Annual Report 2025

Written by AECF

2025 was not an easy one for many of the markets we work in. Enterprises had to deal with tighter access to finance, climate pressures, and, in some places, ongoing conflict and instability.

For many small and growing businesses, the question has simply been whether they can continue operating. In that context, our focus was on supporting enterprises with solutions that enable them to keep going, adapt where necessary, and grow over time. At its core, this work is about strengthening the markets in which these businesses operate, so they can continue to function and support livelihoods.

Over the course of the year, we saw that this approach made a difference. Through our initiatives, we reached over 1.62 million people and 316,000 households.

 

Annual Report 2024

Written by AECF

We made notable strides in 2024, marked by portfolio expansion through new programs and initiatives.

In this period, we executed nine competitions in 7 countries, closing the year with 11 active programs in the portfolio spanning 16 countries across Sub-Saharan Africa. We onboarded 66 additional businesses to our portfolio and delivered 263 technical assistance (TA) interventions.

Through our investment facilitation work, we supported some of our investees in raising $19 million in follow-on capital.

 

Annual Report 2022-2023

Written by AECF

Our journey through 2022 and 2023 was challenging and rewarding as we expanded our work into fragile contexts, deepened our commitment to empowering women, and drove private sector development for marginalized communities. Despite the global uncertainties, from economic disruptions to geopolitical instability, our collective efforts have profoundly impacted the lives of millions across Africa.

In the face of these challenges, we learned a crucial lesson: resilience, innovation, and collaboration are the cornerstones of sustainable development. Working with governments, donors, private sector actors, and communities reinforced our commitment to unlocking opportunities for those who need them most.

Lean data insights: Aggregate report

Written by AECF

Despite recent progress and development in the renewable energy sector, energy access challenges persist globally, with over 625 million people lacking access to electricity and an additional 2.1 billion people lacking access to clean cooking, according to 2023 SDG7 progress report. The impacts of climate change and natural catastrophes further compound this especially in sub-Saharan Africa, described as being most vulnerable to climate change. 

Since 2017, AECF (Africa Enterprise Challenge Fund) has been deploying challenge-led investment funds, technical assistance, energy, and advisory service facilities to support inclusive businesses promoting adaptation and mitigation solutions for low-income, underserved, and rural communities in sub-Saharan Africa. Combined, the Renewable Energy and Adaptation Climate Technologies (REACT SSA) programme funded by Swedish International Development Cooperation Agency (Sida) and REACT Household Solar programme funded by Foreign, Commonwealth Development Office (FCDO) have invested and strengthened 101 companies that delivered energy access products and services to over 560,000 households translating to over 2.8 million people, 23,599 MSMEs and supported over 3,800 direct jobs.

In 2021, AECF partnered with 60 Decibels, an independent impact measurement company, to conduct Lean Data studies with end consumers of REACT portfolio companies with the intention of gaining a deeper understanding of if and how increased access to energy and adaptation technologies affects households’ quality of life, mSMEs’ productivity, and creates new opportunities in rural economies. Such studies are also precious in giving voice to consumers, providing critical customer feedback to our investees, and helping them improve customer satisfaction and impact. To us, it offers precious insights to guide our future investments and the depth and breadth of our impacts. To date, 60 Decibels (60dB) has conducted interviews with over 7,000 randomly selected consumers drawn from 25 investees, spread across 9 countries under the REACT portfolio with technologies ranging from clean/improved cooking, solar home systems, mini and micro grids, solar-powered irrigation, e-mobility, and waste management and recycling. 

 

Taking the lead – Expanding energy access in Sub-Saharan Africa

Written by AECF

In our home, Africa, nearly 600 million people lack access to energy, while many more, almost a billion, use traditional and emitting fuels for cooking. This lack of access restricts opportunities, undermines health conditions, and reduces a household’s potential to rise out of poverty.
With Africa needing over US$70 billion in additional investment per annum until 2030, it is clear that the current levels of public sector financing and aid will not deliver SDG7: Affordable and Clean energy access for all in Africa.

