EAC private sector to receive $20 million in funding - CNBC Africa

EAC private sector to receive $20 million in funding

Financial

by Elayne Wangalwa 0

Businesses in the East African Community (EAC) will benefit from a 20 million US dollar fund injection.

The Africa Enterprise Challenge Fund (AECF), a donor funded financing vehicle for the private sector, through the Renewable Energy and Adaptation to Climate Technologies (REACT) that aims to encourage business ideas in the clean energy sector, will provide grants and interest free loans to businesses with innovative and transformative climate change solutions.

“We are charged with making this available to the private sector to fund innovative and new business ideas that the banks and the financing institutions are not ready to touch at this point,” Hugh Grant, Director at ACEF told CNBC Africa.

In its third round, REACT expects about 25 companies to be financed and the application process will commence for two months from July 15.

In addition, it will co-fund successful applicants with grants and repayable grants of between 250,000 million US dollars to 1.5 million US dollars.

REACT is a competition, open only to profit making companies that include both African and International companies, but all projects must take place in one or more countries within the EAC.

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REACT has invested approximately 24 million US dollars in 32 companies in East Africa.

The AECF is funded by the UK’s Department for International Development and the Danish International Development Agency.

Other major funders are the Australian Government Aid Program, the Consultative Group to Assist the Poor, the International Fund for Agricultural Development, and the Netherlands Ministry of Foreign Affairs.

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