Sasfin Bank Limited, a specialist funder to entrepreneurs in South Africa, has secured a new R85m funding line from IFC, a member of the World Bank Group, and the Canadian Government’s Climate Change Program. This is to specifically enable its clients to invest in renewable and energy efficient capital projects.
Says Jonathan Newfield, Head of Sasfin Group Strategy: “This is a completely new funding line that is now available to assist our SME clients to become more energy efficient in their processes. In the past the focus of driving down energy costs has been more vigorously pursued by the larger corporates, the major industrials and the mines.
“But energy efficiency and the tangible savings that can flow from these interventions affect all businesses – both large and small.
“There has been very little focus on achieving energy saving in the SME sector which includes the businesses of small manufacturers, entrepreneurs, retailers, and property owners which can significantly impact the overall energy efficiency in our economy.
“We have a large base of banking clients in this sector and this is the market to which we intend making this funding available for any energy savings projects they wish to embark on.”
Notes, Roland Sassoon, Sasfin Bank’s CEO: “The South African energy sector relies heavily on power generated from fossil fuel sources, and today companies are seeking cleaner alternatives to improve their efficiency. Working with the IFC, Sasfin is able to offer our private sector clients financing for new solutions to meet their cleaner energy needs.”
These projects could cover a wide range of interventions including replacements of older equipment such as boilers, compressors and motors with newer more efficient equipment; installation of energy optimisation and control systems, as well as the installation of solar or wind powered renewable energy systems.
Post implementation, the Sasfin team will assist the client in monitoring and evaluating energy savings achieved in order to demonstrate the benefits of the implemented solution. Says David Edwards, Head of Sasfin’s Commercial Solutions Division, which includes the IQuad Group, “Sasfin will assist its clients even further in the energy savings projects they initiate. The Department of Trade and Industry has recently introduced a new cluster of manufacturing incentives that apply directly to capital investment in renewable and energy saving projects. Specialists from Sasfin’s Commercial Solutions Division will assist clients to claim rebates allowed under the DTI’s scheme in order to maximise the benefits they receive.
“It’s all part of Sasfin’s acknowledged client centric approach which strives to offer a “Start-To-Finish” business solution.“