The Africa Enterprise Challenge Fund (AECF) has launched a Results-Based Financing Programme aimed at unlocking new markets for clean energy companies in Kenya.
The US$ 4 million programme will support commercially viable companies to establish new markets and accelerate access to clean energy for 87,000 unserved and underserved households in Kenya.
Companies will be awarded funding of up to US$ 500,000 at contracting, with a flexible reallocation system to allow companies that exceed their milestone targets to increase their funding cap to US$1 million.
Purpose of the fund
The REACT RBF by AECF is a US$ 4 million fund that aims to support:
- Transformational business models adapt to target markets in order to accelerate access to low cost, clean energy i.e. cleaner fuels, cook stoves, alternatives to grid power.
- Commercially viable companies and markets.
- Innovative ideas that stimulate next generation approaches in the renewable energy sector.
The two- and half-year program is expected to run from July 2021 to 2023 with a target to reach 87,000 beneficiary households.
Eligibility criteria
The REACT RBF awards are open to companies operating in Kenya that meet the following requirements:
- Must be privately owned, legally registered and have a physical presence in Kenya
- Must have been effectively marketing their products or services in Kenya for at least two years. Companies with less than two years of market experience but can demonstrate notable sales growth during their period of operation may be considered
- Propose a product or service that meets or exceeds the proposed energy access tiers
- Demonstrate the quality of proposed product or service and the effectiveness of their after-sales support service.
- Make a convincing additionality argument
- Have the capacity to implement the proposed business/project
- Demonstrate the ability to raise the upfront finance required to implement the proposed RBF project
- Demonstrate the ability to effectively track sales, and collect and store basic customer data
- 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 terrorists’ activities
- Must allow regular due diligence by AECF
Clean Energy Products and Services Supported
Renewable energy products or services that provide access to electricity (for off-grid households and/or productive engagements) and access to clean and/or efficient cooking.
Electricity access products and/or services categorized as Tier 1[1] (with multiple lights) and Tier 2, or that enable existing Tier 1 and Tier 2[2] households to continue to climb up the electricity access ladder.
Cook stoves that meet and/or exceed Tier 2 fuel use efficiency for wood and Tier 3 fuel use efficiency for charcoal.
Cook stoves and fuel solutions that meet the Tier 4 threshold for indoor emissions. This includes sustainable fuels e.g. pellets, briquettes, bioethanol and LPG.
Activities that help increase electricity consumption on existing mini-grids (e.g. increasing access to suitable appliances for mini-grid customers)
Applications will be accepted between 8th December 2020 and 26th January 2021
