In partnership with Prosper Africa and Feed the Future, the Africa Trade and Investment Activity (ATI) aims to mobilize enterprise-driven solutions that increase trade and investment in Africa. ATI strengthens Africa’s markets by developing new trade and investment relationships, with a strong focus on the United States and Africa links. ATI achieves development outcomes across all sectors in line with USAID’s Private Sector Engagement Policy, the U.S. government initiative Prosper Africa, and the U.S. Global Food Security Strategy (GFSS).

ATI embraces innovative private sector approaches to achieve its goals. The Activity 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 USAID missions and the private sector identify. ATI mobilizes private sector resources and expertise, in conjunction with other U.S. Government interagency partners, resulting in the increased capacity, competitiveness, and availability of businesses, investors, and intermediaries that will drive future trade and investment.

Despite facing global challenges and internal disruptions, the private sector in Mali has shown resilience and progress. Over the last decade, real Gross Domestic Product (GDP) growth has averaged 3.8 percent, with a recovery in capital investment after declines in 2012, 2020, and 2021 due to coups d'état. Domestic credit to Malian businesses has steadily grown from 18 percent in 2010 to over 29 percent in 2021.

The positive macroeconomic trends notwithstanding, securing financing for the private sector remains a critical constraint to Mali's economic growth. Two-thirds of Malian businesses cite access to finance as a major constraint to doing business, ranking just behind political instability. Financing flows disproportionately favor large, established businesses over micro, small and medium enterprises (MSMEs), and key sectors like agriculture remain underserved. Women and youth, in particular, face higher barriers due to lack of collateral and gender-specific supporting financial products, reflecting a Malian gender and youth gap in access to financing^[1].

Mali's financial ecosystem is primarily dominated by commercial banks, accounting for about 90 percent of financial assets and 80 percent of domestic lending. Microfinance institutions (MFIs), holding only three percent of assets and loans, primarily serve MSMEs, rural communities, and the agricultural sector, and focus on short-term loans. With external backing from development institutions, MFIs have the potential to grow and serve more MSMEs with creative solutions for larger ticket loans by spreading the loan request amongst a consortium of like-minded funding institutions^[2]. This could have a positive effect in de-risking and supporting long-term finance to expand and scale a business over time.

Finally, Mali's diaspora plays a crucial role in increasing the flow of financial liquidity, with approximately $1.1 billion in annual remittances, constituting six (6) percent of GDP^[3]. Only one (1) percent of remittances are for private sector investment while the rest is familial remittances. Sophisticated capital sources like venture capital and public markets for funding liquidity are not yet prominent in Mali's financial landscape, but active programs like YiriMali and Ciwara Capital invest in the development and readiness of MSMEs, especially in the agriculture sector. They represent venture capital funding in support of Malian MSMEs, enabling access to the right training, information and data for loan applications and financial products to help scale and grow their businesses^[4].

In recent years, adoption of digital platforms has significantly grown and currently around 80 percent of Malian adults have mobile money accounts. Partnerships between mobile network operators, financial institutions, and MFIs are emerging to leverage mobile money for financing micro-enterprises.

Given these challenges and the opportunities, ATI seeks to identify transformative and innovative solutions to support Mali's MSMEs, particularly those serving women and youth owned businesses by providing the enabling environment for improved access to finance. The goal is to identify and support initiatives that will foster a more transparent, efficient, and inclusive financial landscape in Mali.  

^[1] "Financing Small Business Is Critical for a Strong Post-Covid Recovery." 24 Sept. 2020, https://www.csis.org/analysis/financing-small-business-critical-strong-post-covid-recovery.

^[2] "Mali - United States Department of State." https://www.state.gov/reports/2021-investment-climate-statements/mali/.

^[3] USAID/Mali Landscape Assessment Report 2022

^[4] 4 "COUNTRY DEVELOPMENT COOPERATION STRATEGY (CDCS) - U.S. Agency for ...." https://www.usaid.gov/sites/default/files/2023-08/CDCS-Mali-September-2027_1.pdf.

