The REACT SSA Somalia programme is a US$ 8.5 million fund that seeks to reduce poverty through a transformational increase in the use of renewable energy by off-grid households in the Federal Government of Somalia (FGS) and Somaliland. This programme aims to promote private sector investment and innovation in low-cost clean energy and climate change catalysed at scale.
The specific objectives of the fund are:
Applicants must meet the following requirements:
The AECF will award grants from US$100,000 to US$1,500,000 to selected qualifying companies under this competition. Funding will be milestone based, where disbursements are based on mutually agreed milestones that have to be delivered/achieved.
Small/pico-scale PV household technologies comprising lighting and phone charging systems.
Small (50wp) to large (100+Wp) solar systems for home and business use.
Mini and micro grids from solar energy
Energy-efficient cooking equipment such as improved cook stoves
Clean fuels like ethanol and biogas for rural and peri urban use
Production and distribution models that support local entrepreneurship within a renewable energy supply chain
Standalone equipment solutions for off-grid productive use including solar pumps and cooling solutions
Large off-grid energy solutions for public and private institutions
Telco-based solutions supporting renewable energy supply chains
Business models that address sustainable e-waste management
EOIs will be accepted from Private sector companies and microfinance institutions that are commercially active in the renewable energy market in FGS and Somalia.
The application process will take place in two phases and will cover the following steps:
To apply for support, please click on the “Apply” button and register our secure online application platform. You will be expected to fill out an application form to determine your eligibility against the set criteria prescribed in the term sheet.
If you seek further clarifications regarding the application, please email REATSSASomalia@
What are Performance Based Grants?
This is grant funding where disbursements are based on mutually agreed milestones that have to delivered/achieved.
Can a company that is in the process of registration in Somalia still apply for funding?
Financing is applicable for companies that are already legally registered and physically established in Federal Government of Somalia (FGS) and Somaliland for at least 2 years. Companies with less than 2 years of market experience that can demonstrate notable sales growth during their period of operation may be considered.
Which business intervention areas is the programme seeking to address?
The programme targets businesses that can deliver low cost, affordable, quality clean energy products and services that benefit the rural and peri urban poor; especially women.
What type of companies is the programme is seeking to support:
Private sector companies and microfinance institutions that are commercially active in the renewable energy market in FGS and Somaliland.
What are the desired socio - economic Impact to be addressed with the programme?
Business models must clearly demonstrate how they deliver and sustain social impact in their target markets. Specifically, this means number of households served by the product; clean power installed; improvements in people's income; inclusivity of women; stimulation of market growth and engagement of SMEs in renewable energy value chains within FGS and Somaliland.
What additional support is provided other than funding?
Business-to-business learning across investees through open-source networks, industry associations and other instruments.
Provision of targeted Technical Assistance (TA), especially to startup companies.
Business to investor linkage through AECF Connect.
How long will the programme run?
This programme will run for 5 years (6 months competition phase; years 2 - 5 for implementation phase).
How will the funding be disbursed?
The funding will be milestone based on mutually agreed milestones that have to delivered/achieved. AECF will require matching contribution of 1: 0.4 (AECF to Company, if male owned/managed company) and 1:0.3 (AECF to Company, if female owned/managed company). Matching funds will be fully in cash.
Why the difference in matching funds between male and female owned/managed companies?
The AECF intends to target more women-owned and women-led companies to promote gender inclusivity in energy access.
May I partner with other organisations to apply?
Yes joint ventures are allowed and must be private sector enterprises that are aligned with the focus areas.
I would like to discuss my proposal with someone from AECF before submitting?
Please contact REACTSSASomalia@aecfafrica.org with your questions and we will be in touch with you. We generally respond to emails within 48 hours during the working week.
Can one organisation submit multiple applications?
Only one application that will be allowed per company.
What is additionality?
We recognize that the additionality factor is context (geography, sector, etc.), for this programme our broad check will be against: Faster, Bigger, Wider scope and More Inclusive. A detailed description is provided in the term sheet.
How will we find out if we have been successful?
The AECF Competition Team will contact all applicants and inform them of the outcome of the competition.
What is the word - limit of the application?
This is will be provided in the Expression of Interest sheet and the Business Plan document.
Will there be an opportunity to update information after the closing date?
There will be no opportunity to update the information after the closing date. Applications close on 22nd January 2021 at midnight.