Setting the challenge: launching a fund window
The Renewable Energy and Adaption to Climate Technologies Household Solar (REACT-HS) Fund is set to give a jolt of energy to the solar industries of Malawi, Zambia, Zimbabwe and Sierra Leone. Its aim is to help innovative and transformational business models to adapt to target markets in order to help people access electricity through off-grid stand-alone solar household systems (SHS). It is a funding opportunity provided by the Africa Enterprise Challenge Fund (AECF), with funding from the UK government, and was officially opened for applications at a livestreamed event in Nairobi on May 10, 2017.
Coffey is serving as Competition Manager of the fund and, in that role, we’re running a series of blogs to report on the progress of the fund including updates throughout the concept note stages of the project, key information on how to apply and other key information on the related issues and success regarding the SHS industry in Malawi, Zambia, Zimbabwe and Sierra Leone.
ABOUT THE FUND
REACT-HS is a special fund of the AECF and is open to business ideas based on low cost clean energy solutions that help smallholder farmers adapt to climate change. It helps businesses to grow or establish innovative renewable energy, climate resilience or adaptation related projects that benefit rural communities in Sub-Saharan Africa. The REACT-HS window follows four previously successful windows (R1,R2,R3 and REACT Mozambique) and will be available specifically for funding in the SHS sector.
Following the disbursement of US$19.7m across several windows, over 536,00 families have benefitted from REACT funded activities; including an annual saving of $37 per family on average regarding energy costs. The funds have also prevented the release of 206,5506 tonnes of CO2, installed 7.26 megawatts of clean energy, enabled 5,148 SMEs and 3,453 jobs.
WHO’S ELIGIBLE?
Applicants who are interested in applying for investment from the fund will need to provide business services for low cost, affordable, quality clean solar energy products and services. To be eligible, business must also align with one or more of the following organisational outputs:
Small household SHS including basic lighting, phone charging systems and radios, which are also made available to large numbers of households through pay-as-you-go systems;
Larger solar power household stand-alone lighting systems that meet the full range of household needs and remain affordable for low income individuals;
Large solar power stand-alone systems for productive use, including phone charging systems, radio, etc., that also can be used at small scale rural based business premises to provide the required power;
Distribution models that support local entrepreneurship and growth of SMEs with the product demand and supply chain;
Business models based on brand agnostic ‘off-the-shelf’ platform.
Applicants will be able to apply for funding for their whole business or for specific products or services they offer. Funds can also be utilised for business-to-business learning across grantees through online platforms, grantee networks, face-to-face meetings and other instruments. Applicants may also apply for funding regarding Technical Assistance (TA) through specific start-up business TA and TA to support strengthened business plans submitted by women-owned businesses or businesses that specifically target female beneficiaries.
In our next few posts, we’ll take a closer look at each of the countries involved in this funding window and why they have the potential to incubate real solar innovations.