The International Finance Corporation (IFC) has collaborated with Standard Bank Group, a South African bank and financial services company, to bolster access to finance for renewable energy and affordable housing initiatives in South Africa. IFC’s commitment of a $300 million sustainable Tier 2 capital loan to Standard Bank South Africa, a subsidiary of Standard Bank Group, targets lending for renewable energy projects and home loans, with half of the allocation designated for women borrowers. This initiative aims to address South Africa’s energy crisis, driven by coal reliance, and tackle the country’s housing deficit, primarily in the low-cost housing segment. The partnership underscores the shared vision of IFC and Standard Bank towards fostering economic growth and sustainability in South Africa.
IFC directly sponsors $260 million of the $300 million loan, with the remaining $40 million mobilized from commercial investors. The funding initiative aims to facilitate South Africa’s transition to cleaner energy sources and expand access to affordable housing. This collaboration signifies a significant step towards advancing renewable energy and affordable housing agendas in South Africa, addressing critical developmental challenges while promoting sustainability and climate-friendly investments.