REQUEST FOR APPLICATIONS (RFA)

Support for the Just Energy Transition Partnership (JETP)
Promoting Economic Diversification 

The USAID Africa Trade and Investment (ATI) program is designed to bolster the U.S. Government’s ability to boost trade and investment to, from, and within the African continent. The continent-wide program is USAID’s flagship effort in support of the Prosper Africa initiative and will expand and accelerate two-way trade and investment between African nations and the United States.

Driven by market demand, ATI embraces innovative approaches to achieve its goals. ATI is designed 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.

Through this Request for Applications (RFA) the USAID Africa Trade and Investment (ATI) program, on behalf of the USAID Southern Africa Regional Mission seeks to support the Just Energy Transition Partnership (JETP) to catalyze economic diversification and job creation in South Africa with a predominant focus on Mpumalanga. The transition away from the use of fossil fuels has a direct and indirect impact on livelihoods, workers, and communities and will be most acutely felt in Mpumalanga that produces 80 percent of South Africa’s coal mining. The aim of this activity is to promote economic diversification to support local livelihoods, enterprises, and job creation in these most affected areas.

Support for the Just Energy Transition Partnership 
South Africa has made ambitious commitments to transition to a low-carbon economy through the JETP which aims to accelerate the phaseout of coal-fired power generation and promote clean energy investments while addressing social concerns such as job loss. 

South Africa’s JET Investment Plan, (JETIP)^[1], recognizes transformational shifts in the communities whose members' lives and livelihoods are dependent on fossil fuel industries, notably coal. The socio-economic impacts of this transition will be more acute in Mpumalanga which produces 80 percent of South Africa’s coal. Mpumalanga’s unemployment and poverty rates are high with a strict unemployment rate of 38.3 percent (2022), an expanded unemployment rate of 51.6 percent (2022), and a poverty rate of 50.8 percent (2020)^[2] The JETIP aims to mitigate socio-economic challenges that will be brought through this transition leading to the following:

• Creation of many jobs across various sectors, which can include the likes of electricity, green hydrogen, and new energy vehicles,
• Economic diversification and creation of new jobs, for men women and youth, in alternative sectors like agriculture, agro-processing, tourism, new mining, circular & and green economy, localization and manufacturing.
• Unlocking inclusive economic development activities through the provision and upgrade of infrastructure,
• Facilities, resources, solutions for ending load shedding, skills development, and support to municipalities’ capability,
• Contributing to boost inclusive economic growth through approximately ZAR1.5 trillion of new investment in the RSA economy and contribution to Mpumalanga economic activities and diversification.

Objectives and Activities
The objective is to catalyze economic diversification and job creation in South Africa with a predominant focus on Mpumalanga to mitigate the socioeconomic challenges that will be brought about through the transition away from the use of fossil fuels, which will be most acutely felt in Mpumalanga which produces 80 percent of South Africa’s coal mining. This scope specifically addresses the ‘Just’ aspects of the JETIP and the Just Energy Transition Implementation Plan 2023 -2027 with a focus on supporting investment and access to finance for small and medium enterprises (SMEs) and job-creating activities that contribute to economic diversification (away from coal) in regions and communities around coal-fired power stations and coal mining operations with a predominant focus on Mpumalanga.

This RFA is seeking potential partners to propose creative, effective, and impactful innovations or approaches to addressing challenges that constrain investment in SMEs in the targeted regions outlined above.  The purpose of this RFA is to solicit concepts from potential partners that present innovative ideas to catalyze and mobilize greater volumes of capital for investment (debt/equity/mezzanine and/or other financial instruments) of funds into high-impact sectors important to reducing unemployment, poverty, and inequality such as, but not limited to, agriculture and agri processing, tourism, manufacturing, financial services, infrastructure, information and communication technology (ICT), clean energy/the green economy etc within the targeted regions. This activity focuses on blended finance^[3] or operational support for impact investors, non-bank financial intermediaries, funds and/or other investment vehicles/platforms in South Africa. Types of USAID catalytic funding[4] support may include (but are not limited to): concessionary capital to de-risk and catalyze private investment, start-up support for a new facility, or operational support for pipeline development and investor outreach. Innovative activities that improve the bankability of SMEs and link seekers of capital with providers of capital may also be considered.

Given the short timeframe for the execution of the JETIP (from 2023 to 2027), there is an urgent need for collaborative and coordinated efforts to align impact-oriented funding (supply) with bankable opportunities, initiatives, projects, services, and products (demand), using a collaborative investment platform/vehicle that aspires to support the JETIP through the transition to a low carbon
 

Illustrative interventions include the following:

USAID/ATI  seeks proposals from organizations that present a viable, reasoned and strategic vision for increasing and/or improving access to finance/ investment for SMEs that combine sustainable financial returns and social impact. USAID seeks investors, fund managers, and other financial providers and firms who need assistance in fundraising for investment vehicles and/or deploying funds to suitable businesses in Mpumalanga and in other regions and communities around coal-fired power stations and coal mining operations in South Africa in line with JETPIP priorities and developmental impact goals. Illustrative interventions that could be proposed include, but are not limited to: 

1. Concessionary capital in blended finance vehicles to catalyze and/or accelerate private capital raising by reducing investor risk;
2. Start-up support for pioneering new vehicles that have the potential to innovate and increase access to investment in the local market; and,
3. Operational support to partner with local investors, fund managers, and others supporting pipeline development and investor outreach.
4. Technical assistance ‘side-cars’ for enterprise business development support and capacity building linked to funding vehicles aiming to establish sustainable and bankable SMEs and enterprise growth solutions in the space of job creation and economic diversification.

