SOMALIA: AECF supports renewable energy suppliers
The second phase of the REACT SSA (Renewable Energy and Climate Technologies in Sub-Saharan Africa) program in Somalia has been launched. The Africa Enterprise Challenge Fund (AECF) initiative aims to support the development of Somali companies specializing in the installation of renewable energy solutions. The program also benefits microfinance institutions that are commercially active in the renewable energy market.
With a budget of $ 61 million and funded by the Swedish International Development Agency (SIDA), the REACT SSA program aims to catalyze the private sector to increase the supply of cleaner fuels, raise awareness of the dangers of pollution indoor air, while promoting clean energy. technologies. The program funds solar home systems, stand-alone solar systems for productive use, green mini-grids and clean fuels such as ethanol for cooking.
What support for renewable energy suppliers?
In Somalia, the second phase of REACT SSA will provide grants of between $ 100,000 and $ 1.5 million to qualified businesses. These grants “Will be awarded after the achievement of mutually agreed milestones”, said the AECF. According to the fund, grants will be awarded to commercially viable businesses, 25% of which will be owned or managed by women.
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“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 and quality clean energy products and services that benefit low-income populations in rural and peri-urban areas, especially women ”, declares Victoria Sabula, Director General of the AECF.
As part of his tender for the second phase of the REACT SSA program, the fund strongly encourages companies established in the regions of Hirshabelle, the South-West and Banadir, or strategically considering investing there. For the record, Somalia does not have a national electricity grid. It collapsed with the government at the start of the civil war in 1991. With the timid return of peace to the country, electricity supply is mainly provided by private companies. The AECF initiative is therefore a boon for these energy companies.