More details emerge on BII & Metito’s private-investment platform for water infra in Africa

Metito Utilities Limited (Metito) and BII recently announced the launch of their new company Africa Water Infrastructure Development (AWID), a first-of-its-kind platform seeking to deliver a viable commercial model for water infrastructure and provision in Africa.

BII will be a minority shareholder with a 40% stake in the joint venture, and Metito retains a60% majority. Under the platform, Metito will also contribute a couple of existing assets in Africa,and the AWID team will seek out new opportunities to add to Metito’s pipeline.

Most asset owners do not have the risk appetite or capacity to invest directly in individual infrastructure assets in emerging markets, and this is coupled with a general scepticism around foreign ownership, management, and operation of critical infrastructure assets like water. 

According to BII’s MD and Head of Africa Chris Chijiutomi and Metito’s MD Rami Ghandour, the partnership therefore seeks to combine the expertise of BII, a DFI well-versed in African markets and development, and Metito, a blue chip developer of water infrastructure in the continent. 

By synergising the two companies’ expertise, the platform aims to make investments that are sustainable, impactful, and well-regulated to mitigate the regulatory, operational and climate-related risk factors. The ultimate goal is to show other private investors that investment can be leveraged successfully to deliver high-impact water infrastructure at scale in Africa, and to bridge the $45-54 billion yearly gap in water infrastructure investment. Alongside Metito’s expertise in the sector, BII’s convening power and risk appetite will help to achieve this goal.

Metito’s development of the Kigali Surface Bulk Water PPP can be expected to inspire future investments by the platform. Creating further PPPs aims to not only showcase how private public investments can improve utility performance, leverage finance, and stimulate a sense of competition and accountability in Africa’s water sector, but also allow climate risks and opportunities to be integrated into investment decision-making. 

While previous water PPPs on the continent have faced challenges, Meitito’s expertise is expected to mitigate this, as the company has already pioneered the PPP model in Rwanda, Egypt, Serbia, Qatar, Saudi Arabia, UAE, and Uzbekistan, and they are the only investor and developer to have successfully closed a greenfield PPP water treatment plant in Africa in the last five years (Kigali).