Stanlib, in partnership with Standard Bank and Liberty, is launching an Energy Transition Fund to accelerate Africa's shift towards renewable energy and clean technologies. The fund, which has been kickstarted with R3-billion seed assets from Standard Bank and Liberty, aims to attract institutional investors and build a $1-billion pan-African investment vehicle.
The fund will concentrate on investing in energy transition and project loans within the alternative assets space. It will finance large-scale renewable energy developments such as wind, solar, and green hydrogen projects across Africa. This move is part of a broader effort to address the continent's significant funding gap in transitioning towards clean energy.
Kenny Fihla, CEO of Corporate and Investment Banking at Standard Bank, believes that the fund's success hinges on investor interest and suitable investment opportunities. He also anticipates a predictable income stream due to attractive risk-adjusted returns. "SBK's initial seeding ensures the fund's scalability from its inception," Fihla said.
Fihla estimates that a total of $1.2 trillion is needed for Africa to transition from harmful energy sources to sustainable technologies by 2030. The new Energy Transition Fund represents a significant step towards meeting this goal, providing much-needed capital for renewable energy projects across the continent.
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