The International Finance Corporation (IFC) is bolstering South Africa (SA)'s energy transition and affordable housing efforts through a $300 million loan agreement with Standard Bank South Africa, a subsidiary of Standard Bank Group based in Johannesburg. The loan, with $260 million from the IFC and $40 million mobilized from commercial investors, aims to finance renewable energy projects and accessible housing construction. Standard Bank's track record in supporting South Africa's shift away from fossil fuels includes recent collaboration on a $243 million funding initiative for the Ummbila Emoyeni wind farm, crucial for reducing coal dependence amid the country's energy crisis.
South Africa's reliance on coal, constituting about 80 percent of electricity generation, has led to power cuts amid ageing coal-fired plants struggling to meet demand. The IFC's loan will empower Standard Bank to employ various sustainable financial instruments, promoting renewable energy projects and addressing the country's substantial housing deficit. With an estimated shortage of 3.7 million units, particularly in the low-income segment, this collaboration targets a more inclusive housing market while advancing South Africa's cleaner energy aspirations.