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.
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 |
|---|
|
|
|
How?
| Primary | Secondary |
|---|---|
|
Direct: Fund III will invest in approximately 12 technology companies addressing challenges to climate change and challenges faced by low-income populations. |
Catalysing markets: Venture capital funding in Africa remains nascent at the seed and growth stages, and moderate for early-stage investing (Series A to B). There is a continued need for BII and DFIs more generally to support fund managers, particularly those with a climate mandate, to develop a track record and stimulate the ecosystem for venture capital in Africa towards attracting a greater supply of capital. The aim is to advance climate action (adaptation, resilience, and mitigation) and unlock economic growth. |
Who?
| Stakeholder | Geography | Characteristics |
|---|---|---|
| Planet |
N/A |
N/A |
| Customers – farmers, households, SMEs etc. |
Pan Africa |
Fund III has a sector agnostic approach and aims to reach populations characterised by: limited ability to afford basic goods and services; insecure income and vulnerability to income shock; low-income living on or under $6/day; limited access to markets. |
How much?
| Scale | Depth/Duration |
|---|---|
|
By the end of the fund's life, it is estimated to mitigate: more than 30 million tonnes of greenhouse gas emissions avoided or removed; more than 8 million tonnes of waste avoided, removed or recycled; more than 1 million hectares of land improved for biodiversity and/or soil health. By the end of the fund's life, it is estimated to reach more than 25 million stakeholders of which more than 13 million will enhance their climate resilience. We estimate that more than 50 per cent will be low-income populations. |
The fund's strategy will increase the resilience of the target stakeholders who are more vulnerable to climate change, increase affordability for climate positive goods and services, and enable the development of key infrastructure for climate. These impacts are expected to be deep and long lasting. |
Contribution/additionality
| Contribution/additionality |
|---|
|
Financial additionality: Capital is not offered in sufficient quantity. Our commitment supports the fund in reaching a viable first close. |
Risk
Execution RiskAbility to execute the strategy and accurately represent, measure and report on climate. |
Environmental and social information
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Environmental and social summary
A high-level description of the environmental and social aspects of the investment. This may include a summary of key environmental and social risks identified during environmental and social due diligence (ESDD); key elements of an environmental and social action plan (ESAP); or ways in which we plan to support the investee improve environmental and social standards, such as through their environmental and social management system (ESMS); as well as any other priority areas agreed with the investee.
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Environmental and social risk
A risk category rating, which indicates the level of environmental and social risk associated with an investment. For an explanation of the categorisations used, see here. We consistently provide an environmental and social risk category for all investments screened from 2023 onwards.
Environmental and social summary
We worked closely with Novastar and DFI partners to strengthen Novastar's existing ESMS, including environmental and social capacity to manage supply chain and safeguarding risks associated with Fund III pipeline opportunities and existing portfolio.
Environmental and social risk
Medium-Low
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 reportsandcomplaints@bii.co.uk or by mail. See more details on our Reporting and Complaints Mechanism here.
For any other general enquiries contact us at enquiries@bii.co.uk
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Key facts
- First published
:
When the investment was first published on the website database.
- December 2024
- Last updated
:
When the last quarterly update of the website database occurred.
- December 2024
- Project number
:
An identifier number shared by investments in the same project.
- D6455
- 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
- Investment type :
- Fund
- Start date :
- August 2024
- Amount :
- $10m
- Currency of investment :
- USD
- Fund manager:
- Novastar Ventures Limited
- Domicile
:
The company or investment fund’s place of incorporation.
- United Kingdom
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.
- 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.
- Partially qualified
- Climate finance type
:
Mitigation: Indicates investments which, by avoiding or reducing GHG emissions or increasing GHG sequestration, contributes substantially to the stabilisation of GHG concentrations in the atmosphere – at a level which prevents dangerous anthropogenic interference with the climate system consistent with the long-term temperature goal of the Paris Agreement
Adaptation: Indicates investments aimed at preventing or reducing the risks or vulnerabilities posed by climate change and increasing climate resilience. This includes both adapted activities and enabling activities to manage and reduce physical climate risks
Dual: Indicates investments directed towards activities contributing to both climate change mitigation and climate change adaptation and meeting the respective criteria for each category
The climate finance type of the investment is determined at time of commitment.
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- Adaptation
- Mitigation
- Dual
- First published
