The role and the company Flashcards
Impact team
Working within the Impact team your responsibilities might include:
* Managing investments to enhance impact by participating in the design and implementation of initiatives.
* Assessing development impact and working with the Investment team to inform the investment decision and define impact objectives.
* Developing and delivering strategies for sectors to ensure consistency with our frameworks.
* Creating high quality dashboards for each investment involving desk research, facilitating
discussions and managing external suppliers.
* Aid in impact data compilation, validation and analysis.
* Thinking through the environmental and social issues of our investments and how to reduce, or
mitigate, risks.
* Contribute to groun-breaking thinking and guidance notes on new and emerging, environmental
and social topics.
Investment team
- Analysing new investment proposals and deal opportunities, including supporting on and conducting financial analysis/modelling, valuation exercises, and market research.
During your Investment team rotation, you could find yourself: - Assisting senior team members with the due diligence on a specific company, sector, and country.
- Undertaking research into regions, countries and specific sectors on an ad-hoc basis. This will
include providing support to sector mapping exercises. - Performing discrete project work around sector mapping to identify potential opportunities and to
help the Investment team develop these into projects. - Supporting senior team members on post-transaction management of portfolio companies.
- Assisting in rs on post-transaction management of portfolio companies.
- Assisting in
Who are BII
British International Investment (BII), the UK’s development finance institution established in 1948, plays a pivotal role in fostering economic growth in developing regions. It primarily invests in businesses across Africa, Asia, and the Caribbean, aiming to create productive, sustainable, and inclusive economies. BII’s mission revolves around addressing global development challenges by providing patient, flexible capital that supports private sector growth and innovation.
The institution’s investment strategy is both impact-focused and commercially rigorous. They measure success through the positive economic, environmental, or social impact of their investments and the commercial sustainability of the businesses involved. This approach ensures that the businesses they invest in are not only impactful but also financially viable. BII places emphasis on investing in sectors like green infrastructure and technology that significantly need their capital.
With over 1,500 business partnerships in emerging economies and total assets of £8.1 billion, BII has a substantial impact. Their role is central to the UK Government’s international financing for emerging economies, including partnerships with British businesses operating in these regions. The investment decisions at BII are made through a process involving both investment and impact teams. This process includes rigorous due diligence and deal structuring, ensuring that each investment aligns with their criteria and offers significant opportunities for impact.
In summary, BII stands as a critical agent in driving sustainable development and economic growth in less developed regions, leveraging its financial resources and expertise to create a more equitable and prosperous global economy
5-year strategy
“Productive, Sustainable and Inclusive Investment”
will become a central part of the UK’s offer to help developing and emerging countries meet their significant financing needs for infrastructure and enterprise
- Productive development – by raising the productivity of an economy so that it can support a decent standard of living for all;
- Sustainable development – helping transform the economy to reduce emissions, protect the environment and adapt to the changing climate; and
- Inclusive development – sharing the benefits of higher productivity and greater sustainability with poor and marginalised sections of society.
BII operates in five-year strategy periods, which are agreed and ratified by our shareholder, the Foreign Commonwealth and Development Office. Our next strategy period begins on 1 January 2022 and runs until the end of 2026. We aim to invest £1.5 – £2 billion per annum over the period.
It recognises the vital importance of infrastructure in bringing large scale impact to enable enterprise and benefit millions of people.
An increased focus on climate finance, including in green infrastructure
This strategy expands our climate remit, including setting a target for 30 per cent of our new commitments over five years to be in climate finance, positioning us as the UK’s principal provider of such finance to emerging and developing economies.
The more geographically diverse approach complements the organisation’s existing strong profile in Africa and South Asia. In the past five years we have invested close to £7 billion and mobilised a further £2.5 billion – and in doing it has backed businesses that employ over 900,000 people and which have paid in excess of £10 billion in taxes.
Building on CDC’s legacy, British International Investment will be a key part of the UK’s new economic partnerships to ‘Build back better’. Our involvement recognises that impact investment – capital dedicated to achieving positive economic, environmental and social change – is a vital way we can support our partners.
- New investment in digital transformation
We will provide capital to the full spectrum of opportunities in the digital sector, from large-scale digital infrastructure to early-stage venture capital.
By investing in digital transformation, we will build productive economies, addressing constraints to economic growth and catalysing markets, and supporting the entrepreneurs who are developing solutions that can transform lives. - Building on our approach to gender and diversity finance
We will invest to promote diversity, including a new target for 25 per cent of our annual new commitments in gender finance.
