British International Investment

Berkeley Energy Africa Ltd

East AfricaWest AfricaInfrastructure

Berkeley Energy Africa Ltd

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

Our investment

Description of the investment.

The investment will support renewable power projects, including delivering 224MW of renewable power, increasing the supply of reliable electricity to industry, supporting 110,000 jobs, grid-connected households, improving quality of life for 2.4 million consumers and displacing diesel generation, leading to a 346,000 tonnes of CO2 reduction in greenhouse gas emissions. The majority of capital will be directed to category ‘A’ and ‘B’ countries.

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
  • Create economic opportunities through business growth (SDG 8.5).
  • Improve standards of living for end consumers through the provision of more and better-quality clean energy (SDG 7.1, 7.2).
  • Improve environmental sustainability and contribute to climate action by reducing greenhouse gas emissions (SDG 13A).

How?

How?
  • Economic enabler: Add 84MW of new power capacity, increasing the supply of reliable electricity to firms and households, increasing productivity, and leading to economic growth and job creation and improving quality of life for end consumers.
  • Direct: Avoid/reduce greenhouse gas emissions through the displacement of thermal power.

Who?

Stakeholder Geography Characteristics
Employees

Pan-Africa: 79 per cent Uganda, 9 per cent Cameroon, 6 per cent Madagascar, 6 per cent Angola (approximately 94 per cent category ‘A’ and ‘B’ countries)

Unknown

Consumers

Pan-Africa: 79 per cent Uganda, 9 per cent Cameroon, 6 per cent Madagascar, 6 per cent Angola (approximately 94 per cent category ‘A’ and ‘B’ countries)

Urban/peri-urban households

Planet

Global

N/A

How much?

Scale Depth/Duration
  • Employees: We expect investees to support 110,000 forward jobs in the economy. Using project cost data, the projects in Angola and Madagascar are expected to have a greater impact on the scale of employment than those in Uganda and Cameroon.
  • Consumers: We expect investees to provide electricity to meet demand for 2.4 million residential consumers. Using project cost data, the projects in Madagascar Angola and Cameroon are expected to have a greater impact on the scale of consumers reached than those Uganda.
  • Employees: The impact on economic opportunities is expected to be deeper in countries where there are higher poverty and unemployment levels.
  • Consumers: Those suffering from unreliable grid access and high levels of poverty will benefit from quality of life improvements, but these are expected to be greater for households that consume the most electricity and use appliances.
  • Planet: We expect investees to reduce/avoid 346,000 tonnes of CO2. Using project cost data, the projects in Angola and Cameroon are expected to have a greater impact on the scale of emissions avoided than those in Madagascar and Uganda due to higher grid emissions factors.

Contribution/additionality

Contribution/additionality
  • Financial additionality: Provide short-term debt to the manager to address liquidity needs arising at the project level due to the COVID-19 outbreak

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.

3.5 – 4.0

Market context: Lack of small-scale hydro development expertise in sub-Saharan Africa.

Risk

Execution Risk
  • the implementation of hydro projects requires specialist team expertise. the manager has a proven track record in hydro development.
Unexpected Impact Risk
  • hydro projects often present significant and complex environmental and social risks, including physical / economic displacement of local communities and potential impacts on indigenous peoples, cultural heritage and / or critical habitats. the manager has a good track record in assessing and mitigating these risks and these are all run-of-river hydros without storage or large dams which have a smaller footprint compared with hydro projects which incorporate storage components.

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.

    :
    June 2024
    Project number

    An identifier number shared by investments in the same project.

    :
    D4737
    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.

    :
    East Africa, West Africa
    Country

    The countries where the investment delivers impact. Where impact is delivered in multiple countries, this is indicated.

    :
    Ethiopia, Ghana, Kenya, Madagascar, Uganda
    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 :
    Debt
    Start date :
    December 2020
    Amount :
    $15m
    Currency of investment :
    USD
    Domicile

    The company or investment fund’s place of incorporation.

    :
    Mauritius
    Climate finance

    Indicates whether the investment is climate finance qualified or partially climate finance qualified and the type of climate finance (adaptation, mitigation or both). We define climate finance using the multilateral development bank (MDB) and the International Development Finance Club (IDFC) Common Principles climate finance methodology. See Common Principles for Climate Mitigation Finance Tracking and Common Principles for Climate Change Adaptation Finance Tracking. We provide the climate finance qualification and type for commitments from 2020 onwards, which is when we launched our Climate Change Strategy.

    :
    Fully qualified
    Climate finance type:
    Mitigation

Subscribe to receive our latest news and updates