Consideration of funding proposals – Addendum II Funding proposal package for FP029

The proposal seeks US$12.222 million from the Green Climate Fund (GCF) as part of a total investment of US$34.148 million to establish a fund for green MSMEs in South Africa. The project utilizes supply chain finance (SCF), where credit decisions are based on the creditworthiness of the buyer rather than the MSME, to overcome chronic lack of access to finance due to insufficient collateral and track records. The fund targets sectors including renewable energy, sustainable agriculture, and energy efficiency, aiming to reduce lifetime CO2 emissions by 33,001,833 tons and support over 30,000 jobs. The Development Bank of Southern Africa (DBSA) serves as the accredited entity, with SCF Capital Solutions as the fund manager.

• The project requests US$12.222 million from the GCF, representing 36% of the total required funding of US$34.148 million (approximately R461 million).
• The primary objective is to address the 'chronic lack of access to finance' for green MSMEs, who are often unable to secure traditional bank loans due to a lack of collateral and financial history.
• The fund employs supply chain financing, a mechanism where credit approval is based on the 'credit worthiness of the buyer' and the overall supply chain strength rather than the MSME's own balance sheet.
• The project targets a lifetime reduction of 33,001,833 tons of CO2 equivalent, with an annual reduction target of 132,920 tons.
• The program aims to support over 30,000 jobs, with an estimated 20% being new jobs created through financing for start-up businesses.
• The fund has specific gender targets, aiming for 45% of the financing to be accessed by women entrepreneurs, with a goal to grow this beyond 50% after five years.
• The project focuses on several priority green sectors, including solar PV, biofuels, sustainable water management, energy efficiency, and sustainable agriculture.
• The fund intends to 'crowd in' private sector investment by using GCF funds to build a track record and asset base that makes returns attractive to private investors, who typically seek an IRR above 20.7%.
• The project utilizes the 'Eximbills' cloud-based platform from China Systems to manage high-volume transactions and reduce operational risks.

APA

Green Climate Fund (2016). Consideration of funding proposals – Addendum II Funding proposal package for FP029. https://www.greenclimate.fund/sites/default/files/document/gcf-b15-13-add02-rev01.pdf

Chicago

Green Climate Fund. Consideration of funding proposals – Addendum II Funding proposal package for FP029. 2016. https://www.greenclimate.fund/sites/default/files/document/gcf-b15-13-add02-rev01.pdf.

Wikipedia

{{cite report |author=Green Climate Fund |title=Consideration of funding proposals – Addendum II Funding proposal package for FP029 |date=1 December 2016 |url=https://www.greenclimate.fund/sites/default/files/document/gcf-b15-13-add02-rev01.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{greenclimatefund2016consideration, author = {{Green Climate Fund}}, title = {{Consideration of funding proposals – Addendum II Funding proposal package for FP029}}, institution = {Green Climate Fund}, year = {2016}, month = dec, url = {https://www.greenclimate.fund/sites/default/files/document/gcf-b15-13-add02-rev01.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }