Organisations globally are under more pressure than ever to operate more sustainably and integrate circular economy principles into their business models. Research consistently shows that sustainability is no longer a trend that businesses, including small and medium-sized enterprises (SMEs), can afford to ignore.

In Europe, the impact of legislation is expected to soon affect SMEs, even though current EU laws aim to shield them somewhat from stringent sustainability reporting requirements. However, SMEs that embrace sustainability and report their progress stand to gain access to abundant financing opportunities, including loans, impact investments, and grants dedicated to sustainable and green initiatives.

While many SMEs are embracing sustainability, most still struggle to access affordable finance. For green SMEs, this is even more challenging, especially when entrepreneurs are unsure which standards or criteria to follow or lack the expertise to provide the necessary data on their sustainable performance to satisfy potential investors. Tracking and reporting sustainability is a complex skill, one that few entrepreneurs have the resources, knowledge, or time to master, leaving many promising businesses unable to become "investment-ready."

Fetola, through its work with thousands of SMEs, has identified a significant funding gap: investors struggle to find investment-ready businesses, especially in business-to-consumer markets. To address this, Fetola has partnered with Nedbank, J.P. Morgan Chase, and the Embassy of Finland to launch Hloolo, a platform designed to bridge the gap between green SMEs and funding opportunities.

“Investing in an innovative platform for sustainable businesses aligns with our commitment to fostering green economic growth in our society,” says Maluta Netshaulu, Senior Lead of Green Economy Portfolio for Corporate Social Investment at Nedbank.

Netshaulu adds that Hloolo will help sustainable businesses attract significant investment, driving sustainable growth. The platform builds on the success of Fetola's Circular Economy Accelerator (CEA), where over 100 small businesses experienced significant benefits, including a 411% revenue growth—double that of non-circular businesses in similar programmes. Additionally, CEA participants improved their sustainability performance by 100%.

Hloolo's Support for SMEs

Hloolo offers SMEs support through an investment readiness diagnostic tool, helping entrepreneurs identify gaps and opportunities in areas such as:

• Financial forecasting
• Financial management systems
• Accessing markets
• Circular economy principles
• Sustainability reporting
• Pitching for success

Beyond funding, Hloolo’s partners provide SMEs with access to networks and new opportunities. Key partners include Nedbank, J.P. Morgan Chase, and the Embassy of Finland, along with international collaborators like the African Circular Economy Network and Youth Business International.

Hloolo's Vision for the Future

Hloolo aims to support tens of thousands of SMEs across Africa over the next decade, connecting them to affordable green finance and leading the fight against climate change. The platform will drive the transition to a sustainable economy, helping SMEs thrive and unlocking new revenue streams for businesses that embrace circular economy practices.

"Entrepreneurs or investors looking to make an impact in the green business ecosystem can visit Hloolo.com to explore how they can connect, invest, and grow with Fetola."

About Hloolo

Hloolo, Fetola’s new digital platform, bridges the gap between green businesses and the finance, knowledge, and market opportunities they need to succeed. It empowers SMEs by connecting them with the resources required to enhance investment readiness, drive green growth, and foster innovation across multiple sectors.

For more information, visit www.hloolo.com.

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