That will contribute to our aim to ensure our investments are inclusive and that the benefits are shared with the more marginalised segments of society. - An expanded geographical remit to include the Indo-Pacific and Caribbean
We will start providing climate finance in the Indo-Pacific region, specifically in the larger economies of the Philippines, Indonesia and the Mekong region, with a particular emphasis on green, renewable infrastructure. We will look to invest in opportunities across the Caribbean, as they arise. - Forging strong partnerships to multiply the impact and financial success of our investments
We will build partnerships with like-minded organisations. We will use our proximity to the City of London to mobilise commercial investors to cement the UK as a development finance hub. We will invest in or with British businesses that operate in developing and emerging economies and who share our aims, and we will partner with global investors including sovereign wealth funds. We will work more closely with the UK Government, which has world-class diplomatic and development expertise.
Case Studies
WorldLink – Nepal
- Continued investment to go from connecting 750,000 households now to 1.3 million by end of 2025
- Is also now one of Nepal’s largest employers and is looking to add 1,000 more employees following recent investment and skills training
Africa Water Infrastructure Development
- Addresses issues of water insecurity and insufficiency
- Water shortages will be massively affected by climate change
- Developing climate smart water projects at scale to increase water security
Aavas Financiers – India
- Targeted financing that aims to support women’s access to affordable finance
- Encourages female property ownership where in India only 9% of home owners are women
- Invests to help companies implement gender-focused initiatives
GridWorks – Africa
Development and investment platform to address under-investment in electricity transmission, distribution and off-grid infrastructure in Africa
- Can provide renewable and reliable power
AgDevCo – Africa
Investments in agricultural businesses to increase income for farmers
- Supports farmers as customers and suppliers
- Helps farmers become more climate smart
mPharma – Africa
- Nearly half the population of Africa lacks access to essential medicines
- mPharma looks to solve the issues surrounding how pharmacies can’t afford the drugs so can’t stock their stores, and many people can’t afford them anyway
- Aims to make healthcare more affordable and accessible
- Using data to better understand patient demand for medicines and working with network of pharmacies to make supply chain more efficient
Mahindra Electric Automobile – India
Accelerating the availability and adoption of EV’s in India
- Expected to avoid at least one million tonnes of CO2 in first six years of investment
- Creation of around 8,000 jobs
Mantlepoint – Nigeria
Allows SME’s access to digital financial services
- Accept payments
- Access credit
- Manage finances
Increases productivity to serve customers better and grow
There are currently 40 million SME’s in Nigeria that contribute to almost half of the country’s GDP – they need access to financial services \
Zephyr Power – Pakistan
- RE company
- 50MW wind project
- Works closely with the community to protect local environment
- Long-term thinking
- Stakeholder group has a long-term obligation to the community and environment
Their duel mandate
as the UK’s development finance institution their dual mandate is for development impact and commercial success
Impact measurement is at the heart of what they do
The risks to consider when investing
- Foreign exchange risk
Impact on Returns: The value of foreign investments can fluctuate due to changes in exchange rates. If an investor holds assets in a currency that depreciates against their home currency, the value of their investment and the returns in their home currency will decrease. Conversely, if the foreign currency appreciates, the returns may increase
Political and Economic Stability: Political events, economic policies, and changes in government in a foreign country can impact its currency’s stability and, consequently, the value of investments in that currency.
Economic Instability: Emerging economies might experience high inflation, volatile currency exchange rates, and rapid changes in economic conditions. Such instability can impact investment returns and operational costs.
Infrastructure Challenges: Inadequate or underdeveloped infrastructure (like transportation, telecommunications, and energy supply) can pose logistical challenges and increase operational costs.
Market Accessibility and Liquidity Risks: Emerging markets often have less developed financial markets, which can lead to issues with market access and lower liquidity. This might make it harder to enter or exit positions without affecting market prices.
Environmental Factors: Assess the potential environmental risks associated with the company’s operations. This includes:
Impact on climate change (carbon footprint, greenhouse gas emissions).
Resource usage (water, energy, materials).
Waste management and pollution control.
Adaptation to climate change risks and environmental sustainability practices.
Social Factors: Evaluate how the company manages relationships with employees, suppliers, customers, and communities. Key areas include:
Labor practices (including diversity and inclusion, workers’ rights, and fair labor practices).
Supply chain management (ethical sourcing, human rights policies in the supply chain).
Customer satisfaction and safety.
Community engagement and impact.
Governance Factors: Analyze the governance structure and practices of the company. This includes:
Board composition and diversity.
Internal controls and risk management.
Transparency and disclosure practices.
Ethical business practices and anti-corruption measures.
:
Corruption measures is a big one to consider
Risks overview
Forex
Political and economic stability
Infrastructure
Market accessibility and liquidity risks
Environmental risks and exposure
Anti-corruption measures
Social, human rights and working conditions
Diversity and ethical sourcing
BII’s values
Our values
Impact-led, commercially rigorous.
Tenacious in the face of challenges.
Collaborative and caring. We’re here to help each other succeed.
