Metier Sustainable Capital II

Sub-Saharan Africa

Metier Sustainable Capital II will invest growth capital in distributed energy and resource efficiency businesses and provide development financing for small scale utility renewable projects which will reduce greenhouse gas emissions, facilitate economic growth and job creation & contribute to improvements in living standards. Metier will also play a role in catalysing the overall distributed energy and resource efficiency market in Africa.

Our investment

Commercial finance is not currently suitable or available in sufficient quantity for renewable commercial and industrial power and resource efficiency projects in Africa. CDC's investment in Metier seeks to address this financing gap and demonstrate the viability of these business models.

Impact
  • Supporting environmental sustainability by reducing and avoiding greenhouse gas emissions (SDG target 13A)
  • Supporting economic opportunities by the provision on power to businesses (SDG target 8.5)
  • Supporting provision of affordable and reliable energy services (SDG targets 7.1, 7.2)
How?

Our commitment will enable the fund to invest in distributed energy, resource efficiency businesses and small-scale utility renewable projects helping to reduce the dependence on fossil fuels. The success of the fund in distributed energy and resource efficiency sectors would also play a role in catalysing the uptake of these business models by helping to demonstrate the commercial viability.

Stakeholder Geography Characteristics
Planet

Global

N/A

Employees

Sub-Saharan Africa

Other (power will support employees of grid-connected businesses).

Consumers

Sub-Saharan Africa

Other (typically urban/peri-urban households connected to the grid).

Grid Score Contribution
2.7-2.8

To help us direct our investments, we use a tool called the Development Impact Grid. The Grid scores every investment we plan out of a score of four, based on two factors: the difficulty of investing in the country and whether investment in that sector will lead to jobs.

  • Capital not offered in sufficient quantity.
  • CDC will help to reduce execution risks and any negative impact risks through support to the Manager strengthening its E&S and business integrity systems.
Risk
  • Execution: the impact case depends on the successful execution of complex projects.
  • External: Commercial & Industrial projects support an acceleration in renewable capacity but can also present financial challenges to the grid if anchor customers are attracted away, this is especially the case in smaller grids.

Environmental and social aspects

We work closely with the fund manager to help develop and implement an Environmental and Social Management System (ESMS) that has the capacity to manage the higher level of environmental and social risk associated with this sector, including delivering an action plan.

Key facts

Status:
Active
Region

Since 2012, we’ve only invested in Africa and South Asia. Investments outside these regions are from our pre-2012 portfolio.

:
Africa
Website:
http://www.metier.co.za/private-equity/sustainable-capital-practice
Investment type

We provide capital in three broad ways: direct equity, debt, and intermediated equity (principally through investment funds).

:
Intermediated investment
Fund manager:
Metier
Start date

For direct investments, this is the date CDC committed capital to the business or project.

For funds, this is the date that CDC committed capital to the fund.

For underlying fund investments, this is the date that the fund invested capital into the business.e

:
December 2019
Amount

For direct investments, this is the total amount that CDC has committed to the business or project (it may be a combination of equity and debt).

For funds, this is the total amount that CDC has committed to the fund.

:
$20m
Domicile

This is the investee company’s place of incorporation; or a fund’s jurisdiction.

:
Mauritius