Standard Bank says it is deepening its financing role in Africa’s clean energy transition as renewable energy investment across the continent continues to outpace fossil fuel funding at a widening margin.
The South African lender said in a statement that in 2025, renewable energy financing in Africa exceeded non-renewable energy investment by an 8:1 ratio, underscoring a structural shift in how capital is being deployed across the continent’s power sector.
The bank said the trend reflects accelerating demand for cleaner electricity, falling technology costs and growing policy support for decarbonisation, even as millions of Africans still lack access to reliable power.
Almost 600 million people on the continent remain without consistent electricity supply, making energy access one of Africa’s most pressing development challenges, the bank noted.
Against this backdrop, Standard Bank said it is positioning itself at the centre of the transition, committing to mobilise R100 billion in green finance by 2028 as part of a broader sustainable financing strategy.
By the end of the 2025 financial year, the bank said it had already reached 62% of its R450 billion sustainable finance target, with R47.1 billion deployed in green finance during 2025 alone.
The lender said much of this funding has gone into renewable energy projects, particularly in solar, wind and hybrid systems, which are increasingly being paired with battery storage to improve reliability and grid stability.
The shift comes as major utilities, including South Africa’s Eskom, expand their involvement in renewable energy development through new business units focused on utility-scale clean power projects.
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Standard Bank said the transformation reflects a broader “just transition” dynamic, in which African economies are attempting to balance climate commitments with development needs and job creation.
“The shift we are seeing reflects a structural change in how energy systems are being built across the continent,” said Boitumelo Sethlatswe, Standard Bank’s head of sustainability.
“Renewables are no longer a marginal addition; they are becoming critical to capacity,” she said, adding that energy transition efforts must also expand access and support inclusive growth.
The bank emphasised that while it is increasing exposure to renewable energy, fossil fuels will continue to play a role in many African economies during the transition period.
Standard Bank’s financing pipeline includes several large-scale renewable projects across Southern Africa, including solar and wind developments designed to supply industrial off-takers through wheeling arrangements and long-term power purchase agreements.
Among its recent deals, the bank acted as sole mandated lead arranger for the 506-megawatt Khauta South and West Solar projects in South Africa’s Free State province, which are expected to generate more than 1,000 gigawatt hours annually.
It is also a key financier of Seriti Green’s 465MW wind portfolio in Mpumalanga and Red Rocket’s 400MW Overberg Wind Farm, which will supply electricity to major industrial users, including mining operations.
In addition, Standard Bank supported the 75MW Du Plessis Dam Solar project in the Northern Cape, alongside emerging energy trading structures aimed at improving market flexibility.
Sasha Cook, the bank’s head of sustainable finance in corporate and investment banking, said capital flows are increasingly shaping the pace of Africa’s energy transition.
“What we are seeing is a clear reallocation towards renewable energy, supported by strong fundamentals and improving project economics,” she said.
She added that scaling Africa’s clean energy capacity will require sustained investment not only in generation, but also in transmission infrastructure and energy storage systems.
Analysts say the expansion of renewable energy financing reflects a broader reconfiguration of Africa’s power sector, driven by rising electricity demand, urbanisation and industrial growth, as well as pressure to meet global climate targets.
However, they caution that regulatory uncertainty, weak grid infrastructure and financing constraints continue to slow deployment in some markets.
Even so, the dominance of renewable energy in new financing flows signals a durable shift in investment priorities, with implications for jobs, industrial development and energy security across the continent.
For Standard Bank, the transition represents both a commercial opportunity and a strategic bet on Africa’s long-term energy future, as capital continues to move decisively toward cleaner power systems.
