Banks keen on funding energy projects
MBABANE – The uncertainty of Eskom’s power supply to Eswatini beyond 2025 is creating new opportunities for the energy industry.
Due to that fact, financial institutions and banks are now keen to finance energy related projects, as well as the fact that some companies are now generating their own power.
One of the banks offering a comprehensive suite of financing for the energy sector is Standard Bank.
In an advertisement published yesterday, the bank said it was offering a comprehensive suite of financing and advisory services for the energy sector, including project advisory, procuring authority advisory, and M&A advisory.
They said the offer also includes funding for a corporate project, and they are also offering export credit funding advisory and finance services.
Economy
The bank said the Eswatini economy was inextricably linked to the South African (SA) economy, and the energy crisis in the neighbouring State has a direct impact on the kingdom since the Lilangeni is pegged to the Rand.
They said 85 per cent of local imports and 60 per cent of exports depend on South Africa. Additionally, the country imports about 67 per cent of its power from Eskom, Electricidade de Moçambique (EDM), and the Southern Africa Power Pool (SAPP).
However, all interventions from the government, the private sector, and public institutions need to strike a balance between the realities of energy needs and the contempo rary demands of the global energy transition towards alternative and renewable energy sources and away from fossil fuels by 2050.
“To achieve this, the Kingdom of Eswatini, as well as the broader southern Africa region, needs to move full-throttle and with urgency to address power generation challenges,” mentioned the bank.
Standard Bank further availed that the reality on the ground was that in the current energy crisis, many African countries, Eswatini included, may not have the resources and technical ability to rapidly ditch coal and other fossil-based power generation infrastructures for baseload capacity.
“To ensure a just transition away from carbon-based forms of energy, we must find ways to counterbalance the negative impacts on livelihoods and income. We must ensure that no one is left behind. This requires a holistic and inclusive approach that considers both environmental and socio-economic issues specific to Eswatini,” added the bank.
Energy
In the past decade, 86 per cent of Standard Bank’s new energy financing has been in renewable energy. Through the bank’s in-depth industry knowledge and expertise, we can design and implement innovative financing solutions within the areas of energy production and efficiency.
They said they were bringing together leading players and decision-makers from across the energy sector to discuss and find solutions to the most pressing energy issues facing Eswatini and the region at the Eswatini Energy lndaba to be hosted by the bank on May 24, 2023.