British International Investment (BII) and FirstRand, one of Africa’s largest financial institutions, have launched a $150 million financing facility to back transition finance projects across the continent, said in a statement. The deal aims to help high-emitting industries cut carbon while protecting jobs and growth.
Transition finance targets sectors that are vital to African economies but hard to decarbonize quickly—like heavy industry, transport, and energy. By channeling capital into these areas, the facility is designed to speed up the shift to low-carbon economies without undermining development goals or employment.
BII will provide both funding and technical support to help FirstRand build its transition finance framework and grow its portfolio through its corporate and commercial banking arms, RMB and FNB. All financing under the deal will follow UK government policy on overseas fossil fuel support. The partnership also seeks to raise market awareness of transition finance and establish it as a viable, scalable asset class in Africa.
“I’m delighted this investment closed just as the first African G20 wrapped up with a focus on climate finance,” said Antony Phillipson, British High Commissioner to South Africa. “It’s a strong example of how UK partnership with South Africa and others across the continent can drive innovation, sustainability, and energy security.”
Stephen Priestley, BII’s Managing Director and Head of Financial Services, said the deal represents a “pivotal step” in BII’s strategy to push decarbonization where it counts most.
“By putting capital into high-emitting and hard-to-abate sectors while protecting jobs and growth, we’re setting a precedent for Africa,” he said. “This reinforces our commitment to climate resilience and financial solutions that deliver impact at scale.”
Mary Vilakazi, FirstRand CEO, called transition finance a powerful tool for helping companies adopt more efficient and climate-resilient practices. “We are pleased to partner with BII to promote these opportunities,” she said, noting that RMB, FirstRand’s corporate and investment bank, played a key role in developing the group’s transition finance framework.
The facility marks a first for BII in backing transition finance at this scale in Africa and supports broader efforts tied to the Just Energy Transition Partnership, aiming for cleaner, fairer economic development across the region.
