British International Investment (BII) longitudinal mobilisation study evaluation reports: renewable energy investments and BII-backed funds
These 2 evaluation reports outline findings from a series of case studies on how British International Investment (BII) has mobilised capital directly and indirectly.
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The Foreign, Commonwealth & Development Office (FCDO) contracted Itad to undertake a 10-year study, starting in 2018. The longitudinal mobilisation study (LMS) aims to understand:
- when and how British International Investment (BII) mobilises investment
- the drivers of this mobilisation
- the influence of country and sector contexts
The study distinguishes between direct mobilisation and demonstration effects:
- direct mobilisation refers to co-investment in BII deals
- demonstration effects refer to investment (‘indirect mobilisation’) or other changes in business practice that BII has influenced but is not a co-investor
These 2 reports summarise findings from 7 case studies on BII’s role in mobilising finance. They cover renewable energy investments and equity funds. These sectors were chosen by evaluators as the main areas for learning about BII’s mobilisation efforts.
Both reports include lessons learnt, which help to refine our understanding of when and how BII can most effectively mobilise capital.
1. Renewable energy investments
Synthesis report: analysis of mobilisation in 3 BII renewable energy investments presents case studies on 3 of BII’s renewable energy investments:
- Ayana Renewable Power independent solar and wind generation company in India, which BII launched in 2018 to address decarbonising India’s energy mix away from coal and support job creation
- the Benban solar power park in Egypt, which includes Alcazar Energy Egypt
- an investment in the Redstone Concentrated Solar Power project in South Africa
The case studies showed that BII, individually or as part of a consortium, mobilised other public investors and private capital by providing the confidence needed to invest. The report explains that these investments also have the potential to create demonstration effects.
2. BII-backed funds
Synthesis report: analysis of mobilisation into 4 BII-backed funds presents case studies of equity funds between 2005 and 2019 in:
- Bangladesh: Frontier Funds I and II
- India: Lok I to III and India Value Funds I to III
- Nigeria: Capital Alliance Private Equity I to IV
The report describes how BII brought other investors and created the conditions that make investment opportunities more attractive to these investors. In all cases, BII supported the credibility of the funds and reassured potential investors about high standards in business integrity and environmental, social and governance.