UK’s BII Makes Landmark $150 Million Move to Accelerate Africa’s Energy Transition

British International Investment (BII), the UK’s development finance institution, has made its first major push into energy-transition financing with a $150 million facility for South Africa’s FirstRand. Announced on Tuesday, the funding will flow through FirstRand’s business banks, RMB and FNB, to support high-emitting African companies in adopting cleaner technologies and lowering their carbon footprints. Unlike conventional green finance—often reserved for already low-carbon projects—transition finance is designed specifically for heavy emitters, helping them modify operations without cutting off access to capital. The move comes as South Africa faces a significant climate-finance shortfall. While the country attracted an annual average of 188 billion rand ($10.4 billion) for climate initiatives in 2022–23, studies suggest it may need up to 500 billion rand annually to meet its climate commitments, leaving more than 300 billion rand in unmet funding each year. Most existing funds are directed toward renewable power projects such as wind and solar farms, while relatively little supports community adaptation or the shift away from coal-dependent livelihoods. Domestic institutions currently provide nearly 60% of climate funding, with commercial banks serving as the largest private contributors. “This investment marks a pivotal step in our strategy to accelerate decarbonisation where it matters most,” said Stephen Priestley, BII managing director.