Deadline: 31-Oct-22
USAID/Guatemala is making a special call for the submission of Concept Papers focused on expanding access to a range of financial services for smallholder farmers, MSMEs (with an emphasis on businesses in the agriculture value chain), remittance recipients and others in rural Guatemalan communities of the Western Highlands and the Verapaces regions.
The activity will be implemented through a consortium of cooperatives, credit unions and other relevant private sector entities and include significant private sector support. The activity should be developed and implemented in coordination with key stakeholders who are active in this space, including Government of Guatemala (e.g., Superintendent of Banks, Ministry of Economy, Central Bank), civil society organizations (CSOs), non-government organizations (NGOs), and private sector actors.
Importantly, this activity should complement and advance the objectives of other USAID/Guatemala rural development programs implemented in the same geographic areas, particularly Feed the Future (agriculture) activities, whose effectiveness is partially predicated upon smallholders’ and MSME’s ability to access credit and financial services in general. In line with USAID/Guatemala’s CDCS, particular attention should be paid to providing services and expanding access for women, youth, indigenous people, and returned and/or potential migrants.
USAID seeks to improve access to finance in targeted regions through increased access to formal financial services to individuals, smallholder farmers, and MSMEs to fuel economic growth and improve livelihood opportunities which will mitigate the temptation to migrate.
Objectives
- The specific objectives are to:
- Expand and/or improve the capacity of cooperatives, credit unions, and financial institutions to provide appropriate financial services to smallholder farmers, MSMEs, and rural households. This will include support for the development of new financial products such as insurance products, credit products tailored to the needs of target populations, digital financial products, remittance related products, and others.
- Improve the financial literacy of smallholder farmers, MSMEs, and rural households. Improved literacy will promote increased utilization and demand for formal financial products, increased savings, and better decision-making regarding investments, consumption, and utilization of remittances. Financial literacy and education programs should leverage existing platforms and methodologies in partnership with credit unions, banks, and other relevant actors. This should include building the capacity of MSMEs (and others as relevant) to successfully apply and manage credit and other financial products.
- Leverage online platforms, fintech and other approaches to reduce costs and improve access for targeted populations with financial services. Strengthen and expand the fintech ecosystem to create incentives for participation in the formal financial system (e.g., bill pay, G2P payments, expanding merchant networks).
- Develop and implement strategies to aggregate and mobilize remittances for productive investment (e.g., improved farm technologies, housing) and to expand access to credit. Harness remittances to increase overall savings rates and to promote financial inclusion.
Funding Information
- Estimated Total Program Funding: $13,000,000
- Award Ceiling: $13,000,000
- Award Floor: $5,000,000
Eligibility Criteria
- USAID has limited eligibility for US cooperatives or cooperative development organizations, requiring the following:
- U.S. cooperatives, or an organization with substantial membership and/or financial links to U.S. cooperatives and/or their associations; and
- A demonstrated track record of not less than five years in the planning, management, monitoring, and evaluation of overseas cooperative development programs. In addition, the applicant will be evaluated on the following criteria:
- Demonstrated knowledge of and experience with providing credit, financial literacy training, and cooperative management in Guatemala.
- Demonstrated knowledge of working with smallholder farmers and/or MSMEs in Guatemala.
- Experience or existing partnerships with local financial institutions, credit unions, or other related private sector entities; and
- Ability to incorporate local institutions into the concept.
For more information, visit https://www.grants.gov/web/grants/view-opportunity.html?oppId=343526