In 2025, the OECD, through its Clean Energy Finance and Investment Mobilisation (CEFIM) Programme, launched a project with South Africa’s Department of Forestry, Fisheries and the Environment (DFFE) and local partners to address financial and capacity‑related challenges faced by small‑scale enterprises in South Africa. The project seeks to unlock inclusive and scalable solutions that support renewable, reliable, secure and affordable energy while strengthening local economies, with a particular focus on Mpumalanga and the Western Cape. It also promotes cross‑learning between the two provinces, enabling stakeholders to share best practices and innovative approaches. The initiative builds on the longstanding partnership between South Africa and the OECD. Since 2007, co-operation has spanned areas including macroeconomic reform, public governance and environmental sustainability. It also draws on recent OECD work to support the decarbonisation of South Africa’s iron and steel sector.
This report is the main output of Phase I of the project (May 2025 to July 2026) and provides the foundation for Phases II and III, which focuses on knowledge-sharing activities, capacity building and implementation (July 2026 to December 2027). The report draws on extensive stakeholder engagement, including a fact-finding mission in July 2025; consultations in Mpumalanga and an inception meeting in Pretoria, South Africa, in September 2025; consultations in the Western Cape in November 2025; thematic roundtables in February 2026; and validation meetings in July 2026, held in Pretoria and eMalahleni, Mpumalanga. In parallel, the OECD Secretariat conducted a country-tailored survey targeting small-scale enterprises, municipalities, business incubators and financial institutions, complemented by extensive virtual consultations. These inputs were highly valuable in understanding on-the-ground realities and barriers to scaling up small-scale enterprises, particularly in renewable energy.
The report is organised into five chapters. Chapter 1 sets the scene and outlines key opportunities and challenges associated with developing small-scale enterprises and access to renewable, reliable, secure and affordable energy. Chapter 2 examines the enabling environment for micro, small and medium-sized enterprises (MSMEs). Chapter 3 explores workforce transitions and skills development needed to equip the workforce of the future and support inclusive job creation. Chapter 4 analyses constraints and levers to improve access to finance for MSMEs in renewable, reliable energy, including innovative financing instruments that build on domestic and international practices. Chapter 5 discusses financing models for renewable microgrid solutions and their role in local development. The roadmap action plan presents non-prescriptive proposals for Phases II and III, to support knowledge-sharing and implementation, in close collaboration with relevant public and private stakeholders.
The project is implemented jointly with DFFE, with the support of the National Business Initiative (NBI) and Indalo Inclusive (local consultant), in partnership with Mpumalanga’s Department of Agriculture, Rural Development, Land and Environmental Affairs (DARDLEA) and the Mpumalanga Green Cluster Agency (MGCA). DFFE’s mandate focuses on advancing an environmentally sustainable, low-carbon and resource-efficient growth path.