The document discusses the role of the Development Bank of Southern Africa (DBSA) in mobilizing financing for green economy projects through mechanisms like the National Green Fund. It describes the types of funding and financing instruments provided by the Green Fund, including grants, loans, and equity, to support initiatives that promote renewable energy, low carbon development, and environmental management. The Green Fund aims to facilitate South Africa's transition to a greener economy through strategic investments across key sectors.
Presentation by Muhammed Sayed, DBSA - OECD Focus Group Discussion: Developing a green finance facility to catalyse private investment, 27 October 2020
Dian Lestari, BFK, Ministry of Finance - Green Finance Facility to Support Cl...OECD Environment
Presentation by Dian Lestari, BFK, Ministry of Finance - OECD Focus Group Discussion: Developing a green finance facility to catalyse private investment, 27 October 2020
A Public Private Partnership Approch to Climate FinanceAldo Baietti
The detrimental effects of climate change are growing, yet investments in clean technologies are still grossly insufficient, making it necessary to re-think how these projects should be evaluated, structured and financed in order to render them viable and attractive opportunities to polluting alternatives. Existing approaches lack key features in order to adequately address the key financing challenges of these investments, and do not utilize public support to its maximum effectiveness. The international community is essential in resolving this financing challenge, and host governments need to create an environment that levels the playing field for green investments vis-à-vis their conventional alternatives. The Green Infrastructure Finance Framework places clean investments in a commonly understood framework of structured finance with public finance components, as in many hybrid PPPs. The framework includes four
main elements: (i) a viability gap methodology for evaluating, structuring and equitably allocating financing responsibilities to different private and public parties; (ii) linkage to a country’s PPP’s procurement and regulatory framework along with an MRV component for ensuring the service obligations of projects; (iii) measures for addressing the adequacy of the climate for these investments; and (iv) a financing and advisory interface for allocating a wide variety of public sources of financing in a coherent fashion.
Presentation by Muhammed Sayed, DBSA - OECD Focus Group Discussion: Developing a green finance facility to catalyse private investment, 27 October 2020
Dian Lestari, BFK, Ministry of Finance - Green Finance Facility to Support Cl...OECD Environment
Presentation by Dian Lestari, BFK, Ministry of Finance - OECD Focus Group Discussion: Developing a green finance facility to catalyse private investment, 27 October 2020
A Public Private Partnership Approch to Climate FinanceAldo Baietti
The detrimental effects of climate change are growing, yet investments in clean technologies are still grossly insufficient, making it necessary to re-think how these projects should be evaluated, structured and financed in order to render them viable and attractive opportunities to polluting alternatives. Existing approaches lack key features in order to adequately address the key financing challenges of these investments, and do not utilize public support to its maximum effectiveness. The international community is essential in resolving this financing challenge, and host governments need to create an environment that levels the playing field for green investments vis-à-vis their conventional alternatives. The Green Infrastructure Finance Framework places clean investments in a commonly understood framework of structured finance with public finance components, as in many hybrid PPPs. The framework includes four
main elements: (i) a viability gap methodology for evaluating, structuring and equitably allocating financing responsibilities to different private and public parties; (ii) linkage to a country’s PPP’s procurement and regulatory framework along with an MRV component for ensuring the service obligations of projects; (iii) measures for addressing the adequacy of the climate for these investments; and (iv) a financing and advisory interface for allocating a wide variety of public sources of financing in a coherent fashion.
CCCXG Global Forum March 2017 CIF experience in financing long-term low GHG ...OECD Environment
CCCXG Global Forum March 2017 CIF experience in financing long-term low GHG emission development strategies and enhancing climate resilience by Chris Head
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Presentation by James Ranaivoson at the Global Landscapes Forum 2015, in Paris, France alongside COP21. For more information go to: www.landscapes.org.
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On 5-6 December, Tashkent hosted a workshop on renewable energy (RE) policy development jointly organized by the Government of Uzbekistan and the World Bank Group (WBG) in partnership with the International Renewable Energy Agency (IRENA). The presentation was delivered during the above-mentioned event.
