Unlocking green finance for South African SMEs

Nedbank has recently launched a groundbreaking new digital platform called Hulu, in collaboration with Fetola, aimed at supporting circular green economy Small and Medium Enterprises (SMEs) in South Africa. Grant Kelly, Executive Head at Nedbank, shared insights on how this platform opens up new opportunities for green businesses and entrepreneurs. The platform is designed to provide access to finance for SMEs in sectors such as renewable energy, waste and recycling, water and sanitation, and regenerative agriculture. The initiative aims to create a more inclusive economic system by fostering environmentally sustainable businesses that can scale and grow with financial support. The South African economic system has historically been highly concentrated, with limited access to finance and opportunities for SMEs. This initiative by Nedbank is part of their Corporate Social Investment (CSI) strategy to address the gap in the economic system and promote social justice in economic opportunities. By investing in circular economy SMEs, Nedbank aims to transform the economic landscape of South Africa to be more socially representative, financially inclusive, and ecologically sustainable. Through their partnership with Fetola, Nedbank has already seen success in the Circular Economy Accelerator program, where SMEs have demonstrated scalability and commercial viability in industries like renewable energy and recycling. One success story highlighted by Kelly is a business in Karankua that recycles used cooking oil to produce soap, showing both environmental impact and economic growth. The initiative has also garnered interest from international companies looking to invest in sustainable business solutions. The total allocation for the opportunity for SMEs and entrepreneurs in the green economy sector was not disclosed in the interview. However, Kelly emphasized the diverse range of industries involved and the massive potential for growth and impact within the circular economy. As the Hulu platform continues to support and scale these green startups, Nedbank aims to facilitate their growth through traditional bank funding, ultimately contributing to a more sustainable and inclusive economy in South Africa. Driven by the success of the Hulu platform, Nedbank is committed to expanding access to green finance for SMEs and entrepreneurs, leveraging the innovative solutions and potential within the circular economy. The initiative not only benefits the businesses themselves but also has positive ripple effects on local communities and the environment. By empowering green businesses to thrive, Nedbank is paving the way for a greener and more prosperous future for South Africa.