AFRICA – Standard Bank has announced a US$20 million credit facility to support CrossBoundary Energy (CBE) in solarizing businesses across Africa.
CBE specializes in financing, constructing, and leasing solar photovoltaic power plants to commercial and industrial (C&I) customers.
This investment is part of a larger US$50 million construction credit facility agreed upon by CBE with the Energy Inclusion Facility (EIF), managed by Cygnum Capital, a multi-donor financing facility.
The primary aim of this initiative is to advocate for clean and renewable energy sources in powering businesses, diminishing their reliance on traditional fossil fuels, and fostering a more sustainable and environmentally friendly economy.
The credit facility provided by Standard Bank will enable CBE to extend financing to businesses seeking solar energy solutions, encompassing solar panels and related equipment.
This initiative not only aids in reducing energy costs and environmental impact for businesses but also catalyzes the growth of the renewable energy sector within the region.
Standard Bank’s support underscores its commitment to promoting sustainable development and addressing climate change through responsible financing and investment.
Jeanne-Marie Fatti, Senior Vice President of Standard Bank South Africa, highlights, “This credit facility demonstrates our commitment to energy security and our strategic focus on financing decentralized energy on the continent.
“This facility will enable CBE to continue to provide affordable, clean, and reliable renewable energy solutions to commercial and industrial customers across Africa.”
By enabling businesses to adopt solar energy solutions, Standard Bank and CBE contribute significantly to driving the transition toward a more sustainable and low-carbon economy in Africa.
AfDB finances US$300M for energy and climate resilience
In other news, AfDB has also extended its support, providing South Africa with budgetary support totaling US$300 million.
This financial support aims to bolster the country’s energy transition and climate resilience programs. The one-year program will promote economic growth through structural reforms focused on restoring energy security, encouraging private sector involvement in the electricity market, and enhancing the operational efficiency of state-owned utility Eskom.
This aligns with South Africa’s Energy Action Plan and the Just Energy Transition Investment Plan 2023-2027.
Launched to address the country’s energy crisis, this program seeks to accelerate efforts in mitigation and adaptation by promoting renewable energy production and steering businesses toward low-carbon activities, thereby reducing the carbon footprint of South Africa’s economy and enhancing green project financing.
The AfDB’s loan is accompanied by a US$629,800 grant co-financed by the Climate Insurance Fund, aiming to ensure inclusivity, particularly among affected communities, integrate more women in decision-making processes, and empower young entrepreneurs, especially women, to develop skills and create jobs in the green economy.
Besides AfDB’s support, South Africa’s Energy Governance and Climate Resilience Programme receives funding from the World Bank (US$1 billion), Germany (US$551 million), and Canada (US$91 million), signifying a collective effort to enhance energy sustainability and climate resilience in the nation.