Annual Program Statement (APS) No: CNFA-HW-APS-001-2023

for Co-Investment Fund Partnerships with the

Feed the Future Rwanda Hinga Wunguke Activity 

Issuance date: August 16, 2023,  

Dear Applicant, 

The Feed the Future Rwanda Hinga Wunguke Activity (Hinga Wunguke) is releasing an Annual Program Statement (APS) to identify Co-Investment Fund (CIF) partnerships that will result in grant awards in support of its activities. CIF partnership activities will apply a market systems development (MSD) approach and be demand-driven, competitive, and performance-based. In line with this approach, Hinga Wunguke is seeking Concept Notes from market actors, including but not limited to agribusinesses, processors, food companies, input suppliers, service providers, financial institutions, producer organizations, or local NGOs. Eligibility criteria are outlined in Section 2 and instructions for completing the application can be found in Annex I. 

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Hinga Wunguke invites applicants to submit applications for CIF partnership activities that will contribute to achieving the following objectives:

• Increase agricultural productivity and incomes for farmers
• Facilitate access to finance for farmers and agribusinesses
• Improve marketing and increase the availability of nutritious foods
• Increase consumer demand for and consumption of nutritious foods
• Strengthen the enabling environment for market-driven agriculture 

Geographic Requirements. Partners are required to be located within and/or directly targeting beneficiaries within Hinga Wunguke’s targeted districts: Bugesera, Ngoma, Kayonza, Gatsibo, Gakenke, Burera, Nyabihu, Rubavu, Rutsiro, Ngororero, Karongi, Nyamasheke, and Nyamagabe. 

Target Value Chains. Partners are required to be working within or indirectly influencing the following Hinga Wunguke 11 value chains: maize, Irish potatoes, sweet potatoes (orange fleshed and other varieties), beans (high iron beans, french, fresh beans, other varieties), soybeans, tomato, carrots, passion fruit, avocado, mango, and peas (dry and green peas).

Co-Investment Fund partnerships will result in formalized grant awards between Hinga Wunguke and the award recipient(s) to co-invest in new and sustainable business models or technologies, expanding existing models to new geographies or new food products, and improving inclusion of women, youth, and people with disabilities in food market systems. Partners will be required to contribute a cost-share investment to ensure ownership and sustainability of interventions supported by the CIF (requirements are described under Section 4.3). The CIF will be administered in accordance with the USAID and US Government rules and regulations, CNFA policies, and the Hinga Wunguke CIF Manual. 

Please note that applications in response to this APS can be submitted at any time leading up to the closing date and will be evaluated based on funding availability, programmatic needs, and staffing resources available from Hinga Wunguke. Applications will be reviewed on a rolling basis and awarded depending on the availability of funds. For any questions during the CIF application process, please contact coinvestmentfund@cnfarwanda.org    

The present APS contains the following documents: 

Annex 1:  APS Application Form, containing:

  Part 1: General information of the applicant

  Part 2: Concept note application

Attachment 1: Applicant cover letter

Attachment 2: APS checklist

Essential information related to this APS is summarized in the following table:

SECTION I. PROGRAM DESCRIPTION

1.1. Overview of the Feed the Future Rwanda Hinga Wunguke Activity  

Launched in January 2023, the Feed the Future Rwanda Hinga Wunguke Activity is a five-year USAID-funded initiative implemented by Cultivating New Frontiers in Agriculture (CNFA) in consortium with Market Share Associates (MSA). Using a market systems development (MSD) approach, Hinga Wunguke will increase incomes and improve nutritional outcomes by sustainably increasing agricultural productivity and strengthening domestic consumption of and markets for nutritious agricultural products. Hinga Wunguke is designed to achieve four complementary objectives: (1) sustainably increase agriculture productivity, (2) increase farmer and agribusiness access to finance, (3) improve market and nutrition outcomes for producers, and (4) strengthen the enabling environment to foster market-driven agriculture.

1.2. Hinga Wunguke Co-Investment Fund (CIF) 

The CIF is one of the main mechanisms through which Hinga Wunguke will operationalize strategy, formalize partnerships and achieve project objectives. The CIF will be used to leverage private sector investment and formalize partnerships with market actors to inclusively strengthen food market systems in the Hinga Wunguke target districts. The overall purpose of the CIF is to co-invest with market actors that have innovative ideas that align with the objectives of Hinga Wunguke but lack resources or have a low appetite for risk. Hinga Wunguke will seek to identify these opportunities and provide grants to these market actors where possible and practical. 

