In brief
- Somaliland Standard reported on 2020-12-23, citing Agence Ecofin, that AECF launched a grant facility with an $8.5 million envelope for renewable energy companies active in Somalia and Somaliland.
- The report said the programme mainly targets private sector companies and active microfinance institutions and states a plan to reach 300,000 people with electricity access, with applications due by January 22, year not stated.
- No evidence in the report establishes grant awardees, signed agreements, disbursements, amounts deployed, or programme completion or closure since that date.
Contents
On 23 December 2020, Somaliland Standard reported that the Africa Enterprise Challenge Fund (AECF) had launched a grant facility with an envelope of $8.5 million to support renewable energy companies active in Somalia and Somaliland. The report sourced the story to Agence Ecofin.
According to that report, the $8.5 million in grants is to be allocated to companies active in off-grid solar. The programme mainly targets private sector companies and active microfinance institutions, and it states a plan to reach 300,000 people with access to electricity.
What the report says about who can apply
Interested organisations, the report said, have until January 22 to apply. The year of that deadline is not stated in the report. No selection criteria, grant sizes, target regions or technology mix beyond "off-grid solar" are given in the report.
AECF Executive Director Victoria Sabula, quoted by Somaliland Standard, said the Somali market represents a unique opportunity to change reliance on diesel-powered mini-grids by increasing the use of renewable energy. The quoted statement does not define whether "the Somali market" means Somalia, Somaliland or both.
In a further quotation carried by the report, the AECF executive director described as "the manager" said AECF is looking to work with companies at different stages of development, especially those just starting out, and that in addition to funding AECF will provide technical support, partner networks and investment facilities. Those are stated intentions in the report, not completed actions.
The market context the report cites
The report cited World Bank data, second-hand via Agence Ecofin, that 11 million Somalis do not have access to electricity and that only 3% of the population uses clean cooking methods. No baseline year or source document is given for those figures, and the report does not make clear whether the 3% figure is also World Bank data.
The report also stated that in 2019 AECF began funding up to $20 million for the distribution of solar home installations in 5 countries. The countries are not named, and the report does not establish how much of that up-to-$20 million was spent.
The Somaliland Standard report described the launch as part of the "REACT Subsaharan" programme, which it said aims to reduce poverty through the progressive transformational use of renewable energies. The report does not verify the official spelling or scope of that programme name, and it does not identify a funder beyond AECF or a Somali-side counterpart.
What the report does not establish
No primary AECF record is in the report. There is no announcement, call for proposals, board decision or programme document behind it, so the launch itself is established only as a media report sourced to Agence Ecofin.
What has happened since 23 December 2020 is not established. The report provides no evidence of grant awardees, signed agreements, disbursements, amounts actually deployed, or programme completion or closure. The 300,000 people are a stated plan, not a count of beneficiaries reached, and the stated aims of increasing renewable energy use and reducing reliance on diesel-powered mini-grids are not reported as achieved.
Frequently asked questions
What types of projects are eligible for the AECF grant?
Somaliland Standard reported on 2020-12-23, citing Agence Ecofin, that the $8.5 million in grants is to be allocated to companies active in off-grid solar in Somalia and Somaliland. The report states the programme mainly targets private sector companies and active microfinance institutions.
What are the application arrangements?
The report said interested organisations have until January 22 to apply. The year of that deadline is not stated in the report. No selection criteria or grant sizes are given.
What are the expected outcomes for energy access?
The report said the programme states a plan to reach 300,000 people with access to electricity. That is a stated plan, not a count of people reached. The report cites World Bank data, second-hand, that 11 million Somalis do not have access to electricity and that only 3% of the population uses clean cooking methods.
Sources
Photo: European Space Agency, CC BY-SA 3.0 igo, via Wikimedia Commons
