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INNOVATION FUNDING OPPORTUNITY

 

Issuance Date:               17 Jan 2022

Closing Date:                17 Feb 2022

 

Subject:                       Enterprise Investment Funding Opportunity RRA/EIF/03

INNOVATING BUSINESS MODELS IN NORTHEASTERN NIGERIA

 

Reference:                   Issued RRA/EIF/03

 

Through this Funding Opportunity, the USAID-funded Feed the Future Nigeria Rural Resilience Activity (RRA or the "Activity") aims to identify potential partners and innovative approaches that leverage USAID resources to develop practical and market-driven solutions to implement innovative business models targeting smallholder farmers, youth, women, and micro-enterprises who have been affected by the protracted conflicts in North Eastern Nigeria. 

 

RRA is a Feed the Future initiative funded by the United States Agency for International Development (USAID), implemented by Mercy Corps in partnership with Save the Children International (SCI) and International Fertilizer Development Center (IFDC). The goal of the Rural Resilience Activity is to 'facilitate and protect economic recovery and growth in vulnerable, conflict-affected areas and sustainably move people out of chronic vulnerability and poverty via expanded opportunities'. This goal will be achieved through the following four major components. The Activity seeks to increase incomes, improve the livelihood and resilience of households through market-led growth in 4 States in North-Eastern Nigeria (Borno, Adamawa, Yobe, and Gombe state). 

 

The Rural Resilience Activity is seeking applicants who can propose activities that can ultimately benefit crop farming, Livestock production (Feed, trade, Veterinary)  food processing, smallholder farmers, and microenterprises in at least one of the following objective areas:

1. Creating access to premium-priced output markets by promoting new supply-chain structures (like contract farming and out-grower schemes, Livestock trade and feed processing ), new and structured relationships between off-takers/processors and farmers. Models that increase access to post-harvest storage, warehousing, and processing services to reduce wastages and increase farmers’ productivity.
2. Innovating business models to drive and encourage agricultural market competitiveness through innovative and improved access to agricultural inputs (Fertilizer and Seeds), market transparency, sustained productivity by improving farmer knowledge on Good Agronomic Practices (GAP).

 

The Activity seeks to offer, subject to the availability of funds, 8 grants to eligible companies, as defined in Section D, up to a maximum amount of US $400,000 per award. Amounts above this value may be approved if one applicant works in more than one state where the Activity is currently implementing. The expected duration of RRA support or the period of performance is twelve (12) months.  Mercy Corps, as the primary implementer of the Feed the Future/Nigeria Rural Resilience Activity, reserves the right to fund any or none of the proposals submitted.   

 

For this program, this funding opportunity is being issued and consists of this cover letter and the following:

     Section A – Statement of Objectives

     Section B – Requirements

     Section C – Selection Process

     Section D –Evaluation Criteria

 

Award will be made to the responsible applicant(s) whose application(s) offers the best value for money. 

 

Issuance of this funding opportunity does not constitute an award commitment on the part of RRA, nor does it commit RRA to pay for costs incurred in the preparation and submission of an application.  Applications are submitted at the risk of the applicant.  All preparation and submission costs are at the applicant's expense.

 

Any questions concerning this funding opportunity should be submitted in writing not later than ten (10) days before the closing date shown above to 17^th Feb 2022 at ng-consultancy@mercycorps.org. Applicants should retain for their records one copy of all enclosures which accompany their application.

 

Thank you for your interest in Feed the Future/Nigeria Rural Resilience Activity activities.

 

Sincerely,

 

 

 

Margarita Aswani

Chief of Party, Feed the Future Nigeria Rural Resilience Activity 

 

 

Section A: Statement of Objectives 

1. To improve access to sustainable output, having access to guaranteed markets and prices for farmers’ output, higher levels of capacity utilization by Agro-processors/aggregators and the adoption of quality control measures in trading between smallholders and their off-takers.
2. To drive innovative and unique sales models for large scale input dealers and platforms that encourage competitiveness of agri-markets.
3. To ensure access to CAHW services among, competitive and profitable feed system and improve the relationship between various actors and across livestock value chains. 

