REQUEST FOR APPLICATIONS (RFA)

USAID KENYA & EAST AFRICA

FUNDING OPPORTUNITY FOR PRIVATE SECTOR RECOVERABLE GRANTS IN EAST AFRICA 

In support of the Prosper Africa, Feed the Future, and other Presidential initiatives, the USAID Africa Bureau, Africa Regional Missions, and the Middle East Bureau have established the USAID Africa Trade and Investment (ATI) Program. The purpose of this Program is to mobilize enterprise-driven solutions that increase trade and investment in Africa. ATI will support the strengthening of Africa’s markets by developing new trade and investment relationships, particularly between the U.S. and Africa, and achieve development outcomes across sectors in line with USAID’s Private Sector Engagement Policy and the USG Prosper Africa initiative. The ATI Program runs from 2021 - 2026, and is implemented and managed by DAI, Global (DAI). 

Driven by market demand, the Program will embrace innovative approaches to achieve its goals. The Program is envisioned as a small, core set of centrally coordinated technical and institutional support activities, and a large, flexible performance-based subcontracting and grants under contract facility designed to support the needs and opportunities that missions and the private sector identify. The Program aims to mobilize private sector resources and expertise, in conjunction with other USG interagency partners, resulting in the increased capacity, competitiveness and availability of businesses, investors and intermediaries that will drive future trade and investment.

Through this Request for Applications (RFA), the USAID Africa Trade & Investment Program is offering partners the opportunity for the private sectors to co-invest with USAID to work towards one or multiple of the following overarching objectives:

• Increase trade with or within Africa 
• Increase investment in Africa
• Improve or enable the business environment in Africa
• Cross cutting objectives:
• Creation of private sector jobs
• Empowerment of women and youth
• More resilient, inclusive economic ecosystems across countries, regions and the continent
• Value chain activities that span countries and crowd in various enterprises

Examples include, but are not limited to: 

• Textile and apparel partnerships to support vertical integration, value-addition in East Africa, and to expand formal-sector job opportunities for women and youth.
• Expanding exports, local processing, and financing of East African agricultural commodities linked to U.S. buyers and markets in products including, but not limited to, coffee, tea, spices, essential oils, nuts (cashew/macadamia), shea, honey/beeswax, and natural ingredients.
• Expansion of value-added agricultural processing of East African products, expanding access to agricultural technologies benefitting small-scale farmers, and expanding agricultural sourcing partnerships benefitting large numbers of small-scale farmers and cooperatives.
• Expansion of local manufacturing of health products, including menstrual health products, and commodities for sale in the region, continent and/or export including to the U.S.

Grant Size and Type: ATI will issue performance-based recoverable grants typically ranging between US$250,000 - US$1,000,000 to establish partnerships with firms and/or investors for meeting the development objectives. Grant sizes of smaller or larger amounts may be considered should the proposed activity meet the objectives of the RFA.

Grant values may be limited by the type of grant most appropriate for the enterprise it intends to fund—for example, U.S. organizations (both not-for-profit or for-profits) may not receive grant funding above $250,000 under any grant type.

Performance-Based Grants:

The preferred performance-based grant will be a Fixed Amount Award (FAA) agreement under USAID rules. Payment under FAA grants are made upon accomplishment of predetermined results, referred to as milestones. Milestones are agreed upon between ATI and the partner prior to the grant being awarded. 

Although the FAA is the preferred grant mechanism under this RFA, ATI will conduct capacity assessments of all potential grantees in which their mode of award will be determined based on the financial and administrative capabilities of the applicant. Other modalities of awards may include an in-kind grant, standard grant, simplified grant, or a combination of FAA and in-kind grants, but this is dependent on ATI’s determination of the potential grantee’s capacity.

If ATI’s assessment identifies weaknesses or deficiencies that call into question the applicant’s ability to manage the award, ATI may elect to remove the applicant from consideration under this funding opportunity or select a mechanism more appropriate for the applicant’s current financial, administrative and operational capacity. The applicant will agree to the metrics and verification methods of awards during the development of the full application, giving latitude to the partner on how it will accomplish the agreed objectives. DAI reserves the right to fund any or none of the applications submitted.

Leverage: The applicant is expected to invest an amount equal to or exceeding the non-recoverable amount requested from ATI. Leveraged amounts will be considered within the context of the applicant’s objectives and impact in the market(s) and sector(s) in which the applicant is operating. (e.g. If your application is for $500,000 from ATI, with a 75% recoverable portion, the leverage match requirement would be a minimum of $125,000).

