Spearheading Africa’s renewable energy innovation: Stanbic IBTC hosts NSACC September Breakfast Session

Spearheading Africa’s renewable energy innovation: Stanbic IBTC hosts NSACC September Breakfast Session

L-R: Adebola Seriki, Sector Head, Conglomerates & Industrials, Stanbic IBTC Bank; Folake Ademiluyi, Sector Head, Power & Infrastructure, Stanbic IBTC Bank; Foluso Phillips, Ex-Officio Director, Nigeria-South Africa Chamber of Commerce; Temitope Popoola, Executive Director, Business Development, Stanbic IBTC Insurance Brokers and Richard Inegbedion, Head, Oil & Gas, Stanbic IBTC Bank, during the 2024 Nigeria-South Africa Chamber of Commerce (NSACC) Breakfast Session, held recently in Lagos.

In a bid to champion sustainable energy solutions across the continent, Stanbic IBTC recently hosted the Nigeria South Africa Chamber of Commerce September Breakfast Session. The event which was held at the Iris Hall in Eko Hotel & Suites, Lagos was centred around the theme ‘Energy Transition: Identifying the need and financing the opportunities’.

The gathering brought together a diverse group of industry leaders, experts, and stakeholders as they engaged in meaningful discussions, shared insights, and explored innovative strategies for identifying the needs related to energy transition and the various opportunities available for financing these endeavours. This session underscored the importance of collaborative efforts in making energy transition a reality; highlighting the pivotal role of financing in achieving sustainable energy solutions.

Commenting on the session, Wole Adeniyi, Chief Executive, Stanbic IBTC Bank, highlighted the importance of collaboration between Nigeria and South Africa in achieving sustainable economic growth and development. He emphasised the role of the financial sector in supporting cross-border investments and facilitating business transactions that are crucial for Africa's economic integration.

“This is a significant step towards a future where Nigeria and South Africa leverage their collective strengths for the betterment of our continent. By joining forces, we position ourselves to address challenges with greater efficacy and to tap into the boundless opportunities that Africa holds; aiming for the prosperity of our populations. This collaborative spirit is not just about overcoming hurdles; it is about rewriting the narrative of our continent to highlight success, innovation, and sustainable growth.” Wole remarked.

According to Wole, the role of the financial sector in supporting cross-border investments and facilitating business transactions that are crucial for Africa's economic integration and Stanbic IBTC pledges to be at the vanguard of this transformative era. "We are committed to delivering state-of-the-art financial solutions tailored to nurture the growth and triumph of businesses within both countries. Our mission extends beyond mere financial transactions; it is about building bridges between markets, fostering economic integration, and laying the groundwork for a future where the African continent can realise its full potential through unity and shared vision."

Adebola Seriki, Sector Head of Conglomerates & Industrials, Corporate & Investment Banking; and Richard Inegbedion, Sector Head of Energy & Infrastructure, Business & Commercial Clients, both of Stanbic IBTC Bank shared an extensive analysis of the energy sector's status quo and prospective evolution, particularly on renewable energy, addressing the electrification challenges and opportunities in Africa as of 2023.

The session presented crucial data, indicating Africa's population at approximately 220 million in 2023, with an annual growth rate of 2.53 per cent. The disparity in electricity access is stark, with only 60 per cent of the populace having access; highlighting a pronounced urban-rural divide. The electricity generation capacity of 12.5GW starkly contrasts with the mere 5.1GW effectively available; pinpointing a critical gap due to infrastructural inefficiencies. The energy sector's heavy reliance on oil and gas, accounting for 81 per cent, with renewables at just 19 per cent, emphasises the pressing need for a diversified and sustainable energy portfolio.

The discussions at the breakfast session also highlighted the acute electricity and clean cooking facilities shortage, affecting over 500 million and 1 billion Africans, respectively. The renewable energy sector emerges as a promising avenue for substantial job creation, with projections indicating the potential to generate over 4 million jobs by 2030. The advocacy for decentralised energy solutions, like mini-grids and solar home systems, highlights their cost-effectiveness in broadening electricity access.

A significant focus was placed on the essential role of financing in realising the vision of universal energy access. The discourse highlighted the role of commercial banks in channelling capital towards renewable energy projects and the necessity for collaboration between the public and private sectors to facilitate this transition.

Stanbic IBTC Bank's introduction of a novel financing scheme for developers involved in the World Bank-funded Rural Electrification Agency’s DARES programme marks a significant stride towards supporting renewable energy projects, including mini-grids and stand-alone solar systems. This initiative is evidence of the collective commitment to driving a sustainable energy transition in Africa.

The NSACC September Breakfast Session highlighted the critical challenges facing Africa's energy sector and illuminated the path towards a just and inclusive energy transition. By leveraging investment, innovation, and supportive policies, and capitalising on the continent's vast renewable energy potential, Africa can embark on a journey towards sustainable development and energy security for all its citizens.