Strengthening access to inclusive finance for local green entrepreneurs in South Africa

Local Green Entrepreneurs (LGEs) are increasingly responding to climate change and conscious consumer demands for green products, technologies and services across all economic sectors. Small Medium and Micro Enterprises (SMMEs) in South Africa are actively contributing to lowering carbon emissions by reducing their water usage, becoming more energy efficient, adopting renewable energy inputs, and managing their waste more responsibly. Policy support, however, is limited in its ability to deal with a range of barriers that LGEs face, such as market barriers, financial barriers, burdensome or inadequate regulations, absence of law, and lack of governmental support. This Policy Brief looks at barriers that LGEs face and highlights areas that policymakers are best placed to address. One of the most critical barriers that this brief will examine is access to inclusive finance, including recommendations and examples of innovative finance mechanisms.