Nedbank launches US$0.56M fund to support businesses with clean backup power

SOUTH AFRICA – Nedbank has partnered with Indalo Inclusive to launch the Nedbank Indalo Energy Resilience Fund, a R10 million (US$563,170) initiative aimed at helping South African small businesses, nongovernmental organisations (NGOs) and public benefit organisations (PBOs) secure affordable, clean backup power.

The fund will provide interest-free finance for solar systems, portable inverters and related equipment.

Poovi Pillay, Nedbank’s Executive Head of Social Impact, said the initiative comes at a time when many businesses are still struggling with the after-effects of loadshedding.

“For entrepreneurs, small businesses and social organisations, the ongoing energy crisis is not just an inconvenience, it’s an existential threat to their very survival,” Pillay said.

“You can’t grow a business, create jobs or serve a community if the lights are constantly going off – or if the high costs of keeping them on are eroding your bottom line.”

A recent survey by Nedbank and the Township Entrepreneurs Alliance revealed that 66% of township-based enterprises shed jobs directly because of power cuts. Many others reported severe revenue losses or complete shutdowns when outages struck.

The fund builds on the existing Nedbank Indalo Fund, which has supported eco-focused businesses in water, agriculture, waste and renewable energy since 2021.

Together, the two funds form part of Nedbank’s Green Economy Social Impact Strategy, which has already backed more than 1 300 businesses and helped create more than 2 900 jobs.

Rest Kanju, Executive Director of Indalo Inclusive, said the fund will go beyond providing finance.

“We’re using finance, and the accompanying support we provide, as a catalyst to keep businesses productive, protect livelihoods and speed up the shift to cleaner energy,” Kanju explained.

Indalo Inclusive will manage enterprise selection, capacity building and technical support. Repayments will go toward future recipients, creating a self-sustaining model. Outcomes such as job retention, energy savings and operational continuity will be closely tracked.

Applications are now open for qualifying SMMEs, NGOs and PBOs across the country at https://iisa.org.za/nedbank-indalo-energy-resilience-fund/

Wider impact of loadshedding on agriculture

The fund also comes at a time when loadshedding continues to weigh heavily on South Africa’s agriculture sector. Power cuts have disrupted irrigation for crops like maize, sugarcane and wheat, which rely on electric pumps during fixed water access windows.

Dairy and poultry producers face risks as outages interfere with milking, cooling and heating processes, often threatening product quality and animal health.

Exporters of fruit and vegetables have reported losses because of cold storage failures, while equipment damage from power surges has become increasingly common. Rising diesel costs have forced many farmers to rely on generators, pushing operating costs higher.

Sector-wide consequences are significant. Agriculture, which supports about 845,000 jobs, has seen livelihoods put at risk. Loadshedding contributed to a 2.1% decline in GDP in the third quarter of 2022, with agriculture among the hardest-hit industries.

The government has created a ministerial task team to address these disruptions, with strategies focused on prioritizing electricity supply and supporting energy transitions. Agri SA has also called for expanded diesel rebates to help farmers manage the cost of backup power.

Sign up to receive our email newsletters with the latest news updates and insights from Africa and the World HERE.