Deadline: 31-Oct-21
The Africa Enterprise Challenge Fund (AECF), through the Renewable Energy and Climate Technologies (REACT) Sub-Saharan Africa (SSA) programme, is supporting private companies that are promoting the use of renewable energy in Somalia. Funded by the Swedish International Development Authority (Sida), the Renewable Energy and Climate Technologies in Sub-Saharan Africa (REACT SSA) initiative seeks to reduce poverty through a transformational increase in the use of renewable energy by off-grid households.
Purpose of the Fund
The specific objectives of the fund are:
- Support transformational business models adapted to target markets in order to accelerate access to low cost, clean energy i.e. cleaner fuels, cook stoves, alternatives to grid power.
- Support commercially viable companies and markets in target countries, out of which 25 percent will be women owned and/or managed.
- Support innovative ideas that stimulate next generation approaches in the renewable energy sector in Sub-Saharan Africa.
- Capture and disseminate lessons on how increased access to clean energy can deliver positive impact on the rural poor, especially women and youth, through:
- business models,
- improved business environment, through policy influencing and advocacy, and
- improved business environment through crowding in, replication and copying best practice.
- Stimulate stakeholder engagements for an improved policy, legal and regulatory environment for renewable energy businesses within the target countries.
Grant objective: The REACT SSA Somalia award seeks to encourage private sector investment and innovation in low-cost clean energy in Somalia.
Funding Information
- In the REACT SSA Somalia programme, qualifying companies will receive between US$100,000 and US$1.5 million of pure grants, awarded upon the achievement of mutually agreed milestones.
- The grants will be given to commercially-viable companies out of which 25 percent will be women owned or managed.
- Additional Support:
- Business-to-business learning across investees through open-source networks, industry associations and other instruments.
- Provision of targeted Technical Assistance (TA), especially to startup companies.
- Business to investor linkage through AECF Connect.
Geographic Focus
- This is the second round of REACT SSA Competition in Somalia, following the successful funding award to several companies in the first round of the competition.
- Companies operationally based in, or strategically planning to invest in the three (3) States of Hirshabelle, Southwest, and Banadir are highly encouraged to apply, since they were the least represented states during the first round of the competition.
Eligibility Criteria
Applicants for the REACT SSA – Somalia grants must meet the following criteria:
- Be private sector enterprises that are aligned with the focus areas. Joint ventures are allowed (including those who had applied earlier but were unsuccessful) . Must be legally registered and physically established in Somalia. Registration at both Federal and State-levels are required. The following documents are mandatory:
- Must be legally registered and physically established in Somalia. Registration at both Federal and State-levels are required.The following documents are mandatory:
- Valid company registration documents (business license) from both Federal and State-levels.
- Memorandum and Articles of Association (MEMARTS).
- Company profile.
- Audited financial reports for the past 2 years (2019 and 2020).
- Most recent management accounts of the year 2021.
- Certified bank statements for all current accounts and loan accounts from 1st January 2021 to date.
- Valid tax compliance certificate for the past year.
- Must show a commitment to match AECF funding. Matching contributions are required to demonstrate interest and trust from the wider investor community.
- Request funds amount within the stipulated range of US$ 100,000 – US$ 1.5 million. This is a full grant. The Funding must, however, be used for a specific project in Somalia.
- Be compliant with fundamental in-country and international human rights, labour standards, environmental management laws.
- Must NOT be involved in any act of terrorism or support terrorists’ activities.
- Must allow regular due diligence by AECF.
For more information, visit https://www.aecfafrica.org/index.php/react-ssa-somalia