Provide financial assistance in the form of seed funds, trade finance and provide linkages to local financial institutions to coffee cooperatives

Proposal
Provide financial assistance in the form of seed funds, trade finance and provide linkages to local financial institutions to coffee cooperatives (with a preference to youth and/or women led) for business plan financing

1. INTRODUCTION
Solidaridad Network is an international solution-oriented civil society organisation working through eight regional expertise centres to transform markets to make them more sustainable and inclusive. Our eight regional expertise centres include Asia, Eastern and Central Africa, Europe, Latin America, North America, Southern Africa, South America, West Africa and our global Secretariat in the Netherlands. Solidaridad Eastern and Central Africa, one of the regional centres, is headquartered in Nairobi, Kenya with country offices and programmes in Democratic Republic of Congo, Ethiopia, Tanzania and Uganda. Solidaridad works in over 13 commodities; however, for East Africa the common commodities include Tea, coffee, Sugarcane, aquaculture, Livestock, Dairy, Textiles, Cotton, leather, fruits and vegetables, Cocoa, Oil palm and Gold. We bring together players across key commodities and engage them with innovative solutions to improve production, ensuring the transition to a sustainable and inclusive economy that maximizes the benefit for all.

2. PROJECTS BACKGROUND
Passport to Coffee Export (PACE) is a three years’ project that seeks to promote a sustainable and inclusive sector development through a robust export oriented coffee value chain by 2023.The project targets approximately 22,500 coffee smallholder farmers in Mbeya, Ruvuma and Songwe regions in Tanzania.
2.1 PROJECT OBJECTIVES
Uzunguni area, Sekoutoure road | P.O Box 544 Arusha | Tel: +255784936392 |

PACE’s overall objective is to promote a sustainable and inclusive sector development through a robust export oriented coffee value chain by 2023.
To achieve this, the action has set four specific objectives:

i) Improving export oriented coffee sector
ii) Increasing incomes through job creation
iii) Enhancing food and nutrition security of smallholder coffee farmers; and
iv) Enhancing sectoral value addition and marketing.

2.2. PROJECT OUTCOMES
i. To improve productivity and enhance food and nutrition security of smallholder coffee farmers in Tanzania
ii. To increase incomes for coffee farmers in Tanzania through job creation.
iii. To improve export oriented coffee sector sales and incomes in Tanzania
iv. To enhance sectoral value addition and marketing

3. Financial assistance in the form of seed funds, trade finance
To enhance sectoral value addition and marketing is one of the specific objectives implemented under Passport to coffee Export (PACE) project (SO 4:). The SO aims to enhance private sector development, locally, regionally and internationally and strengthen linkages with the private sector to provide access to professional services, credit facilities, farm inputs and market access for small-scale farmers and their cooperatives and to develop high potential investment cases to access finance from impact investors and/or from the crowdfunding platform PlusPlus respectively.
Solidaridad will utilise her wealth of experience in pitching the youth and women business cases and investments in coffee processing targeting its beneficiaries (cooperatives) to multiple impact investors.

3.1 Funding
The AMCOs will be expected to match up 50% of the requested grant amount, both in cash and in kind. However, the funds will be disbursed on a results basis as per agreed milestones.
The maximum seed capital allocated to the AMCOs, as well as the amounts of co-financing by the AMCOs may be changed on necessity, at Solidaridad’s sole discretion. This is subject to the changes in
Uzunguni area, Sekoutoure road | P.O Box 544 Arusha | Tel: +255784936392 |
[email protected]. www.solidaridadnetwork.org
the funding available and demand for the seed fund. During the implementation period, Solidaridad has a sole discretion either to increase or decrease its commitment to AMCO. This is mainly intended to ensure maximisation of the available resources for the greater good of the farmers.Generally, the funding will be governed by the bilateral financial agreement between the AMCOs and Solidaridad.

3.2 Allowed and disallowable costs The funds will ONLY be used for purposes that advance business growth through increased productivity and efficiency at the AMCO as well as welfare of the coffee farmers. The bottomline is that the benefits of the funds should directly trickle down to the farmers. Thus, any allowances, meetings, exchange learning trips are NOT allowed. Thus, it is meant to grow the AMCO and improve the welfare of farmers and nothing else.

4. Eligibility criteria for AMCOS
This call is restricted to AMCOs under the PACE project. Besides, the AMCO must satisfy the following requirements: –
● Must be willing and able to match finance the funds (cash and in kind);
● Have at least three years of uninterrupted business in the coffee sector with a focus on marketing and value addition of Coffee;
● Have an operating management and leadership structure that guarantees accountability and gives protection against potential conflicts of interest;
● Audited accounts for at least two years;
● Must demonstrate expanding outreach in terms of growth in portfolio and clients base in the target areas of operation as well as gender balance in outreach;
● Willingness to report to Solidaridad on progress of the interventions supported.

5. Deliverables and the Next step
Solidaridad Tanzania Country office, will offer financing to business plans and concepts that demonstrate sustainability, scalability, replicability and commercial viability for the benefit of smallholder farmers and their community. The grantees will also be required to meet 50% of the required funding
The project is planning to conduct assessment for capacity support that will allow the winning AMCOS;
i. To receive capacity building on the focus/intention and benefits of seed fund that will be provided
ii. Capacitate AMCOS leaders and staff on identifying and selecting the preferable business
iii. Capacitate AMCOS leaders and staff on preparation of business plans and concept notes.
iv. Review and submit the suggestions to the management for further technical steps and procedures.
Uzunguni area, Sekoutoure road | P.O Box 544 Arusha | Tel: +255784936392 |
[email protected]. www.solidaridadnetwork.org
v. To conduct on-going support during execution of the business plan.

6. Application
The applicant AMCO will need to submit a proposal according to the template attached as annex. The expression of interest will be open for 14 days.

6.1 Evaluation of the proposal
All the proposals submitted will be evaluated by a Grants Committee composed of the Investment Officer, Planning, Evaluation, Monitoring and Learning (PMEL) and project staff. The Committee will score the proposals according to the criteria hereby attached as Annex
The committee will communicate with all the applicants on the outcome of their proposals. Successful applicants will be called for final negotiation on deliverables to pave way for contracting.

7. Timelines
The following timeline is proposed;
Time and Milestones
1.23rd January 2023 – Open call for expression of interest & submission of proposal
2. 6th February 2023 – Closure for submission of Expression of Interest
3. 7th February – 17th February 2023 – Evaluation of Proposals and Due Diligence
4. 22th – 28th February 2023 – Negotiations and Contracting

8. Call for proposals
Please submit this form in both hard and soft copy to;
Solidaridad office- Mbozi (For Mbozi AMCOs)
Solidaridad office -Mbeya ( For Mbeya Rural AMCOs)
Solidaridad Office -Mbinga (For Mbinga AMCOs)

Full Proposal: https://drive.google.com/file/d/1G91PyBn60gZluMR0zuy5XUj8rriCa4VM/view?usp=share_link