AECF pledges $6,5m for Zim

AFRICA Enterprise Challenge Fund (AECF), an international development institution, has pledged to donate $6,5 million to the country’s renewable energy sector, especially for projects that improve the lives of rural people.

AECF recently signed a five-year agreement worth US$48 million (50 million SEK) with Swedish International Development Cooperation Agency (SIDA) to fund the Renewable Energy and Adaptation to Climate Change Technologies in Sub-Sahara Africa (REACT SSA) project, which also covers Zimbabwe.

In an interview with The Herald, AECF portfolio manager Mr Victor Ndiege said the organisation would be providing non-repayable funds to between 12 and 15 private companies that would be able to expeditiously deploy renewable energy products in rural parts of Zimbabwe.

“We want the private sector to create markets in rural areas where people can be able to buy and sell renewable, clean and affordable energy,” he said.

“For now we are doing pre-launch exercise in which we interact with sector players, provide them with information for our intention to invest and in the next two months, we will come back for the official launch.”

Mr Ndiege said companies whose project proposals had the most impact would get funding.

The AECF is a development institution which supports businesses to innovate, create jobs, leverage investments and markets in an effort to create resilience and sustainable incomes in rural and marginalised communities in Africa.

Majority of rural Zimbabwean households are not connected to the grid and rely on alternative sources of energy.

The provision of power is expected to improve livelihoods and promote economic activities in rural areas.