured to attract commercial investment by offering risk protection and enhanced returns through a tiered blended financing model. By offering this blend of financing, it delivers a scalable model that helps solar companies expand into and grow within lower-income countries that are currently underserved or overlooked by traditional investors. 

    With BII’s support, H2R Amplify is expected to reach more than 50 million individuals, including 40 million gaining first-time access to clean energy products. It is also expected to mitigate over 3 million tonnes of CO₂e by displacing highly polluting fuels such as kerosene.

    H2R Amplify is 2X Challenge-qualified, reflecting a strong commitment to advancing gender equality including through increased opportunities for women customers and employees in the off-grid solar sector. Acumen will further support this commitment through Gender Action Plans at portfolio companies and gender-focused technical assistance, to help improve gender inclusive practices and the collection of gender data to track progress.

    This investment underscores BII’s commitment to addressing economic inequality and catalysing private sector growth in Africa’s most fragile and underserved regions which often struggle to attract commercial capital. This is further demonstrated through the Africa Resilience Investment Accelerator (ARIA), a platform created by BII to work with development partners to de-risk investments and unlock opportunities in fragile and conflict-affected countries.

    Rachel Kyte, UK Special Representative for Climate said: “Being able to access reliable and affordable electricity transforms lives. The UK is working with African leaders, African entrepreneurs, and the energy and finance communities to realise the goal of universal access by 2030. With the support of the UK and other donors Acumen’s Fund will extend clean power to more than 50 million people – unlocking prosperity and driving forward the green energy transition across Africa.”

    Chris Chijiutomi, MD and Head of Africa at BII, commented: “With nearly 600 million people in Africa still lacking access to energy, we’re focussed on investing in inclusive energy solutions, to close this gap. This partnership reflects BII’s commitment to backing investments in the most challenging markets, where our capital can have the greatest impact. We also recognise that women bear the disproportionate burden of energy poverty and so we’re pleased that H2R Amplify will seek to create economic opportunities for women through its off-grid solar investments.”

    Jacqueline Novogratz, Founder and CEO of Acumen, added: “BII’s partnership reflects a shared commitment to solving energy poverty in the hardest-to-reach markets. By expanding access to clean energy for millions of households and businesses, this initiative holds the promise to provide resilience, agency and dignity, along with light and power. BII’s investment shows how public and private institutions can mobilise the right kind of capital to build markets that endure and unlock human potential.”

    H2R Amplify will invest in projects in Benin, Burkina Faso, Burundi, Chad, the Democratic Republic of Congo, Guinea, Guinea-Bissau, Lesotho, Liberia, Malawi, Mozambique, Niger, Sierra Leone, Somalia, Togo, Uganda and Zambia.

  • PIC and BII sign landmark partnership to advance vital investment across Africa

    PIC and BII sign landmark partnership to advance vital investment across Africa

    The Public Investment Corporation (PIC) and British International Investment (BII) have signed a Memorandum of Understanding (MoU) to accelerate collaboration in investments across the African continent.

    The agreement between one of Africa’s largest asset managers and the UK’s development finance institution and impact investor, establishes a framework for the PIC and BII to jointly explore and pursue impactful investment opportunities, aligning their mandates and resources to drive sustainable economic growth and development across the continent.

    The MoU outlines a commitment to share deal pipelines, facilitating the exchange of promising investment opportunities across various economic sectors like agriculture, financial services, infrastructure and climate initiatives. The partnership will foster regular dialogue and explore co-investment possibilities, leveraging the expertise of both organisations to maximise impact.

    By combining their strengths, the PIC and BII aim to unlock new avenues for capital deployment and contribute to transformative development across Africa. The organisations have committed to review investment opportunities in debt, equity and funds.

    The PIC has an investment mandate that enables it to capitalise on development-focused projects. In this regard, the PIC development mandate incorporates broad areas including investments in unlisted South African-based entities, with a focus on sectors such as agriculture, manufacturing, mining, and financial services economic, environmental, and social infrastructure, as well as developmental investments in the rest-of-Africa.

    On the other hand, BII has been investing in Africa for over 75 years, providing long-term capital that supports the growth of productive, sustainable and inclusive economies. With a portfolio of US $5.6 billion invested across 810 companies in Africa, the DFI uses its capital to back businesses that drive local economies, build infrastructure that connects people, and create jobs and services that help communities to thrive. The partnership with PIC forms part of BII’s strategy to work with institutional investors and use its concessionary capital to create ways in which more commercial capital can be deployed to support development in Africa.

