CONTEXT

There is a substantial gap in capital available to support green technologies and SMEs in developing countries. There is a limited number of financial vehicles which, when combined with a lack of knowledge regarding financing green technologies, makes it challenging to finance innovation and climate change solutions

Thus, there is a need to engage in developing countries as part of the growing green global marketplace to increase competitiveness and decrease their foreign dependency. The lack of technology and support for innovation disadvantages local companies in global markets and the continuing limited access to resources and the latest technologies increases economic inequality across developing countries; without sustainable, high-quality jobs, the poverty spiral will not be broken.

GREENTEK VENTURES PROJECT

The aim of the project was to develop a green technology finance platform that creates a series of country-specific venture funds in key developing countries, aiming to support businesses that provide commercially viable solutions to climate change and the associated shortages of energy and water, while also contributing to the economic and social development of the respective country. 

The project demonstrates that it is possible to successfully address the pressing issues of both climate change and poverty using private investments that can generate healthy financial returns on the capital invested, while also creating environmental and social returns.

OUTCOME

BASE built a green private equity fund of USD 200 million in Mexico and South Africa. The funds were invested in proven technologies, high-growth SMEs and projects. GreenTEK ventures offered a technology transfer service that aims to strengthen investment proposals and evaluate different existing technologies. GreenTEK ventures invested in proven drivers of local economic growth and applied the principles, discipline and accountability of venture finance investing to maximise financial, social and environmental returns. The initiative included the fund structuring (PPM), legal and tax structuring, fundraising, build pipeline and build alliances.