The future of energy in Africa is not solely dependent on policy or capital but requires a holistic approach from all market participants. Standard Bank CIB’s Head of Power, Rentia van Tonder, and Head of Energy & Infrastructure Finance, Aadil Cajee, emphasize the need for financial institutions to rethink their engagement with the energy sector to ensure sustainable growth.
In South Africa, regulatory reforms have paved the way for increased private sector participation in the energy market. Standard Bank has been involved in over 10,000 MW of closed deals, including utility-scale projects, distributed generation, and battery storage. These successful deals highlight the bank’s strategic vision and focus on planning, rather than simply deploying capital.
Energy projects often start with a pain point and a desire to solve it, leading to long-term partnerships between banks and entities seeking solutions. Standard Bank’s presence in 20 African markets provides local insight and influence, enabling the bank to navigate regulatory frameworks and structure deals effectively.
The emergence of aggregation in the power sector is transforming the market, allowing multiple independent power producers to supply electricity to multiple offtakers. Standard Bank has played a leading role in supporting aggregators and traders, facilitating the transition to this flexible model.
Ensuring alignment between commercial objectives and developmental outcomes is crucial for sustainable growth. Energy finance should support industrial growth, economic resilience, and climate goals. Financial institutions must adopt long-term, sector-led strategies to remain relevant and contribute to shaping Africa’s energy future.
As the market evolves, banks must be present, informed, and involved in every step of the energy project, from planning to execution. By adopting a proactive and strategic approach, financial institutions can play a significant role in enabling Africa’s transition to a secure, affordable, and lower-carbon energy system.
