AECF and Sida launch the REACT 2.0 Regional – Digital Innovation Fund for Energy & Climate (DIFEC) Programme

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FOR IMMEDIATE RELEASE

Nairobi, Kenya – The Africa Enterprise Challenge Fund (AECF), in partnership with the Swedish International Development Cooperation Agency (Sida), today announced the launch of the REACT 2.0 Regional – Digital Innovation Fund for Energy & Climate (DIFEC) Programme. 

Building on AECF’s Renewable Energy and Climate Technologies (REACT) programme, DIFEC is a three-year regional initiative running from 2026 to 2028, designed to unlock the potential of digital technologies to accelerate clean energy access and strengthen climate resilience across Sub-Saharan Africa. The programme targets early and growth-stage enterprises developing digital solutions in distributed renewable energy, clean cooking, productive use of energy, e-mobility, digital agriculture, and circular economy systems. 

The programme will provide catalytic financing and technical assistance to innovators using digital tools to overcome barriers to energy access and climate adaptation. The programme seeks to scale solutions that improve reliability, affordability, efficiency, and sustainability for underserved communities and businesses.  

In his remarks during the launch, Ulf Källstig, Head of the Africa Department at Sida, said: 

“The future of energy access and climate action relies on smart technology, secure digital ecosystems, and solutions that communities can trust. Sweden believes strongly in the leadership of African innovators who are shaping a resilient, climate-aligned future for the continent.”  

AECF’s Chief Executive Officer, Victoria Sabula, noted that the programme reinforces AECF’s commitment to supporting African enterprises working in challenging markets. 

“DIFEC reflects our belief that African businesses are central to solving Africa’s energy and climate challenges. By combining financing with targeted technical support, we are enabling innovators to scale digital solutions that deliver measurable development and climate outcomes.” 

Through DIFEC, AECF, and Sida, aim to: 

1. Expand access to clean and reliable energy through digitally enabled business models 
2. Strengthen climate resilience using data-driven and technology-powered solutions 
3. Support job creation and inclusive economic growth 
4. Promote responsible, secure, and trusted digital innovation 

The programme aligns with Sida’s Digital for Development priorities and Sweden’s long-standing support for climate-smart, people-centred development. 

About AECF
The Africa Enterprise Challenge Fund (AECF) provides catalytic funding and technical assistance to support innovative, inclusive business models in frontier markets across Africa, with a focus on agriculture and renewable energy. AECF aims to reduce poverty and drive economic transformation through market-based solutions.

About Sida 

The Swedish International Development Cooperation Agency (Sida) is a government agency working on behalf of the Swedish Parliament and Government to reduce poverty and support sustainable development globally. 

Media Contacts
AECF Communications Office
press@aecfafrica.org