At AECF, we approach poverty alleviation differently. As a pioneering African-based and focused development organization, we mobilize patient capital and an ecosystem of services to surface innovative, inclusive, small- and medium-sized enterprises to drive the energy revolution for those who need it the most. To date, we have invested, supported and scaled 175 clean and renewable energy businesses to deliver an energy revolution for nearly 2 million households, created over 9,000 direct jobs, and opened new markets that have attracted over US$370 million in private capital.

Agribusiness in Africa Window – Round 2 investee showcase

Written by AECF

The Agribusiness in Africa Window Round 2 (AAW R2) was a continent-wide window launched in 2014 to support companies to invest in inclusive and innovative business ideas with the potential to increase productivity, employment, livelihood opportunities and incomes amongst the poor in sub-Saharan Africa.

A total of CAD 20 million in funding was committed to the programme, comprising of CAD 15 million from Global Affairs Canada (GAC) and CAD 5 million from the Alliance for a Green Revolution in Africa (AGRA).

Grant funding was awarded to 19 projects across 11 countries (Kenya, Nigeria, Malawi, Mozambique, Sierra Leone, Senegal, Tanzania, Zambia, Zimbabwe, Uganda, and Burundi/DRC), with businesses working in a variety of agriculture value chains, including cashew, fruits, potatoes, moringa, livestock production and digital information services.

Taking the lead – Boosting agricultural productivity and food security in Sub-Saharan Africa

Written by AECF

At AECF, we believe that Africa’s private sector holds the key to accelerating change. Across the continent, agri-focused SMEs are the main drivers of agricultural transformation with agriculture and agribusiness anticipated to become a US$ 1 trillion industry in Africa by 2030, delivering more jobs, income, and economic growth. Supporting efforts to achieve food security and improved incomes for all, many of these SMEs reach smallholder farmers, either directly or indirectly.

Taking the lead – Building a prosperous, enterprising and resilient Africa

Written by AECF

AECF targets Small and Growing Businesses (SGBs) with financing needs under US$ 2 million, and in 2021, introduced a lower ticket size category of US$ 25,000 – US$ 100,000 to complement the existing range of US$ 100,000 – US$ 2,000,000 used to date.

Businesses and business proposals are selected based on their commercial viability, innovation, and potential development impact on rural and marginalised communities. To ensure AECF does not crowd out other sources of finance, investees co-finance the total cost of the project, with the exception of youth/women-focused and businesses in fragile contexts.

End of programme report – Agribusiness in Africa Window – Round 2

Written by AECF

The Agribusiness in Africa Window Round 2 (AAW R2) was a continent-wide window launched in 2014 to support companies to invest in inclusive and innovative business ideas with the potential to increase productivity, employment, livelihood opportunities, and incomes amongst the poor in sub-Saharan Africa.

A total of CAD 20 million in funding was committed to the programme, comprising of CAD 15 million from Global Affairs Canada (GAC) and CAD 5 million from the Alliance for a Green Revolution in Africa (AGRA).

Grant funding was awarded to 19 projects across 11 countries (Kenya, Nigeria, Malawi, Mozambique, Sierra Leone, Senegal, Tanzania, Zambia, Zimbabwe, Uganda, and Burundi/DRC), with businesses working in a variety of agriculture value chains, including cashew, fruits, potatoes, moringa, livestock production, and digital information services.

The AAW R2 was originally expected to end on December 31, 2020; it was extended by 18 months to complete activities delayed by the COVID-19 pandemic. The balance of drawdowns, together with uncommitted funds, was converted to a COVID-19 relief fund of US$1.3 million, which provided additional financing to 10 investees at the early stages of the pandemic, based on a competitive application and selection process.

Annual Report 2021

Written by AECF

Welcome to our 2021 Annual Report. The theme of this year’s report is Difficult Terrains, Real Possibilities.

In this report, we highlight the possibilities created by the private sector when the right financing and technical assistance are made available. Journey with us as we share with you updates from our programmes, investees, and beneficiaries.

