Stanbic IBTC Drives Africa's Energy Transition at NSACC September Breakfast Session

Samuel Mobolaji

In a strategic move to propel Africa’s energy transition and drive sustainable development, Stanbic IBTC Bank hosted the Nigeria-South Africa Chamber of Commerce (NSACC) September Breakfast Session.

The event, held at the Iris Hall, Eko Hotel & Suites in Lagos, was themed “Energy Transition: Identifying the Need and Financing the Opportunities,” and attracted a diverse gathering of industry leaders, energy experts, and stakeholders.

Discussions during the session were focused on addressing Africa’s urgent energy needs and exploring the financing opportunities essential for advancing the continent’s shift to renewable energy.

The event provided a platform for insights into the current energy landscape, challenges, and prospects for innovation and investment, with an emphasis on fostering collaboration between Nigeria and South Africa.

Chief Executive of Stanbic IBTC Bank, Wole Adeniyi, highlighted the significance of cross-border cooperation in achieving sustainable economic growth and energy solutions. “This is a crucial step toward a future where Nigeria and South Africa can leverage their collective strengths to overcome challenges and tap into the boundless opportunities Africa holds,” he said.

Adeniyi reiterated that the financial sector, and Stanbic IBTC specifically, plays a vital role in facilitating cross-border investments, driving economic integration, and supporting business transactions that are key to Africa’s prosperity.

Stanbic IBTC executives Adebola Seriki, Sector Head of Conglomerates & Industrials, and Richard Inegbedion, Sector Head of Energy & Infrastructure, delved into the current state of the energy sector in Africa, offering in-depth analysis on the continent’s electrification challenges and the growing need for renewable energy solutions.

According to their data, only 60 percent of Africa’s population of over 220 million people have access to electricity, with significant disparities between urban and rural areas. The continent’s electricity generation capacity of 12.5GW pales in comparison to the 5.1GW that is effectively available, further highlighting the critical gaps in infrastructure.

The conversation also addressed Africa’s over-reliance on oil and gas, which accounts for 81 percent of energy production, compared to just 19 percent for renewables.

The speakers emphasized the urgent need for a diversified energy mix, spotlighting renewable energy as a promising avenue not only for electrification but also for job creation. Projections suggest that the renewable energy sector could generate over 4 million jobs by 2030, presenting a crucial opportunity for economic growth.

A key focus of the session was the critical role of financing in driving the energy transition. Commercial banks, especially, were seen as pivotal in channeling investments into renewable energy projects, such as mini-grids and solar home systems, which are cost-effective ways to expand electricity access across Africa.

Stanbic IBTC Bank, demonstrating its commitment to this cause, announced a novel financing scheme for developers involved in the World Bank-funded Rural Electrification Agency’s DARES programme. This scheme aims to support renewable energy initiatives, including mini-grids and stand-alone solar systems, marking a significant step forward in the bank’s efforts to foster sustainable energy solutions.

The session also highlighted the shortage of clean cooking facilities, affecting over 1 billion Africans, and underscored the need for decentralised energy solutions, like solar home systems, to tackle these challenges. In addition, there were calls for stronger collaboration between public and private sectors to accelerate Africa’s energy transition and achieve universal energy access.

Wole Adeniyi reaffirmed Stanbic IBTC’s dedication to driving this transformation. “Our mission extends beyond financial transactions; it is about building bridges between markets, fostering economic integration, and laying the groundwork for a future where Africa can realize its full potential through unity and shared vision,” he said.