4.6.
4.7.
is interested in entrepreneurial approaches to rural development in Africa,
possibly including energy related initiatives.50
• Good Capital is an example of a social venture capital fund that offers
financing for non profits and for-profit social enterprises. It is a potentially
viable option for energy enterprises that can demonstrate financial
sustainability in the long run. 51
Foundations and charities
There are a number of private foundations and charities that provide funding for
RETs in developing countries. They vary considerably in their size, scope and
funding models. A number of multinational corporations also have corporate social
responsibility (CSR) programmes that give grants and awards through company
programmes or partners.
• The Africa Enterprise Challenge Fund (AECF) is a private sector fund,
backed by some of the biggest names in development finance and hosted
by the Alliance for a Green Revolution in Africa (AGRA). Their aim is to
encourage private sector companies by offering large grants for new and
innovative business ideas. The AECF is open to proposals from all
countries in Africa and offers Funding Windows targeted at specific
economic sectors (including renewable energy and rural financial
services). Each window has a special focus but the overall field is the set
of value chains linking rural areas to their local and international markets,
in services as well as goods. 52
• WISIONS is an initiative by the Wuppertal Institute supported by the
Swiss-based foundation ProEvolution. It was launched in 2004 to promote
practical and sustainable energy projects. WISIONS awards small-
medium grants to NGOs in developing countries through its annual
Sustainable Energy Project Support (SEPS).53
• The Koru Foundation is a UK based charity that provides a link between
companies in the European renewable energy sector and energy poor
communities in the developing world. Koru obtain funds from supporters in
Europe for local partner NGOs in East and Southern Africa, South Asia
and Latin America to implement community based renewable energy
projects.54
• Shell Foundation is an independent charity created by Royal Dutch/Shell
to provide capital in the form of grants or soft loans for a range of socially
responsible projects all over the world. The Shell Foundation has six
programme areas; including Aspire which helps small and medium
enterprises in Africa with business development assistance and risk
capital.55
Carbon finance
Carbon markets are a space where buyers and sellers come together to trade a
commodity – greenhouse gas reductions.56 Projects that mitigate carbon emissions
may be able to benefit by selling the savings as carbon credits to make the project
more viable. There are two primary carbon markets:
• The larger compliance market comprises of buyers (including business
and governments) who have to comply with legal caps on the total amount
Renewable Energy to Reduce Poverty in Africa
33