REEEP operates a portfolio of high potential projects to shift markets. We selectively fund entrepreneurs and ventures that are based on sound business models and have strong potential to stimulate clean energy market growth.
The (M)SME Potential
The outsized role of Micro, Small and Medium sized Enterprises (MSMEs) in developing countries is well-known, making up around two-thirds of GDP and generating up to 85% of all employment. They are also crucial to diversifying economies and contributing to long-term inclusive and sustainable development. The agricultural sector is particularly dominated by MSMEs.
The challenges facing these businesses are multitude, yet the most daunting are the dual challenges of energy and finance: lack of access to energy is the single greatest obstacle to MSMEs in Sub-Saharan Africa and South Asia, and lack of access to finance in the top three obstacles across the developing world.
REEEP holds two portfolios, each playing a crucial role in market development
Enterprise Portfolio – Building Scale
The enterprise portfolio directly helps businesses build scale and grow through a seed-level grant funding of up to €250,000 to launch or expand new clean energy technology and services. Selected entrepreneurs receive more than just a grant: through the new investment accelerator component, run in close partnership with CTI PFAN, REEEP provides mentoring to entrepreneurs in developing business plans and improving processes, and facilitates connections to private investors.
Enabling Portfolio – Replicating Success
REEEP ventures provide critical insights into practical experiences in specific market realities. REEEP translates these insights into knowledge and action, working with policy makers to better understand the practical effects of regulatory and other policy decisions, and design policy tools to create a better enabling environment – the conditions necessary for vibrant energy entrepreneurship. These practice-based policy insights feed back into REEEP’s work, directing investments into the enabling portfolio: non-enterprise policy efforts toward improving enabling environments in specific countries and regions.