Shine 2027 opens funding for Cape Town startups solving climate problems

A Cape Town startup working on electricity, waste, transport, buildings or other urban problems now has another funding option to consider. Shine 2027 is looking for early stage startups working on climate and urban sustainability, with applications closing on 15 September 2026. The programme is being run by the Swiss Re Foundation and Climate KIC, with Cape Town among the cities taking part. It is aimed at startups that have already built something and are trying to get it into the hands of customers. That distinction matters. A founder with only an idea is not the target here. Applicants need to have a minimum viable product and be working towards a pilot or commercial launch. Selected startups will receive grant funding, business support and access to Swiss Re expertise in areas including risk, strategy and business development.

It is not just about renewable energy

Climate technology can mean very different things. Shine is looking at startups working in energy, buildings, transport, waste, urban nature, and climate data and governance. So the company applying does not have to be building solar panels or electric cars. It could be developing technology that helps commercial buildings use less electricity. It could be working on waste collection or recycling. It could be helping transport operators reduce fuel use. It could also be using data to help businesses or cities understand risks linked to heat, flooding or other climate related problems. These are fairly ordinary business problems, but they can also have an environmental cost. That gives startups a way to sell their products without making the climate argument the entire pitch.

The customer still wants to save money

A small business is unlikely to buy new technology simply because it is described as climate-friendly. It wants to know what the technology will do for the business. A restaurant may want to spend less on water. A factory may want to reduce its electricity bill. A delivery company may want to use less fuel. A property owner may want to make a building cheaper to operate. If a startup can help with one of those things, the environmental benefit becomes part of the story rather than the only reason to buy. 

This could make SMEs an important market for some of the companies coming through the programme. Large companies often have more money to spend on energy efficiency, waste management and sustainability projects. Smaller businesses usually have to be more careful about where they spend. A product that costs less and produces a clear saving has a better chance of getting their attention.

The expensive part comes before the sale

Climate startups can also have a different funding problem from companies selling ordinary software. A software startup can sometimes test its product with customers without much physical infrastructure. That is harder for a company working on buildings, transport, waste or energy. It may need equipment. It may need access to a building or factory. It may need to run a pilot before a customer is prepared to sign a bigger contract. That means the founder can end up spending money before the business has enough revenue coming in. Shine is targeting companies at this stage. The grant can help a startup continue developing and testing its product, while the business support is intended to help founders deal with the commercial side of the company. But the money does not remove the main test. Someone still has to pay for the product.

Cape Town is already a testing ground

The reason this type of programme makes sense in Cape Town is that the problems are already visible. Businesses have to manage energy costs. Water needs to be used carefully. Waste has to be collected and processed. Transport costs money and uses fuel. Buildings consume large amounts of energy. These are problems businesses deal with regardless of whether they describe themselves as part of the climate economy. That gives local founders somewhere to start. A startup working on energy management can test its product with commercial buildings. A waste company can work with local businesses. A transport startup can look for operators willing to test its technology. The city effectively becomes part of the testing environment.

There is already interest in African climate startups

Shine is also not operating in isolation. BTA has previously reported on Catalyst Fund's $30 million climate-tech fund, which is investing in early-stage companies across Africa. Earlier this month, 18 African clean-technology startups gathered in Cape Town for the GreenPitch Challenge, with businesses working on wastewater, recycling, renewable energy and sustainable agriculture. That shows there is already a group of founders building businesses around environmental problems. The issue is getting these businesses beyond demonstrations and early funding. A startup can win a competition and raise a grant, but eventually it needs customers and revenue.

What happens after the funding?

That is probably the more interesting part of Shine 2027. The programme can give a young company money and access to people who understand risk and business development. It can help a founder get a product closer to the market. But it cannot decide whether customers will buy it. That comes down to the product itself. Does it work? Is it affordable? Does it solve a problem that is expensive or frustrating enough for someone to pay to fix? Those questions will matter to the startups long after the programme ends. For Cape Town founders working on energy, buildings, transport, waste and other urban problems, Shine 2027 offers a way to get some of the money and support needed to take the next step. The bigger test will be turning that support into paying customers.