Expression of Interest to co-invest with Climate Resilient Agribusiness for Tomorrow East Africa (CRAFT) Project
Agricultural systems worldwide are facing a triple challenge: how to sustainably increase productivity, while reducing the impact of agriculture on climate change, and increasing resilience of agriculture and food value chains. Climate Resilient Agribusiness For Tomorrow in East Africa (CRAFT) project is a five year project funded by the Dutch Ministry of Foreign Affairs and implemented by SNV Netherlands Development Organisation (SNV) in partnership with Wageningen University and Research, CGIAR’s Climate Change Agriculture and Food Security Programme (CCAFS), Agriterra, and Rabo Partnerships. The project uses an inclusive business development approach to climate smart agriculture in arable farming in Uganda, Kenya, and Tanzania.
The CRAFT project aims to improve food security by working towards climate resilient farming systems which increase productivity under changing climatic circumstances, while reducing food waste and losses throughout the supply chain. The project uses a market system approach to transform and reorient agricultural systems to the new realities of climate change. The project is hinged on three key pillars of climate smart agriculture, i.e. a) productivity, b) adaptation and c) mitigation. These are further defined as follows:
a) Productivity: CRAFT aims to sustainably increase agricultural productivity and incomes
b) Adaptation: CRAFT aims to reduce the exposure of farmers to short-term risks, while also strengthening their resilience by building capacity to adapt and prosper in the face of shocks
and longer-term stresses.
c) Mitigation: reducing and/or removing greenhouse gases emissions, where possible. SNV Tanzania has issued a call for expression of interest targeting women or youth led agribusinesses and cooperatives to co- invest in the implementation of climate change adaptation and related productivity improvements that further propose a market-based approach to implementation and promote inclusive business models that demonstrate deliberate efforts to engage youth and women.
The CRAFT-EA project is a value chain development initiative which has a specific emphasis on ensuring that value chains become climate resilient. The targeted value chains under the CRAFT-EA project are: Sunflower, Sorghum, Common beans and Potatoes across Tanzania.
To mobilize private sector co-investments and promote climate smart solutions and innovations for and by different actors along project targeted value chains, the project utilizes its Climate Innovation and Investment Facility (CIIF) as an instrument to co- invest with medium sized enterprises and Cooperatives in Tanzania to meet its goal and create sustained impact.
Applicants have to propose to co- invest in innovative climate smart solutions including, but not limited to: improved water use efficiency and water management for farming systems to improve production, supplemental irrigation of dry-land crops, improved scheduling and application of irrigation water, improved climate resilient seed varieties, strong services systems for quality agricultural inputs, effective trading and marketing systems, efficient supply chains that minimize post-harvest losses and incentivising enabling environments, among others.
These enablers trigger development and enable communities to be better prepared for the effects of climate change, reducing impacts of climate-related shocks through risk management; and strengthening knowledge and systems to target climate action. Innovations promoting effective crop nutrient management and many other climate smart practices more likely diversification and inter-cropping, crop rotation, and good soil management practices are also encouraged.
Investment Level: Due to the wide range of climate smart agricultural innovations to be funded, the maximum budget size of a project proposal to be co-financed under the Innovation and investment facility will be negotiated on a case by case basis. Depending on the business case or investment plan, the available Climate Innovation Investment Facility (CIIF) amount/ project contribution will be based on individual assessment, needs and optimum effectiveness.
The co-financing of the applicant needs to be in cash for at least 50% (25% of the total project value); the other 50% can be through in kind support, e.g. through the involvement of own staff for the project. Project costs cannot be used for core business operations and expenditures like, casual labour and utilities, general office running costs. It is highly recommended to include external financing sources as co-investment to top up own contributions. This would mean in practice that the investment plan is financed by the applicant, external financers and the CRAFT CIIF.
Duration of the investment activity
Duration of the proposed project intervention shall depend on the nature of the intervention. CRAFT envisages short term and medium term investment interventions that may be implemented from 1 to 2 years.
Target: The CRAFT project aims to achieve improved business performance for medium agribusinesses and cooperatives led by women and youth.
