ClimaFii Alliance

Improving livelihoods through financing and sustainable energy solutions for microenterprises

Apply or nominate an enterprise

Climate and Finance Innovations (ClimaFii) Alliance

The Climate and Finance Innovations (ClimaFii, rhymes with fly) Alliance formed by Shell Foundation, Accion, BFA Global, and Upaya Social Ventures seeks to provide catalytic support to climate enterprises (startups and SMEs) in sub-Saharan Africa and India, respectively, to accelerate climate-smart technologies specifically designed to benefit microentrepreneurs.

These technologies will be determined by local needs and include solar-powered processing solutions for smallholder farmers, electric vehicles and cooling systems for delivery drivers, clean cooking solutions for restaurant owners, and recycling tools for garment manufacturers (only in India). In tandem, Accion will partner with financial service providers to design credit products that enable microentrepreneurs to access these climate solutions through affordable financing and for clean energy enterprises to invest in growth.

Unlike most acceleration initiatives, this 5-year program follows an innovative, multi-pronged approach to make climate technologies more accessible to microentrepreneurs and increase access to capital for micro, small, and medium enterprises (MSMEs) to foster inclusive clean energy solutions and deploy early-stage capital more efficiently. In sub-Saharan Africa (SSA), we do this through 1) grant support and venture building for climate enterprises 2) credit pilots in partnership with Accion and 3) facilitate follow-on funding for the selected enterprises.

Microentrepreneurs are vital to local economies but struggle to grow due to limited access to markets, appropriate technology, and financing. ClimaFii aims to address critical challenges faced by microentrepreneurs (MEs) in accessing affordable and appropriate clean energy solutions in India and Africa. MEs are dependent on inefficient, high-cost energy sources, limiting productivity and income potential. With the Distributed Renewable Energy (DRE) sector poised for growth, there is a significant opportunity to transform how microenterprises operate by introducing affordable and clean energy solutions to adapt to climate change and protect livelihoods.

NOMINATE AN ENTERPRISE

 

What we look for in the SSA cohort:

Startups / SMEs

Startups / SMEs building clean energy / DRE  solutions specifically or mostly for microentrepreneurs in sub-Saharan Africa, especially women microentrepreneurs.

Stage 

Early-stage clean energy startups / SMEs that have a product in the market potential to reach ~2,000 ME customers by the end of the program.

Women-led and women-owned businesses are particularly encouraged to apply.

 

 

Eligibility Criteria

Geography

Operating in sub-Saharan Africa only.

For India-based companies, apply here.

Sectors

  • Productive Energy Applications (i.e., increase productivity or decrease inputs in farms) & Logistics & Distribution Solutions
  • Decentralized Energy Systems & Distribution
  • Clean Mobility Systems & Infrastructure
  • Financial Services
  • Tech & Data Services 

Product

Startups / SMEs should have a minimum viable product (MVP) in the market with proven usage by microentrepreneurs

Market Fit

Clear solution to a specific market problem, preferably tech-enabled for clean energy solutions

Team

Strong adaptable team with expertise in their problem space, willing to learn and adapt, and responsive to feedback and coaching

Impact

Tracks (or will be tracking) impact metrics for microentrepreneur livelihoods with gender lens

Business requirements

  • Registered and operational business in SSA
  • For startups, valuation under $5M.
  • Company has potential to reach at least 2,000 customers by the end of Y1 of the program.
  • Has potential for or is exploring financial service provider partnerships
  • Clear need for accelerator support
  • Potential to scale and build resilience to negative climate change impacts among vulnerable communities

What we offer to the SSA cohort

Venture acceleration

Access to hands-on, customized and proven model for BFA Global’s venture-building support over 5-6 months tailored to each startup/SME’s needs. Examples of support offered: UI/UX research and testing, go-to-market strategies: customer segmentation, service optimization and blueprints, B2B sales, investment readiness: fundraising strategy, data room prep, financial modeling and impact metrics.

.

Funding

  • Grants: Milestone-based cash grants of USD $45,000 for selected startups/ SME
  • Venture building: In-kind support valued at $40k focused on go-to market strategies and partnerships 
  • Credit: Partnerships with FSP facilitated by Accion to increase access to credit 
  • Follow-on Funding: Through our investment readiness support, we help enterprises raise follow-on capital through our investment committee and our investor network, including over 100 leading institutional investors. Follow-on funding could include grants from other funders, as well as equity and debt financing. Our program aims for at least 6 of the selected enterprises to successfully raise follow-on funding after the first year of this program.

