Mary Vilakazi-led FirstRand unveils $150m clean energy facility

FirstRand Ltd., a leading financial services group led by South African banker Mary Vilakazi, has joined with the UK government’s development-finance arm to launch a $150 million facility aimed at helping companies in carbon-heavy sectors switch to cleaner production methods. 

The partnership marks one of the most targeted efforts yet to support African businesses that want to cut emissions without losing access to credit. British International Investment Plc., or BII, said it will supply capital and technical support as FirstRand sets up the program. 

The facility will be deployed through FirstRand’s corporate and commercial banks, RMB and FNB, and will focus on high-emitting businesses prepared to shift to lower-carbon technologies, the firms said Tuesday.

Filling a climate-finance gap 

Transition finance is designed to help companies that generate significant emissions adapt their processes without losing access to credit. The approach has gained support as countries confront rising climate-finance needs and pressure to protect jobs in carbon-heavy industries. 

A recent South African Climate Finance Landscape assessment found the country raised an annual average of R188 billion ($10.4 billion) for climate-related projects in 2022-23. But estimates suggest South Africa may need up to R500 billion yearly to meet its climate targets, leaving a funding gap of more than R300 billion. 

Most current spending goes to power projects such as wind and solar plants. A smaller portion supports community-level work, including adaptation efforts and programs that help regions dependent on coal. Domestic institutions provide nearly 60 percent of climate funding, with commercial banks serving as the largest private-sector contributors. 

“This investment is an important step in supporting the companies that need practical financial tools to cut emissions,” said Stephen Priestley, BII managing director.

Vilakazi’s leadership at FirstRand 

Founded in 1977 by Laurie Dippenaar, FirstRand is Africa’s largest financial services group with a market value of about $19.8 billion. Group CEO Mary Vilakazi, who took the helm in April 2024, has kept a tight focus on capital strength while broadening the bank’s reach in South Africa, the UK and key African markets.

For the year ended June 2025, FirstRand reported a profit of $2.6 billion, a 10 percent rise driven by retail, commercial and investment banking. The group is also set to receive a $310 million financing package from the African Development Bank Group to increase lending to small businesses, women-led firms and farmers in South Africa.