Sustainable Finance Awards 2025: Africa

According to the UN, Africa’s population is expected to double by 2070, having recently crossed 1.5 billion; among that population, about 600 million Africans lack reliable access to electricity. Also, according to the 2022 WHO/UNICEF Joint Programme Monitoring Report on Water, Sanitation, and Hygiene, about 411 million Africans do not have access to basic water services; 839 million Africans lack basic sanitation; and 779 million lack basic hygiene. Africa is shrinking these gaps with various sustainable projects that require sustainable finance solutions, and these financings and initiatives are a significant focus for many African banks.

Various organizations throughout the African countries have made environmental, social, and governance (ESG) concerns a high priority—for example, advancing sustainability disclosure practices across capital markets. The Absa Africa Financial Markets Index 2024 has shown clear progress for the 29 countries included in it, with 23 of the countries increasing their scores and the remainder maintaining them. Market infrastructure improvements, climate-related regulation, and ESG measures introduced into market frameworks to broaden the investor base have also been instituted. Sustainability products and offerings across African countries have become more diverse.

This year’s winners are key players in the African market and have structured deals to help African countries provide basic services to their populations. These banks have also expanded their offerings, with many firsts in the use of different funding vehicles. Their ultimate goal is to help communities grow more sustainably.

Standard Bank Group has been driving large-scale sustainability efforts across the continent. The group’s innovative financing solutions delivered renewable energy projects, green buildings, affordable housing, basic infrastructure, access to education, and financial inclusion.

The group funded about 219.9 billion South African rands ($11.9 billion) in sustainability-linked loans and bonds with key performance indicators (KPIs) based on reduced emissions, renewable energy consumption, and diversity and inclusion, to name a few. Standard Bank partnered with Old Mutual, a pan-African financial services group, to provide a 5.25 billion rand sustainability-linked syndicated term debt package with a revolving credit facility and a multicurrency facility across South Africa, Namibia, and Kenya. The KPIs are focused on environmental and social outcomes, in support of the initiative for financial products to make positive contributions.

It also financed significant power projects throughout Africa. Seriti Green’s wind project in Mpumalanga province will supply coal mining operations with 75% of their power requirements while supporting their decarbonization. This flagship project redefines the area’s transition to clean energy and creates new economic opportunities for residents impacted by South Africa’s Just Energy Transition Investment Plan.

The group structured the debt financing for Scatec’s Mogobe battery energy storage system project. This technology is a first in the South African energy market and one of the continent’s largest standalone dispatchable battery energy storage facilities.

Absa’s sustainability efforts focus on financial inclusion, diversity, and climate change. The bank positions itself to provide innovative finance solutions that promote sustainability and unlock growth opportunities across Africa.

A prime example of this effort is the Tanga Water Infrastructure Green Revenue Bond, for which we recognize Absa’s work as the Sustainable Finance Deal of the Year for the African region. This transaction finances Tanzania’s expanding water supply infrastructure in Tanga City, increasing clean water production, treatment, and distribution capacity. It is the first green bond issued by the state-owned Tanga Urban Water Authority and is cross-listed on the Dar Es Salaam Stock Exchange and the Luxembourg Green Exchange.

The bank has mobilized over 112 billion rands, encompassing various sustainable finance structures spanning multiple sectors. Absa has been integral to structuring facilities that have financed green buildings, affordable housing, renewable energy, and sustainability-linked products within health care, retail, mining, real estate, and manufacturing sectors.

Absa partnered with Norsad Capital to raise 400 million rands in sustainability-linked funding in Botswana. With this facility, Norsad will expand within the Southern African Development Community, invest in companies that drive social impact through financial inclusion, and create jobs for women and youth across sub-Saharan Africa.   

Rand Merchant Bank (RMB) has developed a clear African market-leadership position. The bank has completed transactions that have contributed to positive environmental and social outcomes.

In line with reducing carbon footprints, Envusa is a landmark energy-trading platform that’s decarbonizing Anglo American Group’s South African operations and growing capacity from 28 GW in 2015 to 60 GW by 2030. This initial transaction involves both wind and solar projects that will generate 520 MW of power sold, with projects financed during construction. The power these projects generate will be sold to the diverse companies within Anglo American.

The second green bond issued by parent company FirstRand was part of the bank’s October 2023 issuance. This raised 3.4 billion rands and leveraged a structure that penalizes funds not deployed into green projects within 24 months. The bond’s proceeds will finance renewable energy projects and green buildings that meet the bank’s criteria outlined in its sustainability bond framework.

Letshego Holdings Namibia focuses on financial inclusion to alleviate poverty, with solutions geared toward low- and middle-income population segments and micro, small, and midsize enterprises. RMB arranged and coordinated the sustainability of a social bond that was a first for the company and Namibia. The senior unsecured notes were oversubscribed, and the capital raised from the social bonds will fund opportunities with a social impact.

CIB’s sustainable and innovative solutions can be scaled across emerging markets to enact a real economy transition and empower African and emerging markets. The bank has established foundational elements that systematically integrate ESG practices throughout its activities to sustain growth, create value, and streamline sustainability efforts.

The bank’s Sustainable Finance Policy was most recently updated in 2024 and stresses the bank’s commitment to ESG practices. The policy integrates emerging trends to address changes within the sustainability industry so that CIB can take advantage of climate finance opportunities. The bank is a core founding signatory of the UN Principles for Responsible Banking (PRB), the Net Zero Banking Alliance (NZBA), and the UN Commitment to Financial Health and Inclusion. CIB has published reports for the NZBA, PRB, Taskforce on Climate-Related Financial Disclosures, and the Equator Principles.

In 2024, CIB partnered with the European Bank for Reconstruction and Development to participate in the Green Economy Financing Facility (GEFF). The GEFF allows CIB to extend credit to other financial institutions that intend to finance various green projects focusing on renewable energy, energy efficiency, water, wastewater treatment, sustainable land management, and material and resource efficiency. Seven projects are currently in the active pipeline.         

BRED Madagasikara (formerly Societe Generale Madagasikara) offers clients sustainable solutions that protect the environment and boost social and economic growth. The bank follows the policies and standards of its parent company, Societe Generale Group. It is committed to maximizing the positive impacts that its products and services have on its customers and the environment.

The bank launched the first sustainable bond in the Indian Ocean region. This bond finances renewable energy projects and initiatives that promote jobs, create value, and offer microfinance loans to advance financial inclusion efforts. This bond is the first issuance in Madagascar’s local currency, which avoids currency fluctuations and volatility.

BRED Madagasikara has also continued sustaining communities through its strategic partnerships. The bank offers health benefits: Soàva with ARO insurance, the top insurance company in Madagascar. With this product, customers get cash back from their health care fees to broaden access to medical care. To date, over 6,000 subscriptions have been made to this inaugural product.

The bank promotes various reforestation efforts to protect biodiversity and has planted thousands of trees through multiple initiatives. BRED Madagasikara also uses a portion of its fees to support education and donates funds to the NGO Inviso to fight malnutrition in the country. The bank also maintains a vegetable garden with a local elementary school to help students understand environmental and agricultural issues and provide produce to families in need.