Introduction to the Africa Enterprise Challenge Fund (AECF)


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  • Lead partner or engagement quality control KPMG INSTRUCTOR- Ask participants: “What are some of the questions we might ask as we develop our proposal strategy (what are the considerations)?” Suggested responses: What is the issue or opportunity? What are the firm’s key competitive differentiators? What is the client willing to spend? What are the resource requirements for this engagement? Identify Proposal Team & Potential Engagement Resources - The prospective Engagement Partner should identify a team to lead the proposal effort. This team typically includes the Prospective Engagement Manager and any key subject matter professionals (Senior Associates, Associates, Manager, etc). The engagement team members may be proposed at this stage, but they are usually not formally scheduled until after an Engagement Letter is signed by the client. In selecting resources for the engagement, the Proposal Team will consider each of the following items: Client Experience – Select individuals who have had successful projects with the client in the past. Service Line Experience – While it is important to have experienced service line professionals on the engagement team, it is also important to put together a diverse team with varying and complimentary backgrounds. Regulatory Experience – Each engagement team should have an understanding of the client’s current regulatory environment. Industry Experience – Consider using resources who have experience working in the client’s industry. Time- 3-4 minutes KPMG
  • Introduction to the Africa Enterprise Challenge Fund (AECF)

    1. 2. Introduction to the Africa Enterprise Challenge Fund AECF London Event 10 th November 2011 Hugh Scott, Director, AECF
    2. 3. Presentation Outline <ul><li>Introduction to the AECF </li></ul><ul><li>AECF Performance to date </li></ul><ul><li>AECF Agribusiness Africa Window </li></ul><ul><li>AECF South Sudan Window </li></ul><ul><li>AECF REACT Round 2 </li></ul>
    3. 4. An introduction to the AECF <ul><li>A challenge fund for the private sector in Africa </li></ul><ul><li>Funders, Governance and Management </li></ul><ul><li>Aims, objectives and outcomes </li></ul><ul><li>The AECF application and selection process </li></ul><ul><li>AECF Competitions to date </li></ul><ul><li>Initial capital was US$35m and is now US$120m – and growing... </li></ul><ul><li>3 new AECF competitions now live </li></ul>
    4. 5. Some Key Points about AECF <ul><li>Companies compete for AECF money </li></ul><ul><li>AECF provides minimum amount of funds to make a business idea happen that would otherwise not happen </li></ul><ul><li>Must be commercially viable and have a measurable development impact (large numbers of poor rural people that benefit) </li></ul><ul><li>Innovative (disruptive) business ideas that will impact the market system (replication etc) </li></ul>
    5. 6. AECF FOCUS Finding the right projects
    6. 7. AECF Performance Business plans Shortlisted for IC Concept notes submitted Registered companies Projects Approved 87 190 399 3053 5459 11 Rounds completed 5 June 2008 to 30 September 2011 Performance to date
    7. 8. AECF – Performance <ul><li>87 projects in 17 countries </li></ul><ul><li>US$66.80m committed (US$31.58m grant, US$35.22m repayable) </li></ul><ul><li>US$242.26m matching funds committed </li></ul><ul><li>Estimated 3 million rural people will benefit from these projects </li></ul>
    8. 9. Key Results AECF 2010 400,000 households: 2m poor people
    9. 10. AECF Agribusiness Africa Window (AAW) <ul><li>Agribusiness Africa Window (AAW) </li></ul><ul><li>A special window open to business ideas that are based on agribusiness , agribusiness value chains and financial services , Africa-wide </li></ul><ul><li>Funded by DFID (US$17m) </li></ul><ul><li>Open for applications from 15 th October 2011 to 15 th December 2011 </li></ul><ul><li>To apply: Go to </li></ul>
    10. 11. AECF Agribusiness Africa Window (AAW) <ul><li>Agribusiness Africa Window (AAW) </li></ul><ul><li>AAW is a competition like all AECF windows, but with Africa-wide Agribusiness focus </li></ul><ul><li>Two stage competition: concept note and business plan </li></ul><ul><li>The offer: A mixture of grants and zero interest loans between US$250,000-US$1.5m per company </li></ul>
    11. 12. AECF Agribusiness Africa Window (AAW) <ul><li>What counts as Agribusiness? </li></ul><ul><li>AECF takes the broadest possible definition </li></ul><ul><li>Farmers, planters, horticulturalists, ranchers, forestry, aquaculture, outgrower schemes </li></ul><ul><li>Inputs manufacturers, distributors & suppliers </li></ul><ul><li>Traders, merchants, exporters </li></ul><ul><li>Agro-processors and value adders </li></ul><ul><li>Service providers e.g banks, the media </li></ul>
    12. 13. AECF Agribusiness Africa Window (AAW) <ul><li>Eligibility: what conditions apply? </li></ul><ul><li>Same as for all AECF competitions </li></ul><ul><li>Applicants must be private sector entities </li></ul><ul><li>Companies limited by shares, partnerships, sole traders </li></ul><ul><li>May be registered/domiciled anywhere but investment project must take place in Africa </li></ul><ul><li>Trading track record highly desirable </li></ul><ul><li>We do fund start-ups but they must demonstrate capacity (physical & financial) </li></ul><ul><li>Principle of shared risk – matching funds </li></ul>
    13. 14. <ul><li>Example Selection Criteria </li></ul>AECF Proposal Process Stage One Development impact of the project 35% Strength of the business case 20% Applicant’s technical & financial capacity to deliver 25% Innovation 10% Additionality Eligibility Environmental impact / Research relevance 10% Potential to influence systemic change Considered
    14. 15. AECF REACT Round 2 Window <ul><li>Agribusiness – broadly defined </li></ul><ul><li>Special window for the Republic of South Sudan, funded by UKAid - US$ 10m </li></ul><ul><li>Minimum US$100,000 and max US$1.5m </li></ul><ul><li>Open for applications from 15 th October, 2011 to 15 th December 2011 </li></ul><ul><li>To apply: Go to </li></ul>South Sudan Window (SSW)
    15. 16. AECF REACT Round 2 Window <ul><li>A special funding window for business ideas that are based on renewable energy and adaptation to climate technologies </li></ul><ul><li>Funded by UK aid and DANIDA – approx. US$27m. For countries in the East African community. </li></ul><ul><li>2 nd Round launched on 15 th October 2011 closes 15 th December. NOW OPEN for applications </li></ul><ul><li>To apply: Go to </li></ul>
    16. 17. AECF REACT Round 2 Window <ul><li>Key strands within REACT Round 2: </li></ul><ul><ul><li>Increased access to low cost, clean energy for rural businesses and households </li></ul></ul><ul><ul><li>Technology that help smallholder farmers adapt to climate change </li></ul></ul><ul><ul><li>Financial services that increase access to finance for low cost clean energy and climate resilient technologies or catalyse financial solutions </li></ul></ul>
    17. 18. How do I apply? <ul><li>Log onto: </li></ul><ul><li>You can only apply by following the procedures set out on the website </li></ul><ul><li>Please take some time to read the information on the AECF home page, as well as on the specific microsites (AAW, SSW and REACT R2) </li></ul><ul><li>Please do not send paper feasibility studies etc. </li></ul>
    18. 23. AECF Contact Information <ul><li>Website: </li></ul><ul><li>General Enquiries: [email_address] </li></ul><ul><li>AECF Director: Hugh Scott [email_address] </li></ul>