USAID Africa Trade and Investment Partnerships Opportunity:
Continental Services - Catalytic Funding APS Addendum
Closing date for submission of concept papers: February 28, 2023 5.00PM EDT
Overview of ATI:
USAID established the Africa Trade and Investment (ATI) Program to mobilize enterprise-driven solutions that increase trade and investment and contribute to job creation in Africa. The USAID Africa Bureau (AFR) and Prosper Africa Secretariat are currently inviting concepts from financial intermediaries such as fund managers and financial institutions across the African continent that are investing in a demonstrated pipeline of SMEs and growth-oriented businesses and have the potential to scale their financing offerings.
Overarching Priorities for the Catalytic Funding Facility:
- Partner with credible investment intermediaries that have demonstrated deal flow and capital raising capabilities, and/or a compelling investment thesis and management team.
- Unlock additional investment, further Prosper Africa and ATI’s trade and investment objectives, expand opportunity and economic growth in Africa and the United States, and fuel innovation, while laying the groundwork for new and increased investment across African markets.
- Provide a catalytic important role in African markets by:
- Deepening the capacity and track record of Africa-based and diaspora intermediaries who can connect capital supply and capital demand;
- Increasing the availability of capital and financial product offerings;
- Increasing the pipeline of investible opportunities; and,
- Demonstrating the viability of investments in markets aligned to Prosper Africa and USAID mission objectives.
- Support intermediaries and managers focusing on: digital, green/climate technologies; filling capital gaps in the market and/or testing new structures, products, or offerings; and/or offerings that allow for U.S. investment are particularly encouraged to apply.
- Work with intermediaries on a performance-basis to ensure capital raising/deployment milestones are properly incentivized.
Illustrative Interventions for the Facility under ATI:
- Grant capital to support and incentivize capital raises (e.g. first loss within a fund structure)
- Subsidize/support the operational costs of establishing/scaling a financial vehicle (e.g. expanding management)
- Technical assistance to ready investee companies in the pipeline
- Technical assistance to build the capacity of fund managers to receive and deploy capital
It is anticipated awards under this facility will be in the form of sub-grants and range from $250,000 to $1,000,000. The base value set aside for these awards is $2.7 million but it may be complemented by Mission or other USAID funding. This ceiling figure will be updated via amendment when/if new funding is added to ATI.
Selection Criteria- Additional Information
This addendum follows the Technical Selection Criteria and Cost Evaluation (Section IV) in the ATI APS. Please note that for catalytic capital concept papers and full proposals, applicants should be aware of the following more specific aspects of the topline criteria:
- Under The concept & the objectives it will cover: Interested applicants should include specific details on how the funding sought will be catalytic in nature to increase investment.
- Under Additionality & the value of the partnership: Interested applicants should include information on how the intended concept will address a market gap or need for financing.
- Under Ability to leverage private sector resources, assets, capabilities and expertise: Leveraged amounts will be considered within the context of the vehicle’s objectives and impact in the market(s) and sector(s) in which the application is operating.
In addition, USAID and the Prosper Africa Secretariat are interested in concepts that demonstrate innovative structures (e.g. use of a recoverable grant, establishment of a revolving window) that allow USAID to extend its funding for greater and more sustainable impact.
Information on Applying:
To apply for funding interested applicants must submit a concept note via the ATI intake site. A concept note should include the technical details of the proposed project, an itemized budget estimate, and details on the applicant company and track record of performance. Applications will be evaluated on a rolling basis. For more information and relevant deadlines, we encourage all interested applicants to visit the entire ATI Annual Program Statement (APS) here.