UK’s development finance institution British International Investment (BII) has signed a memorandum of understanding (MoU) with the global charity Shell Foundation to support renewable energy growth in sub-Saharan Africa and South Asia. The agreement aims to finance renewable energy and energy efficiency start-up companies in these regions.
Through the partnership, the global institutions will provide investment to overcome financial barriers that exist for early and mid-stage businesses in sectors aligned with their strategic priorities and objectives. The financial facility will not be just limited to distributed renewable energy and agri-tech, but also support cross-cutting solutions in climate projects and gender inclusion.
Around 773 million people globally lack access to electricity, most of them from African and South Asian countries. Africa’s energy and climate goals require $190 billion each year from 2026 to 2030, with two-thirds accounting for renewable energy. For South Asia, around $410 billion is required by 2030 to achieve its renewable energy potential.
BII and Shell Foundation have committed $245 million in funding for renewable energy by 2026 to increase access to clean energy Africa and South Asia. The financing facility will be provided to the private sector projects that support investment into high-impact sustainable and clean energy solutions in these regions.
According to Jonathan Berman, the CEO of Shell Foundation, millions of people in emerging countries would be able to earn a living income using clean energy in the upcoming decade. The agreement complements Shell’s long-term co-funding partnership with FCDO, the sole shareholder of BII, which gives them a great opportunity to provide capital at different risk appetites and stages of growth.
YaseminSaltukLamy, MD and Head of Asset Allocation & Capital Solutions at BII said, their partnership with Shell Foundation will support emerging economies in their transition to and scale up reliable, clean energy that will support resilient economic growth and close energy access gaps.
BII and Shell Foundation have made a name for themselves in Africa in recent years with their commitment to clean energy. Last year, BII joined forces with Norfund and IPP Scatec to invest $200 million in Africa’s hydropower portfolio. Shell is funding decentralized renewable energy in Nigeria Electrification Project (NEP) via the investment firm All On. Also, the foundation bought Nigerian C&I solar power company Daystar Power last year.