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projectFP029

SCF Capital Solutions

33001833
TONNES of CO2 Anticipated tonnes of CO2 equivalent avoided

Impact

Mitigation
GCF results areas
  • Energy generation and access
  • Buildings, cities, industries and appliances
Gender benefits The project has a portfolio goal of having 45 per cent of all financing extended to women-owned enterprises. UN Sustainable Development Goal #7 Affordable and clean energy

Location & People

Region
  • Africa
Country
  • South Africa ZA

Investment Data

  • Financing:
    • Public
    • Private
  • Project size:
    • Micro
    • Small
    • Medium
    • Large
  • E&S Risk category:
    • Category I1
    • Category I2
    • Category I3
Total project investment
GCF Financing
  • Instrument Equity USD
Co-Financing
  • Private Investor Equity USD
  • SEFA ( Small Enterprise Finance Agency (of South Africa)) Equity USD
  • DBSA Equity USD
  • SCF Capital Solution Equity USD

Project owners

Accredited Entity Executing Entity
  • SCF Capital Solutions
SCF Capital Solutions Approved December 2016 Duration 10.0 years
MSMEs can contribute significantly to South Africa’s climate change objectives as they occupy a large part of the national economy.

This programme was created as a direct result of the needs of MSME start-ups in South Africa’s Green Fund incubation program. Despite engaging in climate activities the country so greatly needs, MSMEs have been unable to access financing from traditional financial institutions. SCF Capital Solutions allow start-ups in renewable energy and energy efficient sectors to transition from incubation to securing contracts with large buyers, accelerating both their own activities and South Africa’s transition to a low carbon economy.

The programme also contributes to South Africa’s development objectives. Of the 300 MSMEs receiving GCF assistance annually, 45 percent will be owned by women, 35 percent will be owned by young  entrepreneurs   and 70 percent will be owned by previously disadvantaged individuals. It is expected to support 30,000 jobs in the climate space, 6,000 of them new.

The programme will tap into the expertise of South African-based developmental finance company SCF Capital Solutions to use supply chain financing to provide capital to green economy-focused MSMEs. It will do this by focusing on the credit worthiness of major buyers, thereby reducing the financial burden on MSMEs. A focus on recurring supply chains in the economy will improve business efficiencies and help catalyze private sector investment.

 
Document title Published date
Funding proposal 24 Nov 2016
ESS report 30 Nov 2016
Accredited Entity
  • Development Bank of Southern Africa (DBSA) Mr. Mohale Rakgate Tel: +27 11 313 3179 Ms. Nomsa Tilly Zondi Tel: +27 11 313 3491
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