The Challenge Fund for a Just Transition program aims to contribute to climate change mitigation by supporting green Small and Growing Businesses (SGBs) in North Africa and providing sustainable decent jobs for more than 10.000 people in the region’s green transition process.

Why economic development should target the green economy

At a time when underemployment, unemployment, and extreme vulnerability to climate change are gaining a stranglehold on North Africa, we cannot afford to ignore the huge unexploited potential of green SGBs. The Challenge Fund for a Just Transition is therefore specifically designed to help local SGBs scale-up, and to bolster existing green jobs, create new green decent jobs, and make the green sector attractive for potential investors.

Unique implementation

The program is implemented by a network of micro-clusters mainly composed of micro distributors, micro suppliers and microbusiness clients. The consortium, led by Hivos, helps set up and strengthen relevant micro clusters, provides technical assistance by sector, and secures conditional co-financing for the SGBs. By designing the program together with our partners, we want to prove that decent working conditions are not only beneficial, but crucial for businesses to grow.


Algeria, Egypt, Morocco, Tunisia

Overal period and budget of the program

November 2022 – June 2025, 5 million euros

Planned activities

  • Enable 25 SGBs contributing to the green transition and their micro-business network to scale their businesses through activating green micro-clusters
  • Increase technical capabilities and financial resources of SGBs and their intermediaries to leverage commercial and non-commercial funding through leveraging green micro-cluster financing
  • Incentivize systematic change by providing proven business case highlighting the commercial opportunities of a just and green transition through incentivizing decent and inclusive employment in green micro-clusters


Algeria: Sylabs
Egypt: Nahdhet el Mahrousa and Chemonics Egypt
Morocco: UM6P Ventures and Ambo Ventures
Tunisia: Impact Partner and Flat6Labs
The Netherlands: New Silk Roads


The program is funded by the Dutch Ministry of Foreign Affairs through the Challenge Fund for Youth Employment, which is managed by Palladium, VSO Nederland, and Randstad.