Overcoming Financial and Capacity Barriers to Empower Small‑Scale Enterprises in South Africa

Annex A. Roadmap Action Plan

Proposed activities for Phases II and III, July 2026-December 2027

This section outlines a range of potential, non-prescriptive activities, which will be further prioritised to select a subset of high-impact activities to be implemented by the OECD Secretariat in collaboration with the Department of Forestry, Fisheries and the Environment (DFFE) and other partners during Phases II and III of the project (Table A A.1). The activities reflect insights from the analysis and requests expressed by stakeholders and will draw on local expertise for implementation. While Phase II will focus on knowledge-sharing, Phase III will concentrate on capacity building and the project implementation. Both phases will run in parallel and retain some flexibility in their timing.

Table A A.1. Overview of potential OECD-DFFE activities and provisional timelines

#	Activity	Location	Q3 2026	Q4 2026	Q1 2027	Q2 2027	Q3 2027	Q4 2027
Phase II: knowledge-sharing
1	Strengthening green finance strategies for small-scale enterprises	Johannesburg	✓
2	Workshop on financing instruments for renewable energy technologies	Provincial level
3	Mutual learning and peer exchange between Mpumalanga and Western Cape	Cape Town and Mbombela
4	Knowledge exchange workshop on financing models for mini-grids	Pretoria (hybrid)
5	International knowledge exchange workshop on mini-grid regulation and tariff design	Pretoria (hybrid)
6	Workshop for municipalities on community-centric mini-grids	Pretoria (hybrid)
7	Knowledge-sharing workshop on agrivoltaics in Mpumalanga	eMalahleni	✓
Phase III: capacity building and implementation
1	Financing journey toolkit
2	Renewable energy finance training for women entrepreneurs in coal-dependent areas
3	Guidelines and support materials for renewable energy projects for municipalities

Phase II: knowledge-sharing activities

Activity 1: Strengthening green finance strategies for small-scale enterprises

In partnership with the Banking Association South Africa (BASA) and DFFE, the OECD Secretariat convened a mutual learning workshop bringing together major commercial banks, development finance institutions and key ecosystem actors to strengthen green finance strategies for MSMEs. Participants focused on sharing experience and expanding green lending strategies and portfolios beyond rooftop solar by building internal expertise in emerging green sectors and refining risk assessment approaches for asset‑light and early‑stage firms. The workshop facilitated exchange on current practices, challenges and innovations, including the use of alternative data, blended finance and risk‑sharing instruments, with a view to increasing access to finance for environmentally friendly MSMEs. It also provided an opportunity to present key findings from the Needs Assessment Report, with a tailored discussion on their implications for commercial banks.

Objectives

• Support commercial banks in developing and refining green finance strategies for MSMEs

• Promote diversification of green lending beyond established sectors such as rooftop solar

• Facilitate sharing of current practices in assessing environmentally friendly MSMEs projects

• Strengthen collaboration between banks, DFIs and alternative financing providers

Target audience

• Major commercial banks and BASA members

• Development finance institutions (DFIs)

• Financial regulators and public authorities

• Fintech and alternative financing providers

Expected outputs and impact

• Enhanced knowledge and peer learning on green finance strategies across banks

• Identification of practical approaches to expand lending to new green sectors

• Improved risk assessment frameworks for MSMEs, including use of alternative data

• Increased engagement of financial institutions in financing early‑stage and underserved MSME

Timeline: 3 July 2026

Location: BASA, Johannesburg, South Africa.

Implementation partners: BASA, DFFE

Activity 2: Workshop on financing instruments for renewable energy technologies

This OECD‑led workshop will be convened in collaboration with Indalo Inclusive and other local partners, to showcase practical experiences with financing instruments for renewable energy and energy efficiency in South Africa. Building on stakeholder demand, the workshop will present concrete case studies highlighting both successful models and lessons from unsuccessful initiatives, with a strong focus on South African examples complemented by relevant international experiences where needed. Bringing together national and local stakeholders, including environmentally friendly MSMEs, the workshop will support peer learning and help translate experience into actionable insights. It is envisaged to take place at provincial level to facilitate participation. The activity will also contribute to a broader dissemination strategy, including the development of a case study compendium.

