Kenyans with project ideas that can positively affect lives of ten to thirty people have a chance to receive funds to fund their projects. The funds totaling up to Ksh1.653B will be made available via the Renewable Energy and Adaptation to Climate Technologies (REACT) funding window of the Africa Enterprise Challenge Fund (AECF).
“The AECF is now accepting applications in the third round of the renewable energy and adaptation to climate technologies (REACT R3) window.”, notes REACT in a statement.
REACT provides grants and interest free loans to businesses with innovative and transformative climate change solutions. The fund seeks those businesses with ideas that are profit driven, have the potential to go scale and that by doing so will have a deep social impact throughout the region.
The projects on target are mainly under solar energy, power generation from agricultural waste, draught-resistant crops, small irrigation projects and weather insurance for small farmers.
REACT goes on to add, “The overall driving forces for REACT are that the business idea must show an environmental benefit and that it must demonstrate a positive impact on the rural poor through either increased incomes, employment and productivity or reduced costs.”
The application is open until 23rd September this year. Applicants can apply on the AECF website. The best ideas are awarded up to US$1.5m in grants and interest free loans while the least amount awarded is Ksh250, 000.
REACT is currently investing in 32 companies across East Africa and 12 in Mozambique, with an overall portfolio size of approximately US$34 million. So far, 179 grantee businesses around Africa have been selected for funding through various competitions out of over 8,000 applications received in six years.
Among the beneficiary projects under REACT so far are; Mkopa, MicroEnergy Credits, Mobisol,Cummins Cogeneration, Ecosmart Energy SolarNow, Off Grid Electric Tanzania Ltd among many others.
The AECF is a Sh18 billion challenge fund capitalised by multilateral and bilateral donors to stimulate private sector entrepreneurs in Africa. The AECF is supported by the governments of Australia, Denmark, Netherlands, Sweden and the United Kingdom, as well as the International Fund for Agricultural Development (IFAD).