A Cleantech Debt Fund worth ZAR150 million (US$8.6 million) will be launched by Impact Amplifier, the second executing entity for the Global Cleantech Innovation Programme (GCIP) in South Africa, in partnership with its partners.
The GCIP is a worldwide program of the Global Environment Facility (GEF) and the United Nations Industrial Development Organization (UNIDO). In South Africa, the Technology Innovation Agency (TIA), a division of the Department of Science, Technology, and Innovation (DSTI), serves as the primary executing organization for the project.
By removing regulatory and market obstacles, GCIP encourages cleantech innovation and entrepreneurship, assisting low- and middle-income nations in their transition to more resilient and environmentally friendly economies.
As the program’s second executing entity in South Africa, Impact Amplifier will work with the partners to establish a Cleantech Debt Fund worth ZAR150 million (US$8.6 million).
In order to improve the capacity of high-impact cleantech SMEs to grow and contribute to the innovation economy while generating green jobs, the new fund is being developed to close the early-stage funding gap. Additionally, Impact Amplifier and TIA will collaborate to provide the GCIP South Africa with a variety of ecosystem development and capacity support services.
“This partnership with Impact Amplifier supports the efforts of TIA and UNIDO to realise the cleantech innovation potential of South African entrepreneurs. By advancing the acceleration of impact-driven cleantech solutions nationally, the project is contributing to a greener, more resilient economy in South Africa and setting a benchmark for other regions,” said Karin Reiss-Haimbala, GCIP South Africa project manager at UNIDO.
Using a blended finance model, the new fund will focus on cleantech businesses with South African headquarters that are scalable and post-revenue. Impact Amplifier will be responsible for the fund’s establishment as well as for helping South African cleantech startups with commercialization and investment readiness. In order for promising cleantech solutions to reach significant market penetration and sustainability, this initiative will help them advance past the proof-of-concept stage.
“At Impact Amplifier, we are excited to help develop the cleantech ecosystem through GCIP and increase access to capital for SMEs, with the introduction of a new fund. Our collaboration with UNIDO and TIA is a major step towards achieving impactful social and environmental change through entrepreneurship,” said Impact Amplifier director Max Pichulik.
