AECF Offering Funding up to $1.5 M for Innovative Business Ideas
The Africa Enterprise Challenge Fund (AECF) will make up to US$1.5 million in funding and loan grants available to innovative businesses working in Africa through three new competitions that are open until 15 December 2011. The competitions were launched with funding from the Department for International Development (DFID) and the Danish International Development Agency (DANIDA).
Summary of New Competitions:
1. Renewable Energy and Adaptation to Climate Technologies Window Round 2 (REACT R2)
The REACT R2 competition will support business ideas in renewable energy, adaptation to climate technologies, and applications from financial institutions that wish to expand their lending in these areas. There is no restriction on where the applicant company is from, only that the projects must be implemented in one or more of East Africa Community countries, including Burundi, Kenya, Rwanda, Tanzania and Uganda. Applications related to adaptation to climate change technologies are particularly welcome in this round. Learn more.
2. AECF Agribusiness Africa Window (AECF AAW)
The Agribusiness Africa Window is a competition open to agribusiness ideas from across the continent of Africa. It will support business ideas across the whole agricultural value chain (production, processing, input supplies, logistics, etc.) as well as rural finance, information and other service sectors associated with agribusiness and rural enterprise. AECF AAW will co-fund successful applicants with grants and repayable grants of between US$250,000 to US$1.5 million. Applications are welcome from companies planning to invest in any country in Africa. However, preference will be given to investments in Democratic Republic of the Congo, Ethiopia, Ghana, Kenya, Liberia, Malawi, Mozambique, Nigeria, Rwanda, Sierra Leone, Somalia, South Africa, South Sudan, Sudan, Tanzania, Uganda, Zambia and Zimbabwe. Learn More.
3. AECF South Sudan Window (AECF SSW)
The South Sudan Window will support business ideas in agribusiness, associated service sectors and value chains which extend from the Republic of South Sudan to local and international markets. The criterion on project size has been adjusted to US$100,000 minimum and US$1.5 million maximum to attract more small and medium sized businesses. Learn More.
Frequently Asked Questions:
What is the AECF?
The AECF is a US$120 million private sector fund, backed by some of the biggest names in development finance and hosted by the Alliance for a Green Revolution in Africa (AGRA). Since its inception in June 2008, the AECF has grown from strength to strength. To date the AECF has run 11 funding rounds and are now managing 52 projects, with an additional 32 projects approved for funding. What started out as a US$36 million fund is now at US$120 million and still growing!
How does my business apply?
From the AECF website, you need to download the application form and submit it to the AECF before the deadline it is easy to complete and only requires an outline description of your company and your project.
How are successful proposals selected?
All proposals submitted will be screened and the best will be shortlisted and forwarded to the AECF's independent Investment Committee. Commercially viable proposals that are considered to have the greatest positive impact on the rural poor in Africa will be invited to present a detailed business plan. The final selection of business ideas will then be made.
Does my company have to contribute?
Yes. Your company must provide matching funds equal to, or greater than, 50% of the total cost of the project. The AECF aims to leverage its funds and applications from companies providing a greater percentage of the funds for the project from their own resources will be treated more favorably, all other things being equal. Similarly, those projects with a greater repayable grant percentage will have a greater chance of winning.
What makes a winning application?
One of the key elements of a strong application will be to demonstrate the additionally of AECF funding. To stimulate economic growth in developing markets, businesses will need to innovate and take risks. AECF funding is intended to help businesses shoulder some of that risk, allowing them to break into these new markets. However applications need to make clear how AECF funding will make a difference to the project.
Apply now or get more information here. Applications close on 15 December 2011.
Contact Details
For more information please send an email to info@aecfafrica.org, or visit our website at www.aecfafrica.org