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