Supporting climate-resilient low-emission development NAP Events
Presentation by: Clifford Polycarp & Juan Hoffmaister
6a. Overview of the GCF and how countries can engage: Interactive session with the countries
The session is intended for the countries to get the latest information on how best they can engage with the GCF in order to access funding for the formulation and implementation of NAPs. This would be based on the mandates from the COP for the GCF to support the formulation of NAPs and the implementation of policies, projects and programmes identified in them, and the latest decisions of the GCF Board on support to NAPs. The session will start with an introductory presentation by the GCF Secretariat, followed by interactive discussions.
A workshop was held in the IFSC on December 8th 2016, looking at financial incentives to promote citizen investment in renewable energy. The workshop was organised by Dr. Celine McInerney, Cork University Business School, and Joseph Curtin, UCC. It was funded by the EPA Research programme.
A workshop was held in the IFSC on December 8th 2016, looking at financial incentives to promote citizen investment in renewable energy. The workshop was organised by Dr. Celine McInerney, Cork University Business School, and Joseph Curtin, UCC. It was funded by the EPA Research programme.
CCCXG Global Forum March 2017 CIF experience in financing long-term low GHG ...OECD Environment
CCCXG Global Forum March 2017 CIF experience in financing long-term low GHG emission development strategies and enhancing climate resilience by Chris Head
Mobilising finance for integrated landscape initiatives three scalable financ...CIFOR-ICRAF
Presentation by James Ranaivoson at the Global Landscapes Forum 2015, in Paris, France alongside COP21. For more information go to: www.landscapes.org.
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On 5-6 December, Tashkent hosted a workshop on renewable energy (RE) policy development jointly organized by the Government of Uzbekistan and the World Bank Group (WBG) in partnership with the International Renewable Energy Agency (IRENA). The presentation was delivered during the above-mentioned event.
Supporting climate-resilient low-emission development NAP Events
Presentation by: Clifford Polycarp & Juan Hoffmaister
6a. Overview of the GCF and how countries can engage: Interactive session with the countries
The session is intended for the countries to get the latest information on how best they can engage with the GCF in order to access funding for the formulation and implementation of NAPs. This would be based on the mandates from the COP for the GCF to support the formulation of NAPs and the implementation of policies, projects and programmes identified in them, and the latest decisions of the GCF Board on support to NAPs. The session will start with an introductory presentation by the GCF Secretariat, followed by interactive discussions.
A workshop was held in the IFSC on December 8th 2016, looking at financial incentives to promote citizen investment in renewable energy. The workshop was organised by Dr. Celine McInerney, Cork University Business School, and Joseph Curtin, UCC. It was funded by the EPA Research programme.
A workshop was held in the IFSC on December 8th 2016, looking at financial incentives to promote citizen investment in renewable energy. The workshop was organised by Dr. Celine McInerney, Cork University Business School, and Joseph Curtin, UCC. It was funded by the EPA Research programme.
Presentació de Sonia Medina, Directora de Canvi Climàtic. Children’s Investment Fund
Foundation en el marc del Side Event “Practical approach to climate finance" organitzat per l'Oficina Catalana del Canvi Climàtic i ACCIÓ de la Generalitat de Catalunya durant la Carbon Expo 2015
This presentation by Dr. Cristina Rumbaitis del Rio gives an overview of the state of donor financing for urban climate change resilience. She shares the latest trends in multilateral, bilateral and philanthropic financing for resilience projects. It also shares some tips for NGOs can keep in mind when accessing these resources.
Please visit www.acccrn.net to learn more and connect with fellow practitioners working to build climate change resilience across Asia!
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Water-related investments are key for sustainable development and inclusive growth. Blended finance can play a critical role in mobilising commercial finance and strengthening the financing systems on which water-related investments rely on. Water flows as a prerequisite through every one of the sustainable development goals (SDGs), especially those on food security, healthy lives, energy, sustainable cities and marine and terrestrial ecosystems.