Applications submitted in response to this RFA must include the following information in line with ATI Objectives via the application form:

• Background: Business history/details and a short analysis of the sub-sector – the issues/challenges/opportunities presenting.
  1. Past Performance: Applicants must present evidence of their experience in undertaking similar activities. Applicants may include descriptions of two (projects or other similar activities). The applicant shall also present the last three years audited financial statements.
  2. References: ATI will request referees that should include clients’ names and telephone numbers
• Project Description: The applicant must provide the overall objective of the grant with a detailed description of the project expressively indicating the scope, value proposition, specifying the goal, activities, and results. Sections should be structured as follows: detailed description of purpose/summary, background, project goals, and detailed description of anticipated activities/outcomes.
• Organization capacity: The application shall include information that demonstrates the applicant's expertise and ability to meet or exceed the goals of this program. 
  1. Personnel: The skills, expertise, experience, and number of staff; The applicant should propose up to three key personnel and give a description of their roles and responsibilities. Each applicant demonstrates the key personnel’s ability to perform the duties outlined in the program description/statement of work in accordance with the applicant’s approach. ATI will evaluate the CV to determine the individual’s knowledge, skills, and abilities. Key personnel are those critical of implementation only and do not include administrative or support staff.
  2. Infrastructure and Technology: The availability and adequacy/inadequacy of physical and technological resources.
  3. Operational Capacity: The organization's systems, processes, procedures, and controls that safeguard against fraud, abuse, and waste.
  4. Strategic Capacity: ability to ensure long-term growth and alignment with the mission and vision.
  5. Governance and Leadership: governance frameworks that guide the organization’s strategic direction and ensure accountability.
  6. Partnerships and Networks: relationships with key stakeholders, including partners, funders, and the broader community.
• Financial capacity - The organization's ability to manage, mobilize, and allocate financial resources efficiently.
  1. Budget – a comprehensive financial plan that outlines how resources will be allocated to achieve strategic objectives. All proposals must include a completed budget in US dollars. 
  2. Leverage - The application must indicate the amount they plan to co-invest, and what those funds will be used for. The applicant is expected to invest an amount equal to or exceeding the non-recoverable amount requested from ATI.
  3. Recoverable grant - The applicant should indicate the portion of the grant that will be recoverable as well as the installments, frequency, and timing of payments. The application should include financial projections (revenue, profitability, and cash flow) as well as general assumptions supporting the payment proposal as outlined in Annex F.
• Sustainability – Going -concern: The applicant should describe how the project, or its benefits will continue after grant funding ends.
  1. Capacity enhancement: Strengthening internal teams through employment, training, knowledge transfer, and skills development to sustain & scale project impact.
  2. Environmental and Social Responsibility: Embedding sustainable practices that minimize environmental impact and promote social inclusion, ensuring resilience to external challenges.
  3. Monitoring and Evaluation (Results and Benchmarks): continuous monitoring to assess project performance, impact, and areas for improvement, ensuring long-term success. ATI will work closely with the selected private sector partner to develop a Monitoring, Evaluation, and Learning (MEL) plan following existing ATI and USAID requirements for this grant. 
  4. Scalability and Adaptability: the project's ability to expand or adapt to new contexts, markets, or technologies over time. ATI will conduct data quality assessments, as necessary. The private sector partners must be willing to share results for at least a six-month period following the completion of their grant implementation for ATI and USAID to evaluate the results of this intervention.  
• Milestones: the application must contain a table with milestones that the private sector partner and ATI will track during the implementation of this program.  

The applications will be evaluated according to the evaluation criteria set forth below. To the extent necessary (if the award is not made based on initial applications), negotiations may be conducted with each applicant whose application, after discussion and negotiation, has a reasonable chance of being selected for award.  Award will be made to responsible applicants whose applications offer the best value. 

Awards will be made based on the ranking of applications by the review panel according to the evaluation criteria and scoring system identified below:

• Application documents must include the following

• • Complete Annex B. Application Form. This annex asks for information on the project description, applicant leverage (as applicable), monitoring and results, and other activity information. Responses should be specific, complete, and presented concisely. 
  
  
  • Complete Annex C. Work Plan. The implementation plan should be detailed and include tasks, outputs, partners, and responsible persons.  It may be no more than three years or extend past March 2026. Monitoring and evaluation efforts must also be included. 
  
  
  • Complete Annex D. Budget and Budget Notes. In the budget, request and explain the key cost items required for the support. Full instructions on budgeting are found in the annex to the first tab called Budget Instructions. You must submit cost verification documents for each budget line item to demonstrate that the amount you budgeted is based on actual cost or market price.
  
