en.Wedoany.com Reported - Standard Bank is expanding its role in financing Africa's renewable energy transition, reporting a ratio of 8:1 for renewable energy financing versus fossil fuel investment in 2025, indicating a structural shift in Africa's energy landscape.
Utility and energy companies are increasingly focusing on renewable energy development, with traditionally coal-dependent operators such as South Africa's Eskom also launching new initiatives. The bank has committed to mobilizing ZAR 100 billion in green financing by 2028 to support Africa's energy transition and expand electricity access. However, approximately 600 million people in Africa still lack access to reliable electricity, highlighting the immense need for investment in power generation, transmission, and supporting infrastructure.
Boitumelo Sethlatswe, Head of Sustainability at Standard Bank, stated that the shift to renewable energy reflects a structural change in how Africa's energy systems are developed, with clean energy becoming central to capacity expansion. She noted that this transition is not only about reducing emissions but also about improving energy access, supporting inclusive economic growth, and enhancing resilience to climate and economic shocks.
Sasha Cook, Head of Sustainable Finance at the bank's Corporate and Investment Banking division, said capital flows are increasingly determining the pace of Africa's energy transition, with strong fundamentals and improved project economics driving renewable energy investment. As of the end of the 2025 fiscal year, the bank had achieved 62% of its ZAR 450 billion sustainable financing target, with ZAR 47.1 billion in green financing realized in 2025 alone. Recent transactions include financing for South Africa's 506 MW Khauta South and West solar project, the 465 MW Ummbila Emoyeni wind portfolio, and the 400 MW Overberg wind farm.
The bank is also involved in supporting hybrid energy systems, energy storage solutions, and energy trading structures, reflecting a shift toward an integrated energy ecosystem. Standard Bank noted that renewable energy investments are creating new industrial value chains and supporting broader economic development in Africa, but regulatory and infrastructure constraints continue to limit deployment in some markets, requiring coordinated action by governments, financial institutions, and the private sector to address barriers.
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