USAID/Mali and ATI are committed to addressing the critical issue of MSMEs broad access to finance by supporting private sector initiatives that offer inclusive and sustainable investment opportunities, particularly with a focus to support women and youth-owned and/or managed businesses.  This activity is intended to elevate financial inclusion through access to finance programming in line with the main objectives of the US Global Food Security Strategy and USAID/Mali Country Development Cooperation Strategy Objective 2, Aiming to ensure and deepen development gains in targeted areas (Intermediate Results 2.2 Inclusive and sustainable agricultural and economic growth strengthened).^[5]

This opportunity seeks innovative solutions that can effectively promote financial inclusion by expanding funding sources, harnessing opportunities from the diaspora and enhancing financial accessibility for agricultural MSMEs, particularly those with a focus on women and youth owned MSMEs and leveraging digital finance platforms.

ATI’s theory of change for this opportunity is that by improving the enabling environment for financial inclusion, including increasing the sources of funding opportunities for MFIs, enhancing financial inclusivity through the use of digital platforms, and improving the overall availability and liquidity processes to access funding,  ATI will catalyze a transformative shift in the financial landscape including  women and youth-owned/run MSMEs and contribute to a more resilient and inclusive financial ecosystem.

ATI seeks innovative solutions that address the identified barriers, including but not limited to those that:

1. Focus on technologies or methodologies that improve the loan application process; is able to bridge the digital divide to ensure equitable access; and reduce the costs and time associated with accessing finance and investment. This can be achieved by supporting the development of the private sector to design risk mitigation tools and build the capacity of MSMEs to attract a variety of finance and investment products at fair terms and conditions associated with the Malian agricultural sector, particularly to women and youth.
2. Improve the availability and reliability of financial data through digital platforms or information-sharing initiatives, including connecting the value chain and MSMEs with digital payment and savings initiatives, which will foster a more informed and transparent financial ecosystem for an easier loan application process, and more equitable access to finance for women and youth who are more likely to struggle providing traditional collateral that the financial institutions require.
3. Increase the technical and agri-sector-specific knowledge of financial actors to better serve agri-MSMEs and increase the likelihood of lending to the sector. Support capacity building of financial actors to understand and address gender barriers to access finance and evaluate their loan applications equitably.
4. Utilize financial models and provisions to manage associated risks and mitigations, including those adapted to agricultural and rural contexts. Equally so, MSMEs require capacity building in financial literacy and investor readiness support to be better prepared for loan applications, and successfully access loans from the application process made to these financial actors.  Provide strategic advisory services to businesses, providing tailored advice on market trends, business expansion, and sustainable practices to enhance their overall sustainability. This will include support for businesses incorporating water and energy integration to enhance agricultural productivity, including guidance on sustainable practices and the adoption of energy-efficient technologies.
5. Build bridges amongst the Malian diaspora to strengthen growth partnerships with investment and market systems development. Includes identification, analysis, and reporting of investment opportunities in Mali aligned with the interests and expertise of the Malian diaspora, including opportunities for gender lens investing.
6. This activity will ensure a harmonized approach among USAID investments in Mali by layering and sequencing.
   
   

 To address these objectives, ATI seeks to identify impactful interventions that meet the following criteria:

1. Technical approach: The interventions should be driven by the private sector, bringing innovative solutions and addressing the challenges to access financial products and services, clearly showing how they will overcome these obstacles in Mali to benefit MSMEs, and specifically, women and youth in the agriculture sector. The private sectors’ approach must be anchored on the principles of adaptability and institutional strength. The applicant should aim to sustain momentum throughout the project life cycle, ensuring timely delivery without compromising on quality or organizational integrity.
2. Scalability: The proposal should promote replicability throughout the agriculture and agribusiness market system. The applicant should emphasize the promotion of collaboration and knowledge-sharing to facilitate widespread adoption, compatibility with existing financial infrastructure and regulations, seamless integration of technological innovations into operations, and the cultivation of partnerships aligned with broader financial inclusion strategies.
3. Impact: Interventions that support entrepreneurship, particularly among women and youth in agriculture, with a high number of people able to improve their livelihoods and increasing food security and resilience across the country.
4. Inclusivity: Interventions should deliberately include women and youth as participants in this activity given their potential and critical role in the growth of the agricultural sector.
5. USAID additionality: Prospective applicants should demonstrate how USAID's assistance contributes to a market-driven strategy, effectively realizing desired results on expanded access to financial products and insurance. This encompasses bolstering financial product availability, optimizing distribution channels and methodologies, and ensuring inclusive economic growth and resilient financial systems.

