Deadline: 3-May-22
Applications are now open for the ENTERPRISE Zambia Challenge Fund (EZCF) to improve integration of smallholder farmers and agribusiness actors into national, regional, and global value chains, with additional weighting on gender and youth focused opportunities and nutritionally sensitive (regional/national) value chains.
The ENTERPRISE Zambia Challenge Fund will channel investments in agriculture (including agroforestry and aquaculture) by providing financial support in the form of grants to agribusinesses with the potential to benefit smallholder farmers through increasing access to services (including agro-inputs, financial services, extension advice, aggregation and transport, climate smart technologies, etc.)
The ENTERPRISE Zambia Challenge Fund (EZCF) is a € 25.9 million initiative by the European Union in cooperation with the Ministry of Agriculture and the Ministry of Fisheries and Livestock, part of the wider 11th EDF “Support to the Sustainable Commercialisation of Zambia’s Smallholder Farmers Programme”, to unlock, accelerate and leverage investments within agricultural value chains (including agroforestry and aquaculture).
The Fund’s specific objective is to integrate 150,000 smallholder farmers in sustainable value chains. By supporting and enabling between 25 to 30 agrienterprises to increase their turnover (by at least 25%), this is expected to increase incomes and food security for at least 150,000 smallholder farmers and create a minimum of 8,500 net equivalent jobs. It will contribute to an increase in smallholder production; with 90% improving their access to markets; and will result in quantifiable positive impacts in dietary diversity and overall food security. Additionally, the project seeks to promote increased access to finance (credit, investment) for complementary investments by value chain actors.
The priorities of this call are actions enabling agribusinesses and smallholders to transition to greener and more sustainable agri-food systems (including in agriculture, agroforestry and aquaculture) and tackle the challenges presented by Covid-19 as well as actions in support of gender and youth focused opportunities and to nutritionally sensitive (regional/national) value chains.
Funding Information
- The ENTERPRISE Zambia Challenge Fund is looking to award an indicative amount of EUR 20.8 million to agri-enterprises as financial support. Four (4) separate calls for proposals are anticipated. Three calls for proposals were completed by 2021. This is the fourth call under the EZCF.
- The indicative total financial allocation under Call IV is EUR 7.5 million. Two windows will be open concurrently, and in each window, agri-enterprises will be split into two groups, namely, A-Larger Companies and B-Smaller Companies. The EZCF reserves the right not to award all available funds.
- The initial planned duration of an action may not exceed 24 months. During this period the financial support funds will be disbursed based on a negotiated milestone structure.
Location
Activities must take place in the Republic of Zambia. Initiatives are not limited to specific value chains and/or geographical locations within Zambia and should not be limited to primary production.
Eligibility Criteria
The lead applicant may act individually or with implementing partners. Applicants are encouraged to submit their concept notes in consortium with other companies and organisations including other agribusinesses, MFIs, not-for-profits (e.g. civil society organisations, NGOs, think-tanks / research organisations, foundations, associations etc.). Projects can be implemented by one company or multiple organisations in a consortium.
In order to be eligible for a grant, the lead applicant must comply with all the criteria:
- Must be an agri-enterprise involved in the production of farming inputs, food and fibre, ranching and raising of livestock, aquaculture, agroforestry or other farming and agricultural related industries.
- Must be incorporated in Zambia as a company or a cooperative/association. Note: Public Limited Company (PLC) and/or State Own Enterprise or companies led by employees of public institutions and/or bodies are not eligible applicants.
- Must be compliant with all national and local laws and regulations; including meeting all obligations relating to the payment of taxes and social security contribution and relevant health and safety and environmental standards;
- Must be a for-profit entity;
- Must demonstrate experience in the project proposal for current or future integration of smallholder farmers/livestock keepers in existing or new value chain(s) in the project’s areas;
- For size A-Larger Companies, the business must have at least three (3) years of uninterrupted operations in Zambia at the date of application, with focus on eligible agriculture, livestock or agroforestry sectors;, or;
- For size B-Smaller Companies, the business must have at least two (2) years of uninterrupted operations in Zambia at the date of application, with eligible agriculture, livestock or agroforestry sectors;
- For size A-Larger Companies, the business must have a yearly turnover in one of the last two (2) years of at least EUR 200,000. A company is ineligible to apply for EZCF funding if its annual turnover exceeds EUR 10,000,000 (ten million Euro) in either of the most recent two years, as evidenced by audited accounts or;
- For size B-Smaller Companies, the business must have a yearly turnover in one of the last two (2) years of at least EUR 100,000 and at most, EUR 500,000.
- Must be able to contribute at least 50% of the project cost through a blend of cash and cash equivalents, credit or equity from own or third-party sources.
- For size A-Larger Companies, the business must have three (3) years of financial statements including audited accounts for the two (2) most recent years plus management accounts for the third year.
- For size B-Smaller Companies, the business must have two (2) years of financial statements including audited accounts for the most recent year plus management accounts for the second year.
- Must be directly responsible for the preparation and management of the action with the implementing partners, not acting as an intermediary.
For more information, visit https://enterprisezambia.org/call-4/