Open Call for 3rd Round of ENTERPRISE Zambia Challenge Fund

Deadline: 20-Sep-21

Applications are now open for the 3rd round of ENTERPRISE Zambia Challenge Fund to to support projects put forward by small and medium sized agri-enterprises with business models that are integrating smallholder farmers into value chains as suppliers and/or customers.

• Initiatives that enable smallholder farmers to improve agricultural productivity including livestock, aquaculture, agroforestry11 (with a focus on commercialisation of Agroforestry Tree Products (AFTPs) and/or non-wood forest products – NWFP), market access, inputs and services, post-harvest handling, food safety or other impact can be proposed. Projects may include (but are not limited to):
  • The provision of extension services and training to increase on-farm productivity and diversification away from traditional crops which respect Climate Smart Agriculture principles promoting climate resilience, biodiversity and profitable and sustainable crop production.
  • Investments related to pre-harvest and post-harvest small/medium scale infrastructure and processing.
  • Investments that result in adding value to primary agricultural, aquaculture, agroforestry produce and the re-distribution of value added in selected agrifood chains to smallholders.
  • Measures related to improvements in commercialisation through, for example, the aggregation of, sourcing transparency, adding value to, and marketing of primary agricultural produce.
  • Supply of equipment and/or (greener and ecological) inputs to improve both quality and quantity of products produced.
  • Strengthening existing Farmers/Aquaculture Associations/cooperatives, etc. and facilitating the creation of new farmer/aquaculture entities to promote greater smallholder integration into value chains.
  • Investments that facilitate the addition of smallholder products into the supply chain via for example local level infrastructure: warehouses, cold storage, cold chain transport, etc.
  • Investment in uptake of and adherence to food safety quality standards and/or certification of products.
• In relation to supporting the development of more sustainable agro-food systems, projects could consider:
  • Implementing climate smart approaches both at farm and agribusiness level;
  • Reducing food losses – packaging and distributing crops and food using reusable and recyclable packaging materials;
  • Promoting clean and sustainable production through use of renewable energy such as solar energy technologies and circular business models in food and biomass fuel processing and retail.
  • Improving water utilisation efficiency e.g. by promoting drip irrigation using sustainable water sources;
  • Investments in economic incentives for biodiversity conservation and socially responsible production and marketing.
  • Promoting biodiversity, for example, by supporting organic farming, halting the decline of pollinators and increasing the planting of trees and implementation of agroforestry practices, protection of wildlife habitats, etc.;
  • Reducing use of pesticides and promoting biological methods of pest and disease control;
  • Reducing use of inorganic fertilisers and promoting use of organic alternatives;
  • Promoting sustainable land use management practices and minimising land degradation and nutrient loss;
  • Reducing use of antimicrobials in animal production and aquaculture.
• In relation to Covid-19 adaption and mitigation projects in the agricultural (including agroforestry and aquaculture) sector could consider:
  • Technology-based solutions for supporting aggregation, tracking movement of goods and enhancing crop traceability and last mile delivery;
  • Packaging and disseminating information to prevent or reduce covid-19 infections and transmission;
  • Establishing produce collection centres to minimise travel by smallholders;
  • Warehouse and processing plant re-engineering to enhance social distancing;
  • Promoting e-commerce trading solutions and use of ITC solutions to minimise physical contact/movement through the supply chain with aim at bringing smallholders closer to the market;
  • Using plant oils and sugarcane wastes to manufacture soaps and sanitisers respectively.

• The financial support requested from Enterprise Zambia Challenge Fund is likely to be within the following range for each project:
  • Size A- Larger Companies: EUR 200,000 to EUR 1,000,000
  • Size B- Smaller Companies: EUR 70,000 to EUR 300,000
• The Challenge Fund will award financial support to cover a maximum of 50% of the total value of the proposal.
• The initial planned duration of an action may not be lower than 24 months nor exceed 30 months. During this period the financial support funds will be disbursed based on a negotiated milestone structure.

• Must be an agri-enterprise involved in the production of food fiber, 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;
• 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 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 activities, 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 focus on eligible activities.
• 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 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 as evidenced by audited accounts.
• 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. The audited accounts should have been prepared in accordance with International Financial Reporting Standards (IFRS) by an accountant accredited by the Zambia Institute of Certified Accountants (ZICA), or;
• 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. The audited accounts should have been prepared in accordance with International Financial Reporting Standards (IFRS) by an accountant accredited by the Zambia Institute of Certified Accountants (ZICA),
• Must be directly responsible for the preparation and management of the action with the implementing partners, not acting as an intermediary.
• The lead applicant must meet all the eligibility criteria in its own right and will be held accountable for the implementation of the action including the management and accountability of the implementing partner(s). Therefore, applicants are encouraged to carefully vet their implementing partners to ensure they are operating legally in line with the laws of Zambia and have the capacity to fulfil the role outlined in the proposed project.

For more information, visit https://enterprisezambia.org/financial-support/