The CIF serves as a vehicle for introducing innovations, new technologies, and business models that, once proven successful, can be scaled up and replicated by entrepreneurs and other market actors. CIF partnerships will be demand-driven, competitive, and performance-based. Grants will help to “buy down” risk but will be developed in such a way as to foster realistic cost sharing to enhance the potential for long-term financial sustainability. Grant investments will be used for several purposes, depending on the needs of the specific partner, and will make improvements along the selected value chains and support services while also including support for women, youth, people with disabilities, and underserved areas and communities. As an MSD project, target activities and partner grantees may be identified and further detailed through market systems and nutrition analyses and assessments. 

Hinga Wunguke recognizes that some co-investment partners may need capacity building support or technical assistance to carry out these activities. Applicants are encouraged to specify their needs for technical assistance and/or training in their application, which will be considered for approval and funding on a case-by-case basis. Please refer to Section 2 for complete eligibility information.

1.3.   Partnership Interventions 

Hinga Wunguke CIF partnership activities will benefit a variety of market actors with the ultimate goal of increasing incomes and improving nutritional outcomes by sustainably increasing agricultural productivity and strengthening domestic consumption of and markets for nutritious food products. Partners must be willing to address an identified constraint, have the capacity and skill to deliver the solution (or be willing to accept necessary capacity building), and be able to deliver a sustainable solution. Hinga Wunguke invites potential partners to submit applications that contribute to achieving the above-mentioned objectives. Please note that Hinga Wunguke understands and expects that many partnership interventions will be cross-cutting in nature and contribute to multiple objectives. 

Sustainably Increase Agricultural Productivity and Incomes for Farmers

• Increasing adoption of climate-smart agricultural practices and integrated soil fertility management.
• Increasing access to and use of services, including but not limited to private agricultural extension services, digital tools/services, agricultural mechanization, and production related tools/services, such as weather/climate information, pest management services, early-warning notices, crop insurance, etc.
• Improving access to and use of quality agricultural inputs and services (e.g., climate smart seeds, mineral fertilizers, lime, crop protection products such as pesticides and fungicides, and technologies).
• Promoting and improving access to technologies that contribute to increased agricultural productivity and increased resilience to shocks and stressors, such as droughts, flooding, erratic weather patterns, crops pests and diseases.
• Improving land management practices (e.g., soil erosion control, soil water resources management, natural resources management, agroforestry, etc.).
• Increasing availability and use of genetic materials for bio-fortified crops, such as high iron beans, orange fleshed sweet potatoes (OFSP), vitamin A maize, etc.
• Partners in input supply and agriculture equipment wishing to finance their business growth.
• Existing input and technology supply companies looking to expand their inclusion of women, youth, and people with disabilities as customers, clients, staff, managers, partners, etc.
• Other innovative concepts or business models that will sustainably increase climate-smart agricultural production and incomes for farmers in the Hinga Wunguke target districts and nutritious value chains. 

Increase Access to Finance for Farmers & Agribusinesses

• Developing or expanding innovative business models or technology that will increase lending to actors in target value chains.
• Increasing availability of new financial products or services for farmers, agribusinesses, or savings groups, with focus on inclusion of women, youth, and people with disabilities.
• Increasing trust and cooperation between lenders and borrowers.
• Developing products that encourage agribusinesses, food companies, or entrepreneurs to prioritize climate-smart practices (e.g., climate-smart supply chains, reduction in post-harvest losses, and reduction in food waste).
• Increasing investment in sustainable agriculture businesses, covering adaptation measures to climate change.
• Expanding business development or incubation services for agribusinesses, entrepreneurs or others will contribute to reducing perceived risk in agricultural lending.
• Increasing specific financing or investment to businesses owned by women, youth, or people with disabilities in the agriculture or food sectors. 

Improve availability of and supply of affordable nutritious foods

• Promoting innovative concepts or business models that will improve marketing and increase availability of targeted nutritious foods in the Hinga Wunguke districts.
• Developing or expanding retail distribution networks for nutritious food products to rural areas of Rwanda.
• Increasing farmers’ access to profitable markets for high-value and nutritious agricultural products (e.g., business linkages between producers and buyers, rural food industry business models, etc.)
• Supply chain integration, supply chain development and/or improving supply chain management for nutritious food products.
• Increasing farmers’ access to market information, contributing to linkages with buyers.
• Improving access to and use of Post Harvest Handling and Storage (PHHS) technologies and infrastructure, including processing and value addition technologies (e.g., quality of produce, dryers, food machinery, food processing, food packaging, etc.).
• Expanding geographic scope or product offerings for aggregators and distributors of nutritious foods.
• Innovative business models that will reduce food loss and food waste.
• Improving quality standards to meet national certifications for food safety and fortification requirements. 

