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You are here: Home / cat / UK Boosts South Africa’s Green Economy with New Climate Finance Initiative

UK Boosts South Africa’s Green Economy with New Climate Finance Initiative

Dated: December 16, 2025

The Climate Finance Accelerator (CFA) South Africa, funded by the UK Government, has opened its fourth call for proposals, aiming to support the development and financing of low-carbon projects that advance South Africa’s transition to a net-zero economy. The programme targets businesses and project developers working in sectors such as energy, transport, waste management, water, and sustainable agriculture. Eligible projects must have completed a full feasibility study and require a minimum investment of USD $3 million. Applications are open from 10 December 2025 to 6 February 2026.

The CFA provides tailored support to make climate projects more bankable and attractive to investors. Selected businesses receive guidance from financial, technical, and inclusion experts through workshops and one-to-one mentoring, which enhances their chances of securing funding. The initiative reflects the G20 Leaders’ commitment, expressed at the November 2025 Johannesburg Summit, to mobilize public and private finance for just energy transitions in developing countries and addresses significant investment gaps in sustainable energy infrastructure across Africa.

Since its inception, CFA South Africa has facilitated close to $100 million in climate finance through its first three iterations. British High Commissioner Antony Phillipson highlighted the programme’s success in supporting innovative low-carbon businesses, emphasizing its role in the UK–South Africa partnership on climate change and the Just Energy Transition Partnership (JETP). Past participants, such as Plentify, have noted the programme’s impact in refining capital-raising strategies and connecting with key investors.

The CFA’s partners, including the National Business Initiative (NBI) and GreenCape, stress the importance of investment-ready climate solutions for South Africa. The programme provides technical and financial training, helps projects engage with local and international investors, and has driven investment decisions exceeding $100 million. It also supports the scaling of projects that deliver economic, social, and climate benefits, fostering green growth and job creation.

CFA operates globally in ten countries, including South Africa, as part of the UK’s International Climate Finance efforts to facilitate access to funding and help governments meet their climate commitments under the Paris Agreement. By developing a pipeline of bankable low-carbon projects, CFA strengthens sustainable infrastructure and encourages private-sector engagement in achieving a low-carbon, resilient future.

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