Now Open: Pure Growth Fund in Tanzania

The PURE Growth Fund is designed to support a private-sector led deployment of productive use of renewable energy (PURE) technologies within agri-food value chains.

Its mission is to support the sustainable growth of PURE and agribusinesses, enabling them to expand operations, enhance profitability and build strong customer bases.

Aims

• The PURE Growth Fund aims to de-risk and increase the level of private investment (company’s own and third-party investment) into impactful small and medium sized enterprises (SMEs) in the sector. As such, the PURE Growth Fund aims at promoting economic and social development, which should lead to a process of sustainable economic activity and economic growth, combined with structural and social change.

Key Pillars of Functionality 

• While this funding window is open to all eligible companies that demonstrate the impactful implementation of renewable energy in agrifood value chains for productive use, the main focus of this funding window is on the following key pillars of functionality:
  • Production:
    • Refers to the enhancement of agricultural output—either in terms of quantity or quality of crops or livestock—resulting from the application of renewable energy technologies. This can happen e.g. through improved irrigation or better climate control in greenhouses.
  • Storage:
    • Use of renewable energy technologies to extend the shelf life and maintain the quality and safety of agricultural products after harvest. This includes but is not limited to processes such as cooling, drying, freezing or vacuum sealing.
  • Processing:
    • Activities involved in agricultural value addition, including but not limited to transforming raw agricultural products into consumable food items or ingredients, where renewable energy sources are integrated into the energy supply used for these operations
  • Transportation:
    • Refers to the movement of agrifood value chain products and/or inputs to or from producers, markets, aggregation points etc. The transportation technologies eligible for PURE Growth funding must utilise clean energy sources to power the technologies in question.
  • Bio-energy:
    • Systems and/or technologies converting by-products of agrifood value chain activities (e.g. crop residues, animal waste) into usable energy

Programme Benefits

• The PURE Growth Fund drives the market development for PURE technologies in Tanzania through a range of measures aiming to establish sustainable business models and growth:
  • Incentive Capital is a non-recourse, non-dilutive form of finance that does not require repayment or equity consideration. In the PURE Growth Fund, Applicants are expected to utilise Incentive Capital to fuel their expansion of PURE technologies within a three-year period. As such, Applicants need to indicate their requested amount for Incentive Capital in the application form and will need to clearly describe the use of funds and plans for the implementation of PURE technologies. The Incentive Capital payments will be tied to a set of milestones that are relevant and achievable for the selected companies.
  • Technical assistance will be available for selected companies in addition to the Incentive Capital. The support will be based on needs and assessed regularly. The support will be provided by in-house experts from the REEEP team as well as selected third-party providers. Technical assistance will be provided in the form of services (i.e. on a non-cash basis). Focus areas include but are not limited to:
    • Finance facilitation
    • Business strategy
    • Marketing
    • Logistics and supply chain
    • Value chain management and agronomic optimisation
    • Environmental and social management systems
    • Gender mainstreaming
    • Compliance
    • Governance

Funding Information

• The funding lot for “PURE Growth One” comprises initial funding of up to EUR 2.5 million in total and invites Applicants to compete under this window. Additional funds may become available. The funding window is open to all companies meeting the eligibility criteria for Applicants.
• The fund supports companies in scaling up renewable energy solutions that increase agricultural productivity, preserve value or enhance agricultural value addition and offer services that support and enhance the income-generation effects of these technologies. This funding window is focused on growth stage companies and targets individual awards of Incentive Capital of EUR 250,000 to 1,000,000 over a three-year implementation period. Companies need to demonstrate the ability to absorb the requested funding and the capacity to raise co-financing.

Eligibility Criteria

• The fund supports companies that meet the following criteria:
  • The Applicant is a for-profit company legally registered in their country of jurisdiction
  • The Applicant has an established legal entity in Tanzania, or will have one set up before a contract is signed (the contract will only be signed with the Tanzanian entity)
  • Productive use technology is already at the core of the Applicant’s business, or will be sufficiently additional to the Applicant’s core business/essential for the scale-up of the goals outlined in the application
  • The Applicant is currently in a growth stage of development by demonstrating financial statements with a minimum revenue of EUR 50,000 and a maximum revenue of EUR 10,000,000 from main operating activities in the last financial year (2024) or TZS equivalent
  • The Applicant demonstrates co-financing in their business plan
  • The Applicant is not involved in prohibited sectors under this fund
  • The Applicant has provided required application documents in English

For more information, visit REEEP.