The FCDO invites proposals for accountable grant funding from qualified financial service providers or fund managers to design and operate a not-for-profit intervention to deliver blended finance on concessional terms tailored to the needs of SMEs at early, growth, and scale-up stages in Mpumalanga.
It is envisaged the supplier will use UK grant finance to provide access to finance to underserved green economy SMEs in Mpumalanga, South Africa, providing a pathway to scale by leveraging commercial capital.
Concessionality could include flexible collateral, longer tenors or grace periods, or reduced lending costs through risk-mitigating structures like first-loss capital. Applicants should propose the features they find most suitable.
The financing will target green transition-aligned SMEs lacking access to appropriate finance, with the goal of mobilising private investment, boosting investor confidence, and improving SME bankability at scale. Over time, it is envisaged that repaid capital should be recycled to support additional SMEs, but applicants may suggest alternative strategies to maximise reach and impact.
What the fund will achieve
The fund will help increase economic diversification and resilience in Mpumalanga by supporting the growth of Just Energy Transition Partnership (JETP)-aligned SMEs, leading to higher employment rates. It will expand access to finance for high growth potential SMEs in green and job-creating sectors, creating sustainable jobs, including for women.
The fund will mobilise private climate finance, contributing to South Africa JETP programme targets on job creation, private climate finance mobilisation and introduction or expansion of green or transition-aligned products and services.
Requirements for organisations wishing to apply
The requirements are set out in full in the calls for proposals document.
Proposals should demonstrate:
- Delivery model: propose a not-for-profit blended-finance intervention to deploy concessional capital, mobilise private investment, and support SME growth in Mpumalanga.
- Additionality: demonstrate how your model provides catalytic financing beyond existing options for underserved SMEs.
- Programme activities: outline key activities, capital deployment, private investment mobilisation targets, and SME support with timelines.
- Technical skills: show experience in blended-finance and SME programmes, with proven capability in underserved markets.
- Programme management: detail systems for due diligence, financial oversight, capital recycling, and value-for-money delivery.
- Results framework: include inputs, outputs, and outcome targets aligned with South Africa Just Energy Transition Partnership’s Logframe, focusing on jobs, SME growth, and climate finance.
- Monitoring, evaluation and learning (MEL): ensure robust monitoring, reporting, and learning systems that meet Foreign, Commonwealth & Development Office requirements and integrate with Just Energy Transition Partnership reporting.
- Due Diligence: demonstrate appropriate systems to manage public funds responsibly, including financial controls, audit processes, and anti-fraud measures.
- Duty of Care: guarantee safety and security arrangements for all personnel and partners involved in delivery.
- UK Aid branding: comply with United Kingdom Aid branding and visibility requirements during programme implementation.
- Safeguarding: maintain effective safeguarding policies to prevent harm and meet Foreign, Commonwealth & Development Office’s sexual exploitation, abuse and harassment standards.
- Gender equality: integrate gender considerations into all activities, monitoring, and reporting as in the 2014 Act.
How to apply
Interested organisations should carefully read the programme documentation:
Proposals must be no more than 12 pages (excluding the risk register and CVs) using Arial font size 12. The total submission must not exceed 30 pages, including:
- risk register (structured list of key delivery risks, their likelihood and impact, and the applicant’s proposed mitigation actions)
- CVs
Email [email protected]
The FCDO invites proposals for accountable grant funding from qualified financial service providers or fund managers to design and operate a not-for-profit intervention to deliver blended finance on concessional terms tailored to the needs of SMEs at early, growth, and scale-up stages in Mpumalanga.
It is envisaged the supplier will use UK grant finance to provide access to finance to underserved green economy SMEs in Mpumalanga, South Africa, providing a pathway to scale by leveraging commercial capital.
Concessionality could include flexible collateral, longer tenors or grace periods, or reduced lending costs through risk-mitigating structures like first-loss capital. Applicants should propose the features they find most suitable.
The financing will target green transition-aligned SMEs lacking access to appropriate finance, with the goal of mobilising private investment, boosting investor confidence, and improving SME bankability at scale. Over time, it is envisaged that repaid capital should be recycled to support additional SMEs, but applicants may suggest alternative strategies to maximise reach and impact.
What the fund will achieve
The fund will help increase economic diversification and resilience in Mpumalanga by supporting the growth of Just Energy Transition Partnership (JETP)-aligned SMEs, leading to higher employment rates. It will expand access to finance for high growth potential SMEs in green and job-creating sectors, creating sustainable jobs, including for women.
The fund will mobilise private climate finance, contributing to South Africa JETP programme targets on job creation, private climate finance mobilisation and introduction or expansion of green or transition-aligned products and services.
Requirements for organisations wishing to apply
The requirements are set out in full in the calls for proposals document.
Proposals should demonstrate:
- Delivery model: propose a not-for-profit blended-finance intervention to deploy concessional capital, mobilise private investment, and support SME growth in Mpumalanga.
- Additionality: demonstrate how your model provides catalytic financing beyond existing options for underserved SMEs.
- Programme activities: outline key activities, capital deployment, private investment mobilisation targets, and SME support with timelines.
- Technical skills: show experience in blended-finance and SME programmes, with proven capability in underserved markets.
- Programme management: detail systems for due diligence, financial oversight, capital recycling, and value-for-money delivery.
- Results framework: include inputs, outputs, and outcome targets aligned with South Africa Just Energy Transition Partnership’s Logframe, focusing on jobs, SME growth, and climate finance.
- Monitoring, evaluation and learning (MEL): ensure robust monitoring, reporting, and learning systems that meet Foreign, Commonwealth & Development Office requirements and integrate with Just Energy Transition Partnership reporting.
- Due Diligence: demonstrate appropriate systems to manage public funds responsibly, including financial controls, audit processes, and anti-fraud measures.
- Duty of Care: guarantee safety and security arrangements for all personnel and partners involved in delivery.
- UK Aid branding: comply with United Kingdom Aid branding and visibility requirements during programme implementation.
- Safeguarding: maintain effective safeguarding policies to prevent harm and meet Foreign, Commonwealth & Development Office’s sexual exploitation, abuse and harassment standards.
- Gender equality: integrate gender considerations into all activities, monitoring, and reporting as in the 2014 Act.
How to apply
Interested organisations should carefully read the programme documentation:
Proposals must be no more than 12 pages (excluding the risk register and CVs) using Arial font size 12. The total submission must not exceed 30 pages, including:
- risk register (structured list of key delivery risks, their likelihood and impact, and the applicant’s proposed mitigation actions)
- CVs
Email [email protected]
This article was originally published on https://www.gov.uk/international-development-funding/catalytic-finance-to-green-economy-smes-in-mpumalanga-south-africa. It is shared here under a Creative Commons license.
