News Break
Nairobi, March 18, 2021: The African Enterprise Challenge Fund (AECF) has today launched a US$1.2 million Innovation Fund to unlock the potential of renewable energy to create new business opportunities in Kenya.
Solutions that reduce the negative impacts associated with the use of traditional cooking options at the household and institutional levels; build climate change resilience among communities and support productive uses such as water pumping, agro-processing, cooling and refrigeration services are examples that the Fund seeks to support.
In applying, businesses and entrepreneurs will need to demonstrate how their proposed innovations will transform livelihoods of low-income households through creation of jobs and diversification of livelihoods.
Under the Sustainable Development Goals, the world has set an ambitious target of ensuring universal access to reliable and sustainable energy by the end of the decade. But with half of the African continent without access to electricity, and two-thirds lacking access to clean cooking solutions, additional investment is needed to drive innovation and accelerate the uptake of modern energy.
The Innovation Fund builds on AECF’s Renewable Energy and Adaptation to Climate Technologies (REACT) initiative, which was launched to support the private sector develop and expand its clean energy technologies to Africa’s rural communities. The Fund will invest in technologies that meet market needs as well as accelerating the development of existing solutions to better serve African communities and not technologies in the prototype stage.
Chief Executive Officer of AECF, Victoria Sabula, said: “The Innovation Fund is key to enhancing large scale transformation within local communities. Investing in affordable and accessible renewable energy solutions can create jobs, grow economies, and build more sustainable livelihoods. Through the fund, we hope to unearth new ways that renewable technology – be it domestic, communal, or commercial – can be used to generate income and create jobs,” she said.
The Innovation Fund will also launch in Burkina Faso, Ethiopia, Liberia, Mali, Mozambique and Zimbabwe.
The Africa Enterprise Challenge Fund (AECF) is a leading development organisation that supports businesses to innovate, create jobs and leverage investments in order to create resilience and sustainable incomes in rural and marginalised communities in Africa. Launched in 2008, AECF has invested in 292 businesses across more than 40 value chains and 26 countries in sub-Saharan Africa. AECF focuses specifically on agribusiness, renewable energy, and climate technologies, while also addressing the cross-cutting themes of gender, youth, and fragile contexts. In just over a decade, AECF has impacted more than 27.7 million lives, created close to 24,000 jobs, and leveraged over US $740 million in matching funds.
