SCF Capital Solutions (GCF-FP029)

Countries
  • South Africa
Where the impacts of the investment may be experienced.
Financial Institutions
  • Green Climate Fund (GCF)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Active
Bank Risk Rating
U
Risk rating varies among banks and may refer only to the particular investment and not to the risk for the project as a whole. Projects marked 'U' have an 'Unknown' risk rating at the time of disclosure.
Voting Date
Dec 1, 2016
The estimate day the bank will vote on a proposed investment. The decision dates may change, so review updated project documents or contact the EWS team.
Borrower
SCF Capital Solutions
The holder of the loan, grant, or other investment.
Sectors
  • Agriculture and Forestry
  • Finance
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Equity
The categories of the bank investment: loan, grant, etc.
Investment Amount (USD)
$ 12.22 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please review updated project documents for more information.
Project Cost (USD)
$ 34.15 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please see updated project documentation for more information.
Primary Source

Original disclosure @ GCF website

Updated in EWS Jul 29, 2020


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Project Description

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.

Investment Description
  • Green Climate Fund (GCF)
Contact Information

ACCESS TO INFORMATION

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