    According to Mr. Abel Sithole, outgoing CEO of the PIC, the organisation’s strategy of investing on the rest of the African continent is underpinned by investing through partnerships. “The BII partnership cements this strategy and will enable the use of blended funding models to unlock investments that facilitate infrastructure development, industrialisation and trade on the continent. We are elated by the powerful force of two large impact investors working together for the benefit of Africa,” Mr. Sithole explained.

    Commenting on the cooperation, Mr. Kabelo Rikhotso, the PIC Chief Investment Officer said: “We consider cooperation and partnerships as an important factor in our ability to deliver on client investment mandates. The signing of this MoU provides the opportunity to expand our investments across Africa. Sharing deal pipelines and the potential for co-investment opportunities provides important prospects for cooperation between the PIC as an asset manager and the BII as a global development finance institution, committed to investing in emerging economies.”

    Mr. Leslie Maasdorp, BII CEO added: “This partnership with PIC exemplifies our shared ambition to drive growth and increase impact across the continent. By leveraging our combined expertise and resources, we can unlock new opportunities for transformative investments that support sustainable development, drive economic growth, and attract increased commercial capital into key sectors across Africa.”

    Mr. Antony Phillipson, British High Commissioner to South Africa, said: “This landmark partnership between BII and the PIC marks a significant step forward in deepening the UK-South Africa Growth Partnership. It reflects our shared commitment to mobilising capital for sustainable development across Africa. This collaboration brings together two institutions with a strong track record and a common vision – to unlock inclusive growth, support resilient infrastructure, and create long-term opportunities in South Africa and across the continent.”

  • British International Investment to partner with City of London’s institutional investors to consolidate the UK’s position as global leader in climate finance

    British International Investment to partner with City of London’s institutional investors to consolidate the UK’s position as global leader in climate finance

    …New initiative will reduce risk for private institutions to inject capital to combat climate emergency.

    The City of London can consolidate its position as a global capital for climate finance by working with British International Investment (BII), the UK’s development finance institution and impact investor, in the battle to combat the climate emergency. 

    Last year, the UK Prime Minister, Keir Starmer, announced BII would manage a new £100 million Mobilisation Facility to boost the flow of private capital into emerging economies that are considered too risky by global investors.  

    Today, BII announced that up to £50 million of the facility has been ring-fenced for a groundbreaking new initiative. BII is partnering with Mercer, a global investment firm, to encourage the asset manager community to develop investment solutions, which will help to unlock private investment into climate related projects in emerging economies. It will also seek to address the gap between the risk appetite and return thresholds of institutional investors.  

    Emerging economies are expected to play a crucial role in global economic growth. They currently represent over 60 per cent of the world’s GDP and are projected to account for 74 per cent of global energy consumption by 2050. This creates investment opportunities in sectors like clean energy and infrastructure, offering potential for growth, diversification and impact. 

    Minister for Development, Anneliese Dodds welcomed the initiative: “Countries exposed to the climate crisis are facing extreme weather events which destabilise economies, hinder growth and displace people. Those countries need urgent access to finance to tackle and adapt to this crisis.

    “At the same time UK financial institutions are ideally placed to provide global leadership in climate finance and tap into these emerging markets, generating growth at home and providing much needed finance abroad.

    “By bringing together private and public expertise and capital, the UK is leading the world in mobilising the finance countries need to tackle the impacts of the climate crisis.”

    Asset Managers in the UK and globally, with a demonstratable track record in climate finance and interest in emerging economies, are invited to submit proposals to partner with BII. Proposals with a strong potential for accelerating private investment and which demonstrate large-scale climate impact will be granted access to concessional capital of up to £50 million from the facility. They will also have the opportunity to access non-concessional investment funding from BII. 

    Leslie Maasdorp, BII CEO said: “BII is the UK’s primary vehicle for delivering climate finance into our markets. But the scale of the climate emergency means we have to unlock the vast pools of capital that are held by private institutions. The partnership we have unveiled today is a truly innovative way of doing that.”

