REQUEST FOR APPLICATIONS (RFA)

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FACILITATING A SECURED ONLENDING FACILITY FOR AGRIBUSINESSES IN CEREAL AND LEGUME VALUE CHAINS

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.

Following Russia’s invasion of Ukraine, USAID engaged ATI to facilitate private-sector partnerships that could rapidly scale access to and availability of agricultural inputs, technologies, and food in response to availability and price shocks across Africa.

Over the last year, simultaneous local, regional, and global crises, including insecurity, violence, and the War in Ukraine, have driven alarming food and nutrition insecurity in Burkina Faso. In 2022, persistent inflation, sent food prices to their highest level in more than 20 years. Although inflation has eased since last year, food prices have remained high, driven by the disruption in global supply chains caused by COVID-19 and the War in Ukraine.

ATI seeks to partner with the private sector to create incentives for agribusinesses to rapidly invest in cereal and legume value chains. ATI has identified access to finance as a key enabling environment factor to increase access to agricultural inputs that would promote production and contribute to addressing food insecurity and resilience in an inclusive and sustainable manner.

Despite improved rainfall in 2022, access to food remains of major concern throughout the country. In the north, a traditionally vibrant trade and agriculture area, production has plummeted due to conflict and internal displacement. Two regions in Burkina Faso – the Centre-Nord and Sahel – host the largest numbers of internally displaced persons with the highest levels of poverty and food insecurity. In other areas, limited investment in agricultural innovation have contributed to decreased availability and access to agricultural inputs for production, causing Burkina Faso to remain a net food importer. As reported by FEWSNET in March 2023, cereal prices such as those for millet, a staple food for vulnerable households, remained high compared to their five-year average, particularly around markets in conflict-affected areas.

Millet, maize, and sorghum are the most important food commodities for household consumption in Burkina Faso. Food legumes such as cowpeas and groundnuts are an important contributor to household incomes and food and nutritional security. However, production yields of cereals and legumes remained below their potential. Supporting market actors to use quality inputs for local production will contribute to improving the livelihoods of people, particularly women and youth, and create more opportunities to access nutritious foods. Financial support to farmers to access affordable inputs can lead to improved cereal and legume outputs. During consultation with farmers, agribusinesses, and financial institutions four critical challenges in the agriculture sector were identified for accessing capital for agricultural inputs, namely: i) security risk ii) lack of collateral or guarantees, iii) poor cash management by recipients of loans, and iv) high-level of informality.

Given the current situation in Burkina Faso, there is an urgent need to provide inclusive and sustainable sources of working capital, particularly to enterprises who work in the cereal and legume value chains, to    achieve the following objectives: i) to provide access to agricultural finance that will enable the cereal and legume value chains to increase availability of food around the country; and ii) increase access to funding for financial institutions and agribusinesses to continue on-lending to the agricultural sector. Increased access to finance supports the expansion of the agricultural sector ultimately, increasing supply of affordable food products in the country.

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

1) Project Description: The applicant must provide a detailed description of the project, specifying its goal, activities, and expected results. These should be in line with the overall objective of the grant. Sections should be structured as follows: detailed description of purpose/summary, background, project goals, detailed description of anticipated activities/outcomes.

2) Monitoring (Results and Benchmarks): 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 one or more indicators per activity that will be used to assess the progress and performance of the project, and the achievement of the expected results. ATI will work closely with the selected private sector player(s) to develop a Monitoring, Evaluation and Learning (MEL) plan that will capture the expected results of this activity and define appropriate indicators to track progress based on existing ATI and USAID MEL frameworks and USAID’s Collaboration, Learning and Adaptation (CLA) approach. At a minimum, the selected private sector players will be required to track the number of individuals participating in this program, disaggregated by age and gender, and its ability to reach vulnerable populations, including smallholder farmers, women, and youth. Additional indicators will be mutually agreed upon and included in the MEL plan. The partners will be required to maintain all the relevant data and report results on a quarterly basis and as agreed with ATI. ATI will conduct data quality assessments, as necessary. The partners must be willing to share results for at least a six-month period after their grant is implemented to allow for ATI and USAID to evaluate the intervention's results.

3) Sustainability: The applicant should describe how the project, or its benefits, will continue after grant funding ends. Towards this objective, the applicant should provide pricing of its financial product, including rates, tenor and terms, to the target borrowers.

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. In addition, prospective grantees should demonstrate their ability to promote agricultural development and enhance the capacity of cereal and value chain stakeholders to access financing. 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. DAI 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). DAI will request references that should include clients’ names and telephone numbers.

7) Budget: All proposals must include a completed budget in United States dollars and demonstrated co-investment by the organization. The applicant must include in this budget an independent audit of the grant.

8) Milestones: The application must contain a table with milestones that private sector player and ATI will track during the implementation of this program.

The applications will be evaluated according to the evaluation criteria set forth below and to responsible applicants whose applications offer the best value.

Urgency Private sector-led interventions that can provide ready-to-implement activities to address access, availability, and affordability in the cereal and legume value chains. (25%)

Scalability: Inclusive and sustainable interventions that can prove impact at scale in the cereal and legume value chains while building resilient food systems. (25%)

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 across the country. (25%)

Additionality: Interventions that demonstrate value of USAID support in enabling market-based approach that achieves intended outcomes. (25%)

• The prospective grantee will have capacity to conduct activities with proficiency in French and a strong understanding of Burkina Faso as well as the local players within the agricultural sector and an understanding of the challenges in accessing credit in Burkina Faso.

Who Can Apply for the grant?

Eligible applicants:

• Applicants must demonstrate that it falls into one of the grantee categories below:
  • Private Sector Companies: Local (within Burkina Faso) and international firms (outside of Burkina Faso). International firms must demonstrate a clear understanding of Burkina Faso’s local context and must demonstrate existing relationships with relevant local stakeholders. Burkina Faso firms will be given preference in the selection process.
  • Foreign Organizations (referred to as non-U.S. NGOs): either nonprofit or for-profit organizations that meet the definition in 2 CFR 200.47. 
  • Non-profit Organizations: organizations that meet the definition of 2 CFR 200.70.
• 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

Application documents must include the following

• Complete Annex A. 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 B. 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 C. 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 D. 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.

Applications must be submitted in English. Applicants can use any translation tool or service of their preference. Applicants will not be evaluated on the quality of the translation.

Page Limitation: Applications should be specific, complete, presented concisely and 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. Complet Appendix A. Grantee Nationality Self Certification Form.

Submission Instructions:

To apply for funding interested applicants must submit all applications (including all annexes) via the RFA-03-Burkina Faso (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.
• 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.