Tenders are invited for Consultancy Services for Due Diligence for the React 2.0 Catalyzing Climate-Resilient Energy Access and Inclusive Finance for Agricultural Transformation The AECF, LLC (Africa Enterprise Challenge Fund) is a leading non-profit development organisation that supports innovative enterprises in the agribusiness and renewable energy sectors with the aim of reducing rural poverty, promoting climate-resilient communities, and creating jobs. We catalyse the private sector by surfacing and commercializing new ideas, business models, and technologies designed to increase agricultural productivity, improve farmers incomes, expand access to clean energy, reduce greenhouse gas emissions, and improve resilience to the effects of climate change. We finance high-risk businesses that struggle to access commercial funding; we are committed to working in frontier markets, fragile contexts, and high-risk economies where few mainstream financing institutions dare to go. 2. Overview of the Programme REACT 2.0 Catalysing Climate-resilient Energy Access and Inclusive Finance for Agricultural Transformation Programme aims to contribute to sustainable socio-economic development and improved climate resilience for underserved markets in Ethiopia by catalyzing the private sector to improve agricultural productivity, food security, and household energy access. The facility complements Ethiopias National Electrification Program (NEP 2.0) and National Sustainable Energy Development Strategy (20242030), which emphasize the role of decentralized renewable solutions in achieving universal access and climate resilience. Specifically, the programme seeks to: Accelerate the adoption of productive use of energy (PUE) solutions in agriculture by supporting the deployment of solar-powered agricultural technologies (e.g., irrigation, milling, cold storage, drying) that enhance value addition, reduce post-harvest losses, and promote food system resilienceparticularly among smallholder producers and agri-enterprises. Improve energy access for households and communities by expanding decentralized solar solutions. Strengthen investment readiness and facilitate fundraising of local early-stage and growth enterprises to attract private investment through technical assistance, transaction advisory support, and matchmaking services. The programme will provide catalytic capital and technical assistance to competitively selected early-stage and growing PUE and climate innovation companies, using grants and Results-Based Payments (RBPs), depending on the state of market development. 3. The Assignment 3.1 Objectives The objective of this assignment is to provide support in the evaluation and comprehensive due diligence on shortlisted applicants. This will cover key thematic areas, including business, technical, legal, and environmental and social aspects, to support the preparation of investment memos that inform final selection and grant award decisions. Specifically, the assignment seeks to: Assess the commercial viability, scalability, and sustainability of applicants business models, including market positioning, customer base, competitive advantage, and organisational capacity. Evaluate the technical feasibility and design soundness of the proposed projects, ensuring technology choices, implementation approaches, and operations plans meet industry and regulatory standards, and identifying technical risks and mitigation measures. Verify legal compliance and institutional integrity by reviewing corporate documents, ownership structures, statutory licenses, permits, and contracts, and identifying any legal risks or encumbrances that may affect project implementation or grant contracting. Assess environmental and social risks and impacts in line with IFC Performance Standards, KfW guidelines, exclusion lists, ILO conventions, and national regulations, and evaluate applicants capacity to manage E&S risks and implement required mitigation measures. Integrate due diligence findings into clear recommendations through comprehensive reports and investment memos that outline eligibility, risk profile, readiness for funding, and proposed conditions for grant agreements. 3.2. Scope of Work The Consultant will conduct Business, Financial, Technical, Legal, and E&S Due Diligence assessments for at least 15 shortlisted applicants. The assessment areas are outlined below. 3.2.1 Business Due Diligence Assess the viability, scalability, and sustainability of the business model. Evaluate market demand, competitive positioning, pricing, and revenue streams. Review organizational structure, management capacity and governance. Analyze customer acquisition strategy, distribution channels and operational readiness. 3.2.2 Technical Due Diligence Assess the technical feasibility and suitability of proposed technologies (stand-alone solar systems, PUE solutions). Review system design, installation plans, equipment specifications, and supply chain arrangements Verify equipment quality, operational procedures, technical reliability, and compliance with relevant standards. Assess implementation capacity, operations, maintenance, and long-term sustainability. Identify technical risks and mitigation measures. 3.2.3 Financial Due Diligence Review historical financial statements to assess liquidity, profitability, solvency, and operational efficiency. Evaluate the applicants financial model, including assumptions, projections, sensitivity tests, and reliability of inputs. Analyze capital structure, current and projected cash flows, working capital needs, and funding adequacy. Assess financial risks, sustainability of projected performance, and alignment with proposed REACT 2.0 Ethiopia financing. Determine whether the project is financially viable and whether the request is justified. 3.2.4 Legal Due Diligence Verify the legal status, incorporation, and ownership structures. Review statutory licenses, permits, exclusivity agreements, and compliance. Assess supplier, customer, and partnership contracts for enforceability and associated risks. Identify legal disputes, encumbrances, or issues that may affect project implementation. 3.2.5 Environmental and Social Compliance Conducted in line with IFC Performance, AECF E&S Policy, and Ethiopian national legislation, covering Project categorization and justification. Compliance with national laws, IFC standards, EHS guidelines, and exclusion lists. Climate risk screening and gender integration opportunities. Review of ESIA/ESMP documentation and mitigation adequacy. Environmental and social impact and risk assessment, including labour, OHS, GBV/SEA, community risks, waste, biodiversity, and land use. Review of E&S management systems and institutional capacity. Preparation of an ESAP with corrective actions and timelines. 4. Approach and Methodology The consultant will apply a structured approach that combines desk review, financial analysis, field verification, and consolidated reporting, including, but not limited to, the following. 4.1. Desktop review Review applicant submissions, including business plans, financial models, historical financial statements, legal documents, technical designs, E&S materials, and prior performance records. Conduct a preliminary financial assessment of historical performance, forecast assumptions, revenue models, cost structure, and capital requirements. Assess alignment with REACT 2.0 Ethiopia funding requirements, sector norms, donor safeguards, and regulatory frameworks. Identify information gaps and risks requiring on-site verification. 4.2 Financial Model Review and Analysis Assess the robustness, accuracy, and consistency of each applicants financial model. Evaluate key assumptions, unit economics, sensitivity analyses, and financial sustainability. Review liquidity, profitability, leverage, cash flow projections, and funding adequacy. Identify financial risks and determine the viability of the proposed financing structure. 4.3 Site Visits, Interviews and Verification Conduct field visits to verify operational capacity, infrastructure, and readiness. Engage management, staff, and stakeholders to validate assumptions used in financial models and business plans. Confirm compliance with technical, operational, and E&S standards where applicable. Tender Link : https://www.aecfafrica.org/about-us/opportunities/
