Latest news with #BritishInternationalInvestment
Daily Maverick
2 days ago
- Business
- Daily Maverick
How UK investment is powering South Africa's jobs revolution
UK investment and partnerships are turbocharging South African jobs, housing and digital markets — with real on-the-ground impact. On Monday, 28 July, the United Kingdom (UK) Minister for Employment Alison McGovern visited Cape Town ahead of the G20 Employment Ministerial in George this week, engaging with two flagship initiatives supported by the British High Commission that are driving job creation and economic opportunity in South Africa. According to Jenna Kretzmann, communications officer of the British Consulate General, UK firms now employ more than 100,000 South Africans, fuelling vital job creation and strengthening economic resilience in a country grappling with a 32.9% overall unemployment rate and a youth unemployment rate that reached 62.4% nationally for those aged 15 to 24 in the first quarter of this year alone. UK-backed initiatives are also seeking to address deep-rooted structural challenges—in particular, the legacy of spatial segregation that continues to shape South African cities. One such initiative, Divercity, was founded in 2018, with UK-backed British International Investment playing a key role since 2021 in funding urban renewal projects that deliver affordable housing and employment. At Divercity's Salt River housing development, the Herringbone development, supported by British International Investment (BII), is powering an urban renewal engine aimed at breaking the cycle of spatial segregation that has long plagued South African cities. This project includes funding for more than 2,500 residential units, with more than 5,500 people benefiting from it. The initiative is also expected to create up to 4,000 construction and permanent jobs, offering both roofs and opportunities. 'Almost all new affordable housing delivery since 1994 has taken place at the urban periphery, entrenching spatial segregation,' noted Carel Kleynhans, CEO of Divercity, highlighting how their partnership with BII enabled commercially viable affordable housing in prime locations. E-commerce empowerment In a separate initiative, Takealot, South Africa's largest e-commerce platform, is unleashing the digital economy through its Township Digital Market Access Programme, supported by the UK-SA Tech Hub. The top 50 SMMEs in the programme have already generated about R5.7-million in sales and 39 jobs in one year. More broadly, Takealot has created 21,000 jobs and helped more than 7,500 township Small, Medium and Micro Enterprises (SMMEs) reach new markets, illustrating how public-private innovation can fuel growth. 'We are opening up the e-commerce ecosystem, particularly to township-based entrepreneurs and small businesses…'We believe that this approach will meaningfully increase household incomes as we help create more opportunities for entrepreneurship, SMME growth and job creation,' said Fred Zietsman, CEO of Takealot. What this means for you Job seekers: UK investments mean more openings in construction, digital commerce and urban development — especially promising for youth and women. Entrepreneurs and SMMEs: More inclusion in e-commerce platforms can dramatically boost business opportunities. Urban dwellers: Projects like Divercity reduce commute costs and improve living conditions with safer, affordable housing in well-connected locations. Policy buffs: The UK-South Africa alliance models how international partnerships can go beyond aid, driving real economic transformation through sustainable jobs and innovation. DM
Bloomberg
4 days ago
- Business
- Bloomberg
Sun King Wins Citi-Backed Loan to Boost Kenya Solar Power Access
Sun King, the world's largest off-grid solar company, has secured $156 million in financing backed by Citigroup Inc. and British International Investment to boost access to affordable solar power across Kenya. Other lenders and agencies involved in the 20.1 billion shilling securitization include Stanbic Bank Kenya Ltd. a unit of Standard Bank Group, Absa Group Ltd., the Co-operative Bank of Kenya, KCB Bank Kenya Ltd. the Dutch development bank FMO, and Norfund, the Norwegian Investment Fund for developing countries.
