33116 - LEREKO METIER SUSTAINABLE CAPITAL FUND

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Summary of Investment Information

Project Number

33116

Company Name

LEREKO METIER SUSTAINABLE CAPITAL FUND

Date SPI Disclosed

Apr 4, 2013

Country

Southern Africa Region

Region

Africa

Projected Board Date

Jun 11, 2013

Environmental Category

FI-1 - Significant

Status

Completed

Last Updated Date

Mar 27, 2025

Department

Equity Portfolio Management

Industry

Funds

Previous Events

Approved : Jun 11, 2013
Signed : Nov 1, 2013
Invested : Dec 12, 2013

Sector

Growth Equity Fund

Project Description

The proposed investment involves an equity investment by IFC of up to US$20 million in the Lereko Metier Sustainable Capital Fund Trust (“LMSC” or “the Fund”). The Fund is seeking to raise up to US$120 million and will undertake investments in clean technology initiatives including renewable energy, energy efficiency, water, and waste sectors in South and Southern Africa. The Fund’s investment strategy will be achieved by acquiring control and significant minority positions in projects and businesses that fall within its intended sectors. LMSC will seek out opportunities where it has a competitive ownership advantage over other sources of capital to deliver value in the strategic, operation and governance development of its investments. The Fund plans to limit technology risk by focusing on investments with an established international business model or commercially proven technology that is implemented locally and accepted by local lenders. The Fund will make 10-15 investments in the target sectors.

Associated Advisory Engagement

Sponsor / Cost / Location

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan
Equity	20.0

Development Impact

The Fund is expected to have significant development impact on its investees by: i) Reduction of CO2 and other GHGs by investing in renewable energy and cleaner technology projects, thus contributing to a reduction in carbon emissions; ii) Supporting business focusing on climate change and clean technology; iii) Supporting regional developmental objectives and environmental commitments toward investment into clean and efficient energy, water and waste sectors; iv) Stimulating job creation by supporting job growth in new sectors; v) Implementing best practice ESG at both the Fund and investee level.

E&S Category Rationale / Risks and Mitigation

This project has been classified as FI-1 according to IFC’s Environmental and Social Review Procedure. The project is an investment LSMC, a clean technology fund targeted at portfolio companies in renewable energy, energy efficiency, water services delivery and water resource management, waste service delivery, waste management, direct pollution control and cleaner production in Southern Africa. These activities are likely to have significant adverse environmental and social risks and impacts; the portfolio is thus considered high risk. The Applicable Performance Requirements for this project are the IFC Exclusion List, the applicable National Laws in the countries where portfolio companies are located and the Performance Standards.

In accordance with IFC's Access to Information Policy, IFC will periodically disclose the names, locations and sectors of sub-projects that have been supported by IFC investments through private equity funds, subject to regulatory constraints and market sensitivities. The sub-project(s) listed below reflect(s) the status of the portfolio as of January 1, 2023.

Investee	Country Of Investment	Sector
Bokpoort	South Africa	V-BF - Solar - Renewable Energy Generation
Sindila Hydropower	Uganda	V-BB - Small Hydro (<10MW) - Renewable Energy Generation
Kathu Solar Park 1 CSP	South Africa	V-BF - Solar - Renewable Energy Generation
Tecroveer	South Africa	C-BA - Water and Wastewater Utilities

The main E&S risks of the project relate to LMSC ability to identify and manage the E&S risks and impacts associated with the portfolio companies the Fund invests in. LSMC has an ESG Officer responsible for E&S risk management and the Fund Manager also has an ESMS in place. The ESMS identifies as the applicable requirements the Exclusion List, the applicable National Laws and the Performance Standards. The Fund Manager has only recently started implementing the ESMS and the E&S reviews conducted thus far are considered satisfactory. However, the ESMS needs to be revised to reflect all the elements of the IFC Exclusion List and the Performance Standards. The Fund Manager will also be required to ensure that all staff are adequately trained on E&S risk management and hire an external consultant, where necessary, to conduct independent E&S assessments in line with the Performance Standards.


Task Title & Description	Anticipated Completion Date as Disclosed in SII
Nominate officers	06/30/2013
Establish SEMS	06/30/2013
Formalize procedures	06/30/2013
Develop guidelines	06/30/2013
Staff Training	06/30/2013

IFC supports its clients in addressing environmental and social issues arising from their business activities by requiring them to set up and administer appropriate grievance mechanisms and/or procedures to address complaints from Affected Communities.

In addition, Affected Communities have unrestricted access to the Compliance Advisor/Ombudsman (CAO), the independent accountability mechanism for IFC. The CAO is mandated to address complaints from people affected by IFC-supported business activities in a manner that is fair, objective , and constructive, with the goal of improving environmental and social project outcomes and fostering greater public accountability of IFC.

