A US$ 8.5 million fund seeking to reduce poverty through use of renewable energy

REACT SSA – Full Grants for Renewable Energy Businesses in Somalia and Somaliland
The Africa Enterprise Challenge Fund (AECF), through the REACT Sub-Saharan Africa (REACT SSA) program, has set aside US$ 8.5 million to support private companies promoting the use of renewable energy in the Federal Government of Somalia.

Funded by the Swedish International Development Authority (Sida), the REACT SSA is a US $61million initiative that seeks to reduce poverty through a transformational increase in the use of renewable energy by off-grid households in the target countries in Sub-Sahara Africa.


The REACT SSA – Somalia award seeks to encourage private sector investment and innovation in low-cost clean energy in FGS and Somaliland.


Qualifying companies will receive between US$100,000 and US$1.5 million of pure grants to be awarded upon the achievement of mutually agreed milestones. The grants will be given to commercially viable companies of which 25 percent will be women-owned or managed.

Eligibility Criteria

Applicants must meet the following requirements:

  • Be private sector enterprises that are aligned with the focus areas. Joint ventures are allowed
  • Must be legally registered and physically established in the FGS or Somaliland
  • Must show a commitment to match AECF funding. Matching contributions are required in order to demonstrate interest and trust from the wider investor community
  • Request for funding should be within the stipulated range of US$ 100,000 to US$ 1.5 million.
  • This is a full grant. The funding must, however, be used for a specific project in the FGS or Somaliland
  • Be compliant with fundamental in-country and international human rights, labor standards and environmental management laws
  • Must NOT be involved in any act of terrorism or support terrorists’ activities
  • Must allow regular due diligence by AECF

Selection Criteria

Companies will be selected through a two-stage competition. At the first stage, companies will be shortlisted based on their submission of Expression of Interest. Second, the proposal stage which will involve the submission of detailed business plans upon which select applicants will be awarded.

Application deadline

Applications will be accepted from 14th December 2020 to 22nd January 2021. The application window closes at 11:59 pm (EAT) on 22nd January 2021.

For clarification on the application process and requirements, please email


January 22, 2021
Website Visit website
Targets Somalia
Sectors Renewable energy