Impact Amplifier to Launch $8.6m Cleantech Debt Fund in South Africa

Key Takeaways

The launch of the Cleantech Debt Fund reflects a growing effort to mobilise climate-focused capital for small and medium-sized enterprises (SMEs) in South Africa. While the country is Africa’s most industrialised economy, its energy mix remains dominated by coal, and cleantech startups face barriers in accessing growth finance. Early-stage equity is limited, and commercial lenders often perceive cleantech SMEs as high-risk. By introducing a debt facility with blended finance features, GCIP and Impact Amplifier are attempting to unlock a missing middle of capital between small grants and large infrastructure financing. This approach could help SMEs move beyond proof-of-concept, demonstrate commercial viability, and attract follow-on private investment. The initiative also aligns with South Africa’s policy priorities around energy transition and green industrialisation, particularly as the government seeks to meet emissions reduction targets and expand job creation through renewable energy and efficiency projects. If successful, the Cleantech Debt Fund could set a precedent for similar funds across Africa, where the demand for climate-smart financing is accelerating and SMEs play a critical role in delivering local solutions.