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.
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.
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. “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.