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Welcome to AREED

The United Nations Environment Programme's African Rural Energy Enterprise Development Programme (AREED) a follow-up of the wider programme REED, operates in Africa to develop new sustainable energy enterprises that use clean, efficient, and renewable energy technologies. These new enterprises can meet the energy needs of under-served populations while reducing the damaging environmental and health consequences of existing energy practices, particularly from low quality biomass fuels such as wood and dung.

The successful AREED I offered energy entrepreneurs in Mali, Ghana, Tanzania, Senegal and Zambia a combination of enterprise development services, as technical support and, early stage financing to promote small, sustainable energy ventures. . This integrated financial and technical support allows entrepreneurs to plan and structure their companies for growth and makes eventual investments by mainstream financial partners possible.

After the success of AREED I, AREED II  adds end-user financing — primarily micro lending—to the mix, to reach out further to rural communities in urgent need of energy solutions that can generate income and improve quality of life

What is clean energy?

In terms of development, clean energy – energy efficiency and renewable energy – can often provide substantial environmental improvements in addition to needed energy services. i.e. Deforestation from unsustainable wood fuel collection is a pressing problem in sub-Saharan nations, who will experience severe shortages by 2025. Indoor air pollution from the inefficient burning of wood, crop waste and dung causes an estimated two million premature deaths a year and is a leading cause of child mortality.

What is AREED type of enterprise?

The type of enterprise of interest to AREED is one that uses a clean energy technology to provide a sustainable energy service to unserved and rural communities of Africa, and one that is cleaner than the status quo. The enterprise need not be a private entity, but the service provided must be ‘business-like’ and its business plan financially viable.

The designations employed and the presentation of the material in this publication do not imply the expression of any opinion whatsoever on the part of the United Nations Environment Programme concerning the legal status of any country, territory, city or area or of its authorities, or concerning delimitation of its frontiers or boundaries.  Moreover, the views expressed do not necessarily represent the decision or the stated policy of the United Nations Environment Programme, nor does citing of trade names or commercial processes constitute endorsement.

 UNEP SIDA