Business Times
07-07-2025
- Business
- Business Times
Asean needs track record in returns from ESG projects to attract private capital
[SINGAPORE] South-east Asian markets need to build a track record of delivering returns on projects aligned with environmental, social and governance (ESG) objectives to attract more private-sector capital, said an executive of the United Kingdom's development finance institution. Srini Nagarajan, who is managing director and head of Asia at British International Investment (BII), noted that, for that to happen, the region needs to develop a regulatory framework that is steady and favourable towards sustainability-focused investments, as well as streamline the processes in executing such projects, such as in land acquisition rights, grid infrastructure and transmission networks. This is all the more important in the current environment where interest rates are elevated, as the incentives for investing in emerging markets have become much more strained, added Nagarajan, who was speaking with The Business Times. 'South-east Asia lacks bankable opportunities in the energy transition space... Private investors will come, provided there is a track record of having made money. That's very, very critical... Once you have the track record, the belief in the overall system, goes up substantially,' he said. 'That's how China and India were able to attract private capital. So I think these (South-east Asian) countries are in an evolution stage in that journey. So we need more and more bankable opportunities in these markets. There is a lot of money waiting to come from the OECD (the Organisation for Economic Co-operation and Development) markets in Asia and also the West.' As a region made up predominantly of emerging markets, the higher risks involved in investing in South-east Asia – whether actual or perceived – have often either kept investors away, or resulted in expectations of a higher premium on returns. A NEWSLETTER FOR YOU Friday, 12.30 pm ESG Insights An exclusive weekly report on the latest environmental, social and governance issues. Sign Up Sign Up This has presented a challenge especially in energy transition investments, as sustainable-energy infrastructure tend to be capital-intensive projects. As a development finance institution, BII's role is to catalyse such private investments by de-risking projects through a patient and flexible approach to risk and returns so as to maximise development impact. BII entered the South-east Asian market in early 2023 – as part of its expansion plan in Asia – with a mandate of deploying £500 million (S$869.6 million) by 2026 to support the region's energy transition towards a low-carbon economy. It has committed more than £206 million thus far, including a US$80 million partnership with a debt-financing platform, Pentagreen Capital, that has Temasek and HSBC as its founding shareholders. The capital is also deployed via two other investing platforms – Skye Renewables and Sustainable Asia Renewable Assets – which BII has established with other partners. Besides such platforms, it also invests directly through debt, equity or a hybrid of both – which is known as mezzanine – and indirectly through funds, as well as provides loans to commercial banks to help small and medium-sized enterprises become more environmentally sustainable. As at the end of 2023, BII's portfolio value in South-east Asia was US$53 million across 27 companies. As a whole, it has committed to channel 30 per cent of its annual new commitments towards climate, and South-east Asia is an important market for BII to deliver on these mandates. Investment focus The impact investor's investment focus in the region are: utility-scale clean-energy projects, commercial and industrial power generation for corporates, water and waste management, electric vehicles (EVs) and EV infrastructure, as well as waste-to-energy facilities. In particular, BII is prioritising markets including Indonesia, the Philippines, and Vietnam, given their vulnerability to the impacts of climate changes, reliance on fossil fuels, lack of bankable projects, as well as significant need for private capital. 'I think that's where our capital is much more relevant – in these markets. South-east Asia has very diverse markets, with varying degrees of infrastructure development and regulatory environment, which is still evolving. 'And the private-sector investments into the area of renewable energy are very important,' said Nagarajan. Given its role in mobilising third-party capital, BII takes on high risks in early-stage projects, with the view of bringing in commercial investors once cash flow is generated. Nagarajan pointed out that, while BII invests in five-year strategy cycles, it has to ensure that its investments are aligned with the timelines of climate initiatives and that these projects do not face premature exits. As a provider of patient capital, BII said it can afford to act countercyclically and look beyond headline risks. Hence, while it would definitely have to exit businesses and recycle its capital into newer investment streams, it does not do this due to constraints in a fund's life. Rather, its exits are a result of businesses maturing and being able to attract more commercial capital, and thus requiring less development capital.
