Climate change affects us all, and medium enterprises require funding to promote their growth in ways that are considerate of our climate challenges, but some aspects must be considered to gain the appropriate funding. This article will explore these aspects and the DBSA’s involvement.
Where The Effects Are Felt The Most
Small to medium scale enterprises often rely on natural resources and the environment in order to function. Often these businesses exist in areas where they are both needed and essential. For example, a vegetable and fruit market, which is an important part of the community as it affords the people access to food and nutrition, may suffer due to harsh sun and rainy weather. The lack of proper shelter can make any kind of weather change put the business at risk. Hindrances such as drought, floods, lack of sanitation and lack of energy resources can and do affect small to medium businesses in a major way.
What Can Be Done?
Climate finance can help enterprises various enterprises reach their goals and, in turn, create good socio-economic development for the communities these enterprises help. While disadvantaged areas also struggle with things such as water and electricity, climate finance can create renewable energy funding or initiatives that will ensure growth for the communities in which these small and medium-sized businesses serve. The development of communities also helps create jobs as well as opens up more business opportunities. As a development finance institution, our purpose is to accelerate energy access for the people of sub-Saharan Africa and ensure a just transition to low carbon economies. We make this possible by prioritising projects with a significant impact on the development of energy infrastructure.
DBSA’s Part
To fulfil our purpose, we ensure that we are on the ground learning, collaborating, cooperating, strategising and refining climate finance solutions. These are solutions aimed at driving sustainability and developmental impact in the Southern African region:
- job creation
- social development
- spatial development
- inclusive economic growth
In addition to being accredited for the Global Environment Facility (GEF) and the Green Climate Fund (GCF), DBSA is also an active member of the International Development Finance Club (IDFC) and Global Innovation Lab for Climate Change (GILFCC). By being part of these networks that share a similar vision of building climate-resilient futures for all countries across the globe, DBSA is able to take on this directive confidently. Both the IDFC and GILFCC are in full support of identifying and piloting climate change financing instruments and products, which are created to catalyse private sector capital into climate change projects in developing countries.
But Wait, There’s More…
Sustainable development is an important factor in ensuring various enterprises grow and the economy of the communities they serve to continue to flourish. This way, more jobs are created, and more livelihoods are saved. At DBSA, we are guided by the priorities and objectives of South Africa’s National Development Plan and the United Nations’ Sustainable Development Goals (SDGs) and support the South African government in terms of the proposed Nationally Determined Contributions (NDC) emanating from the Paris Agreement. The DBSA is also a key supporter of the Africa Regional Hub of the Sustainable Development Investment Partnership (SDIP), a global, neutral platform of 42 public, private and philanthropic institutions with the shared ambition to scale up finance for the SDGs. All these initiatives, and programmes that the DBSA is aligned to, are broadly united in their focus on people, prosperity, planet, peace and partnerships.
Final Words
While business enterprises are forming at a rapid rate due to the effects the Covid-19 pandemic had on livelihoods, the challenges faced when creating these projects date back to before this new normal. Climate change has always been a factor that plays a role; however, now the challenges are magnified. We can all assist in ensuring that the development of small communities in South Africa and other neighbouring countries continues. Join DBSA and other financial institutions in the fight against climate change and the effects it has on businesses. Together we can.