Overall Objective

The Green Fund facilitates the transition to a green economy where market forces do not adequately value the cost to the environment through:

• Promoting innovative and high impact green programmes and projects
• Reinforcing climate policy objectives and sustainable economic development through green interventions
• Building an evidence base for the expansion of the green economy
• Attracting additional resources to support South Africa’s green economy development

Overview

The fund has been managed by the Development Bank of Southern Africa (DBSA) since 2012 following a Memorandum of Agreement (MoA) with the Department of Forestry, Fisheries and Environment (DFFE).

An initial funding of R1.1 billion was allocated to the fund by National Treasury through the DFFE. 

The assets, liabilities and operational management of the Green Fund have been transferred to the DBSA from 1 April 2020

DFFE continues to be represented in the Green Fund Strategic Steering Committee which provides strategic guidance to achieve agreed upon performance targets of Green Fund. 

Funding Criteria

The Green Fund, which supports projects in South Africa can provide funding of: 

Up to R25m for project preparation support/feasibilities and technical support
Up to R70 for investment funding. 
The funding limits of the Green Fund refer only to the partial funding of the project total where the rest can be funded by other a mix of other stakeholders.

Typical applicants include private companies, SMEs, M2/3 municipalities, Metros, Provincial governments, SOEs, NGO’s, Research Institutions and Universities. 

Key Selection Criteria

• South Africa National priority: Does the project support NDC and/or SDG targets.
• Sector or Strategic Fit: Is the project within the priority focus areas with clear environmental benefits.
• Leverage: Does the project sufficiently leverage, off important environmental/ climate policies in South Africa in accordance with country priorities.
• Scalability: Does the project facilitate mobilisation of investment in an area which can result in other similar projects being initiated
• Development Impact:
  • Potential for the project to improve the public goods and services to be delivered through the project to citizens.
  • Support to reduction of inequalities in South Africa and improvement of local development capacities and increased access to services.
  • Support to the development of the local labour market and improved opportunities for employment and green skills development.
  • Promotion of sustainable socio-economic development, with a particular focus to stimulate social and economic growth.
  • Capacity of the Project Sponsor to oversee and implement the project.
  • Financial as well as management capacity of the Project Sponsor for operation and maintenance
  • Data quality / availability: Available project information needs to be robust for further consideration
  • Commitment of the sponsor: Highest decision-making authority is in support of the project.
  • Investment value of the project.
  • Support to higher risk activities for which access to finance is limited by providing products on offer to mitigate repayment risks.
  • Co-funding: Degree of Sponsor / partners participation in co-funding the project and to ensure donor harmonisation and alignment and complementarity of investments at national and regional level.

Tenure

The Green Fund supports Project funding for up to 15 years adjusted to match the economic and risk profile of the project. 

Product Offering

Funding products are matched to the stage of the business/project

Enquiries

To apply for funding, send an electronic introduction of the project to greenfund@dbsa.org. The introduction should include:

• Incorporation certificate 
• Comprehensive business plan  
• Latest audited annual financial statements
• Financial projections for at least three years

Disclaimer

Please note that applications will be required to demonstrate commercial viability and will be assessed through a competitive process. The Fund will also consider projects which are in advanced stages of development and are strategically aligned with the objectives of the fund and demonstrate strong potential to reach bankability with the support of the DBSA. The DBSA has the sole discretion to respond to multiple agency objectives in making its selection, including climate and environmental impact and gender mainstreaming potential for the project.