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.

Unlocking transport bottlenecks – A case study of DSM Corridor Group Ltd. in Tanzania

Written by AECF

Dar es Salaam seaport is Tanzania’s most dominant seaport, serving as a gateway for Tanzania and its neighbours – handling 95% of the country’s international trade as well as transit to landlocked countries across Eastern and Central Africa including Burundi, Rwanda, Uganda, Malawi, Zambia, and the Democratic Republic of Congo (DRC). The cargo throughput at Dar es Salaam port has fluctuated in recent years but is anticipated to reach 28 million metric tonnes by 2025.

To ensure farmers in Tanzania receive agro-inputs in time, DCG developed unique logistics solutions and cargo handling services that have decongested the port, increased efficiency, and reduced cargo handling times. Through AECF’s Tanzania Agribusiness Window, the company has constructed the Kisarawe dry port and introduced an information management platform, which has helped improve transparency and efficiency, ensuring that farmers acquire agricultural inputs with ease, hence increasing production.

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.

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.

Galvanizing smallholder farmers to access new markets through high quality vegetable seeds – A case study of Africasia Seed Company Ltd in Tanzania

Written by AECF

The demand for high-quality vegetables in Tanzania has steadily increased over the past decade as incomes and urbanization have increased. According to the Tanzania Official Seed Certification (TOSCI), more than half of the 60 registered seed companies in Tanzania deal in vegetable seeds. The market for these seeds is estimated at $25M, with an anticipated 260% growth to $65M by 2024.

Innovations in the fresh fruits and vegetable value chain are mostly driven by seed companies, which develop new varieties and provide extension services and demonstrations on good agricultural practices (GAP) to increase yields.

Through AECF’s Tanzania Agribusiness Window, Africasia Seed Company Limited (ASCL) received USD$ 500,000, which has gone a long way in the expansion of seed varieties available to farmers and improving the commercialization of fresh fruits and vegetable seed varieties through the establishment of demonstration plots, farmer field days, farmer training and meetings as mechanisms to facilitate market uptake.

The investment established a processing plant in Arusha, expanded fresh fruits and vegetable seed varieties, and strengthened the out-grower and production base for Open Pollinated Varieties (OPVs).

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 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.

Impact Report 2017

Written by AECF

This paper examines the impact that agribusinesses funded by the AECF have had on creating opportunities for decent work. Using a mixture of quantitative and qualitative case studies, the AECF agribusiness portfolio was analyzed to assess how each of these mechanisms operates.

This analysis also examined whether certain types of projects have a greater impact on creating decent work opportunities.