WATCH | Strategic financing drives balance between profitability and sustainability in Africa
Standard Bank champions a balanced approach to growth, aligning economic returns with environmental sustainability. By investing in green construction and renewable energy, the bank targets a lasting impact.
Balancing immediate investment returns with long-term sustainability goals has become the defining challenge for businesses across Africa. Sustainable growth is no longer just an environmental imperative but has also become an economic necessity, demanding strategic financial partnerships to unlock its full potential.
One financial partner taking the lead in this space is Standard Bank, whose investment strategy integrates immediate capital needs with future environmental considerations.
“One of the things we pride ourselves on is, apart from just investing to grow the market we operate in, is building them by protecting the environment. We've taken a very strategic view of sustainability loans. We have a very clear policy around ensuring that we are focused on investing in sustainable financing for the protection of the planet and for generations to come,” said Andrew Mashanda, Head of Business and Commercial Banking for Africa Regions and Offshore Businesses at Standard Bank.
Targeting key sectors for sustainable growth
Standard Bank’s balanced growth strategy focuses on pivotal economic pillars such as manufacturing, mining, agriculture, and infrastructure. Every investment undergoes a dual evaluation for its immediate economic benefits and long-term environmental impact.
In Eswatini, the bank supported SOMI Group, a leading agro-processing enterprise, with an almost R20 million sustainability financing package. The funding enabled SOMI Group to invest in solar energy infrastructure, greatly enhancing its efficiency and sustainability.
“We've helped them transition to solar energy to power their plant. They've been relying on the national energy grid, which has not always delivered reliably, so we stepped in and financed them,” explained Mashanda.
Commitment to carbon neutrality
Standard Bank has set ambitious decarbonisation targets in alignment with the Paris Agreement. The bank aims to achieve net-zero carbon emissions across its operations by 2030 for new facilities and by 2040 for existing ones. Additionally, it intends to achieve net-zero emissions across its financing portfolio by 2050.
“We've not looked at 2050 as an event; we've started investing in 2050 already. We’ve started weaving this objective into our ways of working today and in influencing the way our clients look at their businesses. For us, 2050 is just a moment in time, and the work starts now. Everything we do today will shape what 2050 looks like and beyond,” Mashanda stated emphatically.
A pivotal role in the B20
As financial institutions increasingly translate sustainability principles into actionable practices, frameworks are emerging to enable businesses across all sectors to access specialised funding structures tailored to such objectives. Through its role in the Business 20 (B20), Standard Bank exemplifies this commitment by elevating Africa's voice in global economic conversations while facilitating sustainable growth mechanisms.
Sim Tshabalala, Standard Bank’s Chief Executive, will chair the Finance and Infrastructure Task Force in this year’s B20 meetings. Under his leadership, the bank continues to sponsor and influence critical discussions that shape not only Africa’s economic trajectory but also its global standing.
“Everything we do today has that futuristic view. A part of some of the most critical moments in our lifetime is the B20, which Standard Bank is sponsoring. The B20 positions Africa to shape the narrative of the global landscape in terms of economic transformation. We feel that we are ideally positioned to play a catalytic role in the economic fortunes of the continent and the role that we play within the G20 community and the globe as a whole,” concluded Mashanda.
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