tanzania agribusiness window (tzaw): round 4. the presentation introduction to the aecf ...
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Tanzania Agribusiness Window (TZAW): Round 4
The Presentation
Introduction to the AECF Goal/Purpose of the AECF Funders and PartnersFinding the right projects TZAW R1-R3Tanzania Agribusiness Window Round 4 Introduction Selection Criteria Competition Process
Contact Information
What is the AECF?
The AECF is a fund of donor money available to the private sector on a competitive basis
It is a special partnership initiative of the Alliance for a Green Revolution in Africa (AGRA)
Funded by a multi-donor consortium (Dutch, DFID, DANIDA, SIDA, IFAD, CGAP). The donors form the Governing Council of the AECF
Managed by a KPMG led team (the Fund Manager). Triple Line services provides M&E support.
Initial capital was US$36m; now over US$245m
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Aims & Objectives
Goal: accelerate pro-poor growth in Africa – increasing employment, livelihood opportunities and income thereby reducing poverty.
Purpose: to make agribusiness, finance, renewable energy and information market systems work better for the poor in rural areas in Africa
Result: by improving the way market systems work, we aim to have a positive impact (jobs and incomes) on large numbers of people living in rural areas.
Modus Operandi: The AECF works by supporting private sector companies to develop and test new and innovative business ideas
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AECF is a special initiative of
Funded by
The members of donor consortium of the AECF include:
How the AECF worksT
he F
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AECF
Starting Races rather than Picking Winners
SCALE
(SOCIAL) IMPACTVIABILITY
We seek projects that are commercially motivated & innovative to get systemic
impact
Commercial Motivation: Scale required for systems impact; scale will only be reached if business model is (very) profitable
Disruptive Innovation: as a key indicator of systemic change potential
• Upsetting the market such that others will copy and replicate – the more innovative the better
Principle: Start races rather than picking winners
What is Tanzania Agribusiness Window (TZAW)?
A special funding window for business ideas in agribusiness and information or financial services that will be implemented in Tanzania
Goal: Contribute to wealth creation and rural poverty reduction in Tanzania
Objective: To catalyse private sector investment and innovation in agribusiness and rural financial services projects that are commercially viable, have significant developmental returns and wider systemic impact.
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What types of ideas are eligible?
“Agribusiness” under the broadest possible definition– Farmers, planters, horticulturalists, livestock keepers
& outgrower scheme operators– Inputs manufacturers, distributors & suppliers– Traders, merchants– Agro-processors and value adders
Information services projects related to agriculture
Financial services projects related to agriculture
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TZAW To Date
Three rounds of the competition completed with 37 businesses selected for funding
US$ 22.9 million in grants and interest free loans committed
US$ 57.3 million committed by awarded businesses as matching funds
Funded by DFID and the Swedish Embassy
Over 60,000 households reached in 2014
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TZAW R1-3 Competitions
37
74
154
789
2,852
Business plans
Shortlisted for IC
Concept notes submitted
Registered companies
Awarded grants
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Agribusiness Projects in Tanzania
Tanga
Pwani
Lindi
MtwaraRuvuma
Iringa
MbeyaMorogoro
DodomaSingida
Arusha
Mara
Kagera
Shinyanga
Tabora
Rukwa
Kigoma ManyaraKilim
anjaro
= GW/AAW Projects (5)
= TZAW R1 Projects (10)
= TZAW R2 Projects (10)
Rungwe Avocado Co
Quality Food Products
Tanga Fresh
Export Trading
Africado
Greenbelt
Kilimo Markets
Tanfeeds
Kilombero Plantations
Sao Hill
Serengeti Fresh
MSK Nsagali
Mtanga Farms
Ruaha Farms
Darsh
Misenani
ChoboNgongoseke
Verbruggen
Uncle Milo
SmartMoney
Mwanza
MeatKingSeedCo
Sibesonke Ltd
Kagera Tea
AKM Glitters
Mruazi Heifer
Mgolole
Agriseed
Beth Equisolutions
Kokoa Kamili
Dorfra Trading
Rift Valley Tea
Soko Fresh
DSM Corridor Group
= TZAW R3 Projects (17)
Lima Limited
Equity for Tanzania
Olivado EPZ
Mount Meru Millers
Meru Agro
Out-Growers Ltd
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TZAW R4!
