The Africa Enterprise Challenge Fund (AECF) offers the Digital Innovation Fund for Energy & Climate (DIFEC), a regional three-year programme designed to accelerate clean energy access and strengthen climate resilience across Sub-Saharan Africa through digital innovation.

The programme provides milestone-based grant funding and specialised technical assistance to private-sector enterprises developing digital solutions for distributed renewable energy, clean cooking, productive use of energy, e-mobility, digital agriculture and circular economy systems.

DIFEC has two funding windows, supporting early-stage enterprises developing and validating digital innovations and growth-stage businesses preparing to expand across African markets.

Funding and Support

DIFEC provides matched, non-repayable grants, disbursed against agreed technical, commercial and operational milestones. Individual funding agreements may run for up to 36 months.

Window 1: Growing Digital Innovation Funding Window

• Grant amount: USD 150,000–300,000.
• Target: Early-stage enterprises, including eligible pre-revenue companies, that have developed a minimum viable product (MVP) and progressed beyond the ideation stage.
• Purpose: Product development, testing, market validation and demonstrating product–market fit.
• Additional support: Venture-building, business model development, financial planning, customer segmentation, leadership development and preparation for follow-on investment.

Window 2: Scaling Digital Innovation Funding Window

• Grant amount: USD 250,000–400,000.
• Target: Growth-stage enterprises generating revenue and with digital solutions commercially validated in at least one African market.
• Purpose: Regional expansion, operational scaling, market development and investment readiness.
• Additional support: Market research, financial and commercial planning, regulatory and digital infrastructure advice, transaction advisory services and facilitation of cross-border expansion.

Mandatory matching contribution

Both windows operate on a 1:1 matching-funds principle. Each applicant must contribute an amount equal to the grant provided by AECF. For example, a USD 200,000 grant requires an equivalent USD 200,000 matching contribution.

Matching resources may include cash, founder equity, supplier credit, inventory or other verifiable business inputs. Applicants must provide evidence of the matching contribution during selection and before funding is disbursed.

The funding is not an unconditional or fully funded grant: applicants must demonstrate their ability to mobilise the required match.

Purpose and Objectives

DIFEC aims to:

• Improve access to clean, affordable energy and digitally enabled climate solutions.
• Accelerate the development, testing and commercialisation of digital innovations.
• Strengthen enterprise performance, financial sustainability and investment readiness.
• Enable regional expansion and replication of scalable digital solutions.
• Improve climate mitigation, adaptation and resilience.
• Increase women's participation and promote inclusive business models.
• Strengthen cybersecurity, data protection and the reliability of digital systems supporting energy and climate services.

Priority Areas and Scope

The programme supports digital solutions in the following areas:

Distributed renewable energy and clean cooking

Digital platforms for energy access and financing, pay-as-you-go systems, smart metering, remote diagnostics, solar and mini-grid monitoring, and improved distribution and after-sales services.

Productive use of energy and e-mobility

Digital technologies that improve the efficiency, accessibility and commercial viability of energy services, productive equipment and electric mobility.

Digital agriculture and climate resilience

Digital agriculture platforms, weather forecasting, early-warning systems, remote sensing, climate advisory tools and digital solutions for natural resource management.

Circular economy and resource efficiency

Digital marketplaces, e-waste traceability, resource-management tools and other technologies that enable circular economy systems.

Digital infrastructure, security and business performance

Data analytics, AI-enabled forecasting, enterprise resource planning, customer relationship management and environmental, social and governance (ESG) monitoring systems that support scalable energy and climate solutions.

Projects should demonstrate how their solutions contribute to measurable economic, social and environmental outcomes, including job creation, greenhouse gas emissions reduction, improved livelihoods, gender inclusion and strengthened climate resilience.

Applicants must also consider cybersecurity risks, data protection, system reliability and the potential consequences of digital failures affecting end-users or essential services.

Eligibility Criteria

General requirements

Applicants must:

• Be legally registered private, for-profit companies, including eligible subsidiaries or branches of international companies.
• Demonstrate that funded activities will be implemented in Africa.
• Show credible deployment, partnership or market-entry pathways into African markets.
• Demonstrate technical and commercial viability, operational capacity and financial management capability appropriate to the funding window.
• Commit to the required 1:1 matching contribution.
• Comply with applicable laws and regulations, tax requirements, data-protection obligations and relevant sector standards.
• Meet AECF's know-your-customer, anti-money-laundering, integrity and other due-diligence requirements.
• Demonstrate the additionality of AECF support and the expected development impact of the proposed activities.
• Comply with applicable environmental, social, governance, human rights and labour standards.

Government and semi-governmental agencies are not eligible. The published criteria also exclude government-owned or partially government-owned enterprises and companies with ownership or substantial business ties to government or quasi-government bodies.

Window 1: Growing Digital Innovation

Applicants should have an MVP and be beyond the ideation stage. Pre-revenue enterprises may be considered, alongside established companies introducing new digital innovations that have not yet been commercialised or scaled.

The financial eligibility provisions also require audited financial statements, which may be provided at parent or group level for a recently established subsidiary or branch. Applicants must demonstrate financial and operational capacity, including annual turnover exceeding 50% of the grant requested or equivalent capacity demonstrated through group-level accounts or committed co-financing.

Window 2: Scaling Digital Innovation

Applicants must generate revenue, have validated their digital solution in at least one African market and demonstrate a credible regional expansion pathway.

The financial requirements include audited financial statements for the preceding two years and an annual turnover matching the grant amount requested, or equivalent financial robustness at group level.

Matching-funds eligibility

Applicants must identify the source, amount, timing and conditions of their matching contributions and provide verifiable supporting evidence. AECF's main window pages state that grants from other funding sources are not considered eligible matching funds; applicants should obtain clarification before relying on another grant as a match.

Geographic Scope

DIFEC is a regional programme focused on Sub-Saharan Africa. Enterprises based outside Africa may be considered where they demonstrate credible pathways to deployment, partnerships or market entry in African markets. Physical presence in Africa is preferred but not mandatory.

Priority is given to enterprises demonstrating regional scalability and the ability to deploy digital solutions across multiple African markets and regulatory environments.

Application Process

Applications are managed through AECF's Challenge Fund competition process.

1. Submit an initial concept note through the AECF online application platform.
2. Undergo eligibility screening and shortlisting.
3. Shortlisted applicants are invited to develop a more detailed business plan and full proposal.
4. Complete due diligence, which may include technical, financial, governance, environmental, social, ESG and digital-risk assessments.
5. Applications are reviewed for approval, followed by contracting and induction for successful applicants.
6. Implement the funded project against agreed milestones, indicators, reporting requirements and monitoring arrangements.

Applicants should prepare evidence of their financial capacity, matching resources, business model, market demand, expected development impact and digital security practices.

Important Dates

• Application opening date: Not specified on the current official funding-window pages.
• Application closing date: Not specified on the current official funding-window pages.
• Programme period: 2026–2028.
• Individual funding agreement: Up to 36 months, subject to the applicable funding window.

Applicants should consult the official funding-window pages and confirm the current application status and deadline before submitting.

Industry / Sector

Digital energy solutions, renewable energy, climate technology, digital agriculture, e-mobility, circular economy and information and communication technology.

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