The EEP Africa Trust Fund (EEP Africa) has been a catalyst for early-stage clean energy projects across Southern and Eastern Africa since 2018. An external performance evaluation of EEP Africa was conducted by Altai Consulting in 2024. The study focused on projects from the 2018-2020 Calls for Proposals, as more recently initiated projects lack sufficient maturity to provide valuable perspective. As part of the research, the evaluators conducted more than 60 key informant interviews and quantitative analysis of monitoring data.
According to the evaluation, EEP Africa stands out as a flexible, fit-for-purpose, and well-managed Trust Fund with a clear track record of success, despite operating in complex environments with limited donor coordination. However, it faces challenges beyond the grant’s completion in supporting its grantees to scale up and in tracking their impact. By addressing these areas, EEP Africa can continue to support innovative clean energy projects and drive sustainable growth in the region.
Key Insights
Relevance
EEP Africa is recognized for its flexibility and fit-for-purpose structure, addressing a market need for early-stage financing, especially for untested technologies and business models. Its technical assistance strengthens start-ups' financial management capabilities, providing stability and adaptability in a fast-changing market.
Coherence
Despite operating in a complex environment with limited donor coordination, EEP Africa is praised for its proactive engagement and high-quality services. It is committed to smaller or harder-to-reach markets, though the sector suffers from a lack of coordination, which can hinder overall effectiveness.
Efficiency
EEP Africa is well-managed, with grantees expressing high levels of satisfaction with its communication, accessibility, flexibility and sense of care. While reporting requirements can be demanding, the support provided is appreciated. However, there is room for improvement in streamlining processes.
Effectiveness
The EEP Africa portfolio showcases a mix of outcomes, with notable success stories and challenges in reaching the next stage of growth. The Fund has indirectly created over 4,000 new jobs and provided enhanced energy access to half a million people. However, awareness outside the clean energy ecosystem remains limited.
Impact
EEP Africa has played a crucial role in developing several high-performing clean energy companies, lending credibility and increasing chances of securing follow-on funding. Although a comprehensive end-user impact evaluation has not been conducted, the evaluation indicates a generally positive impact on quality of life.
Sustainability
Many grantees face challenges in attracting new funding or achieving sustainable growth, highlighting a broader issue of limited equity investors and follow-on funding. EEP Africa lacks a formal system to track post-grant activities, limiting its ability to assess long-term catalytic impact.
Recommendations
- Address the follow-on funding gap by establishing or supporting mechanisms that bridge early-stage grants and larger investments.
- Optimise geographical focus through regular market assessments and consider phased expansion to new countries.
- Enhance ecosystem coordination and knowledge sharing by participating in cross-program initiatives and engaging with adjacent sectors.
- Streamline and enhance grantee support processes, including clearer timelines and more flexible funding arrangements.
- Refine business development support and technical assistance to better meet grantees' specific needs.
- Strengthen investment readiness efforts and investor linkages to improve grantees' access to follow-on funding.
- Enhance post-grant tracking and alumni engagement to better assess long-term impact and maintain valuable connections.
- Improve knowledge dissemination and lessons learned processes to maximize the value of EEP Africa's insights.