Objectives:

• Showcase practical experiences with financing instruments for renewable energy technologies

• Facilitate peer learning among stakeholders.

Target audience: local government; small-scale enterprises and start-ups, business incubators, development finance institutions.

Expected outputs and impact: case study compendium

Timeline: Q2 2027

Location: provincial level

Potential implementation partners: Indalo Inclusive and others (including ecosystem enablers)

Activity 3: Mutual learning and peer exchange between Mpumalanga and Western Cape

This activity will support structured mutual learning between provinces and across levels of government through targeted peer‑learning missions, starting with a bilateral exchange between Mpumalanga and the Western Cape. The initiative will facilitate the sharing of practical experiences, successful approaches and lessons learned in developing renewable energy and related value chains, while strengthening co‑ordination and institutional capacity. It will, among others, focus on mainstreaming SSEG procedures, digitalising approval processes and sharing best practices. The programme will include a site visit to the Atlantis Special Economic Zone to inform and inspire the development of similar initiatives in Mpumalanga. The precise programme will be tailored to the priorities of provincial leaders and will also provide an opportunity to explore avenues for sustained inter‑provincial co-operation.

Objectives

• Facilitate peer learning and exchange of good practices between provinces

• Strengthen co-ordination across national, provincial and local levels of government

• Identify transferable models and approaches for environmental-friendly entrepreneurship

• Promote uptake and replication of proven practices in Mpumalanga

Target audience

• Provincial governments (Mpumalanga and Western Cape)

• Municipal authorities

• Intermediaries (e.g. MGCA, WESGRO, Atlantis SEZ)

• Selected local entrepreneurs

Expected outputs and impact

• Documented case studies and practical lessons from both provinces

• Identification of priority practices for replication and adaptation

• Establishment of sustained knowledge‑sharing mechanisms (e.g. regular exchanges, platforms)

• Strengthened intergovernmental co-ordination and improved policy implementation

• Enhanced capacity of local actors to deliver green transition initiatives

Timeline

 Q4 2026 and Q2 2027

Location

• Mpumalanga delegation to the Western Cape government; site visit at Atlantis SEZ);

• Return visit of Western Cape delegation to Mpumalanga in 2027.

Potential implementation partners: DFFE, Indalo Inclusive, NBI, Atlantis SEZ

Activity 4: Knowledge exchange workshop on financing models for microgrids

The knowledge exchange workshop will convene South African and international public sector actors, financial institutions, private developers and municipalities to discuss different financing models for microgrids, lessons learned and their applicability in the South African context.

Objectives:

• Facilitate exchange of effective financing models and lessons learned

• Identify suitable financing models for South Africa’s microgrid electrification plans

• Strengthen partnerships between public and private actors as well as financiers

Target audience:

• Public authorities (national and municipal) and state-owned enterprises

• Multilateral development banks, development partners and potential investors

• Private microgrid developers

• Knowledge partners

Expected outputs and impact:

• Identification of suitable financing instruments and strategies for microgrid deployment

• Strengthened coordination of microgrid project development and financing

Timeline: Q1 2027

Location: Pretoria

Potential implementation partners: DEE, DFFE, AfDB

Activity 5: Mini-grid regulations and tariff design workshop

This workshop brings together South African policymakers, the energy regulatory authority and municipalities with international experts, microgrid developers and representatives of other African governments that have successfully adopted strong mini-grid regulations. It will enable knowledge exchanges and sharing of lessons learned on the development of supportive mini-grid regulations and tariff design that balances cost-reflectiveness and affordability. The workshop will aim to develop a set of core principles and recommendations for effective microgrid regulations and tariff design, taking into account international guidelines and emerging good practices. Enhanced co-ordination with multilateral and bilateral partners will help avoid duplication and streamline the development of an effective enabling framework for microgrid deployment in South Africa.