 

Problem Statement

In North Eastern Nigeria, a major concern is that smallholders producers are faced with several challenges that hinder them from scaling up or gaining access to markets, thereby limiting their productivity and profitability. One of those challenges includes farmers selling their produce in the open market without guaranteed sale volumes or prices. The Activity will promote contract farming to link small producers to modern markets where the capital, technology, and market access constitute key limiting factors, supporting the commercial production of crops with GAP training, improved inputs (seed, chemical & Fertilizer) at subsidized rates; strong extension services, soil testing, and most especially produce off taken at the end of the production cycle; this process will ensure that the productivity, sales and revenue of each farmer per hectare is increased. 

 

Section B: Special Grant Requirements

The Activity grant aims to support grain off takers and/or processors, large scale suppliers of agricultural inputs to build sustainable relationships with smallholders farmers and producers or sub-dealers in their supply chains. Specifically, this funding opportunity seeks to leverage networks of rural households served by private sector firms such as agro-dealers and off-takers with contract out-grower schemes to:

1. Enable companies to innovate a business model that offers mutual benefit between them and farmers especially youth, and women in NEN.
2. Support companies to expand, strengthen aggregation, private extension, and digitized networks of farmer suppliers and customers and/or build their capacities.
3. Support companies to grow sales, leverage investments, increase their customer base, etc., and to deepen their impact.

 

RRA seeks to identify private sector firms that are already in the business of offering services to smallholders such as either input distributors, agri-services providers, traders, processors, off-takers, agri-tech providers and out-grower models. Larger companies will identify the aggregators, retailers, and agents. The Activity seeks to reduce market distortions arising from the infusion of grant funds. Care should be taken to ensure that the structure of the promotion or discount does not negatively affect long-term market sustainability. 

 

4. The award will be directly managed by the Rural Resilience Activity with USAID support. This solicitation intends to enter a business metric-based Actual Expenses incurred that includes interventions that fit the evaluation criteria outlined in Section D below.
5. The number of partnerships available will be determined based on interest, funding available, and quality of proposals. The proposed projects are anticipated to begin by March 2022 and end on or before February 2023. However, proposals could be submitted for multi-year activities over multi-year phases, with phase 1 to cover a maximum of one year.
6. The total value of each award from the Rural Resilience Activity for this solicitation is estimated at US$400,000 with 8 partnerships anticipated. Proposals must make business sense for the partner and must demonstrate a significant impact for smallholder farmers and MSMEs.
7. As the amount of an award is subject to negotiation, a negotiated award amount may or may not fall within this range. Furthermore, the Rural Resilience Activity is not obligated to issue awards/an award up to the number of funds available. Grantees may be required to cover and create leverage of minimum over the next one year of 40% of the total cost.
8. Application reviews will take place in February 2022. All applicants will be notified of their application status at this time. Note that immediate negotiations and site visits will occur with successful applicants around March 2022. Site visits and other engagements requiring physical interactions will take into consideration relevant COVID-19 guidelines from the Federal and targeted State Governments in Nigeria. Please make sure the proposed project manager and a decision-maker will be available at that time since negotiations and site visits are required steps in the award process for selected applications.

 

Award Performance Management 

RRA will work with the awardees' award. The awardees will specifically be required to provide assorted monitoring and evaluation data to RRA such as:

• # Of farmers reached through the various activity
• # Names of beneficiaries, their locations, gender, age and  value chains and farm coordinate 
• # Type of products purchased/sold including volume and cost
• # Success/ impact stories and sustainability plans 

This funding opportunity is expected to generate business for the participating private sector companies enabling their recovery from Covid-induced low commercial activity. This in turn is expected to position the private sector companies and the targeted households and communities to strengthen the development and implementation of their adaptive, responsive and transformative capacities to enhance resiliency. RRA will monitor various parameters to determine companies’ resiliency and adaptation to covid business environment through tracking the following against baseline data:

• # Volume and value of inputs sold on the market
• # Of staff employed by the companies 
• # Of embedded services provided by the companies  

Awards under this Innovation Funding Opportunity will be time-bound and monitored to keep track of the promotional and discount offers provided to farmers. Awardees will have a deadline, after which time they will be required to engage with the farmers without further discounts. 

 

Section C: Selection Process

Within ten (10) working days of the deadline for submitting expressions of interest, a technical review panel will convene. RRA shall take steps to ensure that members of the review panel do not have any conflicts of interest or the appearance of such about the organizations whose applicants are under review.  An individual shall be considered to have the appearance of a conflict of interest if that person, or that