Aséli Impact Capital’s launch shows that philanthropy is not a last resort

South African micro, small and medium enterprises (MSMEs) operate in one of the most challenging funding environments globally. Despite MSMEs accounting for the majority of employment in South Africa, only about one in five secures the financing it applies for. For climate-tech and green economy startups, which are arguably some of the most strategically important growth sector in the country, this is an opportunity.

For too long, philanthropic capital has been positioned as a safety net or a fallback for initiatives that conventional finance overlooks. But this approach leaves many groundbreaking ideas on the proverbial cutting room floor.

Aséli Impact Capital – co-designed by the Anglo American Foundation (AAF), Savant and Krutham – hopes to change that.

Reimagining the role of philanthropic capital

Aséli operates as a non-profit funding vehicle that reinvests all returns into new opportunities, especially in the climate and green technology space. Currently, around 60% of these startups never progress beyond the pilot stage. Many are underpinned by solid ideas, but get caught in what some development finance practitioners call the ‘missing middle’.

Philanthropy, when deployed with structural intention, can be a catalyst for unlocking new sources of capital in innovative ways.

“The ‘missing middle’ remains one of the biggest barriers for promising impact enterprises – those that are too established for grants, but too early for commercial finance,” says Michael Mapstone, CEO: Anglo American Foundation.

“Working alongside experts such as Savant and Krutham, AAF co-designed a more flexible funding model that shows how philanthropy can play a catalytic role in unlocking capital where traditional finance often falls short. Our aim is to pave the way for investments to be structured differently, delivering strong financial returns while driving social and environmental impact.”

By offering patient, flexible, impact-aligned financing, Aséli bridges the gap for MSMEs that face systemic exclusion from mainstream capital markets. This model ensures each investment multiplies over time, compounding financial returns and impact by continually reinvesting in the next wave of South African innovators.

“Brilliant founders, proven products, real market traction – but a lack of appropriate funding to fuel their growth. Aseli fills that ‘missing middle’ gap for green economy businesses that fall between established funding mechanisms – demonstrating that these companies represent very real and profitable investment opportunities,” says Nick Allen, founder and managing partner of Savant.

“Aséli targets post-proof-of-concept, post-revenue MSMEs operating in South Africa’s climate-tech and green economy. Typical investments range from R5 million to R40 million, with scaling as the fund grows. The non-profit structure of the vehicle means that when the companies in which Aséli invests turn a profit, every rand returned goes straight back into backing the next wave of South African innovators.”

A proof of concept for the green economy

There is abundant evidence showing that incentive-driven blended finance can unlock significant lending volume. There is also clear precedent for the impact catalytic capital can achieve when deployed at scale.

Aséli’s launch marks the opening of two parallel invitations. The first is to MSMEs: Climate-tech and green-economy businesses operating in South Africa that are post-revenue, have validated their solutions and are ready to scale are encouraged to apply for funding. The application process has been designed to be accessible, and the fund’s investment team is actively seeking businesses across all six target sectors.

The second is to funders: Aséli was co-created with the explicit intention of attracting additional catalytic capital. Every contribution compounds, in the number of businesses backed, jobs created and emissions reduced. Impact investors, philanthropic foundations and corporate sustainability programmes with an appetite to deploy capital where it genuinely matters are encouraged to explore co-investment opportunities.

South Africa’s economy is full of businesses ready to scale and the minds ready to build them. Now is the time to make those dreams a reality.