business fund description
DESCRIPTION
The description of how someone could get a fund from the agentTRANSCRIPT
WHY SBF
The Somaliland Business Fund (SBF) aims to mobilize the creative energy and resources of the private sector to strengthen private enterprises, increase incomes and create new sustainable employment opportunities and thereby improve the lives of Somalilanders.
Since 1991 Somaliland has established a democratic state, education and health systems. Somalilanders have proven themselves to be enterprising people and urban-centred business such as telecom has experienced phenomenal growth in the last 20 years.
Nevertheless, challenges remain such as a fast growing population, and high rates of unemployment and illiteracy. There are also issues surrounding environmental degradation and food security. Citizens need sustained economic growth to reduce poverty levels.
A well-developed private sector has an important role to play - it provides investment, employment, livelihoods and vital services. The country has great potential - it is strategically located with a long coast line, access to ports, an excellent international trade position and investment opportunities in agribusiness, fisheries, meat, salt, financial services mining and oil & gas.
The Somaliland diaspora is a mojor source of productive investment in the country but the private sector is constrained by inadequate infrastructure, high cost of fuel and energy, lack of access to credit and banking facilities etc. At the enterprise level, competiveness is hampered by producers' lack of market know-how and/or modern machinery and equipment, and workers lack of technical skills.
As a result, consumers make do with low quality, limited range or high priced products.
The Fund will help businesses to upgrade and strengthen their capacity, to improve their productivity or become more innovative. This will not only be good for the business but alos have wider developmental impact as benefits will flow to other suppliers/producers in the sector or value chain, as well as workers and consumers.
ELIGIBILITY CRITERIA
Before you prepare and submit your application, make sure that you (the applicant) and your project meets all of the eligibility criteria listed below;
An applicant can be an individual or a group (consortium or under a business association. The applicant must be:
privately owned or privately controlled and managed - not NGO or public institution except where the activity is using public assets contracted out to private enterprise, and if a group application all members must be private sector;
a registered/licensed going concern (not applicable to start-ups); in good standing with tax authorities and the Ministry/sector regulator; if a start-up, the applicant must have some business experience and sector
knowledge.
The applicant’s project must:
introduce a commercially viable and technically sound business model/process or product to the market;
demonstrate a clear need for the grant; be innovative in the case of large grants; comply with World Bank environmental and social safeguards; be able to be completed within 4 months (small grants) or 8 months (large grants); not duplicate government or donor funding contributions; be a one-off, short-term project - not for ongoing operations or running costs i.e. the
grant is not for working capital purposes.
ASSESSMENT CRITERIA
We also assess the quality of the applicant and the quality of the business idea, as described in your Concept Note.
We are looking for applicants who have:
the management and financial capacity to implement the project successfully; the market understanding, presence and reputation to launch the product
successfully; and in the case of start-ups, some business experience and sector knowledge.
We will be looking for project ideas that:
are likely to result in a broad developmental impact i.e. bring tangible benefits to a large number of Somalilanders;
involve business development services and/or investments in physical assets of a strategic nature i.e. improve enterprise productivity, address market constraints on growth or help develop new products and processes, or enter new markets.
DONOR SUPPORT
The Somaliland Business Fund (SBF) is one component of the Private Sector Re-Engagement Program Phase II that supports the investment climate, value chains (fisheries, gums & resins),
P-P-P (solid waste management, Berbera port), and the financial sector in Somaliland.
SomPREPII is financed by a World Bank Multi-Donor Trust Fund with contributions from the Danish International Development Agency (DANIDA),
the UK Department for International Development (DfID) and the World Bank State and Peace-building Fund (SPF). Landell Mills - a development consutling firm in the UK - has been engaged to manage the Fund.
Somaliland Business Fund-Private Sector Re-Engagement Program Launched
Hargeisa- Somaliland Business Fund (SBF) was launched on September 15, 2012. The deadline for receipt of Concept Notes (initial applications) will be October 25, 2012.
It is expected to award small grants at the end of December 2012 and large grants in early March, 2013. Four rounds are planned over the next 12 months with more rounds depending on the response from the business community and the quality of proposals. The SBF Term Sheet outlines how you can apply for a grant and explains how we assess applications. For further information on the Fund, call the Fund ‘hotline’ at 485-0660.
About the Fund
—The $3.6 million Somaliland Business Fund (SBF) offers grants to the Somaliland private sector ranging from $5,000 to $150,000 for projects involving business development services and/or fixed assets. —Grants below $50,000 are considered small and processed in 2 months (following outreach phase) whereas large grants will be processed in 4-5 months. —Small grants are ‘matching’ i.e. 50:50 co-financing whereas the applicant contribution is reduced to 33% for 1st time applications. —Grants for large projects will be up to 50% i.e. determined on the basis of risks and returns – in this way we can get a higher leverage on the overall grant funds.
WHY SBF
The Somaliland Business Fund (SBF) aims to mobilize the creative energy and resources of the private sector to strengthen private enterprises, increase incomes and create new sustainable employment opportunities and thereby improve the lives of Somalilanders.
Since 1991 Somaliland has established a democratic state, education and health systems. Somalilanders have proven themselves to be enterprising people and urban-centered business such as telecom has experienced phenomenal growth in the last 20 years.
Nevertheless, challenges remain such as a fast growing population, and high rates of unemployment and illiteracy. There are also issues surrounding environmental degradation and food security. Citizens need sustained economic growth to reduce poverty levels.
A well-developed private sector has an important role to play – it provides investment, employment, livelihoods and vital services. The country has great potential – it is strategically located with a long coast line, access to ports, an excellent international trade
position and investment opportunities in agribusiness, fisheries, meat, salt, financial services mining and oil & gas.
The Somaliland diaspora is a major source of productive investment in the country but the private sector is constrained by inadequate infrastructure, high cost of fuel and energy, lack of access to credit and banking facilities etc. At the enterprise level, competiveness is hampered by producers’ lack of market know-how and/or modern machinery and equipment, and workers lack of technical skills.
As a result, consumers make do with low quality, limited range or high priced products.
The Fund will help businesses to upgrade and strengthen their capacity, to improve their productivity or become more innovative. This will not only be good for the business but also have wider developmental impact as benefits will flow to other suppliers/producers in the sector or value chain, as well as workers and consumers.
DONOR SUPPORT
The Somaliland Business Fund (SBF) is one component of the Private Sector Re-Engagement Program Phase II that supports the investment climate, value chains (fisheries, gums & resins),
P-P-P (solid waste management, Berbera port), and the financial sector in Somaliland.
SomPREPII is financed by a World Bank Multi-Donor Trust Fund with contributions from the Danish International Development Agency (DANIDA), the UK Department for International Development (DfID) and the World Bank State and Peace-building Fund (SPF). Landell Mills – a development consulting firm in the UK – has been engaged to manage the Fund.
Somaliland Business Fund
Maansoor Hotel Hargeisa Somaliland
[email protected] +252 2 4850660 http://www.somalilandbusinessfund.com