In the face of increasing climate challenges in Mauritius, Absa Mauritius aims to play a key role in Sustainable Finance to support a greener economy. In this interview, Ajay Angoteea, Head of Sustainable Finance and DFI Coverage, discusses the bank's initiatives to mitigate climate change and guide its clients toward a sustainable economy.
Q1: What climate challenges does Mauritius face, and why is it essential to invest in Sustainable Finance solutions?
As an island nation, Mauritius faces significant climate challenges, such as rising sea levels, coastal erosion, and increasing floods, which threaten key sectors like tourism and agriculture.
To address these issues, Mauritius has set an ambitious target to reduce its greenhouse gas emissions by 40% by 2030, requiring around $6.5 billion in investments, with 35% expected to come from local sources.
In this context, banks play a crucial role in mobilising the capital needed to strengthen the island’s resilience and promote a low-carbon economy. Sustainable Finance solutions can mitigate the effects of climate change while supporting sustainable economic growth for the future.
Q2: In your opinion, what role can banks play in supporting their clients toward sustainable finance?
In today’s landscape, banks must go beyond traditional financial management and become proactive partners for their clients. At Absa Mauritius, this responsibility lies at the heart of our strategy. We are fully invested in our clients' stories, committed to supporting them at every step, and recognising that each individual has unique needs and ambitions.
This is why we prioritise a personalised approach focused on trust and attentive listening. By immersing ourselves in understanding our clients’ challenges and aspirations, we can co-create tailored solutions that genuinely meet their expectations.
Our ambition is that, in addition to the financing we provide, our clients can tap into our expertise and knowledge to embark on sustainable and responsible projects.
Q3: What initiatives can banks implement to strengthen their commitment to sustainable finance?
By adopting eco-friendly initiatives, banks can not only reduce their carbon footprint but also inspire their clients to act more responsibly.
In line with our goal of reducing financed emissions by 50% by 2030, Absa Mauritius plans to allocate Rs 30 billion to Sustainable Finance projects. We also offer customised financial solutions with competitive rates starting at 4.95% for the purchase of electric and hybrid vehicles. Our Absa Unsecured Loan allows clients to finance green projects, such as the installation of photovoltaic panels and solar water heaters, with funding available up to MUR 2.5 million. To support electric mobility, we provide favorable financing terms for our employees and have installed solar charging stations in our parking lots. Additionally, we have recently introduced a green ATM that is completely powered by solar energy.
Our efforts were recently recognised at the Pan Finance Awards 2024, where Absa Mauritius won the ESG Innovator Award, highlighting our commitment to driving change toward a sustainable future for all.
Q4: What are the future prospects for banks to strengthen their role in Sustainable Finance and contribute to the transition to a green economy?
As the demand for responsible financial solutions surges, banks are compelled to take a proactive approach. Setting ambitious long-term targets for carbon neutrality is crucial, but it is the tangible actions taken today that will truly drive sustainable progress.
At Absa Mauritius, we are committed to supporting our clients in assessing and implementing climate transition projects, mobilising our expert teams at all levels. Each project is an opportunity to innovate and amplify our positive environmental impact.
We also seek to strengthen our partnerships with organisations, government institutions, and other stakeholders who share our ESG values.
By working closely together, we have the capacity to tackle sustainability challenges, amplify our collective impact, and build a sustainable future for our planet and generations to come.
