- The Center helps launch new — as well as grow existing — clean and green technology companies
- It offers services designed to address needs of companies developing advanced clean technology
The Climate Innovation Center South Africa was established in 2013 and joined infoDev’s network of Climate Innovation Centers in 2015 with a $1.5 million contribution from the Development Bank of Southern Africa. It provides incubation services to small and medium enterprises that focus on creating innovative solutions to climate change challenges in the country. The Center helps launch new — as well as grow existing — clean and green technology companies.
It offers a suite of services including financial, business advisory and training, access to information, and other services designed to address needs of companies developing clean technology.
The Climate Innovation Center South Africa was established through a collaboration between the Gauteng Growth and Development Agency (GGDA), The Innovation Hub, and the World Bank/infoDev’s Climate Technology Program.
- The Fund pilot will use $1-1.5m to incentivize local fund managers to invest in green businesses
- It will also establish common, pragmatic, verifiable green metrics to evaluate green outcomes
The Climate Technology Program is testing an innovative outcomes-based funding mechanism, to de-risk investments in small and growing green South African businesses. The Green Outcomes Fund will incentivize local fund managers to invest in green businesses and to report on common, pragmatic, verifiable green metrics.
Outcomes-based funding models refer to financing mechanisms in which a funder makes payments conditional on achievement of pre-agreed outcomes. In an outcomes-based or results-based payments model a “buyer” — such as a foundation, government, or international donor — makes payments in return for a desired, measurable outcome.
The Green Outcomes Fund will achieve green outcomes, encourage local fund managers to allocate greater investments to green businesses, and catalyze increased, higher quality and consistent reporting of green impacts measured in climate change adaptation or mitigation. In the next step of the pilot, $1-1.5m will be made available to the Green Outcomes Fund, which it will use to incentive local fund managers to seek out, invest in, and mentor green businesses. The pilot is implemented in partnership with the University of Cape Town’s Bertha Centre for Social Innovation and Entrepreneurship, GreenCape, and The World Wide Fund for Nature - South Africa (WWF-SA).
- The facility links global companies to local green businesses in South Africa
- The program has already assisted more than five clean-tech delegations and 40 green companies
The Climate Technology Program, in partnership with GreenCape and with the support of the government of the United Kingdom, have launched a cross-border business matchmaking facility that links global companies to local green businesses in South Africa.
By leveraging CTP and GreenCape’s expertise and connections in the local business ecosystem, the facility provides support to trade missions organized by embassies and investment promotion agencies, as well as matchmaking facilitation between foreign multinationals and South African firms. The facility identifies high-potential business partnerships through a preliminary analysis of the sector and the firms’ market needs. After conducting a first-level due diligence on the local companies identified, the facility provides interested foreign firms with curated lists of potential business matches and proceed to facilitate connections through events, meetings, seminars, and direct introductions.
To track and improve its success, the facility is monitoring the number of stakeholders expressing interest in the service, matches identified, and agreements and deals generated. During its first four months of activity, the matchmaking facility has assisted more than five clean-tech delegations and 40 green companies. Businesses have signed three letters of intent, and the facility continues to receive support requests from trade delegations.