We need a water low-carbon resilient infrastructure. Delivering these environmental ambitions will require historic scaling of financing on water related investments. These requires using existing sources of finance more strategically.
On 9 Sept 2019, Kathleen Dominique of the Environment Directorate OECD and Wiebke Bartz-Zuccala of the Development Co-operation Directorate OECD, discussed ongoing OECD work on blended finance and what has worked in the past as well as the potential to scale up blended finance approaches to apply to a broader range of investment types and contexts.
Watch the video recording of the Green Talk: https://www.youtube.com/watch?v=c2cO5F5gg2g&t=50s
Find out more: http://www.oecd.org/environment/making-blended-finance-work-for-sdg-6-5efc8950-en.htm
The IDH Aquaculture Program supports fish farmers to implement more responsible practices, so they can meet buying requirements of their clients. The Program aims for measurable and meaningful improvements on relevant environmental and social sustainability issues while respecting food safety requirements.
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Epcon is One of the World's leading Manufacturing Companies. With over 4000 installations worldwide, EPCON has been pioneering new techniques since 1977 that have become industry standards now. Founded in 1977, Epcon has grown from a one-man operation to a global leader in developing and manufacturing innovative air pollution control technology and industrial heating equipment.
Willie Nelson Net Worth: A Journey Through Music, Movies, and Business Venturesgreendigital
Willie Nelson is a name that resonates within the world of music and entertainment. Known for his unique voice, and masterful guitar skills. and an extraordinary career spanning several decades. Nelson has become a legend in the country music scene. But, his influence extends far beyond the realm of music. with ventures in acting, writing, activism, and business. This comprehensive article delves into Willie Nelson net worth. exploring the various facets of his career that have contributed to his large fortune.
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Introduction
Willie Nelson net worth is a testament to his enduring influence and success in many fields. Born on April 29, 1933, in Abbott, Texas. Nelson's journey from a humble beginning to becoming one of the most iconic figures in American music is nothing short of inspirational. His net worth, which estimated to be around $25 million as of 2024. reflects a career that is as diverse as it is prolific.
Early Life and Musical Beginnings
Humble Origins
Willie Hugh Nelson was born during the Great Depression. a time of significant economic hardship in the United States. Raised by his grandparents. Nelson found solace and inspiration in music from an early age. His grandmother taught him to play the guitar. setting the stage for what would become an illustrious career.
First Steps in Music
Nelson's initial foray into the music industry was fraught with challenges. He moved to Nashville, Tennessee, to pursue his dreams, but success did not come . Working as a songwriter, Nelson penned hits for other artists. which helped him gain a foothold in the competitive music scene. His songwriting skills contributed to his early earnings. laying the foundation for his net worth.
Rise to Stardom
Breakthrough Albums
The 1970s marked a turning point in Willie Nelson's career. His albums "Shotgun Willie" (1973), "Red Headed Stranger" (1975). and "Stardust" (1978) received critical acclaim and commercial success. These albums not only solidified his position in the country music genre. but also introduced his music to a broader audience. The success of these albums played a crucial role in boosting Willie Nelson net worth.
Iconic Songs
Willie Nelson net worth is also attributed to his extensive catalog of hit songs. Tracks like "Blue Eyes Crying in the Rain," "On the Road Again," and "Always on My Mind" have become timeless classics. These songs have not only earned Nelson large royalties but have also ensured his continued relevance in the music industry.
Acting and Film Career
Hollywood Ventures
In addition to his music career, Willie Nelson has also made a mark in Hollywood. His distinctive personality and on-screen presence have landed him roles in several films and television shows. Notable appearances include roles in "The Electric Horseman" (1979), "Honeysuckle Rose" (1980), and "Barbarosa" (1982). These acting gigs have added a significant amount to Willie Nelson net worth.