Portfolio test

Written by AECF

M-Kopa

Written by AECF

Mobisol

Written by AECF

The impact of financing business models on access to solar home systems and women’s financial inclusion

Written by AECF

This study investigates how two of the funded organisations, FINCOOP Savings and Credit Cooperative in Malawi and MoneyMart Finance in Zimbabwe, are implementing innovative financing solutions for women. This study aims to generate knowledge and insights on the impact of different business models on access to affordable solar home systems and women’s financial inclusion in Malawi and Zimbabwe.

Mainstreaming Lessons From Adaptive Agriculture In The ASALs

Written by AECF

This report was commissioned between August 2018 and March 2019 and conducted jointly by AECF and NIRAS. The study aimed to assess how best to mobilize the private sector within the ASALs of the sub-Sahara to guide “future investments in the ASALs, both through specific funding windows and more generally.”

Driving financial inclusion through renewable energy

Written by AECF

This report presents the findings of the study commissioned by AECF and conducted by L-IFT, entitled ‘Does Renewable Energy Drive Financial Inclusion?’ The aim of the study was to explore the extent to which business models funded by AECF that have a secondary benefit of creating credit histories or delivering assets can also deliver access to finance – either from the original project partners or from third-party sources.

Scaling-up mini-grids for rural electrification – Lessons from AECF’s project portfolio

Written by AECF

This report, which was researched and written by ENEA Consulting with expert input from AECF, has two main objectives. Firstly, it provides an overview of the key challenges facing the mini-grid sector, and the solutions mini-grid companies, governments, and development partners are implementing to overcome these challenges. Secondly, it analyses AECF’s future role in the mini-grid sector, assessing the issues AECF will be best placed to resolve.

Doing business during COVID-19 – Lessons from AECF investees in the renewable energy and agribusiness sector

Written by AECF

COVID-19 has changed the playing field for businesses in Africa significantly. While the overall socio-economic impact of the pandemic is not yet well understood, the United Nations Economic Commission for Africa (UNECA) estimates that 4 out of 5 businesses in Africa have been severely affected by lockdowns, travel restrictions, and supply and demand shocks.

Annual Report 2020

Written by AECF

Welcome to our 2020 Annual Report. The theme of this year’s report is Resilience in action: Protecting development gains in a time of crisis highlights the impact of our investees across Sub-Sahara Africa and the lasting change they are bringing to the communities they serve.

Annual Report 2019

Written by AECF

AECF is pleased to publish its 2019 Annual Report, which sets out the achievements across its two flagship programmes – agribusiness and renewable energy and adaptation to climate technologies (REACT) – and the further work that lies ahead in supporting pro-poor businesses to reach under-served communities in Africa with essential services, products, and jobs.

Creating opportunities for decent work in the AECF’s agribusiness portfolio

Written by AECF

The AECF at ten enters a new phase in its growth. Its focus is still very much on transforming the lives of the rural poor through agriculture and renewable energy, but with a renewed emphasis on those most difficult to reach groups. These have all too often, whether by reason of gender, age or geographical location, failed to benefit sufficiently from the impact of development.

Annual Report 2018

Written by AECF

AECF is pleased to publish its 2019 Annual Report, which sets out the achievements across its two flagship programmes – agribusiness and renewable energy and adaptation to climate technologies (REACT) – and the further work that lies ahead in supporting pro-poor businesses to reach under-served communities in Africa with essential services, products, and jobs.

Maximising the impact of outgrower schemes: Opportunities, challenges, and lessons from the AECF

Written by AECF

This paper reviews the experience of outgrower projects funded by the AECF. Outgrower projects are a significant segment of the entire AECF portfolio, with 51 being funded across 14 different countries and a commitment totaling USD$33.4m. This paper addresses the following objectives:

  •  Improving our understanding of how AECF-funded outgrower projects benefit (or fail to benefit) smallholder farmers.
  • Identifying common characteristics of successful outgrower projects, including the most successful model type, from the perspective of both the smallholder and the company
  • Diagnosing common challenges faced by outgrower projects and analyzing how AECF grantees have overcome these challenges.