Africa Enterprise Challenge Fund André Dellevoet Executive Manager AECF
What is the AECF? AECF is a special partnership initiative of the Alliance for a Green Revolution in Africa (AGRA). AGRA is chaired by Kofi Annan and funded by Rockefeller and BMGF. AECF is funded by a multi-donor consortium (DFID, Dutch, Ausaid, DANIDA, SIDA, IFAD). The donors form the Governing Council of the AECF. Current capital is US$180m Final decisions are made by an Independent Investment Committee. It is managed by a KPMG led team (the Fund Manager). The Goal of the AECF is to accelerate pro-poor growth in Africa increasing employment, livelihood opportunities, income and reducing poverty by MMW4P– By impacting on market systems we aim to have a positive impact (jobs and incomes) on large numbers of people living in rural areas. We do this by supporting private sector companies to develop and test new and innovative business ideas in agri- business, rural financial services and renewable energy/adaptation in Africa
How the AECF worksThe AECF manages a series of widely marketedcompetitions, open only to for-profit-companiesfor innovative projects in Africa. Best bids winWe have a SSA wide, general program as well asfocused sectoral and geographic windowsThe AECF provides grants and non recourse loansfrom a minimum of US$250,000 up to a maximum ofUS$1.5m per project (the average grant/loan size isaround US$750,000)Companies have to at least match the fundsprovided by the AECF (in fact 3x as much)AECF funds are provided on a reimbursement basisunless otherwise agreed;Enormous appeal: over 4400 eligible businessproposals received, only 89 approved. 3mbeneficiaries.
Financial value chain: new partnershipsSNV, Farm- AECF FinancialAfrica, AAA, partners (SEDF, Norfund, GVEP Swedfund etc.
Way forwardScaling up and potential for wider impact(systemic change) by aligning with GRagenda of AGRA and G8 initiative, privatesector in driving seatAECF USP is large pipeline of businessproposals. Could be centerpiece of aconcerted effort along 3 axis: TA/support,matching grants, debt/equityFocus on breadbaskets in SSA and/orthematic programs; seeds, soil health, marketaccess, financial services, food cropsAbsorption capacity AECF: US$ 50m perannum, 2 competitions