Applications due by 15 December!!!
The competition is funded by the UK Department for International Development (DFID) – approx. $5.4m funds available (approx. 10 companies)
Companies may be from Tanzania or domiciled outside of Tanzania, but all projects must take place in Tanzania
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Application Process
Online application
The competition launches at Stage 1
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Eligibility Criteria
Applicants must be for profit company, partnership or sole trader
Project must be implemented in Tanzania
Applications must be for new and innovative business ideas
Request range from US$100,000 to US$1m and companies must match the funding requested in cash & kind (cash is preferable)
Project must have significant development impact in rural areas
Applicants must demonstrate that they would not go ahead without AECF funding or, if they would, that it would me at a much reduced pace or scale
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Selection Criteria for Stage 1
Criterion Weighting
Capacity of company 20%
Strength of business case 25%
Development impact 35%
Innovation 20%
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How much can I apply for?
Applications can be for a mixture of grants and repayable loans
Minimum amount US$100,000 maximum amount US$1m
Remember:
You must at least match the amount requested
We are also looking for leverage – scores a better mark
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How do I apply?
Go to www.aecfafrica.org and register using your email address
Download the guidance notes – essential for completing application form
Fill out the application in Microsoft Word – you must submit in Word.
Extra information (attachments, etc) will not be read
Submit the application to [email protected] by 15 December 2015
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Sections of Application
Brief Summary
Section A: Applicant Company Information
Section B: Project Information
Section C: Proposed Business Idea
Section D: Innovation
Section E: Additionality
Section F: Project Impacts
Section G: Risks & Assumptions
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Brief Summary
Complete at the end
Concisely summarize key points of idea and expected impact and outcomes
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Section A: Applicant Company Information
Provide basic data about your company– Note: all contact will go to the person and contact
information listed on this form
Registration details, current business, past financial performance, financing
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Section B: Project Information
Basic project details (title, location, etc.)
Funding information – both AECF and matching– AECF funding is US$ 100,000 – US$ 1,000,000– Matching funds must be equal to or greater than the
amount requested from AECF
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Section C: Proposed Business Idea
Concise description of idea
Concise business case – include numbers!
Explain your market and your strategy for reaching it i.e., distribution, logistics, sales, etc.
Capacity of the team – be specific but do not paste CVs
List and justify how AECF funding will be used
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Section D: Innovation
AECF defines “innovation” as a new product, service or business model being introduced in a country or to a target group where it has not been tried before
Make sure to substantiate your claims of innovation
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Section E: Additionality
TZAW R4 will not consider projects which could and would be funded fully by other, more commercial, sources of funding
Answer the listed questions specifically
This section is not about why AECF should be interested in your project and should not repeat what you have said in other sections about the innovation, impact, etc.
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Section F: Project Impacts
AECF monitors a set of standard quantitative and qualitative Key Performance Indicators (KPIs) for all TZAW projects
Provide figures on what you have achieved so far (i.e. the baseline numbers) and estimates of what your project is expected to achieve by the end of the 6 year AECF project period
Numbers should address only AECF project
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Section F: Project Impacts – Financial Indicators
Turnover
EBITDA
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Section F: Project Impacts – Development Indicators
Number of Households Reached– Direct beneficiaries – either your customers or
suppliers; not employees!
Net Benefit per Household– Calculation of cost benefit or cost savings compared
to situation if project did not go ahead
Number of Household with Reduced Risk to Extreme Weather Events– Only if appropriate to your business; do not try to fit
something into this if it does not make sense
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Section F: Project Impacts – Employment Indicators
Total number of people employed (full-time)
Total number of people employed (part-time) as full-time equivalents
Percentage for women
Percentage for under 35
Wage bill
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Section F: Project Impacts – Wider Impact
Impact on other businesses
Impact on laws, policies, regulations
Physical infrastructure
Sources of information
Reduction in other adverse business factors
Replication of your idea
Will anyone be “crowded out”?
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Section F: Environmental Impact
Indicate whether or not an EIA is required
If required: explain the progress to date and plans for completion
If not: explain why not and include information on any clearances from the government that can confirm this
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Section G: Risks & Assumptions
Business
Environmental
Health & Safety
Social
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