The project’s Innovation and investment Facility shall support selected medium size agri enterprises, cooperatives for co-investment in innovation, testing and scaling in the proposed climate smart solutions.
Specific selection criteria for women and youth led agribusinesses will include, but not limited to:
• potential for innovative CSA practices and technologies
• ability to invest in products and or services that enhance resilience to agricultural production
• ability to address vulnerability of the value chain/s to impacts of climate change
• ability to engage small holder farmers as outgrowers
• potential for income generation by women (as employees or self-employed)
• youth and women’s control over equipment, assets and sales income
• potential for income generation by youth (as employees or self-employed)
• potential for employment/ new job creation for the youth and women
General Eligibility criteria
Organizations soliciting co-financing support under the CRAFT project should be:
– Legally recognized companies or organisations that represent companies (like associations or agricultural cooperatives), and must have demonstrated a sound operational track record of at least three years. Eligible organizations/companies should be based in Tanzania and are owned and/or managed by women or youth.
– Ability to implement and develop climate smart solutions within the targeted value chains namely Sunflower, Potatoes, Common beans and Sorghum across Tanzania.
– Applications should address the arrangements and issues as presented in this call for EoI.
The above criteria are minimum criteria and will be pre-screened upon submission by the CRAFT project’s Secretariat. If not complied with, the application will be immediately rejected. Further, the criteria for application acceptance, review and selection will be guided by the following attributes:
• Outcomes – Investments made for solutions which produce significant change and improvement in the CRAFT-EA outcomes (e.g. application and delivery of improved climate smart farming technologies , access to finance, etc.) directly or through intermediate variables that are shown to impact those outcomes (e.g. CSA interventions provided in partnership with market aggregators, farmers, technology suppliers with local agents).
• Evidence – Proposed solutions which have commensurate evidence with the scale of the investment i.e. value for money.
• Learning – Proposed Interventions designed to produce learning to address key gaps in the knowledge of the field using methodologies rigorous enough to guide future decisions about whether to make future investments in the proposed solution and how to maximize the productivity of those investments.
• Sustainability – proposed climate smart agriculture interventions must demonstrate financial and business sustainability beyond the investment period (see ‘evidence’ above).
• Scalability –cost effective and scaled to serve the intended beneficiaries. Beneficiaries may include downstream and or upstream actors in the value chain, product and or service, etc. created by the investment activity. For example, to develop a solutions for increased agricultural production (e.g. solar-powered irrigation systems, solar cooling, drying, etc.), with the out-grower farmers, to establish energy efficient processing techniques. Scalability will be measured against the business’ ability to increase its reach (number of farmers engaged and or geographical reach), potential for scaling/replicating the interventions in other areas/or businesses, potential to leverage commercial finance, and potential for scaling/replicating interventions from one value chain to another.
• Replicability: The project aims to identify new models or interventions that could be copied or re-employed to achieve the same desired outcomes.
• Cost-effectiveness: the project will compare the relative costs and outcomes of different intervention models to ensure activities are cost-effective.
• Commitment of women and youth: Organizations committed to engage women and youth in improved climate smart agronomic practices for sustained food security will be strongly considered.
• Bankability: the funding for the project rely on the collaboration between organization, and or company itself, financial institutions and CIIF; therefore the project should be able to attract external financiers in the co-investment
Selected applicants will be invited to pitch their investment plan and value proposition. If this stage is passed an intake form will be shared which provides a more detailed plan of the business plan.
All documents shall be clearly addressed (Name of the Firm/ organisation/ EOI) and submitted using the online portal at: https://snvdata.org/ciif/#/applications/new-application
before 5 pm, 6th March 2020. Submission package should include:
– A scanned cover letter signed by the legal representative of the organization
– Well typed EoI, using the given format with not more than 4 pages
– A scanned copy of the organization’s licence and registration certificate
– Scanned copies of tax clearance certificates of 2018 and 2019
Feedback on application
Final approval for applications is at the discretion and responsibility SNV – Tanzania Decisions of SNV are final and binding and not open for appeal. Applications shall not include the cost of developing or submitting applications.