British International Investment (BII), the UK’s development bank, has expressed its interest in financing more natural gas-based energy projects in Africa. BII CEO Nick O’Donohoe emphasised the bank’s intention to increase access to electricity on the continent, especially amid growing global pressure to reduce support for fossil fuel projects.
The announcement came at a strategic time, as the world prepares for the 28th United Nations Climate Change Conference (COP28), scheduled to take place in Dubai, United Arab Emirates. CEO O’Donohoe noted that while there is pressure to reduce support for fossil fuels, the challenge is to find a balance that meets the needs of more than 600 million people in Africa who face a lack of access to reliable energy.
One of the projects mentioned is the 450 megawatt Temane Thermal Power Plant, under development by Globeleq in Mozambique. Scheduled to start producing electricity in 2024, the plant will meet the demand of 1.5 million homes, using gas from the fields operated by Sasol.
The CEO emphasised that BII is committed to maintaining a flexible approach, offering support to sustainable projects in various African regions, including Mozambique. He also mentioned that Globeleq has already started commercial operations at the Cuamba solar and battery storage plant in Niassa province, in the north of the country, and is evaluating other wind and solar projects.
To boost development in the region, the bank has outlined a significant investment of around 6 billion dollars in areas ranging from renewable energy to support for women-led businesses. This move reflects the BII’s commitment to contributing to sustainable and inclusive progress in Africa.
