Collaboration is key

"Collaboration lies at the core of this effort. Banks alone cannot lead the transition; they must engage with and facilitate the broader ecosystem. Government departments need to align around a cohesive vision as a foundation. Banks can then engage clients with financing solutions that complement public efforts. Creating synergy is central to BASA’s mission," explains Lockhat.

However, the panellists acknowledged the challenges posed by an increasingly difficult global environment, including uneven policy signals, constrained fiscal space, and shifting geopolitical dynamics.

Sethlatswe cautions that collaboration must contend with these complexities. "We operate in a challenging environment with global shifts that include a retreat and delay in climate ambitions and social commitments. Diplomacy is becoming more transactional, which impacts the partnerships and approaches we’ve previously relied upon as a continent."

Transition planning as a tool

Transition planning emerged as a key strategy for transforming national climate objectives into viable, bankable projects. These plans help firms sequence technologies, develop skills, and allocate capital while enabling banks to assess risks and opportunities more accurately.

McPhail elaborates: "Transition planning is a crucial tool. It aligns government policies and works from the Presidential Climate Commission into sector-specific pathways that outline clear steps for each industry. By incorporating international frameworks and adaptation metrics, they also act as credible disclosures for the market. This clarity aids firms in sequencing initiatives and allows lenders to appropriately assess risks and finance transitions."

The success of these pathways, however, depends on readiness at operational level. Municipalities and implementing agencies need stronger balance sheets, skills, and project-preparation support to deliver resilient infrastructure projects.

Modise highlights that partnerships with organisations like the Development Bank of Southern Africa (DBSA) are pivotal in preparing bankable projects that can secure private co-financing.

"We are concentrating on robust project preparation by leveraging grants to build pipelines that can secure private financing. Strengthening municipal balance sheets is essential for accessing resources that enable climate-resilient infrastructure delivery," she explains.

Standard Bank is anchoring its efforts in capacity building, both internally and externally. Within the organisation, the bank is investing in learning-focused initiatives to enhance its understanding of nature-related risks, as an example.

Externally, it has established a Sustainability Academy to assist clients in aligning with transition and resilience goals, enabling them to implement practical solutions.

"Capacity building is at the core of our approach. Internally, we are upskilling our teams by using secondments, including through UNEP FI, to deepen our expertise. Externally, the Sustainability Academy is equipping clients with awareness and actionable tools to align their business practices. We plan to scale this initiative to meet growing needs and continue creating practical, co-designed solutions," concludes Sethlatswe.