https://www.miningweekly.com
Africa|Coal|Energy|Gas|Mining|Oil And Gas|Oil-and-gas|Power|PROJECT|Projects|Renewable Energy|Renewable-Energy|Resources|Power Generation|Power-generation|Environmental
Africa|Coal|Energy|Gas|Mining|Oil And Gas|Oil-and-gas|Power|PROJECT|Projects|Renewable Energy|Renewable-Energy|Resources|Power Generation|Power-generation|Environmental
africa|coal|energy|gas|mining|oil-and-gas|oilandgas|power|project|projects|renewable-energy|renewable-energy-company|resources|power-generation|power-generation-industry-term|environmental

Biggest African bank cites energy needs in fossil fuel defense

Eskom's Kusile power plant

Photo by Bloomberg

9th May 2023

By: Bloomberg

  

Font size: - +

Standard Bank Group, Africa’s biggest lender by assets, defended it’s investment in fossil-fuel projects, saying tthe continent’s energy needs have to be balanced with climate concerns.

The Johannesburg-based bank’s exposure to coal mining, oil and gas and power generation from fossil fuels rose 21% last year to R119.4-billion, according to Just Share, a Cape Town-based shareholder activist organisation. While that’s almost five times its exposure to renewable energy projects, lending to green-power initiatives rose 84% over the year.

“It is not possible for Africa and many of the African countries to ignore the shortage of electricity supply,” Kenny Fihla, chief executive officer of Standard’s corporate and investment banking unit, said in an interview last week. “Today’s challenges are not going to be resolved overnight and therefore a much more balanced approach is required.”

Standard and other banks are coming under increasing scrutiny on the continent for lending to new projects that will extend the use of fossil fuels. At the same time, they are under pressure to help fund nascent oil and gas fields from Mozambique and South Africa to Senegal as governments defend the right to develop their natural resources on a continent that accounts for only 4% of greenhouse-gas emissions.

“There is no factual basis for Standard Bank’s insistence that new fossil fuels are required to support development in Africa,” Just Share said in a response to queries. “The bank’s position on this issue is driven by its vested interests in fossil-fuel financing, and its relationships with African governments intent on ramping up fossil-fuel development.”

TotalEnergies’ proposed East African Crude Oil Pipeline that would run from Uganda to the coast in Tanzania has been a particular focus for 260 organizations that have asked banks to shun the project, arguing that it will harm wildlife habitats, impact communities and cause emissions to rise. While Standard Chartered last month said that it isn’t involved in the financing of the line having earlier expressed an interest, Standard Bank is in talks to provide funding.

The social and environmental impacts of the project, that has been estimated to cost $5-billion, are still being considered, Fihla said. Standard Bank CEO Sim Tshabalala in a November interview said a decision on its involvement was imminent.

“Oil development in Uganda will be transformational to the GDP of that country,” Fihla said. “We will take as long as is necessary.”

Edited by Bloomberg

Comments

Showroom

Schauenburg SmartMine IoT
Schauenburg SmartMine IoT

SmartMine IoT has been developed with the mining industry in mind, to provides our customers with powerful business intelligence and data modelling...

VISIT SHOWROOM 
Alco-Safe
Alco-Safe

Rapid screening for drugs of abuse - anywhere, anytime. JusChek Oral Fluid Screen Device is simple to use for the detection of drugs of abuse in...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Resources Watch
Resources Watch
21st February 2024
Photo of Martin Creamer
Major hydrogen economy developments in SA
21st February 2024

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.177 0.211s - 109pq - 2rq
Subscribe Now