AECF 2017-24 Renewable Energy and Adaptation to Climate Technologies (REACT)

As of December 2024, the program had 79 active companies. The portfolio of contracted investees promotes different renewable energy and climate technologies, including consumer financing, household electricity and cooking, e-waste management, e-mobility, and products/services for the productive use of energy. Cumulatively until December 2024, the program contributed to enable 610 000 households and 26 000 small enterprises with access to clean energy, generated 2 000 direct and nearly 5 000 indirect jobs, installed 14 MW of clean energy, avoided over 600 Kt of C02 emissions and mobilized 67 MUSD. Most results are in line with the or exceeding contracted targets. The REACT SSA program is found to be relevant and aligned with Swedish national policies, bilateral strategies, and broader development goals. The program's theory of change aligns with the Swedish Government's objectives related to carbon emission reduction, clean energy, job creation, and gender equality. While demonstrating efficiency in its competitive challenge fund model and multi-country approach, the program has partially satisfactory efficiency due to challenges in communication about technical assistance services and delays in contracting. In terms of effectiveness, the program has achieved its results, exceeding targets in several areas. Enrolled companies express great satisfaction with REACT financial and technical support. The impact of the project is deemed partially satisfactory, with expected positive contributions to the environment and economic development. The program is anticipated to create enabling environments, develop market systems, and provide lasting benefits to end-users. Sustainability prospects are good, given the favorable institutional context and national support. However, more support may be needed for early-stage companies among beneficiaries. Coherence within the broader development ecosystem is acknowledged, with REACT SSA seen as an additional and relevant component. The program aligns with national governments' efforts and strategies for improving energy access. The gender focus is considered satisfactory, though challenges exist in achieving gender-related targets. In summary, the REACT SSA program achieved positive impacts, overcoming challenges, and providing valuable lessons for future interventions. The program showcased commendable progress in delivering clean energy solutions and promoting economic activities, particularly to underserved populations.

Renewable Energy and Adaptation to Climate Technologies Sub-Saharan Africa (REACT SSA) is a Challenge Fund (CF) program implemented by the Africa Enterprise Challenge Fund (AECF). The objective of the program is to improve access to renewable energy for low-income off-grid households, increase incomes and reduce greenhouse gas emissions in eight target countries. The broader outcome is to catalyse private sector investment and innovation in low-cost clean energy and climate change at scale. The program funds small and growing businesses in the renewable energy sector, to catalyse and test the viability of innovative business models that can accelerate progress towards Universal Access to Energy and address the Climate change challenge. Financing is complemented with Technical advisory (TA) and Investment support services to improve viability and ensure company growth. By de-risking unique business models REACT SSA supports the private sector to innovate and invest in diverse technologies.