Increase Consumer Demand for and Consumption of Nutritious Foods

• Improve advertising, branding, and/or packaging of nutritious food products to increase desirability.
• Promote business models that prioritize understanding and responding to consumer preferences, expectations, and constraints regarding nutritious foods to increase desirability and accessibility.
• Expand agri-food businesses, food companies and vendors of nutritious food products with strategies for a) responding to growing consumer demand for safe, nutritious foods, and b) understanding and responding to consumer preferences and constraints.
• Improve product specifications (e.g., taste, aroma, packaging, size) to respond to consumer preferences and/or constraints.
• Adopt certifications and quality improvement standards that respond to consumer expectations and/or increase the desirability of a product.
• Increase consumer demand for and consumption of nutritious foods in the Hinga Wunguke target districts, with specific focus on improving diets of women and children under two. 

Strengthen the Enabling Environment to Foster Market Driven Agriculture

• Innovative solutions or business models that will address challenges and strengthen the enabling environment to foster market driven agriculture in the Hinga Wunguke target districts.

SECTION II. ELIGIBILITY 

2. Overall 

Hinga Wunguke will consider all applicants, however priority will be given to projects that impact larger numbers of beneficiaries, address under-served populations, including women, youth, people with disabilities and disadvantaged groups, and/or create significant numbers of sustainable new jobs when selecting potential partners.

2.1.  Eligible Partners 

Applicants in response to this APS must be legally registered, public or private, Rwandan entities (Ltd, Cooperative, Individual Enterprise, socio enterprises, etc.). Formal CIF grant support under this APS may be extended to the following market actors working in the Hinga Wunguke target districts and target value chains:

• Agribusinesses and agri-food businesses
• Producer organizations or agricultural cooperatives
• Agricultural input companies or input suppliers
• Seed producers and distributors
• Micro, small, and medium enterprises (MSMEs) in target value chains
• Business development service providers and business associations
• Information and Communication Technology (ICT) companies
• Financial institutions, including digital finance organizations or enterprises
• Aggregators, traders, wholesalers, and food retailers
• Cold chain service providers
• Food storage facilities or food waste reduction enterprises
• Sorting/grading centers
• Processing facilities
• Machinery manufacturers or service providers
• Private investors with lending/credit schemes to support market actors
• Financial institutions
• Local associations or NGOs

This is an illustrative list, and other types of market actors with proposed partnership activities may be considered

2.2. Additional conditions of eligibility

To be considered eligible for grant receipt, applicants must meet the following eligibility criteria: 

• Be legally registered Rwandan entity.
• Have or be willing to obtain a Unique Entity Identifier (UEI) (see Section 4.3: Unique Entity Identifier)
• Be located within or directly target beneficiaries within Hinga Wunguke’s targeted geographic zone.
• Objectives of the proposed partnership activity must be aligned with Hinga Wunguke objectives and results
• Have the ability to impact a significant number of beneficiaries, leading to increased employment and incomes or other Hinga Wunguke expected outcomes.
• Be willing to contribute cost-share contribution and meet cost-share requirements (see Section 4.1: Cost Sharing)
• Be willing to submit a detailed application – through a solicitation or unsolicited – responding to Hinga Wunguke’s requirements and conditions, which will include a full budget that demonstrates cost-share.
• Be committed to adhering to high ethical business standards, including transparency in business dealings and record keeping
• Be implementing Rwandan Accounting Standards
• Be prepared to undertake an independent financial review or audit, as requested
• Demonstrate ability to maintain business, financial, and technical records, either manually or electronically
• Ensure compliance with Rwandan and USAID environmental standards. Hinga Wunguke will conduct an environmental assessment and reserves the right to disqualify those applicants not in compliance with these standards.
• Complete and pass a site-visit and pre-award assessment, as applicable
• Agree to and sign the applicable certifications, such as the Certification Regarding Lobbying; Certification Regarding Terrorist Financing; Prohibition on Assistance to Drug Traffickers; and Certification of the Recipient
• Agree to the terms and conditions of the Mandatory Standard Provisions and Required as Applicable Provisions for Non-US NGOs, if applicable
• Certify that the organization/individual is not debarred, suspended, or proposed for debarment from receipt of USG funds.

