Germany - Foreign economic-aid-related services - 81322299 - Development and Implementation of a Just Transition SMME Facility

JUST SA supports the implementation of pathways towards a Just Transition towards an environmentally sustainable, climate-change resilient, low-carbon economy and just society. At the national level, the project supports the implementation of the Just Transition Framework, ensuring an inclusive and results-oriented process. At regional level, the project assists the Mpumalanga provincial government in formulating a concrete, sustainable and just green economy transition plan for a diversified regional economy, which covers skills pathway development and finance mechanisms. At the local level, the project implements the plan, pilots, and scales up in selected municipalities of Mpumalanga and private sector action is incentivised. Furthermore, mine rehabilitation is addressed with a focus on mine water treatment through research, policy implementation and community engagement. Lessons learnt are fed back into the dialogue process.? JUST SA supports the implementation of the JUST Transition Framework, piloting measures in selected municipalities and especially providing regional and local support in Mpumalanga.? JUST SA aims to address multiple challenges at once by creating new jobs in emerging economic sectors while raising awareness of climate change and biodiversity. Also, the project will promote equal opportunities for different gender groups and youth. The approach ensures that economic growth is balanced with social and environmental considerations, leading to a sustainable and green economy for all.? JUST SA makes an impactful contribution to the region of Mpumalanga and aims to replicate this in South Africa, aiming for South Africa to become a role model for the world to follow.?? To achieve considerable progress in the structural change to a decarbonized economy in South Africa (Impact), the envisioned Outcome of the project is that the implementation of alternative development pathways towards a Just Transition has been initiated. This requires on the one hand, clear ideas and a broad acceptance of alternative, low-emission economic development models, and on the other hand tested approaches and business models that can be taken up at a broader scale. The project is based on a consortium with strong local anchoring and a balanced range of actors engaging at different levels. The work is primarily done through local players which will benefit the stakeholder engagement and planning process. The JUST SA consortium members are GIZ, Trade & Industrial Policy Strategies (TIPS), Worldwide Fund for Nature- South Africa (WWF SA), National Business Institute (NBI), and a close collaboration with the Mpumalanga Green Cluster Agency. The political partner institution is the Department of Forestry, Fisheries and the Environment (DFFE). DFFE has the mandate for all climate matters and work carried out to enable a Just Transition. At the same time, it is intended to cooperate with additional implementing partners. Hence, other relevant stakeholders (e.g., other line departments such as the Department of Minerals Resource and Energy (DMRE), Department of Public Enterprise (DPE), the Presidency, the Presidential Climate Commission (PCC), South African Local Government Association (SALGA), Mpumalanga Office of the Premier, Mpumalanga Provincial Government, and actors, ESKOM as a state-owned enterprise, private sector, research institutions, civil society will be included in the project implementation. The objective of the technical support programme tendered is to expand small businesses in the Mpumalanga province in the field of small business development support and financing. Subsequently reducing the negative socio-economic impacts from a transition away from a coal-based energy sector, and to capitalise on opportunities created by a lower-carbon and more environmentally sustainable economy in the province. A key outcome of the GIZ SMME Facility is to enable small businesses in Mpumalanga to capitalise on the opportunities created by the JET-IP. To do so, SMMEs in the province need to have the required capacity and management systems to identify market opportunities and to have solid platforms for growth. In particular, enterprises need to have well developed and credible business plans that they can use to secure financing needed for expansion. The technical assistance programme is expected to be delivered over a 2-year period. The early focus of the JET-PMU Financing Facility is to match investors, including those providing concessional financing, with appropriate investment opportunities. While many of these opportunities are seen as new projects, there is also needed investment for growth of existing enterprises in the province. The SMME facility is aimed at enabling small enterprises to be viable recipients of the envisaged investment into the region. Consequently, a specific outcome of the programme is to assist the selected SMMEs develop bankable business plans and business development support. Outside of specific fundraising activities, the business development support will directly improve the business operations, productivity and growth potential of the targeted SMMEs. An implication of the programme objectives and timeframes is that the emphasis is not on helping entrepreneurs with start-up business establishment or on early-stage business incubation but is rather on supporting already established small enterprises to grow, raise finance, and become increasingly financially and environmentally sustainable. The selection of appropriate SMMEs to support is seen as critical to the success of the programme and the approach to enterprise identification and selection proposed by the Contractor will be an important factor in proposal evaluation.