The German Development Bank (The KfW), is a German government-owned development bank. It finances and supports programmes and projects that mainly involve public sector players in developing countries and emerging economies – from their conception and execution to monitoring their success.
Their goal is to help their partner countries fight poverty, maintain peace, protect both the environment and shape globalisation in an appropriate way. To this end its largest subsidiary, KfW IPEX-Bank GmbH, lends to many countries around the world.
In 2011, the KfW, together with South Africa’s Industrial Development Corporation (IDC), established the Green Energy Efficiency Fund, a R 500 million fund for energy efficiency and renewable-energy projects. The GEEF supports projects that will provide significant energy savings and/or emissions reductions.
Companies in this arena can borrow R1 million to R50 million rand at two percentage points less than the prime lending rate. If your company has than 201 employees, revenue of less than R51 million or assets of less than R55 million, then you are eligible to eligible to apply.
The Green Energy Efficiency Fund (GEEF)
Energy Efficiency is a MUST for South African companies based on the rising cost of electricity. Thus investments are encouraged in energy efficiency and renewable energy projects aimed at improving energy efficiency facilitating South Africa’s transition towards a low-carbon economy.
The energy and related cost savings will drive improved production capacity, operational effectiveness and competitiveness resulting in job creation.
The Green Energy Efficiency Fund (GEEF) supports the introduction of energy efficiency and self-use renewable energy technologies and will ultimately continue contributing to global climate protection while supporting South Africa’s economic development and growth.
GEEF gives loans to entrepreneurs and businesses who choose to invest in energy efficiency and renewable energy technologies. Priority is given to companies with annual revenues of less than R51 million, with assets of less than R55 million and employing no more than 200 people.
Loan amounts vary from R1 million and R50 million to enterprises with energy savings, or self-generation. The loans are extended by GEEF at prime less 2% over a maximum tenure of 15 years.
While funding is not limited to any particular sectors – funding is given to businesses that are energy intensive including manufacturing, mining and agro-processing.
Benefits for businesses
The benefits of funding for individual enterprises include:
- Technical support for energy assessments based on the size and complexity of your proposed project.
- Investment risk reduction through energy efficiency validation checks.
- Modernisation of industrial equipment and the use of energy efficient technologies that result in reduced energy and other costs.
- Improved product quality and production capacity while increasing the company’s profitability.
- Improved company image due to contributions to carbon footprint reduction and South Africa’s sustainable development goals.
- Lower vulnerability to increasing energy prices.
- Increased company value.
- Energy assessments and audits to propose sustainable energy solutions and support the preparation of investment project proposals.
- Calculating the economic and financial benefits of the proposed investment.
- Supporting selection of eligible equipment and enhanced performance technologies.
Apply through Funding Connection
At Funding Connection we understand the complexities of the various funding agencies, and the unique application criteria for each. We have assisted numerous entrepreneurs through the application process to access funds like this for business growth, and we can assist you with the same.
- If you would like to begin the application process through us, please start by filling out our free assessment.
- If you do not yet have a business plan in place, we can help you create a viable and fundable business plan.
- If you have already begun the process and would like to consult with us, or need a business plan review, please click here to contact us
- And to keep in touch with the latest funding news and opportunities, you can subscribe to our free Funding Connection Newsletter.
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