British International Investment (BII), the United Kingdom’s development finance institution and a major global impact investor, has partnered with FirstRand, one of Africa’s largest and most influential financial groups, to launch a $150 million financing facility dedicated to expanding Transition Finance across the African continent. The initiative aims to accelerate climate-aligned transformation in key sectors while helping African economies pursue growth, industrialization, and job creation.
Transition Finance is increasingly recognized as a crucial tool for supporting high-emitting but economically indispensable industries as they shift toward cleaner and more sustainable operations. Rather than limiting financing to already low-carbon sectors, Transition Finance ensures that hard-to-abate industries—such as heavy manufacturing, transport, logistics, and resource-based sectors—receive the capital required to decarbonize in a manner consistent with the Paris Agreement. This approach enables African countries to pursue climate goals without undermining development priorities or risking large-scale employment losses.
Under the new partnership, BII will supply both financing capital and technical expertise to help FirstRand establish and scale its Transition Finance frameworks within its commercial and corporate banking divisions, RMB and FNB. All lending under the agreement will comply with the UK Government’s overseas fossil fuel financing policies. The collaboration also aims to build broader market confidence in Transition Finance, positioning it as a scalable, sustainable and investable asset class across Africa’s financial markets.
Strong Support From UK and South African Leadership
British High Commissioner to South Africa Antony Phillipson welcomed the agreement, noting that it comes at a pivotal moment as the conclusion of the first African-hosted G20 placed climate finance at the center of global discussions. He emphasized that this partnership showcases how UK collaboration with South Africa and other African nations can drive innovation, strengthen energy security, and support just and sustainable economic development. Phillipson added that the initiative serves as a major contribution to the Just Energy Transition Partnership, reinforcing the UK’s long-term commitment to equitable climate action.
Advancing Decarbonization in Priority Sectors
Stephen Priestley, Managing Director and Head of the Financial Services Group at BII, described the investment as a milestone for Africa’s climate transformation. He highlighted that directing capital toward high-emitting sectors is essential because this is where decarbonization can have the greatest overall impact. Priestley noted that the facility demonstrates BII’s intention to deliver climate solutions at scale while promoting economic stability, job protection, and industrial growth.
FirstRand Positions Itself As a Leader in Transition Finance
FirstRand CEO Mary Vilakazi expressed strong confidence in the partnership, stating that Transition Finance has the potential to empower thousands of companies across Africa. By supporting businesses to adopt more climate-resilient technologies, improve energy efficiency, and modernize production processes, Transition Finance can drive meaningful progress toward continent-wide decarbonization.
Vilakazi praised RMB’s role in developing FirstRand’s Transition Finance framework, highlighting the bank’s deep expertise in both structuring and implementing innovative financial solutions. She noted that RMB is establishing itself as a leader in climate-aligned finance not just in South Africa but across multiple African markets.
As the demand for climate-resilient financing grows across the continent, the BII-FirstRand partnership is expected to play a catalytic role, setting new standards for responsible investment, accelerating industrial transformation, and contributing to Africa’s long-term climate and development goals.
