CFA South Africa Initiates Phase 3 to Drive Climate Change Solutions, Investment

The Climate Finance Accelerator South Africa (CFA) has embarked on its third phase, unveiling a mission to identify projects dedicated to combatting climate change and ready to receive capacity-building support, with the goal of attracting investments.

The CFA, funded by the UK Government, is seeking projects in the energy, water, smart agriculture, clean transport, waste, forestry, and circular economy sectors.

In a statement released by Greencape, it was emphasized that projects at least in the pre-feasibility stage and requiring a minimum of USD$4 million are encouraged to apply.

The CFA initiative, supported and promoted by the UK Government, is implemented in South Africa by the National Business Initiative (NBI) and GreenCape as local partners.

Its core focus is to facilitate investment and innovative technology to accelerate South Africa’s transition to a net-zero economy by 2050.

The call for project proposals is open from 9 October to 17 November, and interested parties are encouraged to complete the online application.

Selected projects will receive comprehensive support from a team of technical and financial experts, assisting them in securing investment.

This support includes enhancing financial models, guidance on presenting proposals to potential investors, and incorporating principles of gender equality and social inclusion, thus supporting disadvantaged communities and women within their business strategies.

An essential aspect of this phase is to ensure the long-term integration of the CFA within South Africa’s climate finance landscape, ensuring continuous support for low-carbon projects in the years to come.

Antony Phillipson, the British High Commissioner, expressed his delight about the CFA’s opening for applications, affirming the UK’s commitment to supporting South Africa’s transition to a just and sustainable future.

The CFA has played a pivotal role in fostering investment in climate-smart projects, contributing to significant successes.

Shameela Soobramoney, CEO of the National Business Initiative (NBI), emphasized the importance of supporting climate-smart small and medium enterprises (SMMEs) as part of South Africa’s path to achieving net-zero emissions by 2050.

She stressed that SMME project developers require robust support to attract investment and integrate the CFA approach into the country’s climate commitments.

Mike Mulcahy, CEO of GreenCape, celebrated the achievements of the CFA’s previous phases, highlighting that 28 companies had received support, raising about R1.5 billion for projects aimed at fostering green economic growth and development.

In the initial two phases of the CFA South Africa, 28 projects were provided with technical, financial, gender equality, and social inclusion support.

These projects also engaged with local and international investors, resulting in approximately R1.5 billion in green finance commitments (approximately US $63 million).