Scaling green SMMEs: Identifying and implementing post investment support

This case study examines a six-month post-investment support pilot project for green small, medium and microsized enterprises (SMMEs) in South Africa, implemented by the Green Outcomes Fund (GOF) in collaboration with the Anglo American Foundation (AAF). The project identifies critical barriers to scaling green businesses—specifically recruitment, professionalisation, and marketing—and tests targeted interventions to move SMMEs into their next growth phase.

• Climate finance in South Africa needs to increase by three to five times the current annual average of R131 billion to reach net zero goals by 2050, meaning one-off investments are insufficient for scaling green SMMEs.
• Green SMMEs face significant barriers to growth, most notably the high cost of acquiring and retaining skilled middle and upper-tier management (such as CFOs, COOs, and HR Managers). This is exacerbated by the fact that academic institutions do not produce graduates with the specialised skills required for the green sector, and trained staff are often headhunted by larger institutions offering higher salaries.
• A six-month pilot project involving three circular economy SMMEs implemented support strategies focused on recruitment (Board Chair, CTO, CFO), embedding middle management, lean operations, research and development, and marketing.
• The pilot project resulted in revenue increases for all participating SMMEs ranging from 10% to 114% above baseline. It led to the creation of 735 direct jobs (100 permanent and 635 seasonal/fixed term) and 818 indirect jobs, while reaching over 1,200 customers and seven new local and international investors.
• The project demonstrated that skills development through learnerships and training programmes for 28 employees improved morale, enabled internal career progression, and shifted the broad-based black economic empowerment (BBBEE) ratings of the SMMEs, potentially qualifying them for further grants.
• The case study recommends extending the project implementation period to at least one year to allow for the review and adaptation of project plans and to include SMMEs from the energy sector, who were excluded from the pilot due to the short timeframe.

APA

GreenCape (n.d.). Scaling green SMMEs: Identifying and implementing post investment support. https://greencape.co.za/wp-content/uploads/2024/03/Post-investment-support-for-green-SMMEs_AAF_2024.pdf

Chicago

GreenCape. Scaling green SMMEs: Identifying and implementing post investment support. n.d. https://greencape.co.za/wp-content/uploads/2024/03/Post-investment-support-for-green-SMMEs_AAF_2024.pdf.

Wikipedia

{{cite report |author=GreenCape |title=Scaling green SMMEs: Identifying and implementing post investment support |url=https://greencape.co.za/wp-content/uploads/2024/03/Post-investment-support-for-green-SMMEs_AAF_2024.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{greencapendscaling, author = {{GreenCape}}, title = {{Scaling green SMMEs: Identifying and implementing post investment support}}, institution = {GreenCape}, url = {https://greencape.co.za/wp-content/uploads/2024/03/Post-investment-support-for-green-SMMEs_AAF_2024.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }