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www.gfa-climate-and-
infrastructure.co.za
www.gfa-group.de
GFA Consulting Group is a leading European consulting firm active in the development
cooperation sector. GFA Group employs more than 1,500 staff and had an annual group
turnover of R 2.7 billion or €148 million in 2019. Since 1982 GFA has implemented complex
studies and projects in over 130 countries. GFA Group adopts a partnership model working
with other like-minded experts.
GFA Climate & Infrastructure is a Cape Town based subsidiary of GFA Consulting Group that
focuses, primarily on climate consultancy services within the SADC region and the raising of
climate finance. GFA Climate & Infrastructure has a well-established network in the region that
extends to providers of private and concessional funding, from local and international DFIs and
multi-lateral agencies, government and private sector funders as well as export credit
agencies.
GFA-CONSULTING-GROUP-GMBH GFAGROUP GFA_CG
GFA’S TRACK RECORD OF MANAGING & DISBURSING DONOR FUNDS
$7.8 BILLION(70% for SSA) $2.0 BILLION
Value of funds that GFA managed
as Fiscal Agent or Procurement
Agent for the Millennium
Challenge Corporation since 2005
Value of credit lines and
disposition funds implemented
and managed by GFA for clients
such as the EBRD, EIB and KfW
$3.1 BILLION
Value of funds that GFA
managed as Fiscal Agent
for The Global Fund to
(TGF)
110
GFA’S SUB-SAHARAN AFRICAN PROJECT FOOTPRINT
In the last decade, GFA completed 110 complex studies and projects across SSA and a further 55 projects in North Africa & the Middle East
A SELECTION OF RECENT CLIMATE FOCUSED SUB-SAHARAN AFRICAN
PROJECTS
APPROACH
Significant technical transmission and distribution losses in the power networks of Uganda, Mozambique and Zambia contribute to power shortages
High upfront investment costs, lack of EE implementation capacity and lack of funding deter investment by the private sector in EE measures
CHALLENGE
GFA was appointed German Department for the Environment to developed the followingtechnical, operational and funding solutions:
TECHNICAL SOLUTION - installation of Reactive Power Compensation (RPC) equipmentat the premises of industrial facilities will reduce technical energy losses in the 3countries’ transmission and distribution networks
OPERATIONAL SOLUTION – the program will capacitate SMEs to take on the role ofESCOs that will install and maintain the RPC equipment
FUNDING SOLUTION – leverages Article 6 Internationally Transferred MitigationOutcomes (ITMOs) funded by the German Government. It also makes use of ExportCredit Agency (ECA) political and commercial risk insurance to catalyze commercial bankdebt
The innovative funding structure has been finalized and a group of funders (comprising a DFI, aCommercial Bank, an ECA and the German Government) have agreed to fund the program
Target SMEs have been ideinftied and the program has secured support from Uganda, Mozambiqueand Zambia’s Energy and Environmental Ministries
OUTCOME
MULTI COUNTRY TRANSMISSION & DISTRIBUTION LOSSES SME PROGRAM
Countries: Uganda, Mozambique & ZambiaFees: € 215,000 Years: 2019 - 2020
APPROACH
Municipalities in the Western Cape need both technical and financial support to identifythe most catalytic infrastructure projects and to take them from feasibility to bankability
They need to do so within the existing legislative and regulatory frameworks and theoverall strategic priorities of the Western Cape Government
CHALLENGE
GFA and Green Cape were appointed by AFD, who is funding this program, to support theDepartment of Local Government, in rolling out SIDAFF to complete the following processover two phases:
The team is responsible identifying the most catalytic projects/programs that take intoconsideration ESG and spatial factors and assessing the overall financial implications ofthese projects/programs
Supporting the municipalities in taking the projects/programs from feasibility tobankability including the development of a long-term financial strategy to betterunderstand the financial impact of the projects/programs
Developing under the auspices of the Western Cape Government and municipalitiesfunding approaches that crowd in private sector funding in accordance with NationalTreasury’s New Borrowing Policy
The development of a pipeline of the most catalytic and impactful projects/programsthat meet the strategic objectives of the Western Cape Government and municipalitiesbut that reduce reliance on fiscal grants
OUTCOME
SUSTAINABLE INFRASTRUCTURE DEVELOPMENT AND FINANCE FACILITY PROGRAM (SIDAFF)
Countries: South AfricaFees: R2.9 million Years: 2020
APPROACH
Significant investment in adaptation infrastructure in the water and wastesectors is required in southern Africa.
The fisci of southern African governments are severely constrained while thereis abundant funding capacity in the local debt capital markets.
Commercial banks are constrained from lending long term because of Basle IIIwhile institutional investors cannot take on construction risk.
CHALLENGE
GFA structured an innovative financial instrument that:
Catalyzes funding from both banks and institutional investors by leveragingconcessional funding that credit enhances the financial instrument.
Makes use of “units” that are issued by institutional investors to banks assecurity for short term loans to cover the construction period. Postconstruction, the short-term loans are re-financed by the institutionalinvestors.
GFA’s innovative concept won the Global Climate Lab’s Southern Africancategory in February 2020 and will now be developed into an implementablefinancial instrument with support from the Lab.
GFA’s concept was one of 38 projects that were shortlisted for the 2020 LabSouthern Africa Program.
OUTCOME
CLIMATE ADAPTATION BENEFIT UNITS
Countries: 16 countries in SADCFees: € confidential Years: 2019 - 2020
IDC’S GREEN ENERGY EFFICIENCY FUND
Countries: South AfricaFees: € 1,268,845 Years: 2011-2013
GFA’S ROLE
South Africa is the world's 14th largest emitter of greenhouse gases (GHGs), mainly due to its reliance on coal. Lack ofinvestment in the country’s power sector over the last two decades had resulted in power shortages across the countrywhilst the demand for energy continued to grow. Energy efficiency and small-scale renewable projects were unable toraise funding from commercial banks
CHALLENGE
KfW appointed GFA to support the IDC in setting up a Green Energy Efficiency Fund (GEEF) that would on lend R500million to energy efficiency and small-scale renewable energy projects in SA.GFA was responsible for:
Developing a project pipeline and screening the IDC's existing project pipeline to identify suitable projects
Assisting the IDC with technical appraisal and financial structuring
Supporting the design, establishment and implementation of a monitoring, reporting and impact assessmentsystem
Training and capacity building
The R500 million fund was successfully launched in October 2011
The support provided by GFA helped establish the IDC as a lender to energy efficiency and small-scale renewable energy projects and allowed the IDC to raise additional funding from the AFD for the GEEF
OUTCOME
PROMOTION OF RENEWABLE ENERGY AND ENERGY EFFICIENCY IN TANZANIA (PHASE I AND II)
Countries: TanzaniaFees: € 1,727,629 Years: 2014-2018
Announcement a national Energy Efficiency Target for 2025
Promotion of technically viable, sustainable,
affordable, and cost effective EE measures
Establishment of a pool of trained and certified EE
service providers such as EM, EA and M&V
professionals
Testing the strategy in water utilities
Development of bankable business plans
GFA’S ROLE
Power shortages and inefficient electricity supply constitute a serious obstacle to Tanzania's social and economic development
The power supply in the country is mainly based on hydropower, which is vulnerable to climate variability and climate change and polluting and expensive diesel power plants are used as backup
Underdeveloped renewable energy (RE) and energy efficiency (EE) sectors
CHALLENGE
GIZ appointed GFA to:Support Tanzania’s Ministry of Energy Minerals with the development of a National Energy Efficiency Action Plan Establish a platform to promote EE in the Energy Ministry Build capacity on EE in the private sector and implement pilot projectsPromote EE in the water sector, including the development of incentives systems and tools
Tanzania’s National Energy Efficiency Action PlanPool of trained and certified EE service providersEE manual for water utilities
OUTCOME
APPROACH
Trucks and busses account for a significant proportion of carbon emissions in South Africa and need to move to more climate friendly fuels
South Africa’s platinum industry will be adversely effected over the next decade as motor vehicle manufactures move to electric vehicles unless it can findnew applications for platinum such as hydrogen fuel cells
South Africa is almost totally dependent on imported fuel and locally produced fuel is coal based
CHALLENGE
GFA in partnership with Carbon Trust prepared a pre-feasibility study which:Investigates the development of green hydrogen fuel cells to power buses andtrucksEnjoys the support of several government departments (DoT, DEAF, DTI andDS&I) and the IDC as the national support organizationDraws upon South Africa’s vast renewable energy and platinum resourcesIncorporates concessional funding to crowd in private sector funding
GFA and Carbon Trust are currently applying for technical grant funding tofurther develop and implement the proposed ZAR 1.5 billion pilot programThe program will enable the roll out of 200 green hydrogen fueled buses andtrucks in South Africa
OUTCOME
GREEN HYDROGEN FUEL CELL PROGRAM
Countries: South AfricaFees: € confidential Years: 2019 - 2020
When renewable energy is
used to split water into
hydrogen and oxygen, it
produces an emissions-free
fuel
A SELECTION OF OTHER
SUB-SAHARAN AFRICAN
PROJECTS
SELECTION OF OTHER SUB SAHARAN AFRICAN PROJECTS
Countries: TanzaniaFees: € 1,851,324 Years: 2016 – 2019
Tanzania’s Ministry of Water (MoW) and KfW agreed to establish an Investment Financing Facility (IFF) tohelp urban water utilities access commercial loans by creating incentives for local banks. GFA was appointedby KfW to:
Assist the MoW in managing and overseeing the IFF ProgramSupport water utilities with the development of investment proposals and loan applicationsSupport participating banks with the establishment of in-house capacity to manage and develop loanproduct for water utilities
INVESTMENT FINANCING FACILITY FOR TANZANIA’S URBAN WATER UTILITIES
Countries: KenyaFees: € 641,300 Years: 2014 – 2015
NAIROBI SATELLITE TOWNS WATER AND SANITATION DEVELOPMENT PROGRAM
The KfW funded pogram sought to improve access to water supply and sanitation services for the satellitetowns of Nairobi by mapping and documenting the water supply and sanitation situation to identify suitableinvestment packages. GFA was appointed to
Develop a decision-making tool/model to prioritize potential investment projectsPrepare a water and sanitation inventoryDevelop and evaluate investment alternativesUndertake a legal assessment of water supply and sanitation service provisionRank investment proposals
SELECTION OF OTHER SUB SAHARAN AFRICAN PROJECTS
Countries: BeninFees: € 3,147,569 Years: 2014 – 2019
Countries CameroonFees: € 2,261,006 Years: 2006 – 2011
GIZ appointed GFA to develop and implement a climate change adaptation strategy for Benin’s agriculturesector. GFA’s services included:
Implementing diagnostics in each watershed to identify climate hazards
Translating adaptation measures into bankable projects
Capacity building for municipalities to integrate climate change and adaptation measures intomunicipalities’ investment plans
Support to municipalities, NGOs, private actors and other stakeholders in investment planning
ADAPTATION OF AGRICULTURE TO CLIMATE CHANGE
GFA was appointed to administrate a fund set up by KfW and Cameroon’s Ministry of Forests and Wildlife forthe sustainable management of three national parks. GFA was responsible for:
The Fund’s financial administration and coordination with different partners
Implementation of development plans in 65 villages
The Monitoring of conservation and development activities
Development of a sustainable financing mechanism for the national parks’ management, including theassessment of carbon revenues
PROGRAM FOR THE SUSTAINABLE MANAGEMENT OF NATURAL RESOURCES
SELECTION OF OTHER SUB SAHARAN AFRICAN PROJECTS
Countries: KenyaFees: € 1,695,232 Years: 2011– 2014
GFA was appointed by GIZ to
Review and further develop a funding mechanism for the implementation of water supply and sanitation projects in urban low-income areas
Develop a monitoring system for infrastructure funded by the WSTF
Develop a toolbox for decentralized wastewater and faecal sludge treatment
Countries: Cape VerdeFees: € 1,090,000 Years: 1997 – 2001
GFA was appointed by Austria’s Federal Ministry for Foreign Affairs to support five municipalities in CapeVerde. GFA was tasked with:
Defining a strategy and a model for the reorganisation of municipal water and sewage services
Improving the commercial, administrative and technical aspects of 5 municipalities’ water and sewageservices
Providing legal, organizational, commercial and technical training
Providing technical assistance in respect of tariffs, water quality, renewable resources, etc.
ASSISTANCE TO FIVE AUTONOMOUS WATER AND SEWAGE SERVICES
KENYA’S WATER SERVICE TRUST FUND (WSTF)
SELECTION OF OTHER SUB SAHARAN AFRICAN PROJECTS
Countries: BurundiFees: € 3,210,731 Years: 2006 - 2013
GFA was appointed by GIZ to support Zambia’s newly established Water Resource Management Authority,deliverables included:
The establishment of an Integrated Water Resource Management Information System to improvedecision making on water allocation and sustainable water management
The development of hydrological balances and hydraulic models
The development of water resource management strategies and plans
INTEGRATING CLIMATE CHANGE IN WATER RESOURCES MONITORING
GFA was appointed by GIZ to improve the management of urban water supply and sanitation services inBurundi’s capital and 5 secondary towns. GFA supported the :
The utilities’ institutional / organizational development process
Technical planning departments
Improvement of the utilities’ commercial management
Improvement of operation and maintenance processes
Establishment of human resources development / management
Training of staff
BURUNDI’S WATER SECTOR PROGRAM
Countries: ZambiaFees: € 1,865,021 Years: 2013 – 2017
DIRECTORS‘ PROFILES
JONATHAN FIRST spent 17 years in investment banking in London, Toronto and Johannesburg and 8 years in developmentfinance in South Africa after qualifying as a lawyer. Since 2012 Jonathan has focused on climate focused developmentfinance and impact investment in Sub Saharan Africa. Jonathan established GFA C&I in 2018 to provide advisory servicesto support and fund climate focused infrastructure.
At the DBSA, Jonathan developed innovative structured finance solutions and sourced funding for large infrastructureprojects in SSA. He led the DBSA’s initiative to create a green bank which culminated in the establishment of the GCFfunded Climate Finance Facility in 2018. Jonathan currently serves on 2 committees of South Africa’s first Green OutcomesFund and on the advisory committee of the Global Climate Innovation Lab. He was also part of the task team that set upthe Impact Investment National Advisory Board in South Africa.
CARLA ROOSEBOOM is a chartered accountant and civil engineer with more than 17 years’ infrastructure advisory, duediligence and fund structuring experience gained in South Africa and Europe. She worked on climate finance andinfrastructure investment programs/projects in Sub-Saharan Africa since 2010, starting with South Africa’s RenewableEnergy Independent Power Producer Program. She successfully raised climate finance for two of South Africa’s ClimateFlagship Programs and structured two funds that seek to achieve impact.
Carla has a track record of delivering large climate focused funding and capacity building programs for internationaldonors and SSA governments. In the last 10 years Carla also led the financial workstreams of several large PPPs in SSA,Whilst employed by KPMG in London she spent 4 years advising mainly private sector clients on secondary market PPPtransactions and the listing of infrastructure funds.
ASSOCIATES‘ PROFILES
LYDIE MENOUER is an investment professional with 13 years’ experience in development finance. She started hercareer with Agence Française de Développement (AfD) in 2007 where she worked on AfD’s group funding strategyand participated in AfD’s first local currency bond issuances for Africa and Asia. As Investment Officer at AfD inJohannesburg (2011 – 2015), Lydie focused on investments at municipalities and financial institutions in theregion.
Since 2016, Lydie has worked with international development institutions assisting them with the developmentand structuring of projects, mainly in water and energy sectors. She has a track record of delivering donor fundedprojects in Southern, West and Central Africa.
JOHANNES HORSTMANN has 15 years of advisory experience in utility infrastructure assets and has advised on over50 deals with a combined value of over $15bn.
He is a financial modelling specialist with over 10,000 hours of spreadsheet modelling experience. He regionallyprepared bankable models for PPPs, capital raises of cross-border assets in SSA, privatization studies in West Africa,IFI financing facilities and for greenfield project finance deals. He is also an advisor to South Africa’s PresidentialInvestment & Infrastructure Office responsible for screening and selecting infrastructure projects.
He has acted as advisor to the World Bank, South Africa’s DoE, Goldman Sachs, Macquarie, EU, EBRD, and KfW inover 20 countries worldwide. Johannes is based in South Africa since 2013 and is a member of the World EnergyCouncil.