Television Appearances
Nelson's char
Altered Terrain: Colonial Encroachment and Environmental Changes in Cachar, A...PriyankaKilaniya
The beginning of colonial policy in the area was signaled by the British annexation of the Cachar district in southern Assam in 1832. The region became an alluring investment opportunity for Europeans after British rule over Cachar, especially after the accidental discovery of wild tea in 1855. Within this historical context, this study explores three major stages that characterize the evolution of nature. First, it examines the distribution and growth of tea plantations, examining their size and rate of expansion. The second aspect of the study examines the consequences of land concessions, which led to the initial loss of native forests. Finally, the study investigates the increased strain on forests caused by migrant workers' demands. It also highlights the crucial role that the Forest Department plays in protecting these natural habitats from the invasion of tea planters. This study aims to analyze the intricate relationship between colonialism and the altered landscape of Cachar, Assam, by means of a thorough investigation, shedding light on the environmental, economic, and societal aspects of this historical transformation.
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Discover top strategies for effective sustainable waste management, including product removal and product destruction. Learn how to reduce, reuse, recycle, compost, implement waste segregation, and explore innovative technologies for a greener future.
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The carbon cycle is a critical component of Earth's environmental system, governing the movement and transformation of carbon through various reservoirs, including the atmosphere, oceans, soil, and living organisms. This complex cycle involves several key processes such as photosynthesis, respiration, decomposition, and carbon sequestration, each contributing to the regulation of carbon levels on the planet.
Human activities, particularly fossil fuel combustion and deforestation, have significantly altered the natural carbon cycle, leading to increased atmospheric carbon dioxide concentrations and driving climate change. Understanding the intricacies of the carbon cycle is essential for assessing the impacts of these changes and developing effective mitigation strategies.
By studying the carbon cycle, scientists can identify carbon sources and sinks, measure carbon fluxes, and predict future trends. This knowledge is crucial for crafting policies aimed at reducing carbon emissions, enhancing carbon storage, and promoting sustainable practices. The carbon cycle's interplay with climate systems, ecosystems, and human activities underscores its importance in maintaining a stable and healthy planet.
In-depth exploration of the carbon cycle reveals the delicate balance required to sustain life and the urgent need to address anthropogenic influences. Through research, education, and policy, we can work towards restoring equilibrium in the carbon cycle and ensuring a sustainable future for generations to come.
2. Green Economy
1. The role the DBSA is playing in mobilising resources for
the roll-out of green economy projects
2. Types of Investment Agreements and Financing
Mechanisms
3. Non traditional yet flexible and responsive mechanisms
in funding green economy programmes
3. Green Economy
“an economy that results in improved human well-being and
social equity, while significantly reducing environmental risks
and ecological scarcities” UNEP (2011)
green economy driven by investments that:
• Reduce carbon emissions and pollution;
• enhance energy and resource efficiency; and
• prevent the loss of biodiversity and ecosystem services.
resilient, equitable and pro-employment development path that
reduces carbon dependency, promotes resource and energy efficiency
and lessens or prevents environmental degradation.
4. DBSA Driven green initiatives
Some of the DBSA green economy initiatives:
Implementation of SA Renewable Energy Independent
Power Producer Programme (REIPPP)
Implementation of the National Green Fund
GEF and GCF accreditation
5. Green Fund
The Green Fund is resource mechanism to contribute to a wide range of goals
of transitioning to a greener economy
Managed by the DBSA, established in 2012
R1.1 billion has been allocated to the fund to date through the Department of
Environmental Affairs
Aimed at facilitating investment in green initiatives;
To transition SA to a greener economy
To support socio-economic development
Key Objectives
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
6. |
Green Fund Financing Offering
• Funding in the form of Non-Recoverable Grants
Recoverable Grants, Loans, and Equity across the
thematic windows supports project development ,
capacity building in green initiatives and research and
development initiatives that feeds into policy and
regulatory environment for the green economy
• The Fund allocation for the three products is as follows:
6
Product Offering Allocation
Project development 75%
Capacity building 20%
Research and development 5%
7. Financial Instrument - 1
Grant (non-recoverable)
7
Allocation and/or contribution (in cash or kind)
• Agreed set of deliverables consistent with the mandate of the
Funder
• Specific conditions detailed in the Grant Agreement.
• This amount is generally not recoverable from the applicant during
any period.
