The specific objectives of the fund are:

• Support transformational business models adapted to target markets in order to accelerate access to low cost, clean energy i.e. cleaner fuels, cook stoves, alternatives to grid power.
• Support commercially viable companies and markets in target countries, out of which 25 percent will be women owned and/or managed.
• Support innovative ideas that stimulate next generation approaches in the renewable energy sector in Sub-Saharan Africa.
• Capture and disseminate lessons on how increased access to clean energy can deliver positive impact on the rural poor, especially women and youth, through: i) business models, ii) improved business environment, through policy influencing and advocacy, and iii) improved business environment through crowding in, replication and copying best practice.
• Stimulate stakeholder engagements for an improved policy, legal and regulatory environment for renewable energy businesses within the target countries.

Applicants must meet the following requirements:

• Be private sector enterprises that are aligned with the focus areas. Joint ventures are allowed
• Must be legally registered and physically established in the FGS or Somaliland
• Must show a commitment to match AECF funding. Matching contributions are required in order to demonstrate interest and trust from the wider investor community 
• Request for funding should be within the stipulated range of US$ 100,000 to US$ 1.5 million. This is a full grant. The funding must, however, be used for a specific project in the FGS or Somaliland
• Be compliant with fundamental in-country and international human rights, labor standards and environmental management laws
• Must NOT be involved in any act of terrorism or support terrorists’ activities  
• Must allow regular due diligence by AECF

The AECF will award grants from US$100,000 to US$1,500,000 to selected qualifying companies under this competition. Funding will be milestone based, where disbursements are based on mutually agreed milestones that have to be delivered/achieved.

EOIs will be accepted from Private sector companies and microfinance institutions that are commercially active in the renewable energy market in FGS and Somalia.

• Registration: Must be legally registered and physically established in the country of doing business. 
• Organisational Type: Organisations can include but not limited to renewable energy companies, Micro Finance Institutions, energy-agriculture as well as energy-health companies dealing in (or interested in) the initiatives listed above.
• Organisation Stage of Development: Organisations from startups to mature, local and international companies and enterprises.
• Focus Geographies: Organisations must be operating or have a project in FGS or Somaliland.
• Impact: Applicants must focus on reduction of poverty through a transformational increase in the use of renewable energy by off-grid households.
• Funding Amounts: Applicants are expected to submit a funding application, justifying their requirements for the business/ business idea to be funded, as well as funding amount and duration. Total grant funds requested must be between US$100,000 and US$1,500,000, with the applicant expected to raise matching funds. The matching funds requirements are outlined in the information sheet on the website.
• Use of Funding: The funding is expected to be used to scale up an existing product or service or replication/ expansion to a new market. 

The application process will take place in two phases and will cover the following steps: 

Phase One

• Applicants to submit an Expression of Interest (EOI) through AECF’s online application system, providing an overview of their business model, proposed project, experience, confirm ability to provide matching funds, and operations in the country. Applicants will be required to attach relevant documents as per the application form. 
• Applications close on 22nd January 2021 at 11:59PM(EAT)
• Review of applications
• Shortlisted applicants selected to proceed to the next phase will be contacted to submit a full proposal

Phase Two

• Shortlisted applicants to submit full proposals. A full tender documentation will be provided to include application requirements, selection criteria and timelines. This will include business model, financials, gender analysis, human resource allocations, risk and mitigation plans.
• Review of submissions
• Due Diligence
• Selection and Approval 
• Contracting 
• Implementation

To apply for support, please click on the “Apply” button and register our secure online application platform. You will be expected to fill out an application form to determine your eligibility against the set criteria prescribed in the term sheet.

Download Term Sheet

Guidelines for submitting:

1. Please complete all mandatory fields in order to complete the application process. Mandatory fields are marked with an asterisk (*).
2. You can save your progress and return to the application any time by clicking the 'Save Draft' button at the bottom of the form. The form autosaves your progress, however we recommend that you manually save your progress.
3. Remember to click the 'Submit' button at the end of the form. AECF can only access your application after you have submitted it. We will send you a confirmation e-mail once you have submitted your application.

If you seek further clarifications regarding the application, please email REATSSASomalia@aecfafrica.org

Apply

What are Performance Based Grants?
This is grant funding where disbursements are based on mutually agreed milestones that have to delivered/achieved.

Can a company that is in the process of registration in Somalia still apply for funding?
Financing is applicable for companies that are already legally registered and physically established in Federal Government of Somalia (FGS) and Somaliland for at least 2 years. Companies with less than 2 years of market experience that can demonstrate notable sales growth during their period of operation may be considered.

Which business intervention areas is the programme seeking to address?
The programme targets businesses that can deliver low cost, affordable, quality clean energy products and services that benefit the rural and peri urban poor; especially women.

What type of companies is the programme is seeking to support:
Private sector companies and microfinance institutions that are commercially active in the renewable energy market in FGS and Somaliland.

What are the desired socio - economic Impact to be addressed with the programme?
Business models must clearly demonstrate how they deliver and sustain social impact in their target markets. Specifically, this means number of households served by the product; clean power installed; improvements in people's income; inclusivity of women; stimulation of market growth and engagement of SMEs in renewable energy value chains within FGS and Somaliland.

What additional support is provided other than funding?
Business-to-business learning across investees through open-source networks, industry associations and other instruments.
Provision of targeted Technical Assistance (TA), especially to startup companies.
Business to investor linkage through AECF Connect.

How long will the programme run?
This programme will run for 5 years (6 months competition phase; years 2 - 5 for implementation phase).

How will the funding be disbursed?
The funding will be milestone based on mutually agreed milestones that have to delivered/achieved. AECF will require matching contribution of 1: 0.4 (AECF to Company, if male owned/managed company) and 1:0.3 (AECF to Company, if female owned/managed company). Matching funds will be fully in cash.

Why the difference in matching funds between male and female owned/managed companies?
The AECF intends to target more women-owned and women-led companies to promote gender inclusivity in energy access.

May I partner with other organisations to apply?
Yes joint ventures are allowed and must be private sector enterprises that are aligned with the focus areas.

I would like to discuss my proposal with someone from AECF before submitting?
Please contact REACTSSASomalia@aecfafrica.org with your questions and we will be in touch with you. We generally respond to emails within 48 hours during the working week.

Can one organisation submit multiple applications?
Only one application that will be allowed per company.

What is additionality?
We recognize that the additionality factor is context (geography, sector, etc.), for this programme our broad check will be against: Faster, Bigger, Wider scope and More Inclusive. A detailed description is provided in the term sheet.

How will we find out if we have been successful?
The AECF Competition Team will contact all applicants and inform them of the outcome of the competition.

What is the word - limit of the application?
This is will be provided in the Expression of Interest sheet and the Business Plan document.

Will there be an opportunity to update information after the closing date?
There will be no opportunity to update the information after the closing date. Applications close on 22nd January 2021 at midnight.

Request For Expression of Interest for REACT SSA Somalia

Term Sheet

AECF REACT SSA Somalia Fund Information Flyer