Sanday Chongo Kabange AfricaNews reporter in Lusaka, Zambia
The Africa Enterprise Challenge Fund (AECF) is to invest US$4 million in Zimbabwe's rural financial services and agribusiness sectors. Fund director, Hugh Scott, said more than 250 local companies in the Southern African country had applied for the grants that range from US$250 000 to US$1.5 million.
He said the AECF Zimbabwe window was targeting rural financial services and agribusiness sectors because "these sectors were selected on the premise that growth in them will have the biggest impact on poorer people in Zimbabwe, the majority of whom live in rural areas and rely on agriculture for livelihood".
In Zimbabwe, AECF is keen on applications from new or existing financial service providers to assist them to extend their outreach to small business and small farmers in the rural areas.
As a subset to the financial and agribusiness sector, AECF is also interested in developing information markets that support agri-businesses and rural financial services, according to reports out of Harare.
AECF has appointed an independent investment committee that will meet in Harare in May this year to assess applications, and disbursements are expected by June.
"Joint ventures are qualified to apply and it does not matter whether the lead applicant is local, regional or an international company," Scott said.
AECF Southern Africa manager, Carin Mitchell, added that they are encouraging joint ventures that will generate business in Zimbabwe.
"AECF is open to businesses from any country, but the project delivery and its development impact must be realised in Zimbabwe," he said.
AECF is a challenge fund aimed at encouraging private sector companies to compete for investment support for new business projects. It was launched in June 2008 at the World Economic Forum in Cape Town, South Africa.
The organisation is currently being funded by the Consultative Group to Assist the Poor, the Department of International Development, and the International Fund for Agriculture Development and the Netherlands Ministry of Foreign Affairs. The Australian government, through AusAID, is the founder of the AECF ZW.
Scott has since challenged the private sector in Zimbabwe to respond with innovative and profitable business ideas that have a large developmental and pro-poor impact.
The Africa Enterprise Challenge Fund (AECF) is to invest US$4 million in Zimbabwe's rural financial services and agribusiness sectors. Fund director, Hugh Scott, said more than 250 local companies in the Southern African country had applied for the grants that range from US$250 000 to US$1.5 million.
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