The results of the first round of the Renewable Energy & Adaptation to Climate Change Window (REACT) have been announced by the Africa Enterprise Challenge Fund (AECF). The competition is held to promote business innovation in the East African Community (EAC), and it is open to eligible competitors from EAC, including Kenya.
As declared in the result, 11 EAC based companies will receive almost US$ 9.2 m from the AECF. The sum will be made available as grants and interest free loans for their investments in Kenya, Uganda and Rwanda.
Only for-profit companies can participate in The AECF REACT Window. The main purpose of the competition is to promote private sector entrepreneurs in Kenya to develop ways and means to benefit the rural poor, by providing them with their services and products. The best and the most innovative business ideas receive between US$ 250,000 and US$ 1,5m from the AECF.The AECF REACT window receives its funds from the UK Department for International Development (DFID) and the Danish Government.
On 1 November 2010, Prime Minister Raila Odinga initiated the first round of the AECF REACT window. Altogether 1102 companies registered for REACT East Africa. However, only 348 companies had submitted fully eligible applications. Out of these, the best 33 business ideas were chosen to prepare and submit business plans. Once these were submitted, the AECF’s independent Investment Committee met in Dar es Salaam and Nairobi from 19 to 27 September 2011, when they discussed and settled the winning bids. The finalists also got an opportunity to present their business plans, personally and individually, to the Investment Committee.
Last week, 8 REACT projects were approved in Tanzania. On September 28, the Investment Committee selected a further 11 business ideas for funding under REACT EAC. All these business if ideas are centered on innovative and beneficial services, including power generation from renewable energy, adaptation to climate technologies projects, alternatives to cooking with charcoal, biogas and micro-finance to develop renewable energy. With the help of the Window, the AECF hopes to benefit over 2million entrepreneurs, subcontractors, employees and clients in the EAC.
“We are particularly saddened by the news that Wangari Maathai has recently passed away, precisely at the time when the AECF is investing in sustainable business models that have a positive impact on people’s livelihoods. I think that she would have been very proud. We will continue to be guided by her example and carry on with her inspiring work,” said Mrs. Anne-Marie Chidzero, chairperson of the REACT Investment Committee.
