On Wednesday, Cape Town-based risk financier, Business Partners Ltd, launched a ZAR300 million ($22 million) Green Fund to drive financially secure businesses and projects, which contribute towards economic growth and a cleaner environment.
Developing a greener economy
Addressing stakeholders at the launch in Cape Town, managing director of Business Partners Ltd, Nazeem Martin said: “We recognise the huge market potential of the green economy opening new and growing opportunities for both large businesses and small and medium enterprises alike.”
The Green Fund is looking to invest in sustainable businesses, helping them to recognise and take advantage of the many green opportunities, the African News Agency reported.
Martin highlighted the Department of Economic Development’s New Growth Path, which states that the green economy is one of the top six priority industries to boost the countries job creation target of 5 million by 2020.
Reducing carbon emissions
According to Martin, South Africa is the 12th largest carbon emitter globally, responsible for nearly 50% of Africa’s carbon emissions, the African News Agency said.
Martin said: “Given its rich alternative energy sources, the country has the potential to reduce its unsustainable levels of carbon emissions through increasing the renewable (solar, wind and, to a lesser extent, hydro) 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.”
With government’s target to reduce domestic greenhouse gas emissions by 34% by the year 2020, it intends to create many jobs in the process.
Martin added that: “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”.
Opening doors of opportunity
According to media, the Green Fund would enable start-up clean power companies to have access to industry-specific specialists, including funding, expansion capital and property finance from ZAR500,000 ($38,166) and up to ZAR30 million ($2 million).
Martin concluded: “Ultimately we want to support those businesses that are making a difference.”