FAO Matching Grants Scheme for Agribusinesses in Afghanistan

The World Bank–funded Emergency Food Security Project, implemented by FAO Afghanistan, is offering Matching Grants to help agribusinesses, cooperatives, and producer groups expand value chains and improve food systems. Grants range from USD 5,000 to USD 30,000 and support equipment, processing, climate-smart solutions, and farmer linkages. The program aims to strengthen local production, enhance resilience, and advance national food security.

Overview

The Emergency Food Security Project, funded by the World Bank and implemented by the Food and Agriculture Organization (FAO), has launched a new Matching Grants initiative. This opportunity supports agribusinesses and producer groups looking to scale operations, improve product quality, and strengthen their role in Afghanistan’s food systems. The program is designed to stimulate growth, empower small enterprises, and enhance farmer engagement.

Purpose of the Matching Grants

The initiative aims to:

• Expand agricultural value chains

• Improve processing, storage, and product quality

• Increase market access

• Support climate-smart and food-safe innovations

• Strengthen farmer–enterprise linkages

Grant Window 1: Key Features

Window 1 targets emerging and small-scale agribusinesses prepared to upgrade or diversify.

Grant Size

• Minimum: USD 5,000

• Maximum: USD 30,000

Co-Financing Requirements

• Women-led enterprises: Minimum 20% contribution

• Male-led enterprises: Minimum 50% contribution

• Co-financing can be cash or in-kind

Eligible Investments

The grant supports a wide range of value-chain and quality-enhancing investments, including:

• Processing equipment and small-scale machinery

• Storage units, packaging tools, and drying systems

• Grading, sorting, and food-safety improvements

• Hygiene upgrades and certifications

• Climate-smart technologies (solar dryers, efficient irrigation)

• Farmer engagement tools (input supply, service equipment)

• Small infrastructure essential to operations (excluding land acquisition)

Ineligible Costs

To promote responsible implementation, the following are not funded:

• Any activity requiring land acquisition

• Vehicles not directly essential to the value chain

• Projects with negative environmental or social impacts

Who Is Eligible?

Eligible applicants include:

• Agribusinesses (small and emerging)

• Producer groups

• Cooperatives working with farmers

• Enterprises that can demonstrate growth potential and operational readiness

• Groups capable of meeting co-financing obligations

Why It Matters

This initiative strengthens Afghanistan’s agricultural sector by:

• Increasing local production capacity

• Reducing vulnerabilities in food supply chains

• Supporting small agro-enterprises with limited capital

• Enhancing resilience through climate-smart solutions

• Creating stronger market linkages for farmers

How to Apply

1. Review FAO’s Window 1 guidelines and eligibility criteria.

2. Prepare a clear investment plan detailing objectives, equipment, expected outcomes, and value-chain impact.

3. Demonstrate co-financing capacity (cash or in-kind).

4. Ensure the proposal avoids ineligible activities (especially land acquisition).

5. Submit the full application package through the designated FAO submission platform or local FAO office, as specified in official instructions.

6. Await screening, technical evaluation, and approval.

Common Mistakes to Avoid

• Proposing activities requiring land acquisition

• Underestimating or misreporting co-financing contributions

• Submitting vague investment plans without measurable outcomes

• Including environmentally harmful activities

• Applying without demonstrating a strong farmer linkage or value-chain logic

FAQ

1. What is the funding range?
USD 5,000 to USD 30,000 under Window 1.

2. Can applicants provide in-kind co-financing?
Yes, both cash and in-kind contributions are accepted.

3. Do women-led businesses have different requirements?
Yes, women-led enterprises contribute only 20% co-financing, compared to 50% for male-led enterprises.

4. Are vehicles eligible?
Only if directly essential to the value chain; otherwise they are not funded.

5. Can infrastructure be funded?
Yes, as long as it is small-scale and does not involve land acquisition or negative environmental/social impacts.

6. Who manages the grants?
FAO Afghanistan implements the program under World Bank funding.

7. What types of businesses benefit most?
Small agribusinesses seeking to upgrade equipment, improve processing, and strengthen farmer engagement.

Conclusion

The Matching Grants initiative under the Emergency Food Security Project offers a strategic opportunity for Afghan agribusinesses to improve operations, adopt climate-smart technologies, and strengthen farmer linkages. By supporting value-chain upgrades and responsible investments, the program contributes directly to national food security and long-term resilience.