Insights from the Pure Growth Fund

REEEP recently hosted a webinar to share insights from the application phase of the Pure Growth Fund, providing an overview of the fund’s design, its innovative approach to measuring impact and key findings from the first funding window in Tanzania.

The Pure Growth Fund is designed as a multi-country incentive fund supporting clean energy solutions across agricultural value chains. Its first funding window focused exclusively on Tanzania, with EUR 2.5 million in incentive capital available to for-profit clean energy SMEs and agribusinesses.

Funding is allocated through a reverse auction mechanism. Rather than competing solely on cost, applicant companies propose how they will deliver market impact. Applications are then assessed on value for money, operational readiness, and impact potential, allowing REAP to prioritise companies that can deliver the greatest results per euro invested.

A key feature of the fund is the Pure Impact Index (PII), a new metric developed by REEEP to measure impact in productive use of renewable energy. Rather than counting energy connections, the PII focuses on what technologies enable users to do, particularly their income-generation potential.

Technologies are assessed based on functionality and scale, from small solar dryers to large cold-storage facilities. This approach allows the programme to compare very different technologies while staying focused on real economic outcomes.

Incentivising services, not just technology

At PURE Growth’s core is the recognition that technology alone is not enough. Companies are incentivised to provide services that amplify impact, including:

• Repair and maintenance (mandatory)
• Market access services
• Agricultural best practices

Higher levels of service provision allow companies to request higher incentive capital, reflecting the added value these services bring to farmers and agribusinesses.

The first call generated strong interest, with 50 applications received, of which 38 eligible. Over EUR 21.5 million was requested, more than eight times the available funding. The geographic scope included applications from 31 local Tanzanian firms and 7 international firms.

Applications came from nearly every region of Tanzania, with particularly strong representation from Arusha, Iringa, Morogoro and Mbeya. This geographic spread reflects both agricultural potential and the extensive market-scoping and outreach conducted by REEEP ahead of the launch. Irrigation dominated the submissions, but there was also strong interest in cold storage and freezing, particularly for dairy and fisheries, growing momentum in e-mobility for agri-food logistics and emerging bioenergy solutions using agricultural waste. Horticulture, grains, fisheries and cash crops such as coffee and tea featured prominently across value chains.

What’s Next

The programme is now in advanced due diligence, with contracting expected shortly and implementation running through 2029. REEEP is also working to raise additional funding, expand the programme to other countries and further develop the Pure Impact Index in collaboration with partners.

Organisations interested in funding, co-investment or collaboration on impact measurement are encouraged to contact pure@reeep.org.