African Enterprise Challenge Fund – Renewable Energy and Adaptation to Climate Technologies AECF REACT

The AECF Renewable Energy and Adaptation to Climate Technologies (REACT) window is a special fund of the AECF that is open to business ideas based on low cost clean energy and solutions (technologies, products, services) that can help rural people adapt to climate change.

REACT provides patient risk capital (grants, interest free loans) to businesses with potentially transformative climate change solutions and which seek to make a profit, go to scale and to have a deep social impact. To date, REACT is investing in 32 companies across East Africa and 12 in Mozambique, with an overall portfolio size of approximately US$34 million.

The overall driving forces for REACT are that the business idea must show an environmental benefit and that it must demonstrate a positive impact on the rural poor through either increased incomes, employment and productivity or reduced costs.

REACT supports private sector investment in the following areas:

  • Solutions (products, services and technologies) that can help pastoralists and smallholder farmers adapt to climate change by reducing their vulnerability to climatic shocks such as droughts or floods, or by increasing their resilience and ability to cope with such shocks. Examples are drought resistant seeds, post-harvest storage, water management technologies (eg harvesting, conservation and irrigation), micro-insurance or early weather warning systems.
  • Increased access to low cost clean energy for rural businesses and households. This includes cost effective renewable electricity, commercially viable renewable fuels and other clean energy alternatives.
  • Financial services that increase access to finance for low cost clean energy and climate adaptation technologies or catalyse financial solutions, such as supply chain and end user financing for consumer renewable energy products.

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