In Tanzania, a transformative initiative called the PURE Growth Fund has been launched to speed up the Productive Use of Renewable Energy (PURE) within the country’s agri-food systems. This fund aims to unlock low-emission development pathways by enhancing competitive value chain development in the agriculture sector and expanding access to modern energy services in rural areas.
The intersection of agriculture and energy is crucial, as these two sectors are major employers in sub-Saharan Africa, with over 70% of the labor force engaged in them. The Food and Agriculture Organization reports that they contribute significantly to the continent’s GDP. Recognizing this importance, the PURE Growth Fund will provide €2.5 million ($2,818,013) in incentive capital during its first funding window.
Companies operating at this nexus can receive funding ranging from €250,000 to €1,000,000 ($281,801-$1,127,200), along with technical support and policy engagement. This financial boost is designed to foster the long-term growth of clean energy Small and Medium-sized Enterprises (SMEs) and agribusinesses. By expanding operations and increasing profitability through this support, these businesses can establish robust customer bases for sustainable growth.
Merja Laakso from REEEP highlighted that the program aims to de-risk the private sector and shift towards holistic ecosystem integration rather than just technology deployment. Eva Kelly emphasized that renewable energy holds immense potential to revolutionize agri-food value chains globally.
Minister Mohamed Omary Mchengerwa expressed enthusiasm about integrating renewable energy solutions into Tanzanian agriculture: “The launch of the PURE Growth Fund marks a significant step forward in our mission to empower local communities by integrating renewable energy solutions into agriculture.” This move is expected to increase incomes and enhance livelihoods across Tanzania.
The Government of Austria funded this program developed by REEEP. The application deadline for funding under this initiative is 1 August 2025, with implementation slated for January 2026.
This initiative signifies a collaborative effort towards sustainable development by leveraging renewable energy for agricultural advancement in Tanzania.
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