British International Investment

Globeleq Limited

Central AfricaEast AfricaNorth AfricaSouthern AfricaWest AfricaInfrastructure

Globeleq is Africa’s leading independent power producer. British International Investment took control of the company (70 per cent) in 2015 alongside Norfund (30%). Since then, Globeleq has almost doubled in size, adding nine assets to its portfolio, of which 8 are renewables. Its portfolio has reached 2,178 megawatts of power assets, including 520 megawatts of renewables, in operations and construction across seven countries (Cote d’Ivoire, Cameroon, South Africa, Mozambique, Tanzania, Kenya and Egypt). In 2021, Globeleq’s operating assets generated 7,141 gigawatt hours of electricity, reaching over 9 million consumers and indirectly supporting an estimated 236,000 jobs in addition to the 517 people the company employs directly.

Our investment

Description of the investment.

Following Globeleq's acquisition in 2015, we increased our commitments by $245m to support growth. Our direct investment has been essential to closing the power infrastructure gap in Africa. The current strategy focuses on increasing Globeleq's renewables footprint, and our new commitments contribute to achieving this target.

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
  • Improved standards of living for end consumers through the provision of more and better-quality clean energy (SDG 7.1, 7.2).
  • Economic opportunities created through providing critical baseload affordable and cleaner energy (SDG 8.5).
  • Improved environmental sustainability and contribution to climate action by reducing greenhouse gas emissions (SDG 13A).

How?

Primary Secondary
  • Sustainably powering Africa’s growth is at the heart of what Globeleq does by generating reliable and affordable electricity and investing in new projects.
  • Globeleq is producing more power from cleaner sources and plans to add significant renewable energy capacity by 2026.
  • Globeleq invests in socio-economic development programs, making a sustainable positive contribution to the local communities. This includes health, education, professional development, and income generation opportunities.
  • Globeleq is also committed to increasing women's representation in senior leadership.

Who?

Stakeholder Geography Characteristics
Consumers

Africa

Urban/peri-urban households
Planet

Global
Employees

Africa

How much?

Scale Depth/Duration

Globeleq has 1,456 megwatts of operating assets, including 521 megawatts in renewables (wind and solar), and an additional 722 megawatts in construction. In 2021, Globeleq's operating assets generated 7,141 gigawatt hours of electricity, reaching over 9 million consumers and indirectly supporting an estimated 236,515 jobs and 500 direct employees. Almost 99 per cent of its employees come from African countries, and 25 per cent of permanent employees (30 per cent in senior management) are women.

Globeleq's portfolio assets provide critical baseload affordable and cleaner energy in sub-Saharan African countries, making a significant contribution to the SDGs through its operations' economic, social, and environmental impact. This power production is mostly in areas with a higher degree of need for access to power by consumers and businesses.

The company also produces more power from renewable sources; the renewable energy generated by Globeleq in 2021 helped avoid 940,420 tons of CO2 equivalent.

Contribution/additionality

Contribution/additionality

Our investment in Globeleq has been essential to closing the power infrastructure gap in Africa caused by a lack of bankable projects. The combination of patient capital from a development finance institution and Globeleq’s technical and development capabilities has played a critical role in demonstrating the viability of the independent power producer model, adding strategic power supply, and attracting further capital inflows in the power sector of Africa.

Risk

Unexpected Impact Risk
  • Climate: Globeleq is no longer pursuing any investment in heavy fuel oils and has implemented a nuanced approach to test Paris Agreement alignment for new gas-to-power investments.
Execution Risk
  • Developing new power projects is challenging and takes a long time. This risk has to be tolerated, given the significant impact these projects can have.

Understanding our impact information (PDF)

Environmental and social information

  • 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.
  • 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

The company has an ESAP for all portfolio assets and a well-functioning ESG Committee that oversees ESG matters as part of Board-level governance.

