Metier Sustainable Capital II

Kenya Infrastructure

Metier Sustainable Capital II will invest growth capital in distributed energy and resource efficiency businesses and provide development financing for small scale utility renewable projects which will reduce greenhouse gas emissions, facilitate economic growth and job creation and contribute to improvements in living standards. Metier will also play a role in catalysing the overall distributed energy and resource efficiency market in Africa.

Our investment

Commercial finance is not currently suitable or available in sufficient quantity for renewable commercial and industrial power and resource efficiency projects in Africa. CDC's investment in Metier seeks to address this financing gap and demonstrate the viability of these business models.

Impact
  • Support environmental sustainability by reducing and avoiding greenhouse gas emissions (SDG target 13A).
  • Support economic opportunities by the provision on power to businesses (SDG target 8.5).
  • Support provision of affordable and reliable energy services (SDG targets 7.1, 7.2).
How?

Our commitment will enable the fund to invest in distributed energy, resource efficiency businesses and small-scale utility renewable projects helping to reduce the dependence on fossil fuels. The success of the fund in distributed energy and resource efficiency sectors would also play a role in catalysing the uptake of these business models by helping to demonstrate the commercial viability.

Stakeholder Geography Characteristics
Planet

Global

N/A

Employees

Sub-Saharan Africa

Other (power will support employees of grid-connected businesses).

Consumers

Sub-Saharan Africa

Other (typically urban/peri-urban households connected to the grid).

Grid Score Contribution
2.7-2.8

To help us direct our investments, we use a tool called the Development Impact Grid. The Grid scores every investment we plan out of a score of four, based on two factors: the difficulty of investing in the country and whether investment in that sector will lead to jobs.

  • Capital not offered in sufficient quantity by the commercial market.
  • CDC will help to reduce execution risks and any negative impact risks through support to the manager strengthening its environmental, social and business integrity systems.
Risk
  • Execution: The impact case depends on the successful execution of complex projects.
  • External: Commercial and industrial projects support an acceleration in renewable capacity but can also present financial challenges to the grid if anchor customers are attracted away, this is especially the case in smaller grids.

Environmental and social aspects

We work closely with the fund manager to help develop and implement an environmental and social management system (ESMS) that has the capacity to manage the higher level of environmental and social risk associated with this sector, including delivering an action plan.

Key facts

Status:
Active
Region

Since 2012, we’ve only invested in Africa and South Asia. Investments outside these regions are from our pre-2012 portfolio.

:
Africa
Sector

We have seven priority sectors. However, we continue to invest outside these sectors, largely in the most challenging regions, as new investment supporting any sector helps to underpin the private sector, and create jobs and livelihoods for people. For funds, the sectors listed here are those the fund has invested in so far.

:
Infrastructure
Investment type

We provide capital in three broad ways: direct equity, debt, and intermediated equity (principally through investment funds).

:
Intermediated investment
Fund manager:
Metier SC Private Equity International
Start date

For direct investments, this is the date CDC committed capital to the business or project.

For funds, this is the date that CDC committed capital to the fund.

For underlying fund investments, this is the date that the fund invested capital into the business.e

:
December 2019
Amount

For direct investments, this is the total amount that CDC has committed to the business or project (it may be a combination of equity and debt).

For funds, this is the total amount that CDC has committed to the fund.

:
$20m
Domicile

This is the investee company’s place of incorporation; or a fund’s jurisdiction.

:
Mauritius

Investments made by this fund

  • Active
  • Exited
Investment name Country Region Sector Start date Status
Broadreach

Broadreach provides efficient and cost effective handling solutions for broadreach cargo transported within Southern and Central Africa including Breat Lakes, Southern Sudan Br Somalia.

View investment details

Africa, Southern Africa Infrastructure June 2020 Active
Kaptis Kenya Africa, East Africa Infrastructure October 2020 Active

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