Objectives:

• Facilitate peer learning on mini-grid regulations and tariff design

• Strengthen regulatory capacity on cost-reflective and socially inclusive microgrid tariff design

• Identify critical elements for South Africa’s microgrid regulatory framework and tariff design

• Promote co-ordination between regulators, ministries, development partners and private developers

Target audience:

• National Energy Regulator of South Africa (NERSA) and tariff-setting authorities

• Representatives from the Department of Electricity and Energy (DEE)

• Members of the African Forum for Utility Regulators

• Development partners and financial institutions supporting energy access

• Selected private sector and mini-grid developers

• Representative of the Government of Nigeria or Rural Electrification Agency

Expected outputs and impact:

• Set of principles, practical recommendations and guidelines

Timeline: Q1 2027

Location: Pretoria (hybrid possible)

Potential implementation partners: African Forum for Utility Regulators; DEE; NERSA; AfDB, GIZ and other development partners

Activity 6: Workshop for municipalities on community-centric mini-grids

Building on existing community-centric microgrid projects in South Africa and internationally, this workshop will serve to allow municipalities, microgrid developers and national authorities to exchange on success factors and principles for ensuring strong community involvement and, where feasible, community ownership, in microgrid projects. Discussions will further focus on successful financing models and types of implementation agreements.

Objectives:

• Enhance understanding of local community needs, priorities and capabilities

• Improve understanding of microgrid project characteristics (including service levels, tariffs and grid reliability, among other factors)

• Create a common understanding of success factors and principles for substantive community involvement in microgrid projects to ensure sustainability and community benefits

• Develop a set of recommendations to ensure community involvement in microgrid deployment under the INEP

Target audience:

National public authorities, including DEE, municipalities, microgrid developers and financiers, communities

Expected outputs and impact:

• Enhanced understanding of aligning microgrid projects with community needs and ensuring strong community involvement and benefits

• Set of recommendations to ensure community involvement in microgrid projects implemented under the INEP

Timeline: Q2 2027

Location: TBD

Potential implementation partners: DEE, DFFE, South African Local Government Association (SALGA), district municipalities, think tanks.

Activity 7: Knowledge-sharing workshop on agrivoltaics in Mpumalanga

Building on emerging pilot experiences in South Africa and across Africa, the OECD convened a knowledge‑sharing activity on agrivoltaics in Mpumalanga. The workshop brought together provincial and local authorities, Eskom, TVET institutions, industry partners and MSMEs to explore how agrivoltaics can support energy security. With strong solar resources and extensive agricultural land, South Africa is well positioned to scale such dual‑use systems, particularly in Mpumalanga. Drawing on the OECD case study (Chapter 2), the activity focused on translating pilot experiences into scalable and bankable models. It also encouraged learning from other African countries and explored engagement with continental initiatives, including the African Agrivoltaics Platform and its planned blended‑finance facility. The workshop addressed key bottlenecks, including regulatory uncertainty, limited awareness, weak project pipelines and financing constraints, while identifying opportunities for MSME development and job creation.

Objectives:

• Raise awareness and understanding of agrivoltaics among public and private stakeholders

• Share practical experiences, including success factors and lessons from pilot projects

• Identify pathways to scale agrivoltaics, including project pipelines and financing models

• Encourage learning from other African countries and engagement with continental initiatives such as the African Agrivoltaics Platform

Target audience:

• National departments (e.g. DFFE, DoA, DHET, DMRE, DTIC)

• Mpumalanga provincial government and municipalities

• Eskom and JET programme stakeholders

• TVET colleges and training providers

• MSMEs and project developers (agri‑energy, installation, services)

• Financial institutions, DFIs and investors

Expected outputs and impact:

• Increased awareness and shared understanding of agrivoltaics opportunities among key stakeholders;

• Identification of priority actions to enable scaling (policy, regulation, finance and capacity)

• Strengthened co-ordination between energy, agriculture and land‑use actors

Timeline: 3 July 2026

Location: eMalahleni, Mpumalanga

Implementation partners: C4SA; African Agrivoltaics Platform; Res4Africa.

Phase III: Advancing capacity building and implementation

Activity 1: Financing journey toolkit for environmentally friendly small-scale enterprises

This activity aims to facilitate access to finance for green small-scale enterprises and start-ups by developing a structured financing journey toolkit that guides enterprises from project conception to financial close, including a dedicated module for rooftop solar. The toolkit will be made available with accessible language and level of complexity, and will comprise references and links to other tools and websites providing foundational knowledge of starting a business (e.g. principles and practices of financial management and documentation)The toolkit would ideally be made available through a wide range of implementation partners, including as part of a centralised one-stop-shop platform providing standardised documentation, financial models and appraisal tools, with the objective of improving transparency, reducing due diligence costs and strengthening co-ordination between public institutions, financiers and project developers.

