British International Investment (BII), the UK’s development finance institution and impact investor, and the FirstRand group have announced a $150-million financing facility to accelerate Transition Finance projects across Africa.
Transition Finance plays a vital role in enabling high-emitting sectors to decarbonise in alignment with the Paris Agreement, while safeguarding jobs and economic growth.
By directing capital to industries that are economically essential yet hard to abate, Transition Finance helps accelerate the shift to low-carbon economies without compromising development objectives.
Through this partnership, BII will provide both capital and technical assistance to establish FirstRand’s Transition Finance framework and practices, as well as to grow its respective portfolio within its corporate and commercial banking arms, RMB and FNB.
The collaboration also aims to raise market awareness of Transition Finance as a viable and scalable solution for climate resilience and establish it as a novel asset class across Africa.
Antony Phillipson, British High Commissioner to South Africa, says: “I am delighted that this investment partnership has closed just as the first African G20 has concluded with a focus on climate finance.
“This is a powerful example of how UK partnership with South Africa and others across the continent can drive innovation, sustainability, and energy security.
“A first of its kind for BII, this catalyses UK DFI investment in the Just Energy Transition Partnership, demonstrating our commitment to cleaner, more resilient and more just economic development in communities across the country.”
Stephen Priestley, MD and head of financial services group, and industries, technology and services at BII, says: ““We are delighted to partner with FirstRand, Africa’s leading financial institution, to advance transition finance across the continent.
“This investment marks a pivotal step in our strategy to accelerate decarbonisation where it matters most. By channelling our capital into high-emitting and hard to abate sectors, while safeguarding jobs and growth, we are setting a precedent for Africa.
“This reinforces BII’s commitment to climate resilience and innovative financial solutions that deliver impact at scale.”
Mary Vilakazi, FirstRand CEO, comments: “Transition finance is a powerful enabler for a vast array of companies that, in turn, make a meaningful contribution to decarbonisation, through investing in more efficient, climate resilient business practices and processes. We are pleased to partner with BII to further promote transition finance opportunities.”