The DFCD ends the year on a high


The last quarter of the year has been a defining moment for the Dutch Fund for Climate and Development (DFCD). 

The team in Africa managed to secure  DFCD approval for three new origination projects, and the Asia team brought in five new projects. This means SNV has fully allocated the grant and Technical Assistance (TA) resources until 2023.

In Africa, African Bamboo from Ethiopia led the way earlier in the year, followed by Burkina Faso’s Solvert and Stewards Globe Ltd (SGL) from Zambia rounded up the fund in December. 

On the other hand, Asia has Mekong Earth and Forest Fund (MEEF) from Vietnam coming on board first in October, followed by Kofi Co. Ltd AMRU Rice from Cambodia in December. The team also received approval for NMB and Muktinath from Nepal in the same month.

Approval of these clients late in the year not only calls for celebration but is a testament that organisations are beginning to not only understand and appreciate the notion of climate finance but are willing to tap into the existing long-term financing to ensure sustainable development through climate adaptation.

‘The closure of these deals means that the project has successfully utilised the DFCD phase one funds. We have room and are ready for phase two, Albert. Bokkestijn DFCD project manager says.

 

Graduation

 

By the end of December 2022, SNV will have completed the Origination activities of five of the projects, including CAMIMEX, Equatorial Teak Company (ETC), ECOM, Solar Water Solutions (SWS, now known as Solar Water Springs)) Forest Carbon and Orlar. This means that the companies will engage directly with the DFCD investment facilities partners for final preparations and negotiations with a view towards direct investment for those partners who have reached the investment-ready stage.

‘With DFCD Phase ending in 2023, we look forward to working with these clients as we begin planning on the development of a robust pipeline for the anticipated phase two in 2024 to increase our impact regionally and drive the sustainable development agenda that is part of the wider SNV Strategy’, Tigere Muzenda DFCD Investment officer, Africa concludes.

 

Image: copyright Armu