[1]https://www.climatecommission.org.za/south-africas-jet-ip

[2]https://www.parliament.gov.za/storage/app/media/Pages/2022/6-june/30-06-2022_Inclusive_Economic_Growth_Oversight_Summit/Session_3/Mpumalanga.pdf

[3]USAID INVEST Blended Finance Starter Kit   https://www.usaid.gov/sites/default/files/2022-05/BlendedFinanceStarterKit1.pdf https://www.stateofthenation.gov.za/assets/downloads/JET%20Implementation%20Plan%202023-2027.pdf   

[4] https://www.usaid.gov/invest/publications/catalytic-funding-learning-brief#:~:text=Catalytic%20funding%20is%20the%20provision,primary%20vehicle%20for%20blended%20finance.

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

1. Project description: Demonstrated understanding of the subject content as indicated in the Background and Overview sections of this RFA; the applicant must also demonstrate how the proposed activities will address the emphasized outcomes. Please refer to the technical approach evaluation breakdown in the table below.
2. 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 emphasized outcomes. 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.

3. 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?
4. 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.
5. 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.
6. 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.
7. Budget: All proposals must include a completed budget in US dollars following the ATI Budget Template.
8. 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 applications will be evaluated according to the evaluation criteria set forth below.

Who can apply for the grant?

Eligible applicants:

• Applicants must demonstrate that they fall into one of the grantee categories below:
  • Private sector companies – local (within South Africa) and international firms (outside of South Africa). International firms must demonstrate a clear understanding of South Africa’s local context and must demonstrate existing relationships with relevant local stakeholders. South Africa firms will be given preference in the selection process.
  • Foreign organizations (referred to as non-U.S. NGOs (non-governmental organizations)): either non-profit or for-profit organizations that meet the definition in 2 CFR 200.47. (https://codes.findlaw.com/cfr/title-2-grants-and-agreements/cfr-sect-2-200-47/)
  • Non-profit organizations: organizations that meet the definition of 2 CFR 200.70. (https://www.govinfo.gov/content/pkg/CFR-2021-title2-vol1/pdf/CFR-2021-title2-vol1-sec200-75.pdf)

In addition, an applicant must be organized under the laws of the country in which it has its principal place of business or operations in.

Ineligible applicants:

• Any organization not legally organized under the laws of the country in which it has its principal place of business or operations in.
• Any entity listed in the U.S. government Excluded Parties List.
• Any entity unable to obtain a Unique Entity Identification number (UEI); **
• Any entity excluded in the US Government System for Award Management.
• Any government entity.
• Any Public International Organization (PIO).
• Any entity affiliated with DAI or ATI directors, officers, or employees.
• Any projects involving involuntary resettlement, child labor, or significant environmental impacts.
• Any military organization.
• Any political party organization.
• Any entity focused solely on religious activities.
• Any labor unions; and,
• Any individuals.

Application Submission Instructions & Deadline

Application

1) Application documents must include the following:

• Complete Annex B. Application Form. (Annex B Application form Template)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. (Annex C Workplan Template)The implementation plan should be detailed and include tasks, outputs, partners, and responsible persons. It may be no more than 18 months, nor extend past March 2026. Monitoring and evaluation efforts must also be included.
• Complete Annex D. Budget and Budget Notes(Annex D Budget Template). 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 for is based on actual cost or market price.
• Complete Annex E. Milestone Table.(Annex E Milestone Template) 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.

Submission Instructions:

 To apply for funding interested applicants must submit all applications (including all annexes) via RFA-17- USAID Support for the Just Energy Transition Partnership (JETP).  on or before September 26, 2024.  The application should be submitted using the templates provided in the link above labeled Annexes B, C, D and E.

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. Due to the number of applications, only applicants moving to the next stage will receive communication of the next steps.   Applications which are submitted late or are incomplete will not be considered in the review process.

Evaluation of applications and next steps:

The applications received will be screened to confirm their alignment with the RFA and compliant ones will be subjected to an evaluation process using the criteria enumerated in the section above titled “Evaluation criteria”. The evaluation committee may recommend one or more of the applications for consideration of next steps (or none).

The applicants recommended for the next steps will be contacted by the ATI team and guided on the next steps which may entail seeking further clarifications on the application, subject them to due diligence and if successful, proceed to negotiations and co-creation of the proposed award. This process may entail virtual or physical meetings between ATI, USAID and the applicant. It may also entail requesting additional documentation from the applicant all geared towards better understanding the applicant and proposed project.

Subject to successful completion of the pre-award process including getting approval of the grant from USAID, the successful applicant will be issued with a grant agreement enumerating the award, period of performance, reporting requirements plus other grant terms and conditions. A grant kick-off meeting will be held upon full execution of the grant agreement after which implementation will commence.

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: https://www.usaid.gov/about-us/agency-policy/series-300/references-chapter/303mav
• 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.ATI funds will not support construction. All construction activities will be resourced through grantee leverage. Under Chapter 12, Section 5.3g of USAID’s Automatic Directives System (ADS) on Eligibility of Commodities 2010, “With the exception of local procurement of fertilizer in the cooperating country: 1) Procurement of fertilizer is restricted to U.S. sources, unless there are, or are expected to be, significant U.S./offshore price differentials or any adverse impact on domestic availability or price; and 2) All contract awards for fertilizer and the related transportation must be approved by the Office of Procurement (M/OP), in consultation with GC/CCM and the appropriate geographic bureau”. 
• 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.