BII has pledged investments worth $7.5 billion (Sh873 billion) in Africa and the fund’s chief executive Nick O’Donhoe says Kenya has the potential of taking up 10% of the capital commitment going by previous investment trends.
“Our nearly £500 million in Kenya is about 10% of our current portfolio, so if you look at the $ 7.5 billion that I mentioned, it would be disappointing if we did not do a $700 million investment in Kenya over the next strategy period,” Mr O’Donhoe said.
The British fund has rebranded from CDC as part of its new strategy to identify with the UK and shift towards climate finance and the digital space.
BII makes the investments directly or through private equity funds to which it contributes the pooled capital.
Currently, the fund has a portfolio of about £500 million (Sh72.9 billion) in Kenya, including infrastructure, financial services, and logistics.
Its outstanding investments include stakes in or loans to companies like Equity Bank Kenya, Akiira Geothermal, Athi River Steel Plant, Cellulant Corporation, Equity Bank Kenya, Garden City, Grain Bulk Handlers, I&M Group and Kensta Group.
Its latest investments include the partnership with Safaricom in the Ethiopian venture and Globeleq’s 52 MWp Malindi Solar Plant that began supplying electricity to the national grid December 2021.
Mr O’Donhoe said the fund wants to grow its climate finance portfolio beyond just generation through wind and solar but also activities that go into transitioning into a green economy like battery storage and green hydrogen, electric vehicles and e-mobility.
“We have made a commitment to have 30% of our investment in climate finance and that would include big utility scale solar and wind which we have already invested close to a billion dollars over the last 3 or 4 years,” Mr O’Donhoe said.
BII will also fund private businesses in the technology and digital economy space. It has already invested in Liquid Telecom, helping the firm build data centres in the region.
Mr O’Donhoe said in the next phase BII will focus on the other side of the digital economy by supporting young entrepreneurs and venture capital to scale ICT-led businesses in the country.
