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Building a Greener, More Diverse Economy from the Ground Up

- N Mhlontlo, GIZ

MSME Development

The MSME Facility and JET SET Project Launch at the Indalo Ignite Next Africa Symposium 2026!

Building a Greener, More Diverse Economy from the Ground Up

Building a Greener, More Diverse Economy from the Ground Up

At the Indalo Ignite Next Africa Symposium 2026, the JUST SA project, joined by the Department of Forestry, Fisheries and the Environment (DFFE), the Just Energy Transition Project Management Unit (JET PMU) and Indalo Inclusive launched two key programmes: the MSME Facility and the Just Energy Transition – Supporting Enterprises in Transition (JET SET). Together, they respond to a simple question at the heart of Mpumalanga’s transition: how do we make sure the shift to a low-carbon economy is build with, and benefits, the enterprises and communities who live it every day?

Starting with the Money: financing the low-carbon transition

The official launch of these programmes followed, quite fittingly, a conversation on financing the low-carbon transition, covering infrastructure, capital and enterprise opportunities. Two themes stood out during this particular session that had representatives from Nedbank, E3G and MTN. The first was the barriers enterprises face when trying to access finance. The second was the importance of building pipelines of investable projects and enterprises that support economic diversification, so that the transition does not depend on a narrow set of sectors or regions.

That framing set the scene well. The finance exists, and the ambition is clear, but too many small and medium enterprises are not yet in a position to connect to it. This is the gap the new programmes are partially trying to address.

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What JUST SA is and how it works

JUST SA is a consortium led initiative funded by the International Climate Initiative (IKI) of the German Federal Ministry for the Environment, Climate Action, Nature Conservation and Nuclear Safety (BMUKN), and implemented by GIZ together with partners. This project looks at the people, places and livelihoods of those affected by the just transition, and addresses barriers that local economies face in diversifying and growing as the economy decarbonises.

Micro, small and medium enterprises (MSMEs) sit at the centre of this as they create jobs, anchor local value chains and are often closest to community needs. They are also frequently the least equipped to access finance and meet funder requirements or navigate new green markets. 

 JUST SA’s approach to MSME development focuses on:

Building readiness. Helping established enterprises get to a state where they can attract and absorb investment.

Strengthening capacity. Training and support that equip smaller enterprises, and the trainers and intermediaries who work with them, to grow sustainably.

Connecting enterprises to opportunity. Linking enterprises to funders, platforms and markets through coordinated programmes rather than isolated, one-off interventions.

Supporting diversification. Backing enterprises in sectors and regions that need new economic activity as the economy moves away from carbon-intensive industries.

Working through partnership. Combining government, development partners, civil society and private sector expertise so that support is coordinated and responds to what communities actually need.

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Two programmes, one coordinated response

The MSME Facility is aimed at closing the gap between enterprises and the funders who could support them. Funding platforms , and in particular for this programme the JET PMU Funding Platform, often find that the information and ‘state of readiness’ that funders look for is missing from enterprise applications, and that enterprises are not yet ready for investment. The MSME Facility, which is implemented in collaboration with the JET PMU through Indalo Inclusive and Luvent, works with established businesses that have applied through the JET PMU Funding Platform to bring them to a state of investment readiness.

The Just Energy Transition - Supporting Enterprises in Transition (JET SET) complements this by supporting enterprises and the ecosystems around power stations that are due to be decommissioned, through monitoring and evaluation, a transparent selection process for SMMEs, and dedicated dialogues and engagements with the people and communities involved.

Together, the two programmes aim to provide a coordinated response to the real needs of people and communities, rather than a patchwork of separate initiatives.

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The launch session was facilitated by the JUST SA Project Lead, Ms Christina von Heyden, who introduced the audience to these key initiatives and the significance of the two programmes. She touched on JUST SA’s initiatives that aim to support business and communities that are most adversely affected the by the transition in the coal belt.

She then handed over to the three speakers from GIZ South Africa, the JET PMU and finally the DFFE who launched the Facility and JET SET programmes. Here are some insights from the three speakers: 

Mr Gregor Schmorl, GIZ South Africa Climate Cluster Coordinator, spoke about Germany’s commitment to the Just Energy Transition in South Africa and stressed the importance of partnerships in shaping impactful and meaningful projects.

Ms Jo Maharaj, Funding Platform Manager at the JET PMU, traced the origins of the funding platform and the challenge it set out to solve. She also shared that funders look for particular information, and that information is sometimes missing in the applications they receive, while many enterprises are simply not yet investment-ready. The MSME Facility, Jo explained, is designed to close this specific gap and provide tailored support for these MSMEs.

Mr Samuel Mabena, Senior Climate Policy Advisor: Climate Change Mitigation and Just Transition Programmes at the DFFE, outlined the policy environment that makes these initiatives possible and helps drive green economic development in the province and the country. He pointed to South Africa’s national trajectory, carbon budgets and Sector Job Resilience Plans (SJRPs) as the frameworks that give enabling direction to this work.

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From launch to deep dive: Komati-JET and the MSME Green Loop

The launch was followed by a longer, in-depth session on these key activities, the Komati-JET project and the lessons emerging from it, and the MSME Green Loop.

The session took the form of a comprehensive and engaging discussion with some of JUST SA’s key partners including the Presidential Climate Commission (PCC), the JET PMU the Mpumalanga Department of Agriculture, Rural Development, Land and Environmental Affairs (DARDLEA), the Mpumalanga Green Cluster Agency (MGCA), Indalo Inclusive and the Komati Steering Committee.

Bringing these partners together connected the new programmes to work already under way on the ground, and showed how experience from Komati and the MSME Green Loop can inform the way enterprise support is designed and delivered.

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Looking ahead

The measure of success is not the number of workshops held or applications received, it is the enterprises that grow, the jobs they create, and the impact they have in their local ecosystems. If small enterprises become stronger, more investable and more connected, the transition becomes more inclusive and the economy more diverse and resilient.

The launch at Indalo Ignite Next Africa Symposium marks the start of a new phase of delivery. In the coming months, JUST SA and its partners will continue to engage enterprises, funders and communities, and share lessons as the programmes take shape. To follow the journey, keep an eye on the JUST SA website and our social media channels.