The applicants are required to demonstrate their experience in the financial sector in Mali. This should involve presenting effective ongoing strategies and detailing the anticipated impact of their proposed initiatives. This grant will not fund pilots and/or start-ups. 

Illustrative activities include, but not limited to:

1. Establish strategic partnerships with key stakeholders such as financial institutions, regulatory bodies, local businesses and diaspora to enhance the reach and impact of on-lending activities.
2. Integrate technology to implement innovative financial products to streamline on-lending processes, ensuring efficiency, transparency, and accessibility for a wider audience.
3. Design and implement capacity-building programs to enhance both MSMEs and financial institutions' understanding of the needs in the agricultural sector. These programs should focus on boosting the financial literacy of target MSMEs while also equipping financial institutions with insights into the specific lending requirements, financial products, services, and terms essential for effectively supporting the MSMEs in the agricultural sector, with particular attention to the specific needs and challenges of women and youth-owned businesses (including those in rural areas).
4. Create a robust distribution network to ensure the efficient and widespread delivery of financial services, reaching underserved and remote areas. This could be through agent networks, and other partnerships to enhance outreach.
5. Establish a robust monitoring and evaluation framework to track the progress of on-lending activities, enabling real-time adjustments and ensuring the desired impact is achieved. Gather insights and feedback to adapt financial services to the unique socio-economic context of Mali.
6. Tailor financial products to meet the specific needs and demands of the local population, the agricultural sector, and women and youth, fostering greater inclusivity and resilience. This could include but not limited to agricultural loans (inputs, crops and livestock), youth entrepreneurship/agribusiness loans, green financing for sustainable agriculture etc.
7. Host virtual investment dialogues and platforms, including key discussions, presentations, networking events, and ongoing virtual engagements between the Malian diaspora and investors.

^[5] "COUNTRY DEVELOPMENT COOPERATION STRATEGY (CDCS) - U.S. Agency for ...." https://www.usaid.gov/sites/default/files/2023-08/CDCS-Mali-September-2027_1.pdf.

 

Grant size and type: ATI will issue performance-based grants ranging from $250,000 to $500,000 to establish partnerships with firms meeting the criteria as stated in the RFA funding opportunity section. Grant sizes of smaller or larger amounts may be considered, should the proposed activity meet the objectives of the RFA. 

Performance-based grants: The grant will be a Fixed Amount Award (FAA) agreement under USAID rules (Chapter 303, ADS Rules version 2022). Payment under FAA grants are made upon accomplishment of predetermined results (milestones). Results are agreed upon between ATI and the partner prior to the grant being awarded. The duration of the grant period is about 18 months.

Capacity assessment of potential grantees: ATI will conduct a capacity assessment of all selected applicants. This 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 if the applicant does not show current and sufficient financial, administrative, and operational capacity. The applicant must agree to the metrics and verification methods of awards during the co-design process, 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.

Performance period: The performance period of grants will be no more than 18 months from the date of signing. In response to this solicitation, potential grantees may propose their own alternate timelines, work plans, and level of effort associated with the various components of the activity in line with their proposed approach.

Place of performance: The place of performance is Mali, and with preference to cover the Feed the Future Zone of Influence (Sikasso, Bougouni, Koutiala, Mopti, Douentza, Bandiagara and Tomboctou regions). However, consideration will be given to organizations working in Bamako and other regions that may also include work within the Zone of Influence. Potential grantees should provide details on their ​justification for targeting and ​approach to working in relevant areas of the country as the activity requires. The selected firm (s) will report to the ATI team based in Accra, Ghana.

Applications submitted in response to this RFA can be submitted in French and must include the following information in line with ATI objectives via the application form:  

1. Project description: ​The primary constraint hindering Mali’s economic growth is the limited access to finance by the private sector, particularly affecting MSMEs, women, and youth-owned businesses. This RFA seeks innovative partnerships that could bolster the sources of funding opportunities for MFIs, enhancing financial inclusivity through the use of digital platforms, and improving the overall liquidity process to access funding. The aim is to foster a more transparent, efficient, and inclusive financial landscape in Mali, supporting MSMEs, especially those owned by women and youth, by overcoming financing barriers.​​​ The target reach for the above interventions is at least 50 percent, for women and at least 30 percent for youth (youth being between 15 - 29 age bracket). The applicant must provide a detailed description of the project, specifying its goal, activities, and results. These should be in line with the overall objective of the grant. Sections should be structured as follows:
1. Detailed description of purpose/summary,
2. Background,
3. Project goals and objectives
4. Detailed description of anticipated activities/outcomes.

