Standard Bank Accelerates R100bn Commitment to Africa’s Renewable Energy Transition by 2028
In 2025, Standard Bank reported a significant shift in Africa’s energy financing landscape, with renewable energy investments surpassing non-renewable sources by an impressive 8:1 ratio. This trend is echoed by Eskom, traditionally reliant on coal, which has established a new business unit dedicated to utility-scale renewable energy projects. This momentum positions Standard Bank to actively support the continent’s burgeoning clean energy sector.
Nearly 600 million people in Africa still lack access to reliable electricity, making the resolution of this energy deficit a critical factor for socio-economic development across the continent. In alignment with Africa’s energy transition, Standard Bank has pledged to mobilise R100 billion in green finance by 2028.
The Time is Now
The rapid development of renewable energy in Africa is being propelled by a confluence of supportive policies, decreasing technology costs, increasing investor interest, and the urgent need to mitigate climate risks while enhancing energy access.
Green energy initiatives necessitate a careful balance between decarbonisation, economic growth, and social inclusion. Boitumelo Sethlatswe, Standard Bank’s head of sustainability, noted that the ongoing shift reflects a fundamental transformation in how energy systems are structured across the continent. He emphasized that renewables are no longer peripheral; they are becoming essential to energy capacity.
Sethlatswe highlighted that this transition is not solely focused on emissions reduction but also on expanding access to affordable and reliable energy, which is vital for inclusive growth. He stated that the bank’s commitment is to ensure that scaling renewable energy also generates jobs, supports communities, and fosters resilient economies capable of withstanding future climate and economic challenges.
Significant Opportunity
The surge in renewable energy investment is largely driven by solar, wind, and hybrid solutions that integrate battery energy storage systems. From a financing perspective, the potential for growth is substantial. Unlocking Africa’s renewable energy capabilities requires sustained investments in generation, transmission, and enabling infrastructure, alongside innovative financing mechanisms that can mobilise capital at scale.
Standard Bank is at the forefront of structuring and funding energy projects, with an increasing focus on sustainable finance. Sasha Cook, head of sustainable finance at Standard Bank, remarked that the energy transition in Africa is increasingly characterized by the flow of capital towards renewable energy, supported by robust fundamentals and improving project economics. By the end of the 2025 financial year, the bank had mobilised 62% of its R450 billion sustainable finance target, demonstrating strong momentum and consistent progress against its commitments. In 2025 alone, Standard Bank mobilised R47.1 billion in green finance, which included substantial funding for renewable energy initiatives.
Building Momentum
Standard Bank’s expanding renewable energy pipeline exemplifies this momentum. Recent transactions include serving as the sole mandated lead arranger for the 506 MW Khauta South and West Solar projects in the Free State, which are expected to provide over 1,000 GWh annually to a diverse range of corporate off-takers through wheeling arrangements.
The bank is also a key financier of Seriti Green’s 465 MW Ummbila Emoyeni wind portfolio in Mpumalanga, now recognized as the largest privately owned wind platform in South Africa, as well as Red Rocket’s 400 MW Overberg Wind Farm, which will supply major industrial clients, including Richards Bay Minerals. Additionally, Standard Bank has supported the 75 MW Du Plessis Dam Solar project in the Northern Cape and has facilitated innovative trading structures through Etana Energy.
Beyond generation, there is an increasing emphasis on the broader energy ecosystem, including grid stability, energy storage, and decentralized solutions. These elements are vital for ensuring that renewable capacity translates into a reliable and consistent power supply.
Central to the Economy
The transition to renewable energy carries broader economic implications. These projects are creating new value chains, bolstering local industries, and enhancing participation in the global green economy. However, regulatory complexities, financing challenges, and infrastructure deficits can hinder deployment in certain markets.
Addressing these obstacles will necessitate coordinated efforts among governments, financial institutions, and the private sector. As Africa navigates this transformation, the relationship between sustainability and development will remain crucial. The current 8:1 ratio favoring renewable energy signals a structural change, indicating that Africa’s energy future is increasingly supported by cleaner, more inclusive, and resilient systems.
Source: www.zawya.com
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Published on 2026-06-11 12:12:00 • By the Editorial Desk