Objectives:

• Develop a financing journey toolkit to guide environmentally friendly MSMEs

• Design a targeted module addressing the specific needs of rooftop solar projects

• Facilitate improved access to finance by increasing transparency and reducing due diligence costs

• Strengthen co-ordination between public institutions, financiers and project developers

Target audience:

• Environmentally friendly MSMEs and rooftop solar project developers

• Financial institutions (commercial banks, DFIs, blended finance facilities)

• Government entities, including JET PMU or a designated lead institution

• Local stakeholders in Mpumalanga, including municipalities and intermediaries

Expected outputs and impact:

• Financing journey toolkit, including a dedicated rooftop solar module

• Standardised templates, financial models and appraisal tools

Timeline: Q2 2027

Location: Pretoria (hybrid)

Potential implementation partners: DFFE, JET PMU, MGCA, SAPVIA, RES4Africa, BASA, Nedbank, Indalo Inclusive, municipalities and GIZ;

Activity 2: Renewable energy finance training for women entrepreneurs in coal-dependent areas

This activity will convene targeted training sessions for women entrepreneurs in coal-dependent areas, contributing to improved access to financing and empowerment efforts. Responding to calls for a more inclusive economic transformation, it will equip women-led MSMEs with practical knowledge, tools and connections to navigate financing opportunities, while fostering peer exchange and strengthening local support ecosystems. The activity will consist of several training workshops in the coal belt of Mpumalanga, ensuring strong regional relevance. Implementation will be carried out in partnership with local training providers to maximise effectiveness and outreach. It is expected to strengthen financial readiness, reinforce local networks and support the growth and scaling of women-led green businesses in priority regions.

Objectives:

• Build the capacity of women entrepreneurs to access and utilise renewable energy finance

• Provide practical guidance on preparing bankable renewable energy projects

• Facilitate connections between women entrepreneurs, financiers and support organisations

Target audience:

• Women entrepreneurs in coal-dependent areas

• Early-stage and established MSMEs led by women

• Local intermediaries and business support organisations

Expected outputs and impact:

Practical materials and tools tailored to women entrepreneurs. Strengthened capacities of women entrepreneurs, equipping them with stronger abilities to navigate available financing opportunities and prepare bankable project proposals

Timeline: Q2/Q3 2027

Location: On-site training in selected municipalities of Nkangala and Gert Sibande in Mpumalanga

Potential implementation partners: Indalo Inclusive, Res4Africa, GIZ South Africa (SAGEN-CET)

Activity 3: Guidelines for small-scale renewable energy project development

This activity will develop practical guidelines for small-scale renewable energy and energy efficiency project development. It will address concrete questions and challenges faced by MSMEs and municipalities. A dedicated workshop in Pretoria will convene local municipalities, district authorities and SALGA to validate and disseminate the guidelines, strengthen capacities and support the development of project pipelines. The activity will explore synergies with broader initiatives conducted under the JETP to ensure alignment and maximise impact. Strong and sustained engagement from district municipalities, such as Gert Sibande and Nkangala, will be critical to ensure effective rollout and local relevance. Lessons learned from the Western Cape will also be leveraged to strengthen design and implementation.

Objectives:

• Develop user-friendly guidelines for municipal renewable energy project development

• Address key questions and barriers identified by MSMEs and local stakeholders

• Provide structured Q&A and HelpDesk guidance to support project preparation

• Facilitate knowledge exchange between provinces, district authorities and municipalities

Target audience:

• Local and district municipalities

• SALGA and municipal support bodies

• Local MSMEs engaged in energy projects

• Relevant national stakeholders and intermediaries

Expected outputs and impact:

Practical guidelines and a consolidated set of frequently asked questions

Timeline: Q2 2027

Location: Pretoria (with participation from local municipalities Mpumalanga and Western Cape

Potential implementation partners: SALGA; WESGRO; SAPVIA; Gert Sibande / Nkangala district municipalities; JET PMU and other partners (e.g. Technology Innovation Agency (TIA).