Deadline: 26-Jan-21
The REACT Sub-Saharan Africa Programme has a dedicated Results-Based Financing (RBF) window of US $ 4m targeting clean energy providers in Kenya to drive expansion of access to clean energy across the country.
The REACT Kenya Results-Based Financing program (REACT RBF) is part of the larger REACT Sub-Saharan Africa (REACT SSA); a US$ 61 million project funded by the Swedish International Development Authority (Sida) to support renewable energy in 8 countries in Sub-Saharan Africa (SSA).
Funding to companies in Kenya will be through results-based financing that provides financial incentives to increase access to clean energy for households across the country, with additional pro-poor incentives that reward companies reaching the poorest households.
AECF is a leader in supporting the scaling up of renewable energy companies in Kenya to reach off-grid communities and substantial increase clean energy access for poor households.
The REACT RBF 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.
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 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)
Funding Information
The maximum award per company at the time of contracting is US$500,000. However, a flexible reallocation system will allow companies that exceed their milestone targets with a possibility of an increase up to US$1 million.
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 Africa Enterprise Challenge Fund (AECF)
For more information, visit http://aecfafrica.org/react-rbf
