Off-grid energy startups in Kenya have a new fund to pitch. Africa Enterprise Challenge Fund (AECF) has launched a $4 million financing programme aimed at unlocking new markets for clean energy as well as accelerating access to clean energy for 87,000 unserved and underserved households in Kenya.
“Off-grid energy sector continues to require investment if we are to make notable progress in improving access to affordable and clean energy. We are excited to be launching the REACT RBF programme through which we seek to provide results-based incentives for companies that are increasing access for unserved and underserved communities,” said Victoria Sabula, chief executive officer of AECF.
“Energy access remains critical for a sustainable post-COVID-19 recovery and we see REACT RBF helping companies to withstand the Covid-19 effects, recover, and come out stronger on the other side,” she further added.
Here Is What You Need To Know
- The programme is funded by the Swedish International Development Authority (SIDA), and will make available funding to energy companies in Kenya, incentivising them to reach more energy-deprived households and significantly increase their access to clean energy.
- The RBF projects are expected to be implemented over a 30-month period running from July 2021 to December 2023.
- Under the programme, the maximum award per company at the time of contracting is US$500,000. However, a flexible reallocation system will allow companies that exceed their milestone targets with a possibility of an increase up to US$1 million.
AECF is a leading development finance firm, which supports businesses to innovate and leverage on investments. The company further stated that the programme will help to improve access to clean and affordable energy given that as of June 2019, 4.1 million people in Kenya live with improved energy access and 3.5 million still without power.
Fund off-grid Kenya
What Are The Requirements For Selection?
To qualify, companies must be operating in Kenya (need not be 100% Kenyan-owned). It must also be privately owned, legally registered and have a physical presence in Kenya and must have been effectively marketing their products or services in Kenya for at least two years.
How to Apply
To apply for support, please go to www.aecfafrica.org/RBF and click on the “Apply” button to register on AECF’s secure online application platform. You will be expected to fill out an application form to determine your eligibility against the set criteria (more details in term sheet). Applications will be accepted between 8 December 2020 and 26 January 2021. The application window closes at 11:59 pm (EAT) on 26 January 2021.
To know more, click here.
Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based lawyer who has advised startups across Africa on issues such as startup funding (Venture Capital, Debt financing, private equity, angel investing etc), taxation, strategies, etc. He also has special focus on the protection of business or brands’ intellectual property rights ( such as trademark, patent or design) across Africa and other foreign jurisdictions.
He is well versed on issues of ESG (sustainability), media and entertainment law, corporate finance and governance.
He is also an award-winning writer