British International Investment

Metier Sustainable Capital II

GabonKenyaSouth AfricaSouthern AfricaWest AfricaAfricaInfrastructure

Metier Sustainable Capital II will invest growth capital in distributed energy and resource efficiency businesses and provide development financing for small scale utility renewable projects which will reduce greenhouse gas emissions, facilitate economic growth and job creation and contribute to improvements in living standards. Metier will also play a role in catalysing the overall distributed energy and resource efficiency market in Africa.

This investment was made when British International Investment was named CDC Group.

Our investment

Description of the investment.

Commercial finance is not currently suitable or available in sufficient quantity for renewable commercial and industrial power and resource efficiency projects in Africa. CDC's investment in Metier seeks to address this financing gap and demonstrate the viability of these business models.

Impact information

Applies to investments made from 2019 onwards. The tabs in this section define what we expect to achieve through the investment, assessing the potential impact of the investment against six dimensions of impact. You can find more details on our methodology of assessing impact here.

What?

Impact
  • Support environmental sustainability by reducing and avoiding greenhouse gas emissions (SDG target 13A).
  • Support economic opportunities by the provision on power to businesses (SDG target 8.5).
  • Support provision of affordable and reliable energy services (SDG targets 7.1, 7.2).

How?

How?

Our commitment will enable the fund to invest in distributed energy, resource efficiency businesses and small-scale utility renewable projects helping to reduce the dependence on fossil fuels. The success of the fund in distributed energy and resource efficiency sectors would also play a role in catalysing the uptake of these business models by helping to demonstrate the commercial viability.

Who?

Stakeholder Geography Characteristics
Planet

Global

N/A

Employees

Sub-Saharan Africa

Other (power will support employees of grid-connected businesses).

Consumers

Sub-Saharan Africa

Other (typically urban/peri-urban households connected to the grid).

How much?

Scale Depth/Duration
  • Employees: The fund is expected to support an estimated 12,600 jobs within the lifetime of the investment.
  • Consumers: The projects are expected to meet the equivalent electricity demand of 447,000 consumers within the lifetime of the investment.
  • Planet: The fund is expected to reduce/avoid 232,000 tonnes of CO2 equivalent within the lifetime of the investment.
  • Employees: We expect the impact of job creation to be deeper in countries with less developed power grids which are characterised by low electrification rates and higher levels of poverty.
  • Consumers: We expect the quality of life impacts to be deeper in less developed countries which are characterised by low electrification rates.

Contribution/additionality

Contribution/additionality
  • Financial additionality: Capital not offered in sufficient quantity by the commercial market.
  • Value additionality: We will help to reduce execution risks and any negative impact risks through support to the manager strengthening its environmental, social and business integrity systems

Grid score

Grid Score

To help us direct our investments, we previously used a tool called the Development Impact Grid. It scored investments out of four, based on two factors: the difficulty of investing in a country and the propensity of the sector to generate employment. This tool was used for investments until the end of 2021. Since 2022 it has been replaced by the Impact Score.

2.7-2.8

Risk

Execution Risk
  • the impact case depends on the successful execution of complex projects.
External Risk
  • commercial and industrial projects Support an acceleration in renewable capacity but can also present Financial challenges to the grid if anchor Customers are attracted away, This is especially the case in smaller grids.

Environmental and social information

  • Environmental and social summary

    A high-level description of the environmental and social aspects of the investment. This may include a summary of key environmental and social risks identified during environmental and social due diligence (ESDD); key elements of an environmental and social action plan (ESAP); or ways in which we plan to support the investee improve environmental and social standards, such as through their environmental and social management system (ESMS); as well as any other priority areas agreed with the investee.

  • Environmental and social risk

    A risk category rating, which indicates the level of environmental and social risk associated with an investment. For an explanation of the categorisations used, see here. We consistently provide an environmental and social risk category for all investments screened from 2023 onwards.

Environmental and social summary

We work closely with the fund manager to help develop and implement an ESMS that has the capacity to manage the higher level of environmental and social risk associated with this sector, including delivering an action plan.

Reporting and Complaints Mechanism

The Reporting and Complaints Mechanism allows anyone outside BII to report alleged breaches of the business integrity or environmental and social provisions of BII’s Policy on Responsible Investing. This includes breaches made by BII, a BII investee, or a portfolio company of a fund in which BII has invested. The Reporting and Complaints Mechanism Rules are available here. Reports and complaints can be submitted by email to [email protected] or by mail. See more details on our Reporting and Complaints Mechanism here.

For any other general enquiries contact us at [email protected]

  • Key facts

    Last updated

    When the last quarterly update of the website database occurred.

    :
    March 2024
    Project number

    An identifier number shared by investments in the same project.

    :
    D4176
    Status

    The current status of the investment (green flag for active and red flag for exited).

    :
    Active
    Region

    The geographical region where the country is located. We currently invest in Africa, South Asia, South East Asia and the Caribbean. In 2023, BII’s investment mandate was extended allowing it to invest in regional funds linked to Ukraine, with the majority of activity expected to begin post-war. Investments outside these regions were made prior to 2012 under previous investment mandates.

    :
    Africa
    Sector

    We prioritise those sectors that facilitate development and need our capital the most. Our priority sectors contribute towards many of the Sustainable Development Goals. They range from investing in the power infrastructure that will provide people with better access to electricity, to investing in financial institutions that direct capital to the individuals and businesses that need it the most.

    :
    Infrastructure

    We provide capital in the following ways: directly – through direct equity, direct debt, guarantees and other non-intermediated financial instruments; and indirectly – principally through investment funds.

    For direct investments and fund investments, this is the date BII committed capital to the investments. This is typically the date on which legal agreements are signed by all parties.

    For the portfolio companies of our fund investments, this is the date (either the month or the quarter) on which the fund committed capital to the portfolio company.

    For direct equity investments, this is the date at which British International Investment exited the investment.

    For debt investments, this is the date at which the final debt repayment was made.

    For funds, this is the date at which the fund was terminated.

    For underlying fund investments, this is the date at which the fund manager exited the investment.

    The total amount committed, per financial instrument, per investment, on the date BII becomes subject to a binding legal obligation to provide funding or assume a contingent liability. This information is provided in US dollars.

    For direct investments, this is the amount that BII has committed to the business or project. For fund investments, this is the amount BII has committed to the fund.

    The currency in which the investment was made.

    Investment type :
    Fund
    Start date :
    December 2019
    Amount :
    $20m
    Currency of investment :
    USD
    Fund Manager:
    Metier SC Private Equity International
    Domicile

    The company or investment fund’s place of incorporation.

    :
    Mauritius

Investments made by this fund into companies:

For further information about these companies, visit https://www.metier.co.za/

Investment name Country Region Sector Start date Status
Africa Ren West Africa Africa Infrastructure September 2021 Active
Broadreach Southern Africa Africa Infrastructure June 2020 Active
Cape Town Biogas (Pty) Ltd (“CTB”) South Africa Southern Africa Infrastructure March 2023 Active
Energy Vision (EV) Gabon, Nigeria Central Africa, West Africa Infrastructure March 2021 Active
Kaptis Kenya East Africa Infrastructure October 2020 Active
Metier Tecroveer Water Development Company South Africa Southern Africa Infrastructure December 2022 Active
Wetility (Pty) Ltd South Africa Southern Africa Infrastructure September 2023 Active

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