    Benoit Hudon, Mercer’s UK President and CEO said: “This initiative has the potential to encourage investment into new projects in emerging economies to support their economic development. Mercer will play a key role in identifying innovative asset manager proposals that support the energy transition and address some of the hesitancy institutional investors have about investing in emerging economies.” 

    For more information about the Mobilisation Facility initiative, please visit BII or Mercer websites.  

  • British International Investment announces 2023 Annual Review with £725 million of new sustainable development commitments in Africa

    British International Investment announces 2023 Annual Review with £725 million of new sustainable development commitments in Africa

    …Increase in African investments represent 61 per of BII’s total commitments for the year

    British International Investment (BII), the UK’s development finance institution and impact investor, announced today that it had increased its commitment to African partners with £725 million of new sustainable development investments, from a global total for the year of £1.31 billion.

    BII has a mission to help countries escape poverty by providing impact investments to support the development of thriving private sectors. It invests in the people and places most in need of capital that typically receive the least from private investors. 

    The scope of BII’s activity last year was published today in its Annual Review, entitled Creating Impact Together.

    Of the total, £724.9 million went to support African businesses, compared with £692 million or 55 per cent of total investments in 2022.  BII’s capital now supports – directly and indirectly – 1,580 companies that directly employ nearly a million people in 65 countries.

    BII’s Africa portfolio now totals $5.6 billion across 812 businesses, which directly provide 499,232 jobs and pay $1.46 bn in taxes.

    Climate change continues to be one of the biggest threats to global development, with people living in some of the world’s poorest countries among the most vulnerable to its impact.

    Out of BII’s total commitments in 2023, £449 million (37 per cent) was classified as climate finance – taking the total over the last two years to over £1 billion. BII’s climate finance target over the course of its current five-year strategy period is 30 per cent. 

    BII has backed a wide range of companies that are vital to economic development and improving peoples’ lives. Its investments have covered sectors such as food and agriculture, financial services, and green and digital infrastructure. New investments have included:

    • AFEX: BII invested £21.8 million in AFEX, a leading commodities platform that currently operates over 200 warehouses in Nigeria, Kenya and Uganda and serves over 450,000 farmers. The investment will help build 20 modern warehouses to enable up to 200,000 more farmers to access low-cost storage and maximise sales from crop harvests.
    • Planet Solar: BII invested £8.5 million in Planet Solar to provide clean, affordable solar power in Sierra Leone, where only 23 percent of people have access to electricity. It will be Sierra Leone’s first large-scale solar project to be connected to the grid. It will enable more power to flow to industries and communities in the capital city, Freetown, the Western region, and four other areas throughout the country.

    BII’s total net assets increased to £8.5 billion (£8.1 billion in 2022) while the portfolio grew to £7.3 billion (£6.9 billion in 2022). The main reason for this portfolio growth in 2023 was a higher pace of drawdowns compared with realisations and foreign currency valuation gains. BII’s overall financial result was a loss after tax of £44.0 million (£167.7 million profit in 2022), a loss of 0.5 per cent on net assets over the year (2.2 per cent gain in 2022). The portfolio generated a £71.5 million return (£285.6 million return in 2022), a portfolio gain of 1.1 per cent (4.8 percent gain in 2022).

    BII seeks returns of 2 percent across its portfolio, measured on a rolling seven-year basis. This measure is consistent with its mandate to invest to support the economic stability that will improve the lives of millions of people. The company remains ahead of this financial return hurdle with a seven-year weighted average annual portfolio return of 5.2 per cent.

    Diana Layfield, Chair at British International Investment, said: “In a world facing an ever-growing climate challenge, and where inequality and access to basic water, power and economic development remains a profound human challenge, our role is as important as it has ever been.

    “We are pleased to have committed £1.3 billion during a challenging year when levels of foreign direct investment are falling in many of the countries and regions that need it the most. In Africa, FDI amounts to just $40 per person, compared with $651 in North America.”

    Chris Chijiutomi, Managing Director and Head of Africa for BII, said: “We continue to make a real difference to the lives of millions of people living in Africa on behalf of the British tax payer. Our 2023 investment performance underlines our dedication to supporting our partners across the continent as they play a key role in creating vital jobs and services and building economies that are more adaptable and resilient to the impacts of the climate emergency.”

  • 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.     

  • 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.