The Africa Enterprise Challenge Fund (AECF) is a new multi-donor fund being developed to stimulate economic growth in Africa. The Fund will do this through supporting innovative projects that increase the rural poor’s access to agricultural and financial markets, offering matching grants on a competitive basis to private companies.

Some facts about AECF
• Two tender rounds a year; around February and August
• Minimum capitalization of $50m when fund commences operations
• Grants of up to approximately $1.5m for each project, up to a maximum of 50% of a project’s total costs.

The Fund is aimed mainly at private sector entrepreneurs that are capable of implementing and co-funding relevant projects in Africa. Applications will also be open to NGOs and institutions that have business partners and are developing commercial activities that align with the objectives of the AECF. Both African-based firms and overseas firms doing business in Africa can apply. Applications will be assessed through a competitive process.

The Fund will initially be operational for 9 years. It will be hosted in a multilateral institution or a private foundation based in and operates across Africa.
The AECF will make investments using different types of financial instruments including both repayable and non-repayable grants. Donors involved so far: the African Development Bank, the Consultative Group for Assisting the Poor (CGAP), the International Fund for Agricultural Development (IFAD), the UK Government through the Department for International Development (DFID) and The Netherlands Ministry of Foreign Affairs.

The Alliance for a Green Revolution in Africa (AGRA) will host and support the implementation of the AECF. AGRA is an alliance jointly created in 2006 by the Rockefeller Foundation and the Bill & Melinda Gates Foundation, aimed at improving agricultural productivity and small holder farmers’ wellbeing throughout sub-Saharan Africa. Former Secretary-General of the United Nations, Kofi Annan, is chairman.

Criteria for Selection
As part of the selection process, projects will need to demonstrate that they:
• can stimulate systemic change in markets which benefit the poor on a sustainable basis;
• have the potential to accelerate investment in a specific sector or market;
• can introduce a new way of doing business that is beneficial to the poor;
• are commercially viable and justify why a public grant is required in addition to normal private finance in the short term.

Please contact Larive for a free assessment to find out whether your business venture qualifies for AECF funding.