In 2025, Standard Bank sees Africa's shift towards renewable energy financing overtaking non-renewable energy by a ratio of 8:1. Reflecting this trend, Eskom, which has traditionally relied on coal, has also launched a new business unit focusing on the development of utility-scale renewable energy projects. With this momentum, financial institutions are moving to finance the continent's clean energy boom.
Nearly 600 million people across Africa still lack access to reliable electricity; Addressing energy poverty is one of the most important drivers of socio-economic development on the continent.
In line with Africa's energy transition, Standard Bank has committed to raising R100bn in green finance by 2028.
there is time
The scale and pace of Africa's renewable energy development is being driven by a combination of policy alignment, declining technology costs, growing investor demand and the need to address climate risk while expanding energy access.
Green energy development represents a complex balancing act between decarbonization, economic growth and social inclusion.
Boitumelo Sethlatswe, head of sustainability at Standard Bank, says: “The change we are seeing reflects a structural change in the way energy systems are built across the continent.
“Renewables are no longer marginal additions; they are becoming critical to efficiency.
“Importantly, this transition is not just about reducing emissions but also about increasing access to affordable, reliable energy in a way that supports inclusive growth.
“Our focus is on ensuring that as we expand renewable energy, we also create jobs, support communities and build resilient economies that can withstand future climate and economic shocks”
A just transition in Africa means recognizing the realities of development while accelerating sustainable solutions.
Standard Bank says that while it is proud of its role as one of the largest renewable energy funders in Africa, it recognizes that non-renewable energy sources continue to play an important role in many African economies.
Nevertheless, it remains committed to supporting a just transition towards a low-carbon economy that is fair, inclusive and beneficial to all.
important occasion
The boom in renewable energy investments is being driven by solar, wind and hybrid energy solutions that include battery energy storage systems.
From a financing perspective, the scale of the opportunity is important.
Unlocking Africa's renewable potential requires sustained investment in generation, transmission and enabling infrastructure, as well as innovative financing mechanisms that can mobilize capital at scale.
Standard Bank plays a leading role in the structuring and financing of energy projects, with an increasing proportion of activity directed towards sustainable finance.
Sasha Cook, head of sustainable finance, corporate and investment banking at Standard Bank, says: “The energy transition in Africa is increasingly being defined by where capital is flowing.
“What we are seeing is a clear reorientation towards renewable energy, supported by strong fundamentals and improving project economics.
“By the end of the 2025 financial year, Standard Bank had already raised 62% of its R450bn sustainable finance target, reflecting strong momentum and consistent delivery against its commitments.
“In 2025, the Bank will mobilize R47.1 billion in green finance, including significant funding for renewable energy projects.”
construction speed
Standard Bank's growing renewable energy pipeline reflects this momentum in practice.
Recent transactions include acting as the sole mandated lead arranger for the 506MW Khauta South and West solar projects in the Free State, which will supply over 1,000 GWh annually to a diverse portfolio of corporate off-takers through a wheeling arrangement.
The bank is also a major financier of Seriti Green's 465MW Umbila Imoyeni wind portfolio in Mpumalanga, now the largest privately owned wind platform in South Africa, and Red Rocket's 400MW Overberg Wind Farm, which will supply major industrial users including Richards Bay Minerals.
In addition, Standard Bank supported the 75MW Du Plessis Dam solar project in the Northern Cape, as well as innovative business structures through Etana Energy.
Beyond production, there is increasing focus on the broader energy ecosystem, including grid stability, energy storage, and decentralized solutions.
These components are critical to ensuring that renewable capacity is translated into a reliable and consistent power supply.
center of economy
This change also has broader economic implications.
Renewable energy projects are creating new value chains, supporting local industries and enabling greater participation in the global green economy.
Regulatory complexity, financial constraints, and lack of infrastructure have slowed deployment in some markets.
Overcoming these barriers will require coordinated action across governments, financial institutions, and the private sector.
As the continent pursues this transformation, the interplay between sustainability and development will remain central.
The current 8:1 ratio in favor of renewable energy is an indicator of structural change, showing that Africa's energy future is being supported by cleaner, more inclusive and more resilient systems.
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