The Africa Enterprise Challenge Fund (AECF) has unveiled an $ 8.5 million grant facility, seeking to support clean energy businesses (adoption and diversification of renewable energy) in Somalia. This is a component of the REACT Sub-Saharan program, which is aimed at reducing poverty by increasing the use of renewable energy by off-grid households.
The World Bank SDG tracking report estimates that 11 million Somalis lack access to electricity services, with a mere 3% having access to clean cooking.
Thus, we will work with businesses at different developmental stages, especially those at an early stage. Additionally, we will also provide technical support, business linkages, and investment facilitation.
AECF Chief Executive Officer, Victoria Sabula
The program targets commercially active private sector companies and microfinance institutions. These businesses are expected to deliver low cost, clean energy products, and services that benefit the poor in rural and peri-urban Somalia and Internally Displaced Persons (IDPs), especially women and youth. It aims to enable 300,000 people to access clean energy and create jobs for both youth and women.
In June 2018, AECF committed to invest more than $300 million in the next three years to support businesses in the renewable energy and agribusiness sectors across Africa that directly work with rural people in Africa.
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