Struggling businesses will soon be able to apply for their share of the R50 million in Absa’s energy subsidy grants, which it has made available to help keep the businesses running.
Absa said in a statement yesterday it would provide up to R50m in energy subsidy under its Green Asset Finance programme for qualifying SMEs, in a move to support and grow small- and medium-sized businesses.
Absa’s energy subsidy is the only grant of its kind providing some support to small business customers to finance solar installations and keep the lights on, the bank said.
Eligible SMEs that had their commercial properties financed by Absa would be contacted by Absa and need not take any action to apply for the support.
Subsidy amounts would be determined based on certain factors and could reach up to R50 000 or 10% of the overall installation value. Identified and qualifying SME customers would 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. 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,” said ABSA relationship banking managing executive for SME business, Ronnie Mbatsane.
“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,” he said.
This launch follows other investments Absa has already made in the renewable energy sector, including the solar offering for Absa Home Loan clients, a personal loan option for retail customers to procure alternative power sources, and bespoke solutions supported by subject matter experts who have assisted SMEs to find the best option for their particular needs.
Absa has been a leading financier in energy solutions, enabling customers to determine energy needs, calculate cost and link to a trusted energy supplier.
Additionally, through a supplier value chain development initiative, Absa has been supporting SME installers in funding their SA Photovoltaic Industry Association PV Green Card accreditation, supporting emerging township economies, pipeline commercialisation and allowing Absa’s SME customers to participate in the value chain.
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