  
  • Complete Annex E. Milestone Table. The Activity recommends a fixed amount award (FAA) as the best grant mechanism per the anticipated program description. This means you will be paid an agreed-upon amount for completed milestones. This annex asks you to propose those milestones, means of verification, due dates, and amount per milestone.                                                                                                                  
  • Complete Annex F. Proposed Recoverable Grant Terms. This annex asks for a snapshot of the financial status of the company, as well as proposed recoverable grant terms. Payment terms to be based upon financial performance metrics; paying only if the proposed project is successful.

• Applications must be submitted in English

• Page Limitation: Applications should be specific, complete, presented concisely and Annex B shall not exceed 10 pages (exclusive of annexes). 

 In accordance with ADS303.6, DAI is required to establish the applicant organization’s nationality to determine its eligibility to receive the requested grant. Complete Appendix D. Grantee Nationality Self Certification Form.

Submission Instructions:

To apply for funding interested applicants must submit all applications (including all annexes) via the RFA-24-USAID KEA East Africa Recoverable Grants Opportunity (Application Submission). 

Late Applications 

All applications received by the deadline will be reviewed for responsiveness and programmatic merit according to the specifications outlined in these guidelines and the application format.  Applications which are submitted late or are incomplete run the risk of not being considered in the review process.

Please note that while the Grants Team will explain rules and requirements to each awardee, the
following award requirements will apply:

a) Administration of Award

Awards to U.S. organizations will be administered in accordance with 2 CFR 200 Subpart E, ADS 303 and
USAID Standard Provisions for U.S. non-governmental organizations. For non-U.S. organizations, USAID
Standard Provisions for non-U.S. non-governmental organizations apply. Applicants may obtain copies of
the referenced material at the following websites:

• 2 CFR 200 - https://www.ecfr.gov/cgi-bin/text-idx?SID=0a5b7fee6378930cce72564449dd8bb7&mc=true&node=sp2.1.200.d&rgn=div6
• Standard Provisions for US Nongovernmental Recipients - https://www.globalhealthlearning.org/sites/default/files/page-files/french-PLGHA-Standard-Provisions-US-Nongovernment-Organizations.pdf
• Standard Provisions for Non-US Nongovernmental Recipients -                https://www.usaid.gov/sites/default/files/2022-12/303mab.pdf

