FoodTrade ESA Early Bird Window Challenge Fund

Photo: FAO/Olivier Asselin
FoodTrade
ESA Early
Bird Window
Challenge Fund

FoodTrade East and Southern Africa (FoodTrade ESA) has launched a new
funding window to support businesses that are active in the staple food
value chains in nine ESA countries-- Kenya, Uganda, Tanzania, Rwanda,
Burundi, Zimbabwe, Zambia, Mozambique and Malawi.
What is the Challenge
Fund?
To stimulate innovation and reduce
business risks, the FoodTrade ESA
Challenge Fund will award partial
funding grants to for-profit companies
operating in nine ESA countries-- Kenya,
Uganda, Tanzania, Rwanda, Burundi,
Zimbabwe, Zambia, Mozambique
and Malawi-- that propose innovative,
commercially sustainable and replicable
ideas to improve how markets function
within the staple food value chain.
By mitigating the risk of testing new
ideas, Challenge Fund matching grants
encourage companies to invest in
innovative ideas that improve the trade
of staples in regional and national
markets.
What is the Challenge Fund
Early Bird Window? Is it only
open for a short time? Why?
The Early Bird Window is the first
funding window of the FoodTrade ESA
Challenge Fund. The Early Bird Window
will offer grants of £150,000 to £1
000,000. It is referred to as a window
because the opportunity to submit
applications during this time is limited
to a particular time-frame (the window).
After July 22, 2013, the window will
be closed to assess the applications
received.
How does the Challenge
Fund work?
First, we pre-screen companies to ensure
they meet our Eligibility Criteria. If the
company qualifies, it must then develop
and submit an investment proposal via
the FoodTrade ESA website.
What types of businesses
will the Challenge Fund
support?
The Challenge Fund welcomes
proposals from for-profit businesses—
small or large— that are registered
in any of the nine ESA countries.
Applications are also welcome from
companies doing business in the ESA
but not registered there.Once funding
is approved, such companies will have
to register before disbursement takes
place. Investment proposals can focus
on storage and collateral systems,
input markets, coordination and
information systems, transport services
for cross-border trade in staples or
other initiatives that reduce systemic
barriers or inefficiencies anywhere
along the staple food value chain.

Does Challenge Fund offer
loans or grants? How are
the grants different than
other programmes?
The Challenge Fund provides nonrepayable
grants-- up to 49% of the
total investment cost-- that can be
combined with bank financing or
other funding sources. The Challenge
Fund grants encourage companies to
innovate by reducing the risk of testing
new ideas. As seed capital, they can
also make it easier for companies to
secure additional funding from banks
or other investors.
What are the values of the
grants available?
If your company’s proposal is
approved, grants are offered from
£150,000 up to £1,000,000.
Will any funding be available
after the Early Bird Window
is closed?
It is anticipated that Challenge Fund
financing will be available after
November 1, 2013.
What are the selection
criteria for Challenge Fund?
Proposals will be evaluated by
both internal and external selection
committees comprised of industry,
finance and development experts from
the region and internationally.
Indicative criteria for selecting
investment proposals include:
· Commercial viability and risk of the
proposed investment
· Company’s capacity to implement
the proposed investment
· Expected impact on the food
staple system—nationally and/or
regionally
· Expected benefits of the proposed
investment for food staple farmers
and consumers—nationally and
regionally
· How innovative is the idea?
· Commercial risk to the applicant
· Availability of funds from other
sources, including self-investment
by the applicant company
· Overall investment risk— political,
environmental, etc.
To apply visit our website— www.foodtradeesa.com.
Applications for the Early Bird Window must be received by July 22, 2013.

About FoodTrade ESA
FoodTrade East and Southern Africa (FoodTrade ESA) is a 5-year trade
enhancement and promotion programme aimed at reducing poverty and
improving food security in nine countries of East and Southern Africa
by working with businesses to on improve the markets for staple food
crops. FoodTrade ESA supports targeted, market-based innovations
that improve food storage, farmers’ access to inputs, services and
information as well as changes to policy and regulations that get more
people trading in regional staple food markets. It is funded by the UK
Government and implemented by DAI (www.dai.com).
FoodTrade ESA is implemented by DAI
www.foodtradeesa.com