USAID Africa Trade and Investment Partnerships Opportunity: 

June 8, 2023

 

Funding Opportunity Title:                               ATI Partnerships in DRC Minerals 

Announcement Type:                                        Annual Program Statement

Funding Opportunity Number:                         APS-ATI-001

Issuance Date:                                                    June 8, 2023

Deadline for Questions:                                     N/A – accepted on rolling basis

Closing Date Concept Papers:                         February 29, 2024 5:00PM EDT - CLOSED

Submit Questions on the following link:         ATI APS 001 Questions

Submit Concept Papers to:                               USAID Africa Trade and Investment Initial Plan  

Addendum:                                                         USAID DRC Minerals Activity APS                                                                                                                                Addendum

 

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 concept notes from potential U.S. and other mining entities including private, public, NGO, cooperatives and civil society organizations, engaged in or interested in sourcing critical minerals from the DRC and have willingness to support African companies’ and artisanal miners' efforts to better integrate into global value chains and improve business practices with a focus on worker safety and environmental safeguards.  Consortia across sectors that include two or more of the types of entities noted above are encouraged to address the multi-level challenges facing responsible investment in the DRC.

Buy-In Objectives:

This program supports USAID/DRC to increase trade, investment, and  improve the business enabling environment in the DRC mining sector. The program provides opportunities to target specific opportunities consistent with the Ministry of Mines’ Strategic Plan for the Development of the Mining sector (SPDM) and its five axes:

1. Reinforcing the capacities of the Ministry;
2. Intensify geological mining research and strengthen the development of geodata infrastructures;
3. Develop and support a competitive mining industry, creating jobs and promoting a sustainable environment
4. Promote the image of the DRC as a good place for mining investors
5. Pursue the formalization of artisanal mining for its migration to small-scale mining.

The program supports the government of the DRC and market actors seeking to encourage responsible and sustainable mining practices by promoting good governance, especially fiscal transparency; supporting resilient supply chains that respect human rights; improving livelihoods; improving local beneficial ownership; reducing conflict, including through public-private alliances; and leveling the playing field for U.S. and allied investors and companies by promoting legal investment opportunities that are transparent and accountable. USAID can play a role in attracting and introducing investors whose demand will concurrently help reinforce GDRC policy reforms and comply with international resolutions.

Overarching Priorities under USAID/DRC Minerals Activity under ATI:

Promoting sustainable mining and good governance in the mining sector to build on the extensive efforts of the USAID DRC mission.  

• Identifying mining deals and development/support services through trade or investment activities.  
• Identifying and facilitating potential partnerships with U.S. and/or other international entities that would support African companies’ and artisanal miners’ efforts to better integrate into global value chains, improve business practices with a focus on worker safety and environmental safeguards. 
• Organizing DRC miners and traders as a source of responsible and/or certified critical, conflict, and other minerals that link into transparent global value chains.
• Identifying and facilitating the resolution of illegal trade issues at regional level and improving the security at the borders.
• Identifying and prioritizing key business enabling environment issues linked to trade and investment deals that could be addressed with USG support feasibly and effectively within the prescribed period of performance. 
• Increasing investments that promote and sustain Environmental, Social, and Governance (ESG) standards within the mining sector tied to specific trade and investment deals.
• Improving the value added beneficiation creating economic benefits for the local population.

 Illustrative Interventions for USAID under ATI:

• The USAID-DRC assisted and assured due diligence concerning the propriety of proposed partner companies.
• Continued deal development and implementation together with the private sector partners and project sponsors with a focus on social and environmental protection.
• Ensure private sector participation in deals identified, and structure the deals to leverage private sector funding (to ensure USAID additionality).
• Provide technical assistance to DRC ministries, companies, and their partners on sustainable mining practices, good governance, export policies, and technical analysis and recommendations to assist in implementation.
• Collaborate with private sector actors to scope and fund legitimate investments.
• Provide support (financing, training, navigating due diligence, certification opportunities) to diverse ASM cooperatives with business development/operation initiatives tailored to small-scale miners. Emphasis will be given to activities that improve the capacity of beneficiaries and their communities to adapt to climate change.
• Provide advisory support through analysis, technical advice and facilitation to policy makers, e.g., embedded transaction support to local, provincial or national government.
• Outreach to, and coordination with, potential private sector partners. 
• Engage media partners to strengthen their coverage of political, economic, and environmental issues related to the mining sector, and to promote visibility and understanding of the DRC mining sector (risks, opportunities, realities, successes, failures, etc.).
• Evaluate models in other sectors such as rural electrification to advance financing of cooperatives and small and medium business in the mining sector. Support small businesses (ASM and other) to benefit from the increased private sector activity of the battery minerals rush.
• Development activity of private sector pre-feasibility or feasibility studies or implementation that is not otherwise within the reasonable investment parameters of a distinct private sector investor and would benefit ATI objectives. These could include aspects of mineral beneficiation, such as refineries or smelters, and pre-cursor battery component manufacturing that would otherwise be overly expensive or risky for the private sector alone.
• Consortia involving two or more entities that address multiple risks to responsible investment

Eligible Applicants:  

Companies sourcing minerals, trade promotion service providers, buyers, import agents, export agents, export firms, wholesalers, retailers, trade platforms, e-commerce firms, business service organizations, industry/sector organizations; trade or other private sector associations; cooperatives, non governmental organizations and public sector entities trade or other private sector associations legally registered to operate in Sub-Saharan Africa and the U.S. or any other geographies as long as they close intra-Africa and Africa to U.S. trade deals. 

Eligible Activities: 

Eligible activities include innovative ideas and innovative business models in the areas of critical and strategic mineral exploitation, including:

• Innovative projects leading to the conclusion of mining investment agreements;
• Projects related to the provision of services to mining companies with a view to improving their production yields;
• Structuring projects in the areas of mining, due diligence and supply chain management;
• Projects relating to the development of geodata infrastructures;
• Projects related to capacity building, human, materials and equipment;

Defined above, which lead to the conclusion of mineral export or mining investment agreements within 12 months.

Current Funding:

It is anticipated support awarded under this activity will be in the form of performance-based grants ranging from US $100,000 to $4,000,000. Applicant contribution from prospective partners is recommended to be a cash or in-kind investment to the activity of equal to or greater than the value of ATI’s grant but with the flexibility to consider a smaller match with justification. This figure will be updated via amendment when/if funding is added to ATI.

Information on Applying: CLOSED