8. Financial Instruments - 2
Grant (recoverable)
8
Allocation and/or contribution (in cash or kind) to an eligible recipient
• Agreed set of deliverables consistent with the mandate of the
Funder
• Specific conditions detailed in the Grant Agreement.
• This amount is generally recoverable from the applicant.
• Contingent on success, possibly linked to revenues
• Recovery of the initial amount invested and an appropriate
portion of the returns
9. Financial Instruments - 3
Loan
9
An arrangement, in which the Funder lends money to an eligible borrower (or
applicant)
• Agreed set of deliverables consistent with the mandate of the
Funder
• the borrower agrees to return the money (with interest)
through defined set of installments at a specified period in
the future
• Not contingent on success
• The terms, such as interest rates, repayment period may
be concessionary
• Determination based on Capacity/Ability to repay: aspects such as, team,
historical, current and projected operating performance.
10. Financial Instruments - 4
Equity
10
An arrangement, in which the Funder allocates money to an eligible investment
target (or applicant) as capital contribution
• in exchange for an ownership interest and
• the associated economic and voting rights
• Returns through capital gains and dividends
• Agreed set of deliverables
• Determination based on:
1) Understanding the context,
2) Understanding the business, and Industry
3) Development of business forecasts,
4) Selection of the appropriate analytical frameworks and models,
5) Conversion of forecasts into an investment model with analysis
6) Investment structuring
11. Value Chain Participation
11
Investment principles:
Catalytic participation, unlocking barriers and investment stretching across
the entire innovation value chain
Project Prep (Tech &
Product
Development)
Research & Dev
Implementation and
Launch
Expansion (Scale Up)
Typical types of value chain participation
Equity
Loans
Grants Recoverable
Technical and
Business Support
Equity
Loans
Guarantees
Technical and Business
Support
Grants
Technical and Business
Support
Grants Recoverable
Technical and Business
Support
High Impact:
Environmental,
Social and
Economic
Must fall
within funding
windows
Addition
ality
Private
Sector
Particip
ation
Sharing
of Risks
Green Fund’s Role: Catalyst for Green Economy Transition
12. Investment Philosophy
Elements include:
• Full Investment Life Cycle Opportunity Arrangement
• The Fund prefers opportunities that are packaged and arranged in
manner that demonstrates at least in principle support and
performance based commitments of follow on funding from others
• Origination
• Passive – closed calls and open calls
• Active – investment programmes
• Investment Programmes
• Very High Impact Projects
• Programmatic Approach
13. Initial Funding Focus
Based on research and extensive consultation the following
three thematic windows were identified for the initial focus
of the Green Fund
• The focus areas and eligibility criteria for each window is different and
informed by key national policies
Green Cities and
Towns
Low Carbon
Economy
Environmental
& Natural
Resource
Management
Three funding windows – not mutually exclusive
14. Green Cities and Towns
• Greening core municipal engineering services, especially where cost savings
can be realised
– Waste management and recycling, water demand management, public
transport, RE and EE on municipal buildings and infrastructure, urban greening
e.t.c
• Applicants from public and private sector, with support from relevant
municipality
• Strong emphasis on project preparation, with appropriate finance to take to
scale
Vision: well run, compact and efficient cities and towns that deliver essential services
to their residents without depleting natural resources
15. Low Carbon Economy
• Focused on climate mitigation, renewable
energy, energy efficiency, cleaner
production, sustainable transport and bio-
fuels
• Interventions include innovative structuring
of EE and RE rollout, vehicle fleet
conversions, clean production programmes
• Typical applicants include private
companies, research organisations, SMEs,
NGOs
• Regulatory support for development of
standards, SEAs
Vision: a low carbon economy that is aligned with the targets for a
peak, plateau and decline trajectory for greenhouse gas emissions
16. Environmental and Natural
Resource Management
Vision: resilient eco-system services supporting the long term
development path
• Focused on biodiversity and ecosystem management,
sustainable agriculture, fisheries, rainwater harvesting
• Demonstrate PES, convert conventional to sustainable
agriculture and replicate success
• Primary beneficiaries are farmer and community based
organisations, research organisations, private sector, NGOs
• Targeting community based enterprises as well as project
preparation for PES projects, supported by appropriate
finance
• Regulatory support on adaptation planning, biodiversity
offsets, PES, standards and eco-labelling
18. | 18
DBSA’s Role in Climate Finance: GEF
Project Summary Proposed/Requeste
d GEF Funding
Tentative
Co-financing
Agency Fees Way Forward DBSA
Interface
1. Equity Fund for
the Small Projects
Independent Power
Producer
Programme (SP-
IPPP)
DBSA has formulated a Facility for
Investment in Renewable Small
Transactions (FIRST) which will
provide debt (proposed 90%) to small
projects investors.
