The finances raised by financial services firm Standard Bank for renewable energy power generation in Africa outpaced that for non-renewable power generation by a ratio of 8:1 in 2025.

The scale and pace of Africa’s renewable-energy development is being driven by a combination of policy alignment, declining technology costs, growing investor demand and the need to address climate risk while expanding energy access.

Renewables are no longer a marginal addition, but are becoming critical to capacity. The transition is not only about reducing emissions, but about expanding access to affordable, reliable energy in a way that supports inclusive growth, says Standard Bank head of sustainability Boitumelo Sethlatswe.

“A structural change in how energy systems are being built across the continent is taking place. Our focus is on ensuring that, as we scale renewable energy, we also create jobs, support communities and build resilient economies that can withstand future climate and economic shocks.”

The acceleration of renewable-energy investment is being driven by solar and wind and hybrid energy solutions that incorporate battery energy storage systems.

Unlocking Africa’s renewable potential requires sustained investment in generation, transmission and enabling infrastructure, along with financing mechanisms that can mobilise capital at scale, she says.

“The energy transition in Africa is increasingly being defined by where capital is flowing. We are seeing a clear reallocation towards renewable energy, supported by strong fundamentals and improving project economics,” says Standard Bank Corporate and Investment Banking head of sustainable finance Sasha Cook.

Additionally, there is a growing focus on the broader energy ecosystem, including grid stability, energy storage and decentralised solutions. These components are critical to ensuring that renewable capacity translates into reliable and consistent power supply, she notes.

The shift also has wider economic implications. Renewable-energy projects are creating new value chains, which support local industries and enable greater participation in the global green economy.

Regulatory complexity, financing constraints and infrastructure gaps slow deployment in certain markets. Addressing these barriers will require coordinated action across governments, financial institutions and the private sector, says Cook.

Meanwhile, Standard Bank aims to mobilise R100-billion in green finance by 2028, but says non-renewable energy sources continue to play a significant role in many African economies.

During its 2025 financial year, Standard Bank mobilised 62% of its R450-billion sustainable finance target.

In 2025, the bank mobilised R47.1-billion in green finance, including significant funding for renewable-energy projects.