How South African banks move into energy trading

September 28, 2025

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International bank and wealth manager Investec has become the second financial institution in South Africa to receive an energy trading licence. The move signals a shift in the role of banks, from financing projects to directly participating in the country’s power market as they seek a larger stake in the country’s growing energy sector.

  • Investec is now positioned to offer more than traditional financial services. With its new licence, the bank can trade electricity directly, providing tailored solutions that tackle rising tariffs and growing power demand.

  • South Africa’s energy trading space is drawing a range of new entrants, with at least ten licences issued so far. These include Lyra Energy Trading, backed by leading independent power producer Scatec, and STANLIB Asset Management.

  • Our take: Banks can bundle financing and offtake agreements, creating one-stop shops that reduce barriers to renewables adoption… Read more (2 min)

East Africa’s largest private solar plant lifts off 

Equator Energy, a leading solar provider in Africa’s Commercial & Industrial sector, has commissioned a 10 MW solar power plant at Mombasa Cement Ltd’s Vipingo facility. The project, one of East Africa’s largest privately developed industrial solar installations, comes as Kenya’s grid faces record-high demand and growing concerns over stability.

  • Across Africa, large energy consumers are under pressure from rising grid tariffs and unreliable supply, forcing many to rely on backup generators. This has pushed operating costs higher and slashed their revenues.

  • The growing efficiency and falling costs of renewable technologies are offering a cheaper alternative. Solar and battery storage are already being deployed in energy-intensive sectors such as mining to provide reliable baseload power.

  • Our take: We expect the next wave of captive power projects to grow in scale…Read more (2 min)

Environmental, Social, and Governance (ESG) has become crucial for investment and risk management in the energy sector. Companies are increasingly seeking ESG advisory services. Renewables Rising interviewed ESG advisor Alice Ayuma, who warns against blindly applying international standards without adapting them to local contexts.

  • A grey area exists in ESG adoption among corporates on the continent. Mrs Ayuma suggests renewables need to be considered within the correct African context, not a copy-and-paste approach.

  • Stakeholder engagement is crucial. While profit and social impact can be at odds, companies must remain conscious of their environmental and social footprint.

  • See the full conversation here… (2 min)

Scatec hosts a Board and Executive visit in Egypt, showcasing the Obelisk solar and battery storage project

Events

🗓️ Attend South Africa’s African Energy Week 2025 event (Sep 29)

🗓️ Sign up for an unlocking the power of minigrids in East Africa  event (Oct 2)

🗓️ Participate in South Africa’s Sustainability and ESG Africa Conference (Oct 15)

Jobs 

👩‍💻 Join NOA Group as  an Energy Analyst (South Africa)

👨‍💼 Become EDF Power Solution’s People Operations Specialist (South Africa)

⚙️ Apply for AMEA Power’s O&M Manager role (Tunisia)

Various 

🔌 Coal still accounts for 81% of South Africa’s electricity supply

🔋 Global Solar Council forms battery storage industry association

🤝 ENGIE Energy Access has been officially acquired by Ignite Power

💵 All On invests $1.5m in Nigeria’s Hinckley E-Waste Recycling company

Seen on LinkedIn 

Rajiv Shah, President at The Rockefeller Foundation, says, “What we witnessed in Dar es Salaam back in January is becoming reality: concrete policy reforms, regulatory changes, and more than $50 billion in financing commitments to connect 300 million more people to reliable, affordable electricity.”