AEF launches energy fund

African Enterprise Challenge Fund (AECF), a venture capitalist firm, has launched a special funding window, Renewable Energy and Adaptation to Climate Technologies (REACT), which aims at encouraging business ideas on provision of low cost, clean energy to rural households and businesses. The firm said in a press statement, Monday, that AECF-REACT will co-fund successful applicants with grants and repayable grants between $250,000 (Rwf148 million) to $1.5 million (Rwf888 million). It will also support innovative solutions to climate variability that help small-holder farmers adapt to climate change and financing solutions that increase access to finance for businesses, providing clean energy and climate resilient technologies. “In order to qualify the business idea, must demonstrate a positive impact on the rural poor in Africa, delivering increased employment and income, reduced costs and improved productivity,” the AECF Director, Hugh Scott, said during a launch of REACT in Kigali. So far we have launched in Kenya, Tanzania now Kigali, today (Tuesday) we are launching in Kampala and Burundi later, he added. While launching the fund widow, the Permanent Secretary in the Ministry of Infrastructure, Claire Mukasine said that 85 percent of the energy used in the country is from wood fuel and charcoal, and that national electrification rates are estimated at 8 percent in urban and 1 percent in rural areas. “Therefore, the Government has a great deal to offer and focus on the needs in finding ways to unlock the potential. We welcome AECF and the business brought in,” Mukasine said, adding that initiatives such as AECF-REACT window provide opportunity to Rwandans. The DFID-funded initiative (AECF-REACT) is a competition open for profit-making companies. Mukasine added that the Government was encouraging the private sector to fully participate in the competition and submit their bids. The head of DFID, Elizabeth Carriere, welcomed UK’s increased funding for the programme. “This is a special competition which will have direct impact on the rural poor, increasing access to renewable energy sources and helping small-holder farmers to cope with the climatic extremes and creating new jobs,” Carriere said. Ends

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AEF launches energy fund