1. Monitoring (results and benchmarks): ATI will work closely with the selected partners to develop a Monitoring, Evaluation and Learning (MEL) plan following existing ATI and USAID requirements for this grant. ATI will also work with the partner to use USAID’s Collaboration, Learning and Adaptation (CLA) approach to address implementation of activities and to measure results. The partners will be required to maintain all relevant data and report results on a quarterly basis as agreed with ATI. ATI will conduct data quality assessments, as necessary. 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. 
   
   Applicants ​are​​ ​required to demonstrate how their interventions will contribute to achieving the objective​s​ of this activity including the goal of increasing food security and resilience in the country.​ The applicant should define, to the maximum extent possible at the application stage, results, and benchmarks for monitoring the performance towards attainment of program objectives.
   
   Please explain how your organization will monitor the implementation and performance of the project and indicate additional indicators per activity that will be used to assess the progress and performance of the project, and the achievement of the expected results​.​
   
   
2. Sustainability: The applicant should describe how the project, or its benefits will continue after grant funding ends. Sustainable practices should be economically viable in the long term. This involves promoting business growth that is inclusive, efficient, and involves adopting business practices that prioritize long-term benefits over short-term gains. What measures are being put in place to ensure sustainability?  
   
   
3. Organizational capability: The application shall include information that demonstrates the applicant's expertise and ability to meet or exceed the goals of this program.  Organizational capacity should include information on sound management systems, with regards to financial, administration, internal policies and procedures and controls that safeguard against fraud, abuse, and waste. 
   
   
4. Personnel: 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 and 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.
   
   
5. Past performance: Applicants must present evidence of their experience in undertaking similar activities. Applicants may include descriptions of two (projects or other similar activities).  ATI will request references that should include clients’ names and telephone numbers. 
   
   
6. Budget: All proposals must include a completed budget in US dollars following the ATI Budget Template.  
   
   
7. Milestones: The application must contain a table with milestones based on achievable results that the partners and ATI will track during the implementation of this program.  ATI does not provide advance funding for activities. 
   
   Awards will be made based on the ranking of applications by a review panel according to the evaluation criteria and scoring system identified 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.

The table below outlines the scoring matrix for the evaluation criteria.

Criteria	Evaluation
Technical approach: Private sector-led interventions that can bring innovative solutions and address the challenges to access financial products and services, clearly showing how they will overcome these obstacles in Mali to benefit MSMEs, particularly women and youth-owned MSMEs, without compromising on quality or organizational integrity.	​ 20​%
Scalability: The proposal should promote replicability throughout the agriculture and agribusiness market system. The applicant should emphasize the promotion of collaboration and knowledge-sharing to facilitate widespread adoption, compatibility with existing financial infrastructure and regulations, seamless integration of technological innovations into operations, and the cultivation of partnerships aligned with broader financial inclusion strategies.	20%
Impact: Interventions that support entrepreneurship, particularly among women and youth, with a high number of people able to improve their livelihoods and increasing food security and resilience across the country. The target reach for the above interventions is at least 50 percent women and at least 30 percent youth (youth being between 15-29 age bracket).	20%
Inclusivity: Interventions should deliberately include women and youth as participants in this activity given their potential and critical role in the growth of the agricultural sector. Prospective applicants should demonstrate how they will target women and youth to achieve the target of 50 percent women and 30 percent youth (youth being between 15-29).	​  20​%
USAID additionality: Prospective applicant should demonstrate how USAID's assistance contributes to a market-driven strategy, effectively realizing desired results on expanded access to financial products and insurance. This encompasses bolstering financial product availability, optimizing distribution channels and methodologies, and ensuring inclusive economic growth and resilient financial systems.	20%

 

ATI reserves the right to reject any or all applications at any point during the co-design and pre-award
risk assessment phase. USAID may also approve or reject applications submitted to them for review and
approval.

 

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. Applications are
submitted at the risk and the cost of the applicant.