|| South Africa is the largest contributor to greenhouse gas (GHG) emissions in Africa. The energy sector is the single largest source of CO2 emissions, accounting for more than 70 percent of the total. One of the main barriers preventing private sector energy efficiency and renewable energy lending in South Africa is that financial intermediaries are hesitant to provide financing to energy efficiency (EE) and small-scale renewable energy (RE) projects as a specific product line, since they associate such funding with higher transactional costs as a result of their lack of experience with the technologies and market opportunities. The project aims to build a EUR8 million portfolio of EE/RE sub-loans with at least 8 to 10 companies. As the first EE/RE product to be launched by a second tier South African bank, the project should have a demonstration effect to Mercantile's peers.