BII launches in South Africa with renewed pledge to accelerate clean energy investments

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. 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.

Antony Phillipson, British High Commissioner to South Africa: '' 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.''

The BII’s investment will 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.

Nick O’Donohoe, Chief Executive Officer, BII: ''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. The DFI has an office in Johannesburg, which is led by Thithi-Kuhlase-Maseko, Head of Office and Coverage Director for South Africa.

www.bii.co.uk