Standard Bank mobilises $3b for renewable energy initiatives in Africa

Standard Bank has mobilized sustainable finance of over $3 billion this year to advance green and renewable energy initiatives across Africa, thereby driving sustainable growth and energy independence throughout the continent. 

This was disclosed by Sydney Nii Ayitey Tetteh - Executive Vice President, Energy & Infrastructure, Client Coverage, Corporate and Investment Banking at Stanbic Bank Ghana, at the 13th Ghana Economic Forum held at the Movenpick Ambassador Hotel in Accra.

Speaking on a panel discussion on the topic, ‘Sustainable Energy Financing and Distribution: Key to Driving Economic Activities and Growth,’ the Stanbic Bank Executive noted the critical role of sustainable energy financing in driving economic growth. 

He highlighted the increasing importance of green financing as Ghana’s energy sector shifts towards sustainability.

He noted that, “At Stanbic Bank, we are committed to supporting the energy transition through innovative financing. We do this because of our purpose as a bank, which is “Africa is our home, we drive her growth and investing in sustainable energy is just one way we are making that happen. 

In 2023, Standard Bank, our parent company, mobilized $2.7 billion in renewable energy initiatives across Africa and this year, we are investing over $3 billion. 

Specific areas targeted included solar and wind project, energy efficiency, electricity distribution networks, green buildings, carbon finance and climate change adaptation.” 

Nii Ayitey Tetteh encouraged policymakers in the energy sector to sanitize the sector to attract more investment. He said’ “Investors will always be reluctant to put money in a sector that seems unstable and saddled with huge legacy debts. 

Initiatives such as the cash waterfall mechanism that ensures that suppliers receive consistent payments and other good initiatives under the Energy Sector Recovery Program has helped to improve the sector, but there are still more things to be done to make the sector credit worthy.”

“While the potential for substantial investment in the sector exists, it is essential that the sector’s underlying health is addressed as a foundational step. A strong, stable, and transparent sector is essential to attract external capital. 

Prematurely pursuing investment without first establishing a solid base is akin to building a house on shifting sands. Therefore, a comprehensive sanitization process must be undertaken to rectify any structural or operational deficiencies,” Nii Ayitey Tetteh added.

The Ghana Economic Forum was started in 2012 to bring together captains of industry and thought leaders to discuss and debate key issues affecting the Ghanaian economy and offer solutions to enhance the country’s economic growth. 

The annual Ghana Economic Forum is a corporate event put together to engage corporate Ghana in a panel deliberation on issues affecting the Ghanaian economy and hopefully offer useful solutions and recommendations in favour of an accelerated economic growth of the economy. 

The event is tailored and structured to offer in-depth analysis, discussions and debate on key issues affecting the Ghanaian economy and to suggest solutions to help overcome the challenges in order to enhance the achievement of the country’s economic development agenda. 

Furthermore, the event offers a platform for participants to make recommendations aimed at consolidating gains and driving attention to under-served economic imperatives.

The forum will also provide opportunities for participants to interact with business experts from the public and private sectors, as well as the country’s top bankers and financial service providers. 

The 13th edition was held under the theme, ‘Unlocking Opportunities: Re-engineering Ghana’s Economic Model for Sustainable Development.’
 
The writer is the executive Vice President, Energy & Infrastructure, Corporate and Investment Banking, Stanbic Bank Ghana.