South Africa boasts a vibrant financial sector, yet green SMEs, those championing sustainability and circular economy, often struggle to access the funding they need to thrive.
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These businesses, vital for a greener future, find themselves in a funding gap, too large for microfinance but too small for traditional investors.
The challenge
Research reveals a significant funding gap for SMEs, with 71% needing less than R1 million.
Green SMEs face even greater hurdles due to the nascent nature of the green economy and the perceived higher risk associated with innovative business models.
They often lack the financial track record and sustainability data that investors seek.
The solution: Hloolo
Here comes Hloolo, a groundbreaking platform launched by Fetola, Nedbank, J.P. Morgan Chase, and the Embassy of Finland.
Hloolo acts as a matchmaker, connecting green SMEs with investors, markets, and knowledge.
It offers the Fetola Investment Readiness Scorecard to help SMEs assess their investment potential and provides learning opportunities focused on sustainable practices.
A collaborative ecosystem
Hloolo is more than just a platform; it’s a collaborative ecosystem. By bringing together SMEs, investors, and experts, Hloolo aims to bridge the information gap and foster a thriving green economy.
The impact
The Circular Economy Accelerator (CEA), a precursor to Hloolo, has already yielded impressive results, with participating SMEs achieving 411% revenue growth and a 100% uptake in circularity practices.
Hloolo builds on this success, promising to unlock the potential of even more green businesses.
Hloolo represents a beacon of hope for green SMEs. By addressing the funding gap and providing essential support, it empowers entrepreneurs to drive innovation, create jobs, and build a sustainable future for South Africa.
As the platform grows and matures, it has the potential to become a global model for fostering green economic growth.
