Dar es Salaam — TANZANIA'S small and medium-sized enterprises (SMEs) in clean energy and agribusiness are being encouraged to apply for funding from the Renewable Energy and Energy Efficiency Partnership (REEEP).
The initiative, announced on Tuesday, aims to boost sustainable growth and support rural development. REEEP also revealed the first call for proposals under its Productive Use of Renewable Energy (PURE) Growth Fund.
REEEP Director of Programmes, Merja Laakso, said the PURE Growth Fund is a key project to help the country's agriculture and food sectors grow in a low-carbon way.
"The programme will reduce risks for private companies and support the full integration of clean energy solutions in farming.
"This will create stronger markets, easier access to clean energy tools and more sustainable supply chains," she said.
The first round of the PURE Growth Fund offers 2.5 million euros in grants, with individual awards ranging from 250,000 to 1,000,000 euros per company.
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Besides funding, winners will receive technical support and help with policies to grow their businesses.
The application window is open until August and projects will start in January next year. The fund is supported by Austria and managed by REEEP.
Elfriede Anna More, Deputy Director General and Head of International Climate and Environmental Affairs for Austria, said they are proud to be the first donor of the PURE Growth Fund.
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"[This] programme shows our commitment to a fair energy transition in sub-Saharan Africa," she said.
REEEP Chief Executive Officer, Eva Kelly said clean energy can change the way food is grown and processed across the Global South.
"We are happy to launch the PURE Growth Fund in Tanzania as the first step in a multi-country programme," she said.
Aligned with the country's goal to increase rural energy access and improve farming value chains, the PURE Growth Fund focuses on the agriculture and energy sectors.
According to the Food and Agriculture Organisation (FAO), these two sectors employ over 70 per cent of the workforce and contribute up to 30 per cent of sub-Saharan Africa's GDP.
The Minister for Regional Administration and Local Government (TAMISEMI), Mohamed Mchengerwa, said the PURE Growth Fund launch is a big step in helping local communities by linking renewable energy with agriculture to increase incomes and improve livelihoods across Tanzania.
