Great business ideas deserve serious investment

REACT Window

About REACT Window

The 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 solutions that help smallholder farmers adapt to climate change.

REACT’s Goal: Contribute to reducing rural poverty through energy access and climate resilience in Sub-Saharan Africa.

REACT’s Purpose: Catalyse private sector investment and innovation in low cost, clean energy and climate change technologies.

REACT’s Driving Forces: Business ideas must show an environmental benefit and demonstrate a positive impact on the rural poor through increased incomes, employment and productivity or reduced costs.

REACT considers three categories of business ideas:

  • Increased access to low cost, clean energy for rural businesses and households. This includes cost effective renewable power, commercially viable renewable fuels and other clean energy alternatives;
  • Products and services that help rural people and smallholder farmers adapt to climate change;
  • Financial services that increase access to finance for low cost, clean energy and climate resilient technologies or catalyse financial solutions.

Portfolio

REACT has completed two funding rounds for the East African Community (EAC) and one funding round for Mozambique. In the EAC, the portfolio consists of 29 companies funded to a level of approximately US$34 million. In Mozambique, REACT has invested US$10 million into 10 companies.

The third round of REACT for the East African Community (EAC) is not yet complete. It was launched on 15 July, 2014 and closed on 23 October, 2014. Following the two-stage selection process, 28 companies were selected in April 2015, with a total funding commitment of over US$20 million, these companies are currently being brought to contract.

The total funds committed under REACT
US$53 million
Broad overview of the portfolio
Renewable energy: 11 businesses with models clustered around financing and distribution of small solar systems; micro-LED lighting and phone charging products; 6 renewable energy power generation businesses; 7 businesses targeting the replacement of traditional fuels (firewood and charcoal) and fossil fuels with biomass, biogas and biofuels solutions.
Adaptation to climate change technologies: 5 businesses operating in areas as diverse as climate smart agriculture, water pumping and sustainable forestry products. Some renewable energy products and services also have climate adaptation impacts.
Financial services: 2 businesses aimed at increasing lending by MFIs through clean energy loans.
Funds commitment per round
The overall portfolio split of grants to loans
The geographical spread of awarded companies


 

Projects

In keeping with its goal of accelerating pro-poor growth in Africa through increasing employment, livelihood opportunities and incomes, the REACT window of the AECF supports grantee projects in 6 African countries.  These projects are as a result of 3 competitions completed and more than 750 applications received since the launch of the first round of the REACT window (REACT R1) in November 2011.

Use the Projects tool below to find out more about the REACT supported businesses.

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