British International Investment Plc, the UK government’s development-finance arm, plans to invest $6 billion over the next five years in Africa in areas ranging from renewable power and digital infrastructure to supporting women-owned businesses.
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Bloomberg News
Loni Prinsloo and Antony Sguazzin
Signage sits on display outside the offices of Old Mutual Ltd. bank in Johannesburg, South Africa, on Wednesday, Sept. 23, 2020. South Africa’s biggest lenders were faced with the pressing need to raise provisions to protect against souring loans, while demand for credit slumped as the coronavirus lockdown took a toll on business customers.Photo by Waldo Swiegers /Bloomberg
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(Bloomberg) — British International Investment Plc, the UK government’s development-finance arm, plans to invest $6 billion over the next five years in Africa in areas ranging from renewable power and digital infrastructure to supporting women-owned businesses.
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The spending, which is part of a $10 billion global program, includes a $76 million contribution toward a planned $500 million fund being raised by Old Mutual Ltd.’s African Infrastructure Investment Managers that was announced on Wednesday.
“Investment priorities will be driven by the size of the economy, and the development needs in that economy,” BII Chief Executive Officer Nick O’Donohoe said in an interview.
BII’s investment plans come as a host of development finance institutions ranging from France’s Proparco to Germany’s KFW Group jostle to provide the finance needed to address climate change concerns in Africa and to meet digital connectivity needs. The region needs as much as $108 billion in infrastructure investment a year, according to the African Development Bank.
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BII, formerly known as CDC Group, is restricted to investing in the private sector and while it will focus on the “powerhouse” markets of Ethiopia, Kenya, Nigeria and Egypt, some money will go to South Africa because of its drive to attract climate finance, he said.
The institution last week agreed to provide Oslo-based energy producer Scatec ASA with about $157 million in debt and equity finance for a solar and battery-storage project in South Africa.
The investment firm, which is fully-owned by the UK government, has made significant equity investments in African companies such as Liquid Telecom, the continent’s biggest fiber company, and Globeleq, a power producer. Bloomberg this week reported that BII has hired Rothschild & Co. to review how to grow the latter business. Options include bringing on a third investment partner.
“We have been a significant investor in power in Africa, originally in fossil-fuel power, and over the last three or four years, almost exclusively renewable power,” said O’Donohoe.
Over the next five years, at least 30% of BII’s total new commitments by value will be in climate finance, he said.
BII’s plans also include “actively investing” in funds, said O’Donohoe. FMO, a Dutch-government controlled entrepreneurial development bank, invested $40 million into the Old Mutual fund alongside BII.
TORONTO – Canada’s main stock index was up more than 100 points in late-morning trading, helped by strength in base metal and utility stocks, while U.S. stock markets were mixed.
The S&P/TSX composite index was up 103.40 points at 24,542.48.
In New York, the Dow Jones industrial average was up 192.31 points at 42,932.73. The S&P 500 index was up 7.14 points at 5,822.40, while the Nasdaq composite was down 9.03 points at 18,306.56.
The Canadian dollar traded for 72.61 cents US compared with 72.44 cents US on Tuesday.
The November crude oil contract was down 71 cents at US$69.87 per barrel and the November natural gas contract was down eight cents at US$2.42 per mmBTU.
The December gold contract was up US$7.20 at US$2,686.10 an ounce and the December copper contract was up a penny at US$4.35 a pound.
This report by The Canadian Press was first published Oct. 16, 2024.
TORONTO – Canada’s main stock index was up more than 200 points in late-morning trading, while U.S. stock markets were also headed higher.
The S&P/TSX composite index was up 205.86 points at 24,508.12.
In New York, the Dow Jones industrial average was up 336.62 points at 42,790.74. The S&P 500 index was up 34.19 points at 5,814.24, while the Nasdaq composite was up 60.27 points at 18.342.32.
The Canadian dollar traded for 72.61 cents US compared with 72.71 cents US on Thursday.
The November crude oil contract was down 15 cents at US$75.70 per barrel and the November natural gas contract was down two cents at US$2.65 per mmBTU.
The December gold contract was down US$29.60 at US$2,668.90 an ounce and the December copper contract was up four cents at US$4.47 a pound.
This report by The Canadian Press was first published Oct. 11, 2024.
TORONTO – Canada’s main stock index was little changed in late-morning trading as the financial sector fell, but energy and base metal stocks moved higher.
The S&P/TSX composite index was up 0.05 of a point at 24,224.95.
In New York, the Dow Jones industrial average was down 94.31 points at 42,417.69. The S&P 500 index was down 10.91 points at 5,781.13, while the Nasdaq composite was down 29.59 points at 18,262.03.
The Canadian dollar traded for 72.71 cents US compared with 73.05 cents US on Wednesday.
The November crude oil contract was up US$1.69 at US$74.93 per barrel and the November natural gas contract was up a penny at US$2.67 per mmBTU.
The December gold contract was up US$14.70 at US$2,640.70 an ounce and the December copper contract was up two cents at US$4.42 a pound.
This report by The Canadian Press was first published Oct. 10, 2024.
