Banks team up with clients to drive resilient and sustainable infrastructure growth across Africa

702's John Perlman chats to Noloyiso Mpanza, Executive Lead for Sustainable Finance at Standard Bank Corporate and Investment Banking on sustainable trade finance.

Listen to the interview below:

Africa is standing at a crucial crossroads. As the continent expands, the demand for robust infrastructure is immense, yet challenges like funding, political risk, and environmental concerns loom large.

According to Noloyiso Mpanza, Executive Lead for Sustainable Finance at Standard Bank Corporate and Investment Banking (CIB), this is the precise role of sustainable trade finance. “To put it in most simplistic terms, sustainable trade finance is really the integration of financial instruments that integrate environmental or social trade activities into the core of how the instrument is structured,” Mpanza explains.

This isn't a one-size-fits-all solution, but a detailed partnership. Standard Bank collaborates with clients to structure instruments that match their specific sustainability goals and the pressing needs of the continent. A key application is in major infrastructure, where tools like green guarantees help to de-risk projects.

“We found that it allows a number of our big infrastructure projects to be de-risked,” says Mpanza. These instruments reduce payment risk, ensure compliance with environmental goals, and mitigate risks such as currency volatility and supply chain disruptions.

As Africa's largest bank, Standard Bank is leading this movement, attracting capital to address deficits in energy and other critical areas. This approach is already making an impact, as demonstrated by a recent R6.75 billion deal that will provide internet access to thousands of unserved South African communities.