Somalia

Program

Entrepreneurship

AECF - React Africa Program Movemeback African initiative cover image

Details

The REACT SSA Somalia programme is a US$ 8.5 million fund that seeks to reduce poverty through a transformational increase in the use of renewable energy by off-grid households in the Federal Government of Somalia (FGS) and Somaliland. This programme aims to promote private sector investment and innovation in low-cost clean energy and climate change catalysed at scale. The REACT SSA – Somalia award seeks to encourage private sector investment and innovation in low-cost clean energy in FGS and Somaliland.
 

Purpose:

The specific objectives of the fund are to:

  • Support transformational business models adapted to target markets in order to accelerate access to low cost, clean energy i.e. cleaner fuels, cook stoves, alternatives to grid power.
  • Support commercially viable companies and markets in target countries, out of which 25 percent will be women owned and/or managed.
  • Support innovative ideas that stimulate next generation approaches in the renewable energy sector in Sub-Saharan Africa.
  • Capture and disseminate lessons on how increased access to clean energy can deliver positive impact on the rural poor, especially women and youth, through: i) business models, ii) improved business environment, through policy influencing and advocacy, and iii) improved business environment through crowding in, replication and copying best practice.
  • Stimulate stakeholder engagements for an improved policy, legal and regulatory environment for renewable energy businesses within the target countries.
     

Funding:

The AECF will award grants from US$100,000 to US$1,500,000 to selected qualifying companies under this competition. Funding will be milestone based, where disbursements are based on mutually agreed milestones that have to be delivered/achieved.

Criteria

Applicants must meet the following requirements:

  • Be private sector enterprises that are aligned with the focus areas. Joint ventures are allowed
  • Must be legally registered and physically established in the FGS or Somaliland
  • Must show a commitment to match AECF funding. Matching contributions are required in order to demonstrate interest and trust from the wider investor community
  • Request for funding should be within the stipulated range of US$ 100,000 to US$ 1.5 million
  • This is a full grant. The funding must, however, be used for a specific project in the FGS or Somaliland
  • Be compliant with fundamental in-country and international human rights, labor standards and environmental management laws
  • Must NOT be involved in any act of terrorism or support terrorist activity
  • Must allow regular due diligence by AECF

 

Benefits

  • Qualifying companies will receive between US$100,000 and US$1.5 million of pure grants to be awarded upon the achievement of mutually agreed milestones. The grants will be given to commercially viable companies of which 25 percent will be women-owned or managed.

About AECF

AECF is a development institution which supports businesses to innovate, create jobs, leverage investments and markets in an effort to create resilience and sustainable incomes in rural and marginalized communities in Africa. Launched in 2008, the AECF has mobilized over US $310 million to date, leveraging more than US $580 million in matching capital and improving the lives of more than 13 million people in 2016 alone through jobs and increased household incomes. AECF has so far supported 257 companies in 24 countries in sub-Saharan Africa across 40 value chains in our focal sectors of agribusiness and renewable energy.