Supporting clean energy project development in frontier markets

A facility of the
United Nations
Environment Programme

Managed by
the FS-UNEP
Collaborating Centre

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 METHODOLOGY

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

USD- 0 -million

Co-financing for
clean energy projects
in frontier markets.

0 -partners

Supported by
SCAF II in
Asia and Africa

0 -projects

SCAF II directly
supported 40 projects
and indirectly co-financed 91 projects

GEOGRAPHICAL IMPACT

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.

PARTNERS

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.

"SCAF has attracted a wide range of partners which validates the SCAF model."

"SCAF employs an innovative approach to reduce the financing gap for early stage project development."

"It is a pleasure to work with SCAF. The SCAF management is aware of what it means to work with the private sector."

"During the early stages of our company, “just-in-time” funding was inevitable. SCAF’s support during this very critical phase has allowed us to bridge our fundraising related costs until the closing of our first financing round."

"Renewable industry is a fast-paced environment, SCAF’s flexibility and know-how make a real difference to explore and seize promising opportunities."