Businesses in Tanzania have been urged to apply for a third round of the renewable energy and adaptation to climate technologies window (REACT 3).
REACT is a funding window of the Africa Enterprise Challenge Fund (AECF). Announcing the competition in Dar es Salaam over the weekend, Director of the AEFC, Mr Hugh Scott, urged the private sector in Tanzania and the region to rise to the opportunity afforded by the REACT fund and to respond with innovative business ideas that will impact on the lives of rural people in East Africa.
REACT provides grants and interest free loans to businesses with innovative and transformative climate change solutions. "We need businesses with ideas that are profit driven, have the potential to go on scale and have a deep social impact throughout the region," Mr Scott said.
A total of USD 20 million which is equivalent to 32bn/- has been set aside for this particular competition. To date, REACT has already committed USD24 million to 32 companies across the EAC.
Eight companies in Tanzania have been supported in past rounds. Mr Scott also thanked UKAid and the Swedish International Development Agency (SIDA) for providing support to the REACT window by providing the funding for renewable energy and adaptation to climate technologies that will help rural poor people to cope with anticipated changes in climatic conditions.
"In six years, we expect 300,000 rural households and small scale farmers and 40,000 small and medium enterprises to benefit from innovations brought about by this fund," Mr Scott added.
The third round of REACT will co-fund successful applicants via a combination of grants and interest free loans of between USD 250,000 and USD 1.5 million.
The AECF expects to invest the available funds into at least 25 companies with the best business ideas that will lead to growth in the rural economies of East Africa.
The AECF expects to fund approximately 9-10 companies in Tanzania. In order to qualify, the business ideas must demonstrate a positive impact on the rural poor, deliver increased employment and income opportunities, reduce costs and improve productivity.
The AECF is a fund of donor money available to the private sector on a competitive basis under a special partnership with the Alliance for a Green Revolution in Africa (AGRA). KPMG is the AECF Fund Manager.
The window is open to companies from the EAC or domiciled outside of the EAC, but all projects must take place in one or more countries within the EAC.
The funding window went live on 15 July 2014 and will remain open for applications for a period of 2 months. To apply, companies must visit www.aecfafrica.org and download the application form. Guidance notes to fill in the form are also provided.
One of the AECF stakeholders, Mr Boniface Nyamo-Hanga said the competition is a unique chance for Tanzanians. "This is a chance that should be utilised well for the country's development," said Mr Nyamo- Hanga who is also the Acting Technical Assistance Manager at Rural Energy Agency (REA).
The competition has three categories including increasing access to low cost, clean energy for rural businesses and households; and also benefitting rural people and smallholder farmers with products and services that help them adapt to climate change.
It also looks for financial service providers to facilitate greater investment in lower cost and clean energy, as well as climate resilient technologies, whilst at the same time helping the poor access them
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