Entrepreneur
07-07-2025
- Business
- Entrepreneur
BII Commits $803 million Worth Impact Investments in Asia
The amount is significantly bigger than that of 2023 when BII invested GBP 245 million in Asian companies and a further GBP 225 million in businesses with operations spanning Asia and Africa. You're reading Entrepreneur India, an international franchise of Entrepreneur Media. British International Investment, the UK's development finance institution and impact investor, has announced its commitment of GBP 626 million (USD 803 million) to Asian businesses in 2024 to support inclusive economic growth and combat the climate emergency. The amount is significantly bigger than that of 2023 when BII invested GBP 245 million in Asian companies and a further GBP 225 million in businesses with operations spanning Asia and Africa. BII has said that the increase in investment was despite the difficult investment environment caused by macroeconomic headwinds. BII's total net assets currently increased to GBP 9.9 billion up from GBP 8.5 billion in 2023, while post-tax profits improved to GBP 213.3m compared with a GBP 44 million loss in 2023. Globally BII invested GBP 1.75 billion in 2024. The figures are contained in BII's Annual Review, which was published today. In total, BII invested USD 903 million in climate finance in 2024, 41 per cent of its overall commitments for the year. This compares with just USD 104 million in 2020. The company's climate finance assets now make up over 26 per cent of its entire portfolio, up from just over 15 per cent in 2020. Over the last three years, BII has invested over USD 2 billion in climate finance. According to BII, based on all direct renewable energy investments in BII's 2023 portfolio, 1.5 million tons of CO2e emissions were avoided on an attributed basis, a 54 per cent year-on-year increase. This was driven by a growing renewable asset base in the portfolio and increases in the amount of renewable power produced. Srini Nagarajan, Managing Director and Head of Asia at BII, said, "Our 2024 investment figures demonstrate our steadfast commitment to our Asian markets as we focus on delivering inclusive economic growth and meeting the challenge of the climate emergency. BII will continue to play a pivotal role in mobilising private capital, particularly for climate finance across South and South-East Asia." BII also made GBP 499 million of gender finance commitments in 2024 and GBP 880 million of commitments to the poorer and most fragile countries across the regions where it invests.
Zawya
03-07-2025
- Business
- Zawya
BII backs Egypt's transition into renewable energy hub via $300mln agreements
Arab Finance: British International Investment (BII), the UK's development finance institution and impact investor, signed agreements at a combined value exceeding $300 million to support two renewable energy projects in Egypt, according to an emailed press release. These projects are the 1.1-GW Gulf of Suez Wind Farm and a 1-GW integrated solar and battery storage project with Scatec. The deals come as part of BII's investment plan to boost Egypt's energy transition and build climate-resilient infrastructure that stimulates growth in North African countries. The Gulf of Suez Wind Farm marks Africa's largest onshore wind development, with total investments of $1.05 billion. It is expected to generate over 4,300 gigawatt-hour (GWh) annually, helping to eliminate 2.2 million tons of CO? emissions yearly. BII's $190 million investment comes within a broader $707 million in long-term debt financing with a consortium of development finance institutions (DFIs). The consortium includes the European Bank for Reconstruction and Development (EBRD), the African Development Bank (AfDB), the German Investment and Development Company (DEG), the OPEC Fund for International Development, and the Arab Petroleum Investments Corporation (APICORP). The project builds on Egypt's Nexus of Water, Food & Energy (NWFE) program and will create over 10,000 jobs, placing it in the top 30% of BII's power portfolio in terms of employment-to-cost ratio. Additionally, BII inked a contract to co-finance Egypt's first integrated solar photovoltaic (PV) and battery energy storage system (BESS), in partnership with Scatec, AfDB, and EBRD. The $475.6 million project, which represents 80% of the total capital cost, will deliver 1 GW of solar PV capacity and 200 MWh of battery storage. BII will provide a $100 million concessional loan and a $15 million grant to cut the cost of the BESS component and make the project more viable, attracting private investment and setting a model for future deals. Sherine Shohdy, Head of Egypt Office and Coverage Director, BII, commented: "Through our capital partnerships, we are proud to deliver new infrastructure that will provide affordable and reliable, low-carbon power and unlock thousands of green jobs. Our goal is to deliver impact at scale, supporting Egypt's renewable energy ambitions and the resilience of its wider economy." Egypt is a key partner for BII, with an updated portfolio size of more than $708 million, reflecting an ongoing commitment to the region's climate agenda. © 2020-2023 Arab Finance For Information Technology. All Rights Reserved. Provided by SyndiGate Media Inc. (
