Absa delivers innovative funding solution for South32 renewable energy project
Johannesburg - Absa has announced that, through its credit and structuring expertise, it is assisting South32 in the development of Small and Medium Entereprises (SMEs) through the use of the mining company's funds allocated to its Enterprise and Supplier Development (ESD).
The bank said Solana and South32 identified key SME businesses in the region and are collaborating on the rollout of 2,5MW of generation projects aimed at suppliers of goods and services to South32 and other businesses in the area with an objective of ensuring the smooth running of SME operations through stable energy supply and reduced energy costs.
The funds are used for multiple primary generation projects as well as the establishment of a training academy at the South32 ESD centre. Absa added that it supports the growth and sustainability of this social enterprise with industry expertise, financing solution, training and other banking services.
Ahmed Motara, head of Business Development for Solana Energy siad: "We think this is one of the most unique renewable energy projects in the country at the moment. From the funding model right through to the skills development and new venture creation elements, we believe that this project could serve as a blueprint for renewable energy partnerships across South Africa."
This sentiment is echoed by South32 Hillside Aluminium Vice President of Operations Calvin Mkhabela: "The Solana project not only allows us to support sustainable energy for our key stakeholders, it also allows us as a responsible corporate citizen to play our part in contributing to South Africa's economic recovery."
Dumisani Mkhonza, Chief Operating Officer, Enterprise and Supply Chain Development at Absa Corporate and Investment Banking says: "This project is aligned to Absa's commitment to playing a shaping role in society through enterprise development in corporate value chains. We look forward to expanding on this innovative solution with South32 and Solana Energy."
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