Energising Africa: striking the balance between coal & renewables amid power crisis
As 600 million people in Africa face energy insecurity, experts at Mining Indaba emphasise the need for a balanced energy mix that includes coal, nuclear, and renewable energy sources. Highlighting financial roles and tech advances, they call for urgent collaboration to achieve a just, sustainable energy future.
Energy insecurity remains a pressing issue on the African continent, with nearly 600 million people in Africa lacking access to electricity – most being in sub-Saharan Africa. To address this, countries must balance meeting energy demands and addressing the environmental impact of fossil fuels used in electricity generation, such as coal energy.
The Role of the Banking Sector
The banking sector and its approach to funding energy generation play crucial roles in achieving this balance.
Rentia van Tonder, Head: Power, Standard Bank Group, says, “We need to look at the role financing has played for many years and where the growth is currently to support execution. There is a significant emphasis on clean energy, unlocking more development, and focusing on expanding diverse portfolios and exposure to green energy. But, it's important, when you operate in 20 countries, to understand what's relevant for each country and what makes sense to ensure energy security".
"We [Standard Bank] are open in our approach. It's essential to understand the need for flexible power solutions. We listen to our clients and ensure we partner with them on their growth journey," she added.
Rentia van Tonder, Head: Power, Standard Bank Group
Rentia van Tonder, Head: Power, Standard Bank Group
Van Tonder spoke on a panel titled Coal and uranium: And renewables! What is the 'sweet spot' energy mix? at the 2025 Mining Indaba. During the session, along with moderator Nicola Wagner, and fellow panellists – Michelle Manook, Chief Executive of FutureCoal, Mike Teke, Group CEO at Seriti Resources, and Zizamele Mbambo, deputy director-general for Nuclear Energy Regulation and Management at the Department of Minerals and Energy – examined Africa’s energy deficit and the global quest to find an energy sweet spot.
“We hold the view that it’s not coal versus green energy; it’s coal and green energy to create a versatile energy mix for any country. Coal and nuclear will remain base load," said Teke.
For Standard Bank, this mixed-energy approach has meant mobilising over R50 billion for renewable energy finance over the past few years, continuing its funding in thermal coal, but limiting its exposure to 0.70% of group loans and advances in 2021, and 0.50% by 2030.
“When examining the energy mix and available solutions, we must identify clear solutions for the needs present. These solutions include providing flexible, reliable, cost-effective power that supports economic growth while also considering clients’ growth trajectories,” said Van Tonder, emphasising the need to consider local communities' energy requirements.
A Just Energy Transition
All panellists agreed that transitioning into clean energy requires a just approach, balancing environmental imperatives with social equity and economic inclusivity.
“It should be about what’s right, affordable, secure, and well managed in terms of national goals — both environmentally and economically. Recent energy conversations focus on responsibly investing beyond CO2 and decarbonisation, contributing to nation-building,” said Manook.
Teke added, “Be aggressive with renewables like wind, solar, and battery storage. Ensure access to cheap and reliable energy for everyone in the nation.”
Leveraging Technology
Understanding coal and uranium use involves recognising that technologies can make coal environmentally clean. Manook cited China and India’s innovations – like extracting essential minerals from coal waste and transforming it into chemicals used in vital sectors like agriculture.
“There’s no single innovation sweet spot in South Africa or technology. My concern is policymakers’ outdated belief that coal cannot be environmentally clean when innovation exists,” Manook emphasised.
Mbambo noted the role of technology in servicing communities and finding a good energy mix: “From a South African government perspective, the sweet spot involves all technologies. It’s about leveraging an energy mix to secure supply, create jobs, stimulate the economy, and drive industrialisation."
Collaboration and Urgency
The panel emphasised the urgency of action and collaboration between sectors and policymakers.
“The nuclear energy surge is essential for achieving the net-zero goal by 2050. Africa’s uranium resources are vital for contributing to this goal. We need to work together, leveraging continental resources to secure energy supply,” Mambo stressed.
Collaborative efforts are evident between Standard Bank and Seriti, contributing to 46% of Eskom’s coal production. They reached a financial close on acquiring Windlab Africa, boosting renewable energy in South Africa.
In 2024, Standard Bank successfully closed deals on Seriti Green’s 155MW renewable energy wind project in Mpumalanga, part of the Ummbila Emoyeni facility.
Teke explained their investment in coal as part of the global energy landscape, stating, “When opportunities arose in South Africa to invest in coal, we created Seriti Coal Links. We believe it’s about coal and green energy for a versatile mix. Coal and nuclear remain base loads while investing in renewables like wind and solar.”
Van Tonder concluded, stressing urgency: “We must act quickly. We can't continue with 600 million Africans without electricity. It’s vital to have enabling policies and commitment to hold people accountable to execute them.”
Visit Standard Bank HERE to find out more about how they are supporting a Just Transition through their energy and infrastructure team.
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