KfW through DBSA will contribute
€5mil (for technical assistance) and
€14mil (non-interest bearing loan) to
be blended with DBSA’s contribution
(about R1.8 billion) to capitalise
FIRST.
The proposed GEF funded Equity
Fund will provide equity (10%) to small
projects.
US$ 15million US$195,000
• DBSA
155,000,000
• KfW 20,000,000
(TA facility and
debt loan)
• Beneficiaries
15,000,000
US$1,350,000 PIF endorsed by
GEF CEO and
included in
Council Work
Programme for
June meeting.
SA
Financing –
Energy &
Environment
2. Building a
resilient and
resource efficient
Johannesburg:
Increased access to
urban services and
improved quality of
life
The proposal will foster city level
resilience, resource efficiency,
emission reductions and other co-
benefits through area-based pilot
demonstrations, systems analysis
(food), and institutionalization of
evidence-based decision making
through integrated planning.
US$ 8,000,000
(DBSA is collaborating
with UNEP to implement
this project)
US$120,000,000
(City
of Johannesburg)
US$ 365,000 PIF endorsed by
GEF CEO and
included in
Council Work
Programme for
June meeting.
SA
Financing –
Metros,
Water
Utilities
3. Unlocking
biodiversity benefits
through
development
finance in critical
catchments
To develop policy and capacity
incentives for mainstreaming
biodiversity and ecosystems values
into national, regional and local
development policy and finance:
application demonstrated in two water
catchments
US$7,200,000 30,500,000 US$650,000 PIF endorsed by
GEF CEO and
included in
Council Work
Programme for
June meeting.
Financing
Operations –
Sector
Specialist
Totals US$30,200,000 US$345,000,000 US$2,365,000
19. |
What is Green Climate Fund (GCF)?
• An operating entity of the financial mechanism of the United
Nations Framework Convention on Climate Change (UNFCCC).
• Objective: to promote the paradigm shift towards low-emission
and climate-resilient development pathways.
• Current global pledge: $10.2 billion for next 3 years
• Aims for a 50:50 balance between mitigation and adaptation
over time.
• Aims to allocate 50% adaptation funds to vulnerable countries,
least developed countries (LDCs), small island developing states
(SIDS) and African states
19
DBSA’s Role in Climate Finance: GCF
20. |
Fund’s Investment Criteria:
• Impact potential- potential of the programme/project to contribute to the achievement
of the Fund's objectives
• Paradigm shift potential- degree to which the proposed activity can catalyze impact
beyond a once-off project or programme investment
• Sustainable development potential: wider benefits and priorities, including
environmental, social, and economic co-benefits as well as gender-sensitive
development impact
• Responsive to recipients needs: vulnerability and financing needs of the beneficiary
country and population in the targeted group.
