The UK’s development finance institution, British International Investment (BII), has announced a landmark $150 million facility with South Africa’s FirstRand Group to accelerate the decarbonisation of carbon‑intensive industries across Africa. The initiative, unveiled on 25 November 2025, represents BII’s first dedicated investment in transition finance, underscoring the growing urgency to support companies in hard‑to‑abate sectors.
Targeting High‑Emitting Sectors
The facility will be deployed through FirstRand subsidiaries Rand Merchant Bank (RMB) and First National Bank (FNB), offering structured loans to businesses seeking to shift from coal‑heavy and carbon‑intensive production methods to cleaner technologies. The programme is designed to help firms reduce emissions while maintaining access to credit, a critical balance for industries facing mounting climate and regulatory pressures.
South Africa alone faces an annual climate financing gap exceeding R300 billion (US$16.7 billion), highlighting the scale of investment required to meet national and international climate goals.
Strategic Partnership
Led by FirstRand CEO Mary Vilakazi, the collaboration positions the bank as a key player in Africa’s energy transition. BII will provide not only capital but also technical assistance, helping FirstRand establish a structured framework for transition finance. This includes developing best practices to ensure that investments deliver measurable emissions reductions while safeguarding economic growth and employment.
Broader Impact
The facility is expected to support projects ranging from renewable energy adoption and efficiency upgrades to industrial retrofits that cut carbon output. By embedding transition finance into mainstream banking, the partnership aims to establish a new asset class in Africa, encouraging other financial institutions to follow suit.
Climate advocates note that such initiatives are vital for Africa’s industrial base, where companies often lack the resources to fund large‑scale decarbonisation independently.
Outlook
The BII‑FirstRand partnership marks a significant milestone in Africa’s climate finance landscape. By targeting high‑emitting sectors with tailored support, the initiative seeks to bridge the gap between sustainability and economic resilience, positioning Africa to play a stronger role in the global energy transition.
Sources: Billionaires Africa · ESG Investing · Ecofin Agency · Serrari Group · Moneyweb
