- AECH has launched the second phase of the REACT SSA programme in Somalia.
- Selected clean energy developers will receive between $100,000 and $1.5m.
- Selected companies must have 25% female ownership or management
The Africa Enterprise Challenge Fund (AECF) has launched the second phase of the REACT SSA (Renewable Energy and Climate Technologies in Sub-Saharan Africa) Somalia program. The AECF programme aims to support Somali-based developers and microfinance institutions operating in the renewable energy sector. The REACT SSA program aims to accelerate private sector deployment of clean energy solutions, raise awareness about indoor air pollution and promote clean energy technologies. The program finances the deployment of solar home systems, stand-alone solar systems for productive uses, green mini-grids, and clean fuels such as ethanol for cooking.
Under the programme’s second phase, qualified companies will receive grants of between $100,000 and $1.5 million. According to ACEF, the grants will be awarded after the achievement of mutually agreed-upon milestones. In addition, ACEF says that it will select commercially viable businesses with 25 per cent female ownership or management.
Victoria Sabula, AECF’s executive director, states: “This initiative encourages private sector investment and innovation in low-cost clean energy solutions. Companies that will receive grants and technical assistance must provide affordable, quality clean energy products and services that benefit low-income populations in rural and peri-urban areas, especially women.”
The AECF’s initiative is expected to increase energy supply in the East African country without a national grid.