• Promote country ownership: beneficiary country ownership of and capacity to
implement a funded project or programme (policies, climate strategies and institutions)
• Efficiency & effectiveness: economic and, if appropriate, financial soundness of the
programme/project, and for mitigation-specific programmes/projects, cost-effectiveness
and co-financing
20
DBSA’s Role in Climate Finance: GCF
22. About SCF Capital Solutions
SCF Capital Solutions is an SME financing
company with specific focus on the green
economy, agriculture and corporate supply
chains involving SMEs
In Aug 2015, together with the DBSA Green
Fund and SEFA, the company will be
launching a fund for SMEs in the green
economy
23. Why SMEs struggle to get commercial bank
funding
Factors Considerations SMMEs (new businesses) Established businesses
The need for an effective
service model
Cost to serve
Skill level
Product tailoring
Over the counter service,
lower skilled service, non-
tailored solutions
Relationship managed,
higher skilled, more
tailored solutions
Credit assessment
methods
Repayability Subjective assessment of
business plan projections
Leverage and gearing ratio
assessments based on
history and projections
Equity contribution Many SMME do not have Can cover this from
retained profits
Security (Suretyship and
assets as collateral )
Many SMMEs do not have May have already created
assets
Capital costs and
profitability
Risk worthiness of client
(probability that they can
default)
High capital costs, less
profitable
Lower capital requirement,
more profitable
24. What is Supply Chain Financing (SCF)
Financing of commercial purchase and sale
transactions, especially where supplier is an SME and
buyer is a large company
The lender finances the underlying commercial
transaction, instead of the business
SCF shifts lender risk from SME supplier to either the
financing structure or the large corporate buyer
SCF has been used successfully in Europe, US and
Asia to
Provide access to finance working capital of small
suppliers
Reduce borrowing costs of small suppliers
Stabilize supply chains of large multinational companies by
ensuring their suppliers have access to working capital
25. How does it work?
Accelerate cash flows
1. Buyers issues contract to SME to provide
service or do an installation etc…
2. SME supplier delivers on the contract
3. SME suppliers invoices the Corporate
Buyer, but as is usually the case, payment
will be made in 30, 60 or 90 days.
4. SME supplier submits invoices to SCF
Capital Solutions to accelerate payment
5. SCF Capital Solutions structures the
financing
6. SCF Capital pays SME Supplier early
7. SCF Capital get paid by Corporate Buyer in
30, 60 or 90 days
Supplier1
Supplier 2
Supplier 3
Supplier n
Corporate
Buyer
SCF IT
platform
2
1
4
SCF5
6
3
7
26. How does it work?
Purchase of equipment
1. Buyer issues contract to SME
Supplier to provide service or do
an installation etc…
2. SME Supplier gets purchase
order from Buyer
3. SME Supplier applies for
financing to purchase required
equipment from SCF Capital
Solutions
4. SCF Capital Solutions structured
the financing
5. SCF Capital solutions pays the
supplier of equipment
6. Supplier of equipment delivers
equipment to SME Supplier
7. SME Supplier completes the
project
8. Corporate Buyer makes payment
Supplier1
Supplier 2
Supplier 3
Supplier n
Corporate
Buyer
SCF IT
platform
2
1
3
SCF
Supplier
4
5
7
8
6
8
27. |
Managing Risk is challenging
The level of matching contribution is used to help reduce exposure. Some good projects
may not meet matching thresholds.
Private Sector Participation could be better
Some progress has been made, however there still remains significant scope for increasing
participation of the private sector.
Follow on Funding (Full life cycle opportunity arrangement is
challenging)
Risk return characteristics including early stage of development and long period to
payback with relatively high uncertainty reduce the scope for follow on funding and support
from risk averse financial return oriented investors such as commercial banks. There is
however significant scope for support from risk tolerant multiple outcome returns oriented
investors in the mould of development finance institutions
Lessons Learnt
28. |
Effectively discharging the role of a catalytic finance mechanism
and being measured on the right performance indicators
To measure the performance of a catalytic mechanism using absolute aggregates/
indicators such as total amount of carbon emissions reduction attributable to projects
supported may be inappropriate, if the scope of focus areas/funding windows supported is
broad.
Asset Allocation
Can be very difficult to balance the portfolio and gain exposure to all the desired focus
areas owing to market characteristics. E.g limited uptake in transport
Applying Concessionary terms
Adding concessionary terms has to been done diligently and using sound analytics in order
to avoid moral hazard and the crowding out of free market participants through cheap
money.
Lessons Learnt