Environmental and social risk

High

Understanding our approach to environmental and social risk (PDF)

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

  • Key facts
    First published

    When the investment was first published on the website database.
    :
    March 2024
    Last updated

    When the last quarterly update of the website database occurred.
    :
    June 2024
    Project number

    An identifier number shared by investments in the same project.
    :
    D193
    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.
    :
    Central Africa, East Africa, North Africa, Southern Africa, West Africa
    Country

    The countries where the investment delivers impact. Where impact is delivered in multiple countries, this is indicated.
    :
    Cameroon, Cote d'Ivoire, Egypt, Kenya, Mozambique, South Africa, Tanzania
    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 :
    Equity
    Start date :
    December 2023
    Amount :
    $24.29m
    Currency of investment :
    EUR,USD
    Domicile

    The company or investment fund’s place of incorporation.
    :
    Guernsey
    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

    Download as PDF

    Click here to read our data guidance

Related investments made by BII into this company:

Investment name Commitment Region Sector Start date Status
Investment 05 $100.1m Central Africa, East Africa, North Africa, Southern Africa, West Africa Infrastructure December 2020 Active
Investment 06 $4m Central Africa, East Africa, North Africa, Southern Africa, West AfricaCentral Africa, East Africa, North Africa, Southern Africa, West Africa Infrastructure July 2021 Active
Investment 06 $4m Central Africa, East Africa, North Africa, Southern Africa, West AfricaCentral Africa, East Africa, North Africa, Southern Africa, West AfricaCentral Africa, East Africa, North Africa, Southern Africa, West Africa Infrastructure July 2021 Active
Investment 06 $4m Central Africa, East Africa, North Africa, Southern Africa, West AfricaCentral Africa, East Africa, North Africa, Southern Africa, West AfricaCentral Africa, East Africa, North Africa, Southern Africa, West AfricaCentral Africa, East Africa, North Africa, Southern Africa, West Africa Infrastructure July 2021 Active
Investment 07 $19.86m Central Africa, East Africa, North Africa, Southern Africa, West AfricaCentral Africa, East Africa, North Africa, Southern Africa, West AfricaCentral Africa, East Africa, North Africa, Southern Africa, West AfricaCentral Africa, East Africa, North Africa, Southern Africa, West AfricaCentral Africa, East Africa, North Africa, Southern Africa, West Africa Infrastructure December 2021 Active
Investment 08 $5.46m Central Africa, East Africa, North Africa, Southern Africa, West AfricaCentral Africa, East Africa, North Africa, Southern Africa, West AfricaCentral Africa, East Africa, North Africa, Southern Africa, West AfricaCentral Africa, East Africa, North Africa, Southern Africa, West AfricaCentral Africa, East Africa, North Africa, Southern Africa, West AfricaCentral Africa, East Africa, North Africa, Southern Africa, West Africa Infrastructure March 2022 Active
Investment 08 $5.46m Central Africa, East Africa, North Africa, Southern Africa, West AfricaCentral Africa, East Africa, North Africa, Southern Africa, West AfricaCentral Africa, East Africa, North Africa, Southern Africa, West AfricaCentral Africa, East Africa, North Africa, Southern Africa, West AfricaCentral Africa, East Africa, North Africa, Southern Africa, West AfricaCentral Africa, East Africa, North Africa, Southern Africa, West AfricaCentral Africa, East Africa, North Africa, Southern Africa, West Africa Infrastructure March 2022 Active
Investment 08 $5.46m Central Africa, East Africa, North Africa, Southern Africa, West AfricaCentral Africa, East Africa, North Africa, Southern Africa, West AfricaCentral Africa, East Africa, North Africa, Southern Africa, West AfricaCentral Africa, East Africa, North Africa, Southern Africa, West AfricaCentral Africa, East Africa, North Africa, Southern Africa, West AfricaCentral Africa, East Africa, North Africa, Southern Africa, West AfricaCentral Africa, East Africa, North Africa, Southern Africa, West AfricaCentral Africa, East Africa, North Africa, Southern Africa, West Africa Infrastructure March 2022 Active

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