British International Investment

Sustainable Power Solutions Investments Africa Ltd

Southern AfricaInfrastructure

SPS is a distributed renewable energy company that provides solar energy and battery storage solutions to business customers across sub-Saharan Africa

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

Our investment

Description of the investment.

Sustainable Power Solutions (SPS) is a developer, owner, and operator of distributed solar and battery storage systems across Sub-Saharan Africa. In 2019 the Energy Access and Efficiency team provided committed a USD 10m loan for SPS to draw down in order to finance its growth and the development of solar (and in some cases solar and battery) power systems for Commercial and Industrial clients.

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

The ultimate impact is to support the scaling up and adoption of renewable energy systems (SDG 7.2) for commercial and industrial clients in Eastern and Southern Africa to (a) avoid greenhouse gas emissions and contribute to climate action (SDG 13) and (b) provide reliable and affordable power that can unlock productivity gains for businesses and ultimately create economic growth and jobs (SDG 8.5)

How?

Primary Secondary

By committing capital to SPS, BII hopes to catalyse the Commercial and Industrial (C&I) solar market, especially for smaller scale projects typically less than 5 MW, which are less appealing to commercial investors and often involve less credit worthy C&I offtakers. The successful implementation of these projects, especially with the battery storage, can contribute to a track record of bankable projects in these markets, which can provide valuable lessons for future developers and investors.

By catalysing the C&I solar market, the ultimate objective is to decarbonise the power mix in Eastern and Southern Africa by scaling up the use of solar and battery systems.

Who?

Stakeholder Geography Characteristics
Commercial and Industrial offtakers

Kenya, Seychelles

Key target market segments are manufacturing and tourism in Kenya and Seychelles.

Contribution/additionality

Contribution/additionality

C&I solar is a nascent sector in Africa, and significant commercial capital is not available. BII's developmental capital will allow the company to enter into more difficult markets.

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.

    :
    D3694
    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.

    :
    Southern 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 :
    Debt
    Start date :
    November 2019
    Amount :
    $10m
    Currency of investment :
    USD
    Domicile

    The company or investment fund’s place of incorporation.

    :
    South Africa

Subscribe to receive our latest news and updates