Rome, May 8 2026 - Small and medium sized enterprises across Africa are already contributing to climate resilience, sustainable energy, circular economy solutions, and green growth. Yet despite growing investor interest in climate finance, SMEs continue to face major barriers in accessing capital. In many cases, the challenge is not the absence of viable businesses or strong local demand but rather it is the investment readiness. SMEs may lack the technical support, financial structuring, documentation, or investor engagement needed to move from a promising business model to a financeable opportunity. 

To help address this challenge, UNDP Rome Centre is expanding the scope of PISTA in collaboration with the Africa Sustainable Finance Hub through the SDG Pipeline Builder x PISTA: Scaling African SMEs in Climate Resilience initiative on a new SME focused support window. The initiative will support selected SMEs operating in climate relevant sectors across Ghana, Kenya, Malawi, Mauritania, Republic of Congo, and Senegal. Through targeted technical assistance, the initiative aims to strengthen investment readiness and help businesses better position themselves for engagement with climate aligned financing opportunities. Support provided through the initiative may include business planning, financial modelling, investment readiness preparation, investor facing materials, and targeted engagement with financial institutions and other financing actors. 

For many SMEs, this kind of preparation can be the difference between remaining outside the financing pipeline and being able to engage more credibly with banks, impact investors, development finance institutions, and other capital providers. 

The SME Window builds on the broader approach of PISTA, the Platform for Investment Support and Technical Assistance, which supports the development of stronger and more investable climate and energy projects across developing markets. Through technical assistance, PISTA works to help bridge the gap between national climate priorities and implementation on the ground. 

The initiative also reflects a broader recognition that climate finance challenges are not limited to large infrastructure projects. SMEs play a critical role in local economies and often contribute directly to adaptation, energy access, sustainable agriculture, resource efficiency, and green innovation. However, many remain underserved by existing financing systems. By supporting SMEs at earlier stages of investment readiness, the initiative aims to contribute to a stronger pipeline of climate relevant businesses while helping connect local solutions with financing opportunities. It also supports a more inclusive approach to climate finance, where smaller businesses with practical solutions can be better prepared to engage with the capital needed to grow. 

The work will be implemented in collaboration with UNDP Country Offices and national stakeholders in the selected countries, supporting country level outreach and alignment with national priorities. As the initiative develops, UNDP Rome Centre will continue working with partners across the climate finance ecosystem to support practical pathways from pipeline development to financing and implementation.