Deadline: 14-May-21
Applications are now open for the Enterprise Zambia Challenge Fund 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 (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 agro forestry and aquaculture).
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.).
Objectives
The Fund’s specific objective is to integrate 150,000 smallholder farmers in sustainable value chains. By supporting and enabling between 40 to 45 agri-enterprises 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.
Priorities
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
Any grant requested in the specific windows from ENTERPRISE Zambia Challenge Fund must fall within the following minimum and maximum amount:
- Window 1 (General)
- Minimum: EUR 150,000
- Maximum: EUR 1,000,000
- Window 2 (Aquaculture)
- Minimum: EUR 150,000
- Maximum: EUR 1,000,000
Type of Activities
Initiatives that enable smallholder farmers to improve agricultural productivity including livestock, aquaculture, agroforestry (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.
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
Lead Applicants
- In order to be eligible for a grant, the lead applicant must comply with all the criteria listed below:
- Must be an agri-enterprise involved in the production of farming inputs, food and fibre, ranching and rising of livestock, aquaculture, agroforestry or other farming and agricultural related industries. Examples of relevant agro-food enterprises include but are not limited to: companies involved in agricultural, agroforestry or aquaculture production including agro-input suppliers, contract farming, agroforestry, agro-food processors, agriculture logistics and aggregation services, agriculture technology suppliers including breeders and, farm machinery;
- Must be incorporated in Zambia as a company or a cooperative;
- 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;
- 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, agroforestry or aquaculture sectors (see a) above for more specific examples).
- Must have a yearly turnover5 in one of the last two (2) years of at least EUR 150,0006 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, credit8 or equity from own or third-party sources.
- Must have three 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).
- Must be directly responsible for the preparation and management of the action with the implementing partners, not acting as an intermediary.
Partner
Implementing partners must participate in designing and implementing the action and the costs they incur are eligible in the same way as those incurred by the lead applicant. The following basic criteria apply to implementing partners:
- In addition to agriculture sector for-profit entities, SMEs outside the agriculture sector can be partners.
- The following are also eligible as implementing partners: § microfinance institutions, § not-for-profits e.g., civil society organizations, NGOs, research institutions etc.
- Implementing partners 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.
- Implementing partners must be registered in Zambia with the relevant regulatory body.
For more information, visit https://enterprisezambia.org/financial-support/
