CDC Group, the UK’s development finance institution and impact investor, has made a US$20mn commitment to the Metier Sustainable Capital II fund.
The South African private equity fund will provide growth capital to renewables and resource efficiency projects in sub-Saharan Africa.
Commercial finance is not currently suitable or available in sufficient quantity for renewable C&I power and resource efficiency projects in Africa. Metier seeks to address this financing gap and demonstrate the bankability of these business models.
Metier will also provide much-needed capital to enable small-scale utility projects to reach financial close. Smaller projects often struggle to attract commercial capital as it prioritises larger and more bankable utility-scale projects.
The investment is part of CDC’s strategy of supporting the UN’s Sustainable Development Goals to fight climate change, provide affordable and clean energy and decent work and economic growth.
In sub-Saharan Africa, communities often have no reliable energy access leaving millions of households with limited access to employment opportunities as well as educational and healthcare facilities.
Clarisa de Franco, Managing Director, Africa Funds at CDC, said:
“The Metier Sustainable Capital II fund will both support the expansion of renewable energy across sub-Saharan Africa and invest in resource efficiency opportunities, leading to better water and waste management practices being adopted. CDC’s support for the fund will help Metier build on the track record they have developed in their first Sustainable Capital fund, and we look forward to working closely with the Metier team as we develop a long-term partnership with the firm”.
Paul Botha, Chief Executive of Metier, added:
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“Having CDC as an investor in Metier Sustainable Capital Fund II (“the Fund”), a pan-African Private Equity Fund which targets projects and partners that deliver social and environmental benefits as well as returns on financial capital, gives the Fund access to the considerable reach of the CDC in Africa as well as to being able to leverage its investing experience in the sector. We look forward to a long and mutually beneficial relationship with the CDC.”