Renewables dominate Africa’s energy investment

by SAVIOUS KWINIKA 
JOHANNESBURG, (CAJ News) – AFRICA’S energy landscape is undergoing a structural transformation, with renewable energy financing now significantly outpacing investment in non-renewable power generation.

In 2025, Standard Bank’s funding for renewable energy projects exceeded that of non-renewable power by a ratio of 8:1, underscoring a decisive shift towards cleaner and more sustainable energy systems across the continent.

The transition comes at a critical time, with nearly 600 million people in Africa still lacking access to reliable electricity.

Bridging this energy gap remains one of the continent’s most urgent development priorities and a key driver of socio-economic growth.

Standard Bank, one of Africa’s leading financiers, said it is playing a central role in enabling what it describes as a “just energy transition”, mobilising capital to expand access to affordable and reliable power.

The bank has committed to mobilising R100 billion in green finance by 2028 as part of its broader sustainability strategy.

The pace of renewable expansion is being driven by policy alignment, falling technology costs, rising investor appetite and growing pressure to address climate risk while expanding energy access.

However, the transition continues to require a careful balance between decarbonisation, economic growth and social inclusion.

Boitumelo Sethlatswe, Head of Sustainability at Standard Bank, said the shift reflects a fundamental change in how Africa’s energy systems are being built.

“Renewables are no longer a marginal addition; they are becoming critical to capacity.

Importantly, this transition is not only about reducing emissions, but about expanding access to affordable, reliable energy in a way that supports inclusive growth,” Sethlatswe said.

“Our focus is on ensuring that as we scale renewable energy, we also create jobs, support communities and build resilient economies that can withstand future climate and economic shocks.”

She added that while renewable energy is expanding rapidly, non-renewable sources will continue to play a significant role in many African economies during the transition phase.

Standard Bank, she said, remains committed to supporting a “fair and inclusive” pathway towards a low-carbon future.

The acceleration of renewable investment is being led primarily by solar, wind and hybrid solutions incorporating battery energy storage systems.

Unlocking Africa’s renewable potential, the bank noted, will require sustained investment in generation, transmission and supporting infrastructure, alongside innovative financing mechanisms capable of mobilising capital at scale.

Standard Bank continues to position itself as a key structurer and funder of large-scale energy projects, with an increasing share of its portfolio directed towards sustainable finance.

Sasha Cook, Head of Sustainable Finance in Corporate and Investment Banking at Standard Bank, said capital flows are increasingly defining 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,” Cook said.

As of the end of the 2025 financial year, Standard Bank had already mobilised 62% of its R450 billion sustainable finance target.

In 2025 alone, it mobilised R47,1 billion in green finance, including significant renewable energy funding.

The bank’s project pipeline includes participation in several landmark developments. These include acting as sole mandated lead arranger for the 506MW Khauta South and West Solar projects in the Free State, which will generate more than 1 000GWh annually for corporate off-takers through wheeling arrangements.

Standard Bank is also a key financier of Seriti Green’s 465MW Ummbila Emoyeni wind portfolio in Mpumalanga, currently the largest privately owned wind platform in South Africa, as well as Red Rocket’s 400MW Overberg Wind Farm, which will supply major industrial users including Richards Bay Minerals.

It also supported the 75MW Du Plessis Dam Solar project in the Northern Cape, alongside innovative trading structures via Etana Energy.

Beyond generation, attention is increasingly shifting towards grid stability, energy storage and decentralised solutions, which are seen as critical to ensuring reliable power supply from renewable sources.

The broader economic impact is also becoming more evident, with renewable projects driving new value chains, supporting local industries and strengthening participation in the global green economy.

However, challenges remain, including regulatory complexity, financing constraints and infrastructure gaps, all of which continue to slow deployment in some markets.

Stakeholders say coordinated action between governments, financiers and the private sector will be essential to sustaining momentum.

The current 8:1 investment ratio in favour of renewables is increasingly seen as a marker of structural change, signalling a long-term shift towards cleaner, more inclusive and more resilient energy systems across Africa.

– CAJ News