Tanzania Clean Cooking Project – Competition

Deadline: 10-Nov-22

The Africa Enterprise Challenge Fund (AECF) has launched the applications for Tanzania Clean Cooking Project (TCCP) to provide matching grant financing and technical assistance to small and growing businesses working in clean cooking.

AECF is implementing a project funded by the Government of Sweden, to support market-based approaches for clean cooking in the United Republic of Tanzania.

The Tanzania Clean Cooking Project (TCCP) is a US$3.75 million three-year project that aims to catalyse the clean cooking sector through enhanced private sector participation.

TCCP Objectives

• Accelerate adoption of clean cooking solutions in more rural and marginalized communities.
• Catalyze private sector participation in clean cooking solutions through grant financing and technical assistance to selected companies.
• Strengthen sector coordination and advocate for a conducive policy environment for the clean cooking sector.

Focus Areas

• Successful private sector companies must deliver affordable, quality clean cooking solutions that benefit low-income customers in rural areas and towns. Special attention will be paid to ideas that disproportionately benefit women, youth and unserved or underserved markets in Tanzania.

Categories

• Funding ticket sizes to companies will be under two categories:
  • Catalytic fund: US$ 50,000 to US$ 75,000 for small companies with an annual turnover of US$ 30,000 to US$ 200,000.
  • Growth fund: US$ 100,000 to 400,000 for large companies with an annual turnover greater than US$ 200,000.
• For both categories, funded companies will be required to contribute cash matching funds of:
  • 1:0.4 (AECF: investee if male-owned/managed company)
  • 1:0.3 (AECF: investee if female-owned/managed company)
  • 1:0.3 (AECF: investee if youth-owned/managed company)

Geographical Focus

• Funding is available for private sector companies commercially active in clean cooking across the United Republic of Tanzania, both at the early and growth stages.
• Companies proposing project ideas outside of Dar-es-Salaam will be prioritized.

Desired Socio-Economic Impact

Business models must demonstrate how they deliver and sustain social impact in their target markets. Specifically, this means the number of households served by the product/service, inclusivity of women and youth, stimulation of market growth for clean cooking solutions, and strengthening of clean cooking supply chains in underserved markets.

• Companies should also articulate their strategy to meet the following:
  • Include women and youth in the ownership and management of a clean cooking supply chain.
  • Gender-inclusive practices in their operations (e.g., women-centered design).
  • Demonstrable benefits to women including increased time available for other activities, improved health, reduced drudgery, and increased household budgets.
  • Women-led supply chains; demonstrate possible engagement of women and youth as critical actors within the supply chain.
  • Qualitative indicators around women and youth empowerment
  • Demonstrate a clear strategy that enables target communities with low/irregular incomes to afford quality clean cooking solutions.
  • Projects must be environmentally friendly. Environmental impact assessments and mitigation measures approved by National Environmental Management Council (NEMC) must be obtained if the law requires.

Eligibility Criteria

• The company must be legally registered and physically established in Tanzania by the time of project implementation.
• The company should produce audited accounts for at least two (2) years (these could be from the parent company, if recently established as a branch/subsidiary in Tanzania). Companies with less than two years of market experience but can demonstrate proof of sales in Tanzania or other markets during their period of operation may be considered.
• Be a private sector company with a business goal to increase access to clean cooking energy solutions. Joint ventures are also allowed.
• Be able to request funds within the range of US$ 50,000 – US$ 400,000. This is a non-refundable grant.
• Be able to show commitment (and sources) to provide required match funding
• Be compliant with Tanzania laws and regulations, including, inter alia, tax compliance. It should also comply with international human rights, labour standards and environmental management laws.
• Not be involved in any act of terrorism or support terrorists’ activities.
• Not be involved in any act of corruption.
• Allow AECF regular due diligence and monitoring visits.
• Companies with less than two years of market experience but can demonstrate proof of sales during their period of operation may be considered.

For more information, visit https://www.aecfafrica.org/approach/competitions/tanzania-clean-cooking-project-competition/