Independent of IFC management and reporting directly to the World Bank Group President, the CAO works to resolve complaints using a flexible, problem-solving approach through its dispute resolution arm and oversees project-level audits of IFC’s environmental and social performance through its compliance arm.

Complaints may relate to any aspect of IFC-supported business activities that is within the mandate of the CAO. They can be made by any individual, group, community, entity, or other party affected or likely to be affected by the environmental or social impacts of an IFC-financed business activity. Complaints can be submitted to the CAO in writing to the address below:

Compliance Advisor/Ombudsman
International Finance Corporation
2121 Pennsylvania Avenue NW
Room F11K-232
Washington, DC 20433 USA
Tel: 1 202 458 1973
Fax: 1 202 522 7400
E-mail: cao@worldbankgroup.org

The CAO receives and addresses complaints in accordance with the criteria set out in its Operational Guidelines which are available at: www.cao-ombudsman.org

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IFC supports its clients in addressing environmental and social issues arising from their business activities by requiring its real sector clients to set up and administer appropriate grievance mechanisms and/or procedures to address complaints from Affected Communities in relation to environmental and social issues arising from IFC's clients' business activities. Since 2012, IFC's Financial Intermediary clients applying the Performance Standards are required to develop External Communications Mechanisms to receive and review inquiries or complaints from any interested party regarding the E&S risks and impacts of their operations.

For IFC projects that are active or under consideration, individual(s), or their authorized representative(s), who allege they have been or will be adversely affected by E&S risks or impacts arising from IFC's clients' business activities, may submit a complaint to IFC directly for consideration. When receiving an E&S complaint, IFC engages with complainants and works with its clients to find solutions to E&S concerns as quickly and efficiently as possible.

Complaints can be submitted to IFC online at www.ifc.org/escomplaints or by email to EScomplaints@ifc.org.

IFC complaint response is separate from and complementary to IFC’s clients’ project level grievance mechanisms and IFC’s Independent Accountability Mechanism (CAO). Lodging a complaint directly with IFC does not, at any time, restrict access to CAO.

Affected communities have unrestricted access to the Compliance Advisor Ombudsman (CAO), the independent accountability mechanism for IFC and MIGA. CAO facilitates the resolution of complaints related to IFC and MIGA projects and sub-projects, undertakes reviews of IFC’s and MIGA’s environmental and social compliance, fosters public accountability for their commitments, and enhances the environmental and social performance of IFC and MIGA.

Independent of IFC and MIGA management and reporting directly to the IFC and MIGA Boards of Executive Directors, CAO helps resolve issues raised about the environmental and social impacts of projects through a neutral, collaborative, problem-solving approach via its Dispute Resolution function. It also reviews IFC’s and MIGA’s compliance with environmental and social policies, assesses related harm, and recommends remedial actions through its Compliance function. Additionally, CAO provides advice to IFC, MIGA, and their Boards to enhance environmental and social sustainability performance and minimize the risk of harm.

Complaints may relate to environmental and social harm regarding any aspect of the planning, implementation, or impact of a project or sub-project, and can be made by any individual, group, community, entity, or other party affected or likely to be affected by the environmental or social impacts of an IFC- or MIGA-financed business activity.

Complaints can be submitted by any of the following methods:

Online form: available at https://www.cao-ombudsman.org/
Mail/Hand Delivery to: 2121 Pennsylvania Avenue, NW, Washington, DC 20433, USA
Voice mail: +1 202 458 1973
Email: cao@worldbankgroup.org
SMS, WhatsApp, Telegram, and Signal: +1 202 650 2627

CAO receives and addresses complaints in accordance with the CAO Policy, which can be accessed at: https://www.cao-ombudsman.org/policies-guidelines.

This Summary of Investment Information (SII) is prepared by IFC to disclose a factual summary of the main elements of the potential investment. It also includes findings and recommendations related to environmental and social considerations regarding this potential investment. The purpose of the SII is to enhance the transparency of IFC’s activities. For any project documentation or data included or attached herein, whether prepared by the project sponsor or otherwise, authorization has been given for public release by the project sponsor. IFC considers that this SII is of adequate quality for release to the public, but has not necessarily independently verified all of the project information therein. It is distributed in advance of IFC Board of Directors’ consideration and may be periodically updated thereafter. Board dates are estimates only and this document should not be construed as presuming the outcome of the Board Directors’ decision. The following SII is disclosed in accordance with IFC's Access to Information Policy (AIP) that went into effect on January 1, 2012.

The map is for illustrative purposes and does not imply the expression of any opinion on the part of the World Bank, concerning the legal status of any country or territory or concerning the delimitation of frontiers or boundaries. Country borders or names do not necessarily reflect the World Bank Group's official position. In some cases, available project location information is limited to the country of the project's activities. Locations are approximate.

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