The world urgently needs to move towards models where economic growth is decoupled from natural resource use and climate mitigation pathways. In South Africa, this means investment in businesses that can generate verifiable green outcomes whilst creating jobs, including in energy, water, waste, infrastructure and land management.
SMMEs are the backbone of the economy, creating jobs, uplifting communities, and supporting economic development. Green SMMEs do all this while also creating positive and sustainable effects on the environment. Despite their potential for significant impact on society and the planet, they face significant challenges in accessing the investment capital they need to grow and scale. Local investors associate high risks and costs with green SMMEs – a new, early-stage, untested market.
Through a partnership officially signed on 31 January 2020 between National Treasury’s Jobs Fund and GreenCape, the Green Outcomes Fund (GOF) provides outcomes-based matched (concessional) funding to local investment funds (our Catalytic Finance Partners) to support investments into local SMMEs that make a demonstrable contribution to South Africa’s green economy, as well as job and enterprise creation in priority impact areas. This is also made possible by catalytic support from the RMB Fund (part of the FirstRand Foundation).