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Standard Bank, Africa’s largest bank by assets, under the leadership of South African banker Sim Tshabalala, has forged a groundbreaking partnership with China National Building Materials International (CNBM) to bolster the distribution of solar and energy solutions in South Africa, aiming to address critical energy challenges in the region.
In a bid to combat the persisting energy crisis and promote sustainable development, Standard Bank has unveiled a comprehensive funding package for CNBM. This initiative includes a R500-million ($26.4 million) invoice financing facility and a R100-million ($5.3 million) working capital facility.
The move not only underscores Standard Bank’s commitment to facilitating South Africa’s renewable energy transition but also seeks to alleviate the adverse effects of load-shedding on businesses and households.
Standard Bank inks financing deal with CNBM, aligning with climate push
Standard Bank’s recent financing agreement with China National Building Material Group Corp. (CNBM) aligns with the lender’s 2022 climate policy, aiming to accelerate sustainable finance mobilization and unlock Africa’s economic growth potential.
Lydia Zhang, Standard Bank’s executive head of China sector, South Africa and core markets, emphasized the bank’s commitment to sustainable development across the continent. “This significant milestone underscores our dedication to fostering sustainable social and economic progress in Africa,” Zhang said.
Msawenkosi Hlanti, Standard Bank South Africa’s executive head of trade sales and transaction banking, highlighted the bank’s expertise in delivering client-tailored solutions that support growth objectives while contributing to South Africa’s socioeconomic advancement.
Xian Ping Qian, managing director at CNBM South Africa, expressed optimism about the partnership’s potential to expedite South Africa’s renewable energy transition and drive sustainable growth
Standard Bank leads Africa’s charge toward green energy
With a footprint spanning 20 African markets, Standard Bank is emerging as a key driver in the continent’s shift away from fossil fuels and toward renewable energy sources like solar and wind.
Under Tshabalala’s leadership since 2017, Standard Bank Group has seen a marked improvement in financial performance. The bank’s latest annual report reveals a 27 percent increase in headline earnings and a 20 percent rise in total net income.
Tshabalala’s vision extends beyond present targets. Standard Bank’s commitment to sustainable finance is on track to surpass its initial R250 billion ($15.6 billion) goal by 2026, underscoring the bank’s ambition for Africa’s green transition.