b) Important USAID Compliance Information

• Certifications, Assurances, Other Statements of the Recipient and Solicitation Standard Provisions - In accordance with ADS 303.3.8, ATI will require awarded grant partners to submit signed copies of required certifications and assurances. ADS 303 may be found at the following website: usaid.gov/sites/default/files/documents/303.pdf.
• Unique Entity ID (SAM) - Effective April 4, 2022, entities doing business with the federal government will use the Unique Entity Identifier (SAM) created in (sam.gov). The Unique Entity ID (SAM) is a 12-character alphanumeric value managed, granted, and owned by the U.S. government. This allows the government to streamline the entity identification and validation process, making it easier and less burdensome for entities to do business with the federal government. All foreign organizations which receive a grant with a value of USD 25,000 and above and all U.S. organizations which receive a grant of any value are required to obtain a Unique Entity ID (SAM) and complete full www.sam.gov registration. Organizations are exempt from this requirement if the gross income received from all sources in the previous tax year was under USD 300,000. DAI requires that grant applicants sign the self-certification statement if the applicant claims exemption for this reason.
• Branding and Marking - All USAID-sponsored assistance awards are required to adhere to branding and marking requirements in accordance with ADS 320. ADS 320 may be found at the following website: https://www.usaid.gov/about-us/agency-policy/series-300/320. ATI’s Branding and Marking Plan allows for co-branding with the grantee and USAID. The Activity must approve all communications materials produced under this grant before printing or publication. Grantees must follow the guidelines set forth in the USAID Graphic Standards Manual and accompanying Prosper Africa Graphic Standards Manual: USAID Graphic Standards Manual and Partner Co-Branding Guide | Branding | U.S. Agency for International Development and Prosper Africa Graphic Standards Manual | Prosper Africa | U.S. Agency for International Development (usaid.gov)
• Environmental Procedures - The impact of USAID’s activities on the environment and environmental sustainability must be a central consideration when designing and implementing an activity. Potential environmental impacts of the grant must be identified prior to a final decision to proceed and appropriate environmental safeguards must be adopted for all activities The grantee must comply with host country environmental regulations unless otherwise directed in writing by USAID. In case of conflict between the host country and USAID regulations, the latter will govern. No activity funded under this grant will be implemented unless an environmental threshold determination, as defined by 22 CFR 216, has been reached for the grant, is properly documented, and signed by the Bureau Environmental Officer (BEO). ADS 200 may be found at the following website: https://www.usaid.gov/environmental-procedures/laws-regulations-policies/22-cfr-216
• Reporting Requirements - Project implementation reporting will be determined based on the planned activities and the delineation of roles and responsibilities. There will be milestone reporting, quarterly progress reports, environmental reporting, and a final grant report. A Performance Monitoring and Evaluation Plan with indicators and targets will also be agreed upon. Grant recipients will be expected to facilitate monitoring during and beyond the life of the grant through June 2026 by making relevant information available to ATI staff.
• Payments and Use of Funds - The Activity will make grant payments in local currency. The grant recipient must use the funds provided exclusively for activities specified in the Program Description. Diversion of grant funds to other uses will result in the cancellation of award and retrieval of funds disbursed to the grant recipient.
• Permitted Uses of Program Income - The grantee will be expected to account for program income in accordance with 2 CFR 200.307. In accordance with 2 CFR 200.307 (e)(2), program income earned under this award will be added to funds committed by ATI and the recipient to the project or program and used to further eligible project or program objectives. Additionally, in accordance with 2 CFR 200.307(e)(3), program income may be used to finance the non-Federal share of the project or objectives.
• ATI funds will not support construction. All construction activities will be resourced through grantee leverage.
• Prohibited Countries - The US Government does not do business with, i.e., purchase goods or services from, prohibited source, nationality, and country of origin. The current list of countries under comprehensive sanctions include Cuba, Iran, North Korea, and Syria.
• Ineligible Goods, Restrictions, and Unallowable Costs - The grant funds provided under the terms of this agreement must not be used to finance any of the following:
  • Goods or services which are to be used primarily to meet military requirements or to support police or other law enforcement activities,
  • Surveillance equipment,
  • Equipment, research and/or services related to involuntary sterilization or the performance of abortion as a method of family planning,
  • Gambling equipment, supplies for gambling facilities or any hotels, casinos or accommodations in which gambling facilities are or are planned to be located,
  • Activities which significantly degrade national parks or similar protected areas or introduce exotic plants or animals into such areas, or
  • Establishment or development of any export processing zone or designated area where the labor, environmental, tax, tariff, and/or safety laws of the country in which such activity takes place would not apply.
  • Pharmaceuticals or pesticides (may be allowable with written approval)
  • Logging equipment,
  • Luxury goods (including alcoholic beverages and jewelry),
  • Establishing or expanding any enterprise that will export raw materials that are likely to be in surplus in world markets at the time such production becomes effective and that are likely to cause substantial injury to U.S. producers,
  • Activities which would result in the loss of forest lands due to livestock rearing, road construction or maintenance, colonization of forest lands or construction of dams or other water control structures,
  • Activities which are likely to have a significant adverse effect on the environment, including any of the following (to the extent such activities are likely to have a significant adverse impact on the environment):
    • Activities which may lead to degrading the quality or renewability of natural resources;
    • Activities which may lead to degrading the presence or health of threatened ecosystems or biodiversity;
    • Activities which may lead to degrading long-term viability of agricultural or forestry production (including through use of pesticides);
    • Activities which may lead to degrading community and social systems, including potable water supply, land administration, community health and well-being or social harmony.
  • Activities which are likely to involve the loss of jobs in the United States due to the relocation or expansion outside of the United States of an enterprise located in the United States, or
  • Activities which the Grantee is aware are reasonably likely to contribute to the violation of internationally or locally recognized rights of workers,
  • Bad debts
  • Contributions or donations
  • Deferred Research and Development Costs
  • Entertainment costs or lobbying costs
  • Fines or penalties
  • Goodwill
  • Interest (Interest on taxes, issuing stock rights, Cost of financing or refinancing capital)
  • Public Relations and Advertising Costs
  • Company holiday parties or picnics
  • Taxes (such as income/profit tax) and PROFIT
  • Bribes
  • Goods or services from vendors or individuals with active exclusions on SAM.gov
  • Goods or services with source, origin, transported through, or nationality from a Prohibited Country – currently Iran, North Korea, Syria, and Cuba.
  • Costs that are being paid for by another donor or funding source, including other US government funding, (i.e., disproportion allocation of costs amongst multiple donors)
  • Costs purchased from vendors, employees, or other sources with Conflicts of Interest.
  • Payments to government officials

Issuance of this RFA does not constitute an award commitment on the part of ATI, nor does it commit ATI to pay for costs incurred in the preparation and submission of an application.  Further, ATI reserves the right to reject any or all applications received.  Applications are submitted at the risk of the applicant.  All preparation and submission costs are at the applicant's expense.