Tanzania: AECF Awards US$12m to 19 Firms
By Staff Writer
DAR-ES-SALAAM---The Africa Enterprise Challenge Fund (AECF) Friday announced the results of the first round of two simultaneous competitions to promote business innovation in Tanzania: the agribusiness window (TZAW) and renewable energy & adaptation to climate change window (REACT). REACT is open to investments in the EAC, which includes Tanzania. No less than 19 Tanzanian based companies will receive approximately US$12m from the AECF in the form of grants and interest free loans for their investments in Tanzania.
The AECF TZAW and REACT Windows are competitions, open only to for-profit companies. Their objectives are to stimulate private sector entrepreneurs in Tanzania to innovate and find profitable ways of reaching and benefitting the rural poor with their products and services. The AECF provides financial support between US$ 100,000 and US$ 1,5m to the best business ideas.
The AECF TZAW and REACT windows in Tanzania are funded by the UK Department for International Development (DFID).
The AECF launched the first rounds of TZAW and REACT on 1 November 2010. In total, 224 companies registered for the TZAW competition and 1102 for REACT East Africa. Of these, 203 companies for TZAW and 348 companies for REACT submitted fully eligible applications. The best 44 business ideas were selected and requested to prepare and submit business plans. Thereafter, the AECF’s independent Investment Committee met in Dar es Salaam from 19 to 23 September 2011 to adjudicate the winning bids for Tanzania. All finalists were given the opportunity to present their business plans in person to the Investment Committee.
The Investment Committee selected the best 11 business ideas for funding under TZAW and a further 8 Tanzanian proposals under REACT. The AECF funds are expected to leverage at least three times this amount from the companies’ contributions to their own projects. The business ideas include outgrower schemes for smallholders, livestock, seed and fertiliser projects, agricultural transport logistics, power generation from renewable energy, adaptation to climate technologies projects, alternatives to charcoal cooking, biogas and micro-finance for access to renewable energy. The AECF expects that over 4 million entrepreneurs, subcontractors, employees and clients in Tanzania will benefit from these projects over the next four to six years.
Mr. André Dellevoet, Executive Manager of the AECF, observed: “The results of the first round in Tanzania are terrific. The Investment Committee was extremely impressed by the quality of the business plans received and the effort that all companies had put into their business plans and presentations”.
The AECF’s Fund Managers (KPMG Development Advisory Services) and their local associates (Imani Development) would like to thank all those that took part in Round 1 of AECF TZAW and REACT, congratulate the winners and encourage all those that did not succeed to participate in subsequent rounds of TZAW (to be confirmed) and REACT (mid-October 2011).
The AECF is a US$100-150 million fund spanning Southern, Eastern, West and certain Francophone African countries. It is a “Special Partnerships Initiative” of AGRA (Alliance for a Green Revolution in Africa) created with funding from the Australian Agency for International Development (AusAID), the Danish Government, the UK Department for International Development (DFID), the International Fund for Agricultural Development (IFAD) and the Netherlands Ministry of Foreign Affairs (NMFA).