 

Together with Accion, BFA Global will help identify opportunities for startups / SMEs to access credit and explore partnerships for new forms of financial services that can benefit the microentrepreneurs, and startups / SMEs.

 

Application timelines

Applications open: January 23rd, 2025

Applications close: February 21st, 2025

Are you a startup or SME that meets our criteria?

APPLY TODAY

NOMINATE AN ENTERPRISE

 

 

The ClimaFii Alliance is supported by the Shell Foundation and its mission to increase incomes while cutting emissions for millions of customers across sub-Saharan Africa and South Asia. Shell Foundation’s support is co-funded with UK aid from the UK government through its Transforming Energy Access platform. In addition to its dual mitigation (clean energy) and adaptation (livelihoods) objectives, the program will incentivize climate enterprises to achieve gender-based milestones. Read the press release.

 

Supported by:

Inclusive finance partner:

 

Implementing partners:

 

FAQs

 

a

What is the ClimaFii Alliance?

The Climate and Finance Innovations (ClimaFii) Alliance is a collaborative, global initiative by Shell Foundation, Accion, Upaya Social Ventures, and BFA Global. It supports climate enterprises and financial service providers to bridge the gap between energy access and financial inclusion for microenterprises (MEs) in Sub-Saharan Africa and India. The program offers venture building, grants, and credit pilots to enable affordable clean energy solutions.

 

Back to Top
a

What is the purpose of the program?

The program aims to empower microentrepreneurs, especially women, by increasing access to clean energy technologies, boosting productivity, and enabling climate resilience while addressing gender inclusivity. The ultimate goal is to support the adaptation and resilience of vulnerable communities by enabling sustainable livelihoods and increasing resilience to the negative impact of climate change and addressing mitigation by cutting emissions from energy use.

 

Back to Top
a

How much funding can selected businesses receive?

Each selected business in the SSA program can receive up to $85,000 in funding, comprising cash grants and in-kind support.

Back to Top
a

What outcomes does the program aim for?

The SSA program seeks to select and support 10 clean energy enterprises in the first year and expects at least six enterprises to secure follow-on funding within the first year. After the support in Year 1, we expect that the enterprises will reach at least 2,000 ME customers by the end of Y1 of the program. We also expect to see revenue and firm growth and clean energy adoption/investment for the energy enterprises and the microenterprises. 

 

Back to Top
a

When are applications open?

Applications open on January 23 and close on February 21.

Back to Top
a

How can I apply?

Applications for SSA can be submitted through this ClimaFii Alliance website. Startups and SMEs can also be nominated by others using the same application form. For those interested in the India cohort, apply directly here.

 

Back to Top
a

What makes a strong candidate?

Strong candidates are those with:

  • A robust, scalable solution addressing energy challenges specifically for microentrepreneurs, especially women that improve their livelihoods against and increase their resilience to the negative impact of climate change.
  • Potential for reaching scale, at least 2,000 ME customers by the end of Y1 of the program.
  • Alignment with investment areas for follow-on funders and credit pilot partners. 
Back to Top
a

What is the role of Shell Foundation and its partners?

Shell Foundation provides funding and guidance, while Accion (SSA and India), BFA Global (SSA), and Upaya Social Ventures (India) deliver venture-building support and credit solutions.

Back to Top
a

Who is Shell Foundation?

Shell Foundation is an endowed, UK-registered charity that catalyses clean energy innovation and unlocks inclusive investments in Africa and India, empowering millions of underserved customers to increase their incomes while cutting emissions. To achieve its charitable mission, Shell Foundation supports early-stage innovation and then partners with finance and corporate organisations to accelerate scale. It has had a co-funding partnership with the UK Government’s Foreign, Commonwealth & Development office since 2016, with specific workstreams on venture building, research, and agriculture.

Back to Top
a

Who is Accion?

Accion is a global nonprofit on a mission to create a fair and inclusive economy for the nearly two billion people who are failed by the global financial system. We develop and scale responsible digital financial solutions for small business owners, smallholder farmers, and women, so they can make informed decisions and improve their lives. Through targeted investment strategies, advisory solutions, and expert thought leadership, we work with local partners to develop and scale cheaper, more accessible, and customer-friendly financial solutions. Since 1961, Accion has helped build 267 financial service providers serving low-income clients in 75 countries, reaching 440 million people. More at https://www.accion.org.

 

Back to Top