Supporting clean energy project development in frontier markets
A facility of the
SEED CAPITAL ASSISTANCE FACILITY
The Seed Capital Assistance Facility (SCAF) is a public sector donor‐funded facility designed to support private sector fund managers, platform managers and development companies active in the low-carbon sector in high-risk frontier markets in Southeast Asia and Sub-Saharan Africa.
One of the primary challenges slowing the deployment of renewable energy assets in developing countries is the early-stage financing gap. While the costs of early-stage development are comparatively low, the risks and barriers for investors and developers are extremely high, dynamic, and constantly changing—especially in frontier markets.
SCAF uses a combination of pure and repayable grants to enable private sector fund managers, platform managers and development companies to set‑up climate investment vehicles, build enterprise and local expertise, create strong project pipelines, and fully develop the most promising projects into high‑quality, bankable investment opportunities that attract additional financing, achieve financial close, and move on to construction and operation. The resulting outcomes include emissions reductions, clean energy production, energy access, job creation, and revenue generation.
SCAF SUPPORT LINES
clean energy projects
in frontier markets.
SCAF II in
Asia and Africa
SCAF II directly
supported 32 projects
and indirectly co-financed 68 projects
SCAF’s regional focus is on Sub Saharan Africa and South-East Asia. The Development Assistance Committee (DAC) list of Official Development Assistance (ODA) recipients is the foundation for SCAF eligibility. This list is published by the OECD annually and can be accessed here.
SCAF funding can support activities in Least Developed Countries, Other Low-Income Countries and Lower-Middle Income Countries and Territories. SCAF’s Frontier Market and Sector requirement limits partners to no more than two of the same technology application in the same country, helping to build their viability and prepare the markets for future scaling and acceleration.
SCAF is more than a project preparation facility. By supporting its partners over several years, the teams grow, establish a stronger local presence, improve ESMS, build local capacities, increase their project pipelines in frontier markets and bring projects to financial close.