Addleshaw Goddard has advised British International Investment (BII), formerly CDC Group, on a $200m investment into new hydropower projects across Africa through its participation in an existing joint venture between Norfund and Scatec ASA.
Alongside Norfund and Scatec ASA, BII will fund the creation of the first tri-national PPP in Africa (Ruizi III HPP) and Malawi's largest power plant (Mpatamanga HPP) among other projects. The investments are expected to support the creation of 180,000 jobs and avoid at least 270,000 tCO2e of GHG emissions annually. Together, the plants could provide enough clean energy to meet the equivalent demand of over 3 million people. This will be BII's largest investment in hydropower in its 74-year history.
The deal was led by Addleshaw Goddard's Africa Business Group, which has over 26 years' experience of advising clients on their investments and operations across Africa and across a wide range of sectors.
The team at Addleshaw Goddard was led by Chris Taylor, Partner (Corporate) and Head of Addleshaw Goddard's Africa Business Group, with support by John Coleman, Partner (Corporate); Nikhil Chary, Managing Associate (Corporate); Simi Somuyiwa, Associate (Corporate); Rory Connor, Partner (Projects and IPE); Rona Bar-Isaac, Partner (Competition); and Valeri Bozhikov, Managing Associate (Competition).
Chris Taylor, Corporate Partner and Head of Addleshaw Goddard's Africa Business Group, said:
"Major investments into African hydropower projects such as these will help to bring clean, affordable energy to potentially millions of people across the continent, many of which have no ready access to electricity.
"It was a pleasure to work with our long-standing client British International Investment on this significant deal as it continues to deliver on its mandate to provide finance to facilitate inclusive and sustainable growth across emerging markets, particularly in Africa."
Chris Chijiutomi, Managing Director, Head of Infrastructure Equity, Africa & Pakistan at BII, said:
“Hydropower is critical for providing clean baseload and peaking power, especially in landlocked countries in Africa, as the continent countries transition away from fossil fuels towards a net zero future. BII along with its partners will play a key role in providing inclusive and sustainable finance to support hydropower in sub-Saharan Africa. It is great that we are partnering with Norfund and Scatec in this partnership.”
About Addleshaw Goddard
Addleshaw Goddard is a leading international law firm with operates across 18 offices in Europe, Asia and the Middle East. Each year the firm works with over 3000 major businesses, including 48 FTSE 100 companies, across 90 countries.
About British International Investment
British International Investment is the new name for the UK’s development finance institution and was formerly known as CDC Group.
British International Investment is a trusted investment partner to businesses in Africa, Asia and the Caribbean. It invests between £1.5 and £2 billion every year to support the UK Government’s Clean Green Initiative and to create productive, sustainable and inclusive economies in our markets
British International Investment plays a key role in the UK Government’s wider plans to mobilise up to £8 billion a year of public and private sector investment in international projects by 2025.
Over the next five years, at least 30 per cent of BII’s total new commitments by value will be in climate finance. This will make it one of the world’s largest climate investors in Africa.
BII is also a founding member of the 2X Challenge which has raised $10bn to empower women’s economic development.
The company has investments in over 1,300 businesses in emerging economies and total assets of £7.7 billion.