Transcript AECF Renewable Energy and Adaptation to Climate

AECF Renewable Energy and Adaptation to
Climate Technologies Window
Anjali Saini – Adviser, REACT funding window
Overview of the AECF
AECF is a fund of donor money available to the private
sector on a competitive basis
AECF is a special partnership initiative of the Alliance for
a Green Revolution in Africa (AGRA)
AECF is funded by a multi-donor consortium (DFID,
Dutch, IFAD, CGAP, AusAID etc). The donors form the
Governing Council of the AECF
It is managed by a KPMG led team (the Fund Manager).
Initial capital was US$36m; now US$90m
How the AECF works
AECF arranges and manages competitions for the
private sector to compete for AECF funds
Each competition has its own eligibility and selection
criteria
Competitions have strict start and end dates
Best bids are awarded grants and interest free loans
to support their business ideas
Applicants must at least match funds requested from
AECF
What is the AECF REACT Window?
A special funding window for business ideas that are
based on renewable energy and adaptation to
climate technologies
Goal: to contribute to reducing rural poverty in subsaharan Africa
Objective: to catalyse private sector investment and
innovation in low cost, clean energy and climate
change technologies
Motivation
Commercially motivated and
Potential for
innovative projects that impact on systemic change
market systems
Businessoriented
Sociallymotivated
Company
Region
Conditions
Springfield Centre | Making
markets work
Field
Key Strands in REACT:
Increased access to low cost, clean energy for rural businesses &
households
Products and services that help small-holder farmers adapt to
climate change
Financial services that increase access to finance for low cost
clean energy and climate resilient technologies or catalyse
financial solutions
We are keeping broad definitions of the above, to “open the
box” and see what innovations come through
Project Examples
Renewable Energy
Adaptation to Climate
Technologies
Financial Services
•Micro solar PV solutions
for households &
businesses that have little
hope of grid access
•Drought resistant seeds
•Increased access to
finance for renewable
energy & adaptation to
climate technologies eg
through credit guarantees
•Power generation from
agricultural waste, with
excess supplied to local
households or grid
Lighting Africa
•Early weather warning
systems that increase
resilience and reduce
vulnerability
•Small scale irrigation
systems
ILRI
•Weather insurance for
smallholder farmers
ILRI
How much is available?
The competition is funded by UKaid (DFID) – US$15m
1st round for East Africa Community countries (Burundi,
Kenya, Rwanda, Tanzania, Uganda) – companies may be
domiciled outside of the EAC, but project must be in one or
more of the EAC countries
Application process went live on 1st November, 2010,
window remains open up to 31st January, 2011
We expect additional funds for REACT during 2011 – for
East Africa and for other parts of Africa
Eligibility Criteria
Same as for all AECF competitions (for profit private
sector; trading track record; country specific focus etc);
Applications must be for new and innovative business
ideas
Request range from US$250,000 to US$1.5m,
companies must match the funding requested in cash &
kind
Project must contribute to environmental sustainability,
including climate change aspects
Application Process
Same as for all AECF competitions: online; two stage
process
We are at Stage 1
Stage 1
Stage 2
Selection Criteria for Stage 1
Criterion
Weighting
Capacity of company
20%
Strength of business case
20%
Development impact
35%
Innovation
15%
Environmental sustainability
10%
How much can I apply for?
Applications can be for a mixture of grants / loans
Minimum amount US$250,000 maximum amount
US$1.5m
Remember:
You must at least match the amount requested
We are also looking for leverage – scores a better mark
Applications for a higher % of loan compared to grant –
scores a better mark
How do I apply?
Go to www.aecfafrica.org
Online application process – companies must
register first
Download the guidance notes – essential for
completing application form
Online application form or PDF version
Extra information (attachments etc) will not be read
The Future
Approx 589 million people in Africa lack access to
electricity. This is projected to grow to 700 million by
2030. Over 70% are the rural poor.
We believe that business innovation has the
potential to reach these people in ways that grid
extension will never be able to do….
….think mobile money transfer and mobile banking!
The case for additional investment into REACT for
Africa is stronger than ever. Next: a South African
REACT window? A continent wide window?
Visit our website www.aecfafrica.org
General enquiries: [email protected]
AECF Director: Hugh Scott
[email protected]
REACT Advisor: Anjali Saini
[email protected]