Call for Applications: Innovation Challenge Fund – Ethiopia

The Higher tier Cooking Component (HTCC), as part of the larger ‘Strengthening the Entrepreneurial Ecosystem for the Clean Cooking sector’ project, aims to support the development and growth of the higher tier clean cooking market in selected countries. The project builds on the combined technical and country experience of the Deutsche Gesellschaft fuer Internationale Zusammenarbeit (GIZ) GmbH and the SNV Netherlands Development Organisation under a consortium partnership for HTCC.

Objectives of the Innovation Challenge Fund

The primary objective of the Innovation Challenge Fund (ICF) is to stimulate innovation and accelerate the adoption of higher tier clean cooking solutions in Ethiopia by providing financial and technical support to entrepreneurs and businesses in this sector. The ICF aims to achieve the following specific objectives:

• Encourage the development of new and modern clean cooking technologies that are affordable, efficient, and user-friendly.
• Promote innovative business models and distribution strategies that can facilitate access to clean cooking solutions for low-income households.
• Bring innovative pricing schemes that can support the larger community.

Scope of the Innovation Challenge Fund

The ICF will only support entrepreneurs and businesses that focus on higher tier clean cooking solutions such as advanced biomass cookstoves and electric stoves, or other innovative technologies that can significantly reduce emissions and fuel consumption compared to traditional cooking methods. Applicants should target one or more of the following thematic areas:

• Technology innovation: Development or improvement of clean cooking technologies that meet the needs and preferences of Ethiopian households, considering factors such as cost, efficiency, safety, and cultural acceptance and appropriateness.
• Business model innovation: Design and testing of new business models, or distribution strategies that can help scale up the adoption of clean cooking solutions in rural and urban areas.
• Pricing scheme innovation: Design and provide pricing methods that can attract diverse consumers with different income levels based on affordability.

ICF Level

• The allocated budget for the ICF is EUR 250,000 (EUR 170,000 for Grant ICF and EUR 80,000 for Local Subsidy) to be granted for 10 to 20 winning enterprises with HTCC technologies in up to three rounds of call for applications. GIZ reserves the right to limit the number of call of applications and also has the right decide on exact amount of grants from ICF/Local Subsidy scheme for winning applicants.
  • EUR 170,000 for Grant ICF: This will be for Midum to big Micro and Small enterprises which according to Ministry of Trade and Industry (MoTI)
    • Medium enterprises: are business enterprises with a total investment between Birr 500,000 (8,500 Euro) up to Birr 1 million (16,500 Euro) and including those enterprises that have high technical consultancy and excluding other high-tech establishment.
    • Big Enterprises: are busines enterprise with total investment more than 1 Milliion Ethiopian Birr (16,500 Euro)
  • EUR 80,000 for Local Subsidy: This will be for Micro and Small enterprises which according to Ministry of Trade and Industry (MoTI) are
    • Micro enterprises: are small businesses with total capital investment not exceeding Birr 20,000 (400 Euro) and excluding these enterprises with high technical consultancy and other high-tech establishment.
    • Small enterprises: are businesses with a total investment between Birr, 20,000 up (400 Euro) to Birr, 500,000 (8,500 Euro) and do not include these enterprises with advanced technology and high technical consultancy.
• The Innovation challenge fund is planned to support 10 to 20 enterprises and the fund will range from Euro 5000-25000 per company.

Eligible Companies

To be eligible for funding under the ICF, applicants must meet the following criteria:

• Be a legally registered entity in Ethiopia (e.g., private company, partnership company, research institution, scalable projects with a proof of concept or evidence of a successful pilot, non-governmental organization and Government organizations).
• Submit a detailed project proposal that addresses one or more of the thematic areas mentioned above and clearly outlines the expected outcomes, timeline, budget, risk mitigation strategies and clear gender and leave no one behind strategy.
• Provide evidence of in-kind contributions (team members, working areas, working capital etc. from other sources to ensure financial sustainability and leveraging additional resources.
• Be an organization that promotes or intends to promote clean cooking technologies/research/businesses.
• Must be physical established in Ethiopia and your project idea will be implemented in Ethiopia.
• Organizational profile (including organogram, admin and financial manuals, Curricula Vitae and list of key technical and financial staff (as applicable) including qualification, and senior management),
• Demonstrate how current internal resource and technical capacity of the enterprise provides sufficient ground to utilize the requested funding in catalytic manner.

For more information, visit Energising Development.