Standard Bank will be expanding its financing efforts in accelerating Africa’s renewable energy transition, as investment in clean energy continues to outpace funding for non-renewable sources across the continent.
“In 2025, the bank reported an 8:1 ratio in favour of renewable energy financing compared to fossil fuel investment, highlighting a structural shift in Africa’s energy landscape. The trend is further reflected in the growing focus of utilities and energy companies on renewable development, including new initiatives from traditionally coal-reliant utility operators such as Eskom,” Standard Bank noted.
As part of its broader sustainability strategy, Standard Bank has committed to mobilising R100 billion in green finance by 2028, with the aim of supporting the continent’s energy transition and electricity access expansion.
Noting that nearly 600 million people in Africa still lack reliable access to power, Standard Bank’s head of sustainability, Boitumelo Sethlatswe, while interacting with Bizcommunity.com, underscored the scale of investment required in generation, transmission and supporting the energy and utility infrastructure.
“The shift toward renewables reflects a structural change in how energy systems are being developed across Africa, with clean energy becoming central to capacity expansion rather than a marginal addition,” Sethlatswe stated further, while noting that the transition to renewables is not solely focused on emissions reduction but also on improving energy access, supporting inclusive economic growth and building resilience against climate and economic shocks.
Sasha Cook, Standard Bank’s head of sustainable finance for corporate and investment banking, said capital flows are increasingly defining the pace of Africa’s energy transition, with strong fundamentals and improving project economics driving investment into renewables.
As per Standard Bank, it had already mobilised 62% of its R450 billion sustainable finance target by the 2025-end, including R47.1 billion in green finance during the year alone.
“Recent transactions include financing large-scale solar and wind projects in South Africa, such as the 506 MW Khauta South and West Solar projects, the 465 MW Ummbila Emoyeni wind portfolio, and the 400 MW Overberg Wind Farm,” the bank stated further.
The bank, also involved in supporting integrated energy ecosystem-related elements like hybrid energy systems, storage solutions and energy trading structures, remarked, “Renewable energy investment is creating new industrial value chains and supporting wider economic development across the continent, although regulatory and infrastructure constraints continue to limit deployment in some markets. Addressing these barriers will require coordinated action between governments, financiers and private sector players as Africa scales up its clean energy capacity.”