Latest news with #StandardBank
Zawya
2 hours ago
- Business
- Zawya
World Bank Group considers $500mln boost for South Africa's transmission expansion
The World Bank Group is considering financing $500 million of South Africa's participation in a new credit guarantee facility meant to unlock private financing for a massive transmission grid expansion plan, a senior bank official told Reuters. South Africa is courting private investment for an ambitious plan to add 14,500 km of new lines and enhanced transformer capacity over the next decade, at an estimated total cost of $25 billion, as it looks to emerge from a decade of crippling power cuts that have battered the economy. The proposed credit guarantee vehicle aims to help overcome transmission infrastructure bottlenecks that have held back some 20 gigawatts of renewable energy from connecting to the national electricity network, according to Standard Bank. Many of the renewable projects are situated in the sun-baked Northern Cape or windswept Western and Eastern Cape regions, far from existing transmission corridors linking most of South Africa to the coal-powered generation plants in the north. Operating as a stand-alone entity, the credit guarantee vehicle would issue guarantees instead of South Africa's treasury and would cover payment defaults, for instance, should something go awry during the roll-out. "We could cover or be committed to finance half a billion U.S. dollars of the government of South Africa's first loss or junior capital participation," Yadviga Semikolenova, a senior World Bank manager, said late on Thursday. South Africa has sought not to put further pressure on its strained finances by offering additional sovereign guarantees, as it faces lacklustre growth, high debt-servicing costs and the failure to agree a VAT hike within the government coalition this year. The treasury has committed to providing junior or first loss capital of 20%, which will be an initial $100 million before moving up to $500 million. The credit guarantee vehicle aims to eventually grow to $2.5 billion, an April 4 treasury document shows. The document, seen by Reuters, details a package under discussion with the World Bank Group that includes a loan from the International Bank for Reconstruction and Development to finance the treasury's junior capital and a potential $100 million direct injection from the International Finance Corporation. The bank's Multilateral Investment Guarantee Agency is also considering reinsurance and political risk cover. Approval from the World Bank Group board was expected later this year, treasury officials said. The treasury said in April it had sought backing for the facility from several development financiers, including the Development Bank of Southern Africa, African Development Bank, Germany's KfW and British International Investment. The DBSA said it was considering participating while BII said it could not comment on any transaction that it has not made a commitment to or announced. (Reporting by Wendell Roelf; Editing by Tim Cocks and Alison Williams)
Reuters
3 hours ago
- Business
- Reuters
World Bank Group considers $500 million boost for South Africa's transmission expansion
CAPE TOWN, June 20 (Reuters) - The World Bank Group is considering financing $500 million of South Africa's participation in a new credit guarantee facility meant to unlock private financing for a massive transmission grid expansion plan, a senior bank official told Reuters. South Africa is courting private investment for an ambitious plan to add 14,500 km of new lines and enhanced transformer capacity over the next decade, at an estimated total cost of $25 billion, as it looks to emerge from a decade of crippling power cuts that have battered the economy. The proposed credit guarantee vehicle aims to help overcome transmission infrastructure bottlenecks that have held back some 20 gigawatts of renewable energy from connecting to the national electricity network, according to Standard Bank. Many of the renewable projects are situated in the sun-baked Northern Cape or windswept Western and Eastern Cape regions, far from existing transmission corridors linking most of South Africa to the coal-powered generation plants in the north. Operating as a stand-alone entity, the credit guarantee vehicle would issue guarantees instead of South Africa's treasury and would cover payment defaults, for instance, should something go awry during the roll-out. "We could cover or be committed to finance half a billion U.S. dollars of the government of South Africa's first loss or junior capital participation," Yadviga Semikolenova, a senior World Bank manager, said late on Thursday. South Africa has sought not to put further pressure on its strained finances by offering additional sovereign guarantees, as it faces lacklustre growth, high debt-servicing costs and the failure to agree a VAT hike within the government coalition this year. The treasury has committed to providing junior or first loss capital of 20%, which will be an initial $100 million before moving up to $500 million. The credit guarantee vehicle aims to eventually grow to $2.5 billion, an April 4 treasury document shows. The document, seen by Reuters, details a package under discussion with the World Bank Group that includes a loan from the International Bank for Reconstruction and Development to finance the treasury's junior capital and a potential $100 million direct injection from the International Finance Corporation. The bank's Multilateral Investment Guarantee Agency is also considering reinsurance and political risk cover. Approval from the World Bank Group board was expected later this year, treasury officials said. The treasury said in April it had sought backing for the facility from several development financiers, including the Development Bank of Southern Africa, African Development Bank, Germany's KfW and British International Investment. The DBSA said it was considering participating while BII said it could not comment on any transaction that it has not made a commitment to or announced.
Zawya
4 hours ago
- Business
- Zawya
South Africa's top banks pass first climate stress test but data gaps identified
JOHANNESBURG - South Africa's six systematically important banks passed the central bank's inaugural climate-risk stress test, but the exercise exposed some modelling shortfalls as institutions had not fully embedded climate-risk indicators into their frameworks, a financial stability review showed. The gaps could mask longer-term losses. The review is the central bank's bi-annual report on the health and resilience of the country's financial system. The latest edition was released on Thursday. The six banks, Absa, Capitec, FirstRand , Investec, Nedbank and Standard Bank of South Africa, used climate-scenario frameworks from the Network for Greening the Financial System (NGFS) to model potential losses on their climate-sensitive loans. The NGFS is a global coalition of central banks and supervisors. About one-third of bank books sit in the most exposed sectors to climate change namely real estate, household lending and transport. "There were different challenges in each organization so its hard to make broad-based recommendations," said Vafa Anvari, divisional head of macro financial vulnerabilities in the Financial Stability Department of the central bank. "We were working with the six largest banks on how they intended to close these gaps going forward and we were quite comfortable with what they indicated they will be doing in the next couple of years to close these gaps. "(Since) this was the first exercise of its kind in South Africa, you expect to shake the trees and see what falls out and in that context it was very illuminating." Earlier this month torrential rains and gale-force winds inundated South Africa's Eastern Cape province, triggering property and business-interruption claims.
The South African
8 hours ago
- Business
- The South African
Lucky Lotto jackpot winner turns R30 wager into R39.5 MILLION!
ITHUBA, operators of the National Lottery in South Africa, have confirmed that there were two winners of the Lotto jackpot on Wednesday, 18 June. The jackpot stood at R78 977 677.80, meaning each of the winners will pocket R39 488 838.90. The first winning ticket was purchased through the Standard Bank banking app with a R200 wager using the quick pick selection method, while the second winning ticket was purchased at a Day and Night Superstore in Yeoville in Johannesburg, with a R30 wager, also using the quick pick selection method. The winner who played via a banking platform has been notified of their winnings by their bank, while ITHUBA has urged everyone else who bought a ticket in-store to check their tickets. The winning numbers were 10, 13, 27, 30, 38, 39 and the bonus ball was 16. 'This draw not only produced one multi-millionaire, but two! Both winners will walk away with significant amounts of money that will undoubtedly change their lives,' says ITHUBA CEO, Charmaine Mabuza. 'The winner service team is eagerly awaiting the arrival of these winners and ready to help and support them every step of the way,' Mabuza added. To help winner's enjoy lasting benefits from their winnings, ITHUBA offers access to certified financial experts who provide valuable financial insights for winners of R50 000 and above. All winners have 365 days from the draw date to claim their winnings, and all National Lottery winnings are tax-free . Participants can check their tickets at retail stores or online through the National Lottery website or social media pages as there are more winners in other divisions. Players must be 18 years or older. Play responsibly. Let us know by leaving a comment below, or send a WhatsApp to 060 011 021 1 Subscribe to The South African website's newsletters and follow us on WhatsApp, Facebook, X and Bluesky for the latest news.
News24
a day ago
- Business
- News24
Standard Bank named Africa's most admired financial services brand
Standard Bank, Africa's biggest bank by assets, has been named as Africa's Most Admired Financial Services Brand for 2025. The accolade was conferred as part of Brand Africa's 15th annual Africa's Best Brands report, based on an independent study conducted across 31 countries throughout the continent. The Africa Best Brands study is described as the most comprehensive, research-based ranking of Africa's most admired brands. Released annually during Africa Month (May), the survey is independently conducted by GeoPoll and Kantar, with strategic insights and rankings led by Kantar and Brand Leadership, Africa's leading brand advisory firm, and supported by regional experts across the continent. 'We are delighted to receive an accolade that is distinguished by being authentically African, data-driven and consumer-led. This acknowledgement reflects the trust that we have built and our commitment to providing consistently excellent service to our clients across the continent,' says Sim Tshabalala, Chief Executive, Standard Bank Group. 'Africa is our home, and we strive to drive her growth every day. This award reaffirms our Africa focus by being rooted in research that relays the continent's voice and vision. As the most comprehensive barometer of consumer brand preferences, this award reflects our uncompromising commitment to our diverse client base and driving value for all stakeholders. We are grateful to our employees who have made this achievement possible,' concludes Margaret Nienaber, Chief Operating Officer, Standard Bank Group. Earlier in the year, Standard Bank was named Africa and South Africa's Most Valuable Banking Brand by Brand Finance. As Africa's biggest bank by assets, Standard Bank has a brand presence across 20 African countries.
