Renewable energy Conference Presentation October 2020 .pdf

First National Bank (FNB) Zambia

Project financing & incentives for public and private
sectors

Presented  by  Mr  Hugh  Hawarden  –  
Rand  Merchant  Bank  
Terms and conditions apply.
Zambia is a licenses commercial Bank.

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Our African footprint

First National Bank (FNB) Zambia,
a member of the First Rand Group,
is the gateway to Corporate and
Investment Banking (CIB) in Africa
with an active CIB presence in 12
countries across sub-Saharan
Africa.  

2

FirstRand
structure

Listed Holding Company (FirstRand Limited, JSE:
FSR)

Retail and commercial
banking, insurance

Corporate and
investment banking

Instalment finance

Asset
management

UK specialist bank

Group-wide functions

3

PARTIES  INVOLVED:  
• Commercial  banks  
• Development  finance  
ins>tu>ons  
• Programmes  
• Equity  investors  
• Developers  
• Government  
• Infrastructure  funds  
• Private  corpora>ons  

Project  financing  &  incen>ves  for  public  and  private  sectors  
An  Authorised  Financial  Services  Provider  

Strictly  Private  and  Confiden>al  

Examples of incentives and programmes
Blended  finance  solu:ons  –  commercial  bank  structuring  with  development  capital  
• FIRST  Fund  –  aimed  at  small  renewables  in  South  Africa  
• Facility  for  Energy  Inclusion  –  aimed  at  smaller  projects  in  USD  jurisdic>ons  
• Green  Climate  Fund  –  USD  10bn  
• African  Local  Currency  Bond  Fund  –  providing  local  currency  funding  to  projects  with  local  currency  PPAs    

Government  programmes  
• GetFiT  –  Uganda,  Zambia  and  Mozambique  –  KfW  backed  
• Scaling  Solar  –  Senegal  and  Zambia  –  World  Bank  Group  
• Renewable  Energy  IPP  Procurement  Programme  (REIPP)  –  South  Africa  
• Feed-­‐in  Tarifs  –  Introduced  in  Kenya  in  2008  

Equity  incen:ves  
• Development  fees  
• Equity  funds  looking  for  plaZorms,  feet  on  the  ground  
• Development  Finance  Ins>tu>on  project  development  funds  
• Technical  Assistance  Facili>es  –  payments  towards  advisors,  development  costs.  
• Technical  Assistance  –  Power  Africa  
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Conclusion
There  are  many  pools  of  capital  for  renewable  energy;  
Two  cri>cal  requirements  for  the  deployment  of  capital:  
•

 a  bankable  off-­‐taker  and    

•

certainty  surrounding  regula>on  and  the  long  term  protec>on  of  law  and  policy  

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THANK YOU

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