Catalyzing Climate-resilient Energy Access and Inclusive Finance for Agricultural Transformation in Ethiopia

The programme seeks to:  

• Accelerate adoption of PUE solutions by supporting solar-powered agricultural technologies that enhance value addition, reduce post-harvest losses, and promote food system resilience among smallholder producers and agri-enterprises.
• Improve energy access for households and communities by expanding decentralized solar solutions like SHS and using innovative distribution models to reduce energy poverty and reliance on biomass.
• Strengthen local enterprise investment readiness through technical assistance and investment facilitation.

The programme will focus on the following regions:

• Oromia Region
• Somali Region
• Amhara Region

REACT 2.0 Ethiopia adopts AECF’s Challenge Fund model, a competitive financing mechanism that identifies and supports private enterprises offering innovative, scalable, inclusive renewable energy and climate-smart solutions.

The programme provides two funding windows:

Window 1: Working capital and inventory finance facility

This window targets early-stage distributors and service providers of SHS and small-scale PUE technologies. It will provide USD 250,000–400,000 in grants to improve liquidity, enhance inventory access, and strengthen last-mile distribution.

Window 2: Energy Capital Expenditure (Capex) Facility

The window will target growth-stage companies investing in larger-scale PUE infrastructure and climate-smart energy solutions for agriculture. It will provide grants of USD 250,000–400,000 to support investments in solar irrigation, cold storage, drying, and processing facilities that complement agricultural value chains.

Applicants must provide matching funds equivalent to AECF’s contribution on a 1:1 basis. Verifiable proof of funds, such as bank statements, MoUs, or commitment letters, will be required before disbursement. Matching contributions may also include founder equity, supplier credit, inventory, or other verifiable business inputs. Applicants must demonstrate sound financial management and commitment to co-investment.

In addition to grant funding, the programme will provide tailored Technical Assistance (TA) to contracted companies to strengthen project delivery, business performance, and improve sustainability and impact.

The programme integrates gender equality, youth empowerment, and environmental sustainability across all interventions. Supported enterprises will be encouraged to adopt inclusive business models, create green jobs, and adopt climate-smart practices that reduce environmental impact.

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