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Nadine Mather and Chloë Loubser
Business Partners launches R300m Green Fund
Business Partners has launched a R300m Green Fund which has a specific focus of financing and supporting sustainable businesses and projects which seek to positively impact on the environment and, simultaneously create wealth and jobs.
Nazeem Martin, MD of Business Partners Limited
In line with their philosophy of 'doing good' - addressing both socio-economic and environmental challenges in South Africa - the fund aims to finance and support profit-seeking businesses that operate in the 'green industry'.
"We recognise the huge market potential of the 'green economy' - opening new and growing opportunities for both large businesses and small and medium enterprises (SMEs) alike," says Nazeem Martin, MD of Business Partners Limited, who was speaking at the launch event in Cape Town.
"The Fund seeks to develop, grow and invest in sustainable businesses, enabling them to capitalise on opportunities in the 'green economy' - especially in the clean and green technology, renewable energy, recycling sectors - and deliver on its inherent job and wealth creation potential."
Carbon-intensive economy
"South Africa is one of the world's most carbon-intensive economies, reported to account for nearly half of Africa's carbon emissions, and the twelfth largest carbon emitter globally. Given its rich alternative energy sources, the country has the potential to reduce its unsustainable levels of carbon emissions through increasing the renewable component of its energy supply mix. And, the knock-on effect for economic growth and job creation from investing in these new alternative energy sectors will be substantial," Martin explains.
Government is seeking to achieve a 34% reduction in domestic greenhouse gas emissions by 2020 and 42% by 2025, and the New Growth Path Framework aims to create 300,000 additional direct jobs by 2020 in an effort to green the economy.
"Such initiatives and policy frameworks require huge capital investments, creating space and opportunities for large businesses. But, simultaneously, opportunities arise for SMEs within the component manufacturing and service industry sectors as higher levels of local content is specified and required within government's policy framework. Finally, a great deal of innovation is required from private sector financiers to seize the market opportunity created by government's green economy plans and policy frameworks," says Martin.
Saving the planet
The Fund will provide expansion capital, as well as start-up funding and property finance from R500,000 and up to R30m. Martin explains that the type of businesses it will finance is diverse. "We are seeking to finance businesses which actively develop, manufacture and provide goods and services aimed at 'saving the planet', as well as those businesses that are 'doing the right thing' by implementing measures and/or technology which reduce their adverse impact on the environment."
Businesses that qualify for finance from the Fund will therefore range from renewable energy providers to energy or emissions savings product and service providers, to recyclers, waste managers and green building service and product providers. The Fund will also consider financing businesses working to conserve natural resources, protect ecosystems and biodiversity and businesses producing healthier food sources.
The fund will have a dedicated team to support with the application process and entrepreneurs will have access to dedicated industry specific specialists. A R50,000 interest free loan is also available to qualifying entrepreneur for technical assistance.
