The fifth Standard Bank Climate Summit, held on September 9, convened at a time when the realities of climate change and energy poverty on the African continent are becoming increasingly stark.
While the conversations at the event were meaningful, what they brought home is the fact that Africa needs more than debate and discussion; it needs bold action anchored in the lived realities of its people.
This reality is summed up in the lens through which most of us now view climate action in Africa, namely a “just transition”. While this phrase has become a fixture in global climate discussions, we need to remember that it is not just a slogan to be tossed around. It is a principle that must guide how we operate across the continent in the coming years.
With this in mind, it is worth breaking down the phrase “just transition” into its different components.
“Just”, in the context of climate action, means recognising Africa’s unique position. This is a region disproportionately affected by climate change, while at the same time home to more than 600-million people who do not have access to reliable energy. It also means having a clear understanding that economic development and climate action cannot exist in silos. The continent’s future depends on how well we align these two imperatives.
A truly ‘just transition’ ... is about building the capacity, infrastructure and policy frameworks needed to move forward without leaving anyone behind
Then, for Africa, “transition” means recognising that inclusive, transformative change needs to be deliberate and carefully managed. But also that it takes time. A truly “just transition” is not simply a binary shift from fossil fuels to renewables. It is about building the capacity, infrastructure and policy frameworks needed to move forward without leaving anyone behind.
At Standard Bank, our understanding of these components of the just transition is the reason why we committed to mobilising more than R450bn in sustainable finance between 2022 to 2028. More than R230bn of that commitment was already mobilised by the end of June.
Last year, for every R1 lent to non-renewable power generation, we provided just under R6 to renewable power generation. We remain committed to the remaining investment in a way that channels this vital capital toward initiatives that are not only climate-smart but also socially inclusive and economically growth-oriented.
The fiscal condition of many African governments makes it essential that the private sector steps up in this way — not just with capital, but with affordable capital. Without affordable capital, there can be no just transition. That means backing transitional projects where renewables may not yet be viable.
For some countries, natural gas remains a necessary bridge. In markets like Zambia, where hydropower has been disrupted by drought, there’s a growing need to diversify energy sources. From Nigeria to Angola to Mozambique, gas-related projects are becoming vital steps in the journey to cleaner energy.
Of course, money alone will not solve the challenge. This was reflected at this year’s summit, which deliberately expanded its focus from energy to include resilience and infrastructure. As extreme weather events grow more frequent, the need to adapt, rather than just mitigate, has become urgent.
Some African nations are already spending up to 9% of their budgets responding to climate extremes, according to the World Meteorological Organisation. This is unsustainable and reinforces the need to treat adaptation as a growth strategy.
The annual Standard Bank Climate Summit has never aimed for consensus. Our intention has always been to bring different voices into the same room, creating a platform on which governments, civil society, financiers, businesses and investors can engage — even if they do not always agree.
This year’s summit saw some of the most diverse viewpoints to date — reflecting the complexity and urgency of the issues. However, through all the debate, one clear message emerged: Africa cannot wait for others to lead; we must lead ourselves. Ultimately, the real test of our resolve to do this is not what was said at this latest summit; it is what we do next.
And based on the insights from the 2025 Standard Bank Climate Summit, our next steps need to encompass three key commitments:
- Double down on innovation:Develop financial instruments that address Africa’s unique risk profile, including political and currency risk, and drive blended finance at scale.
- Strengthen partnerships: Banks alone cannot finance this transition. We need multilateral institutions, development finance institutions and private sector investors to pull in the same direction.
- Prioritise people: Every project, policy and financing decision must consider the human impact — from jobs to dignity to opportunity.
• Masinda is CEO of Standard Bank Corporate and Investment Banking
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