Small and medium enterprises are set to receive a boost from Absa’s Green Asset Finance programme: the bank will provide up to R50-million in energy subsidies to qualifying SMEs, allowing them to finance solar installations.
SMEs play a significant role in job creation and economic growth in South Africa, but they have faced various challenges in recent years, with load shedding posing a particular threat. Absa’s new subsidies should help SMEs keep their businesses running through power cuts.
This initiative is available to SMEs that have their commercial properties financed through Absa. Eligible SMEs will be contacted by Absa and need not take any action to apply for this support, the bank said.
Subsidies will be determined based on various factors and can reach up to R50 000 or up to 10% of the overall installation value. Qualifying SMEs will be invited by Absa to opt in or opt out of the subsidy for their green finance needs.
Ronnie Mbatsane, managing executive for SME business at Absa relationship banking, said in a statement: “SMEs make a significant contribution to job creation and economic growth in South Africa. Through these subsidies, we are helping to put liquidity back into the hands of small businesses to power their business into full production.”
The bank has already made significant investments in the renewable energy sector, including a solar offering for Absa home loan clients and a personal loan option for retail customers to procure alternative power sources.
Read: FNB launches solar funding solutions
Through its supplier value chain development initiative, Absa has also supported SME installers in funding accreditation from the South African Photovoltaic Industry Association and supporting emerging township players. – © 2023 NewsCentral Media
