MSME Pilot Programme

GCF's MSME RFP programme encourages strong proposals for private sector investment in support of MSME climate activities.

Overview

Through the Micro-, Small-, and Medium- Sized Enterprises (MSME) Pilot Programme, GCF aims to provide financing for MSMEs at all stages of growth.

The GCF Board allocated up to USD 200 million for the Programme. The GCF Secretariat will seek to allocate at least USD 100 million for developing countries that are particularly vulnerable to the adverse effects of climate change, including least developed countries (LDCs), Small Island Developing States (SIDS) and African States, over the course of the Programme.

This diverse programme recognises the diversity of MSME conditions in the various regions, countries and sectors, as well as the need to test appropriate business and institutional models, and various financial instruments in order to ensure the Fund’s resources reach MSME and have a measurable impact on the ground.

To achieve its objective of promoting a paradigm shift towards low-emission and climate-resilient development, demand from micro, small and medium-sized enterprises (MSMEs) for climate change activities will be of key importance. GCF will use its resources to improve MSMEs’ access to finance.

Eligibility

The RFP is open to projects or programmes supporting MSMEs that fit within national climate priorities, and that fit within the eight GCF key result areas. This includes MSMEs that work in any area of the supply chain for climate goods and services (from production and service, to distribution or retail), in both mitigation- and adaptation-related activities. This can include MSMEs at any stage in their business life cycle.

Projects

Following the call for proposals in August 2016, three funding proposals have been approved under the MSME pilot programme. Other project ideas are in the pipeline. A second tranche of the MSME pilot programme will be announced soon.

FP114
Cross-cutting

Ghana

Program on Affirmative Finance Action for Women in Africa (AFAWA): Financing Climate Resilient Agricultural Practices in Ghana

FP048
Cross-cutting

Multiple countries

Low Emissions and Climate Resilient Agriculture Risk Sharing Facility

FP028
Mitigation

Mongolia

MSME Business Loan Program for GHG Emission Reduction