Since 2008, through a competitive process, AECF has approved funding for more than 250 businesses across 23 countries in Sub Saharan Africa.
One of the AECF’s strategic objectives is to stimulate the scale up of affordable technologies for the benefit of the rural poor. For example, AECF-funded input supply projects, including various models to grow and disseminate high yielding seeds and provide other inputs such as improved fertilizers and livestock vaccines, led to better quality inputs for over 825,000 farming households in 2015. Not only does this generate income from the sale of surplus but as most of these projects target staple food crops, there is a very positive impact on food security.
Our efforts also stimulate the development of low cost clean energy solutions that help smallholder farmers react to climate change and obtain access to energy. We have facilitated the development or roll out of new technologies and business models that are revolutionising lifestyles in rural Africa. Since 2014, the cluster financing of a range of initiatives in solar electricity has brought improved access to clean, sustainable energy for more than 500,000 households and tripled the installed clean energy capacity to 7.26MW. As a consequence, we have also tripled the amount of CO2e emissions displaced. In addition to the financial benefits of reducing household energy costs, these technologies bring numerous quality of life impacts to rural households, from breathing in less smoke to being able to study or socialise in the evenings.
Catalysing Private Sector Funding
The AECF has committed $156 million to African businesses and has catalysed an additional $426 million in private sector co-financing in the form of matching funds, in-kind contributions and third party debt, equity or grants. This means that every $1 committed by donors has leveraged $2.7 in co-financing by the private sector.
Building Sustainable Businesses
The AECF financing is targeted the building of sustainable businesses that remain after the end of AECF support. During the engagement, AECF builds capacity in businesses by ensuring good business practices. Through AECF Connect AECF serves as a feeder fund linking businesses with investors and financial services that are able to support these businesses now that they involve less risk as they have grown and demonstrated success.