Local small and medium enterprises (SMEs) will soon be able to apply for their share of Absa’s R50 million renewable energy grants, to help keep their businesses running during load-shedding.
According to a statement,the bank’s energy subsidy is the only grant of its kind locally, providing much-needed support to small business customers to finance solar installations introduced as part of the Green Asset Finance programme.
As SA continues to experience unprecedented power cuts, the electricity crisis has led to more homes and businesses deploying renewable energy solutions to circumvent power shortages.
Eligible SMEs that have their commercial properties financed by Absa will be contacted by Absa and need not take any action to apply for this support, says the big-four bank.
Subsidy amounts will be determined based on clearly set out factors, and can reach up to R50 000 or 10% of the overall installation value.
Identified and qualifying SME customers will be invited by Absa to opt-in or opt-out of the subsidy for their green finance needs.
“SMEs make a significant contribution to job creation and economic growth in South Africa. However, in many instances, the operating environment over the past few years has made it very difficult for these vital enablers to grow and thrive,” says Ronnie Mbatsane, managing executive for SME Business at Absa Relationship Banking.
The launch of the grant follows other investments Absa has already made in the renewable energy sector. These include the solar offering for Absa home loan clients, a personal loan option for retail customers to procure alternative power sources, and bespoke renewable energy solutions supported by subject matter experts who have assisted SMEs to find the best option for their needs.
Additionally, through the Supplier Value Chain development initiative, Absa has supported SME installers in funding their South African Photovoltaic (PV) Industry Association PV Green Card accreditation, supporting emerging township economies, pipeline commercialisation and allowed Absa’s SME customers to participate in the value chain.
“Load-shedding in particular continues to hamper the potential of many SMEs. Through these subsidies, we are helping to put liquidity back into the hands of small businesses to power their business into full production,” Mbatsane notes.
“The Absa energy grants underscore our commitment to this vital segment and connecting individuals and businesses to communities.”
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