2.3. Ineligible activities and unallowable costs

Hinga Wunguke co-investment funds cannot be utilized for the following:

• Private ceremonies, parties, celebrations, or "representation" expenses.
• Purchases of restricted goods, which include agricultural commodities, motor vehicles, pharmaceuticals, pesticides, used equipment, or fertilizers, without the prior waiver and approval provided by Hinga Wunguke. Purchase of these goods requires additional approvals from USAID before they may be allowed and procured. As such, applicants are discouraged from requesting funding for these restricted goods unless the goods are necessary to the accomplishment of the grant objectives.
• Ineligible goods under USAID regulations, including but not limited to; military equipment; surveillance equipment; police or law enforcement equipment; abortion equipment and services; weather modification equipment; luxury goods; and gambling equipment.
• Any purchases or activities deemed unnecessary to accomplish CIF purposes as determined by Hinga Wunguke, including any headquarters expenses that are not directly linked to the implementation of the proposed project.
• Previous obligations and/or bad debts.
• Fines and/or penalties.
• Creation of endowments.
• Indirect costs such as, but not limited to, overhead or indirect fringe, unless the applicant has documented proof of such rates through audits or USAID-issued NICRA; and
• Costs that may effect endangered species, result in wetland or biodiversity degradation or loss, support extractive industries (e.g., mining and quarrying), promote timber harvesting, provide support for regulatory permitting, or procure or use genetically modified organisms
• Any other costs unallowable per 2 CFR 200 Subpart E – Uniform Administrative Requirements, Cost Principles, for Federal Awards.

2.4.  Ineligible organizations

The following entities are not eligible for co-investment funding:

• Entities that are not legally registered.
• Any public international organization (PIO).
• Any entity that has been found to have misused USAID funds in the past.
• Political parties, groupings, or institutions or their subsidiaries and affiliates.
• Organizations that advocate, promote, or espouse anti-democratic policies or activities.
• Faith-based organizations whose objectives are for discriminatory and religious purposes, and whose main objective for the co-investment is of a religious nature.
• Any entity whose name appears on the List of Parties Excluded from Federal Procurement and Non-Procurement Programs (http: //www.epls.gov/).
• Any entity with a member that appears on the Office of Foreign Assets Control (OFAC) Specially Designated Nationals (SDN) and Blocked Persons list.
• Any entity whose name appears on the United Nations Security Council Consolidated List.
• An entity having as key staff a direct relative (spouse, child, parent or brother/sister/sibling) of CNFA or USAID staff, unless this is identified in the grant application and issues of conflict of interest are addressed.
• Entities or members engaged, transacting with, or providing resources to individuals or organizations associated with terrorism.
• Entities or members engaged in any activities related to Trafficking in Persons.
• Entities which have been debarred, suspended, or otherwise considered ineligible for an award by the US Government.

SECTION III. APPLICATION SUBMISSION INFORMATION 

3.1. Question and Submission Requirements

Any questions related to this APS must be submitted to Hinga Wunguke at coinvestmentfund@cnfarwanda.org Hinga Wunguke will publish responses to questions related to this APS on a rolling basis until January 15, 2024 prior the closure of the present APS.

Questions must be submitted in writing; phone calls will not be accepted. Questions and requests for clarification—and the responses thereto—that CNFA believes may be of interest to other offerors will be circulated to all APS recipients who have indicated an interest in submitting Applications. Only the written answers issued by CNFA will be considered official and carry weight in the APS process and subsequent evaluation. Any verbal information received from employees of CNFA, or any other entity should not be considered as an official response to any questions on this APS.

3.2.  Application Submission Requirements 

Applications under this APS must be filled using the application form provided in Annex A, in English. Applicants are encouraged to submit applications on a rolling basis. Applications and any other required supporting documentation should be submitted in an electronic zipped form to coinvestmentfund@cnfarwanda.org, no later than 11:59PM local time (Kigali) on January 31, 2024. Applicants must strictly adhere to the requirements of this APS. 

Shortlisted applicants will be contacted for further steps of the application processes.  Please include the APS number in any response to this APS.

SECTION IV: EVALUATION AND SELECTION

The following are core competency areas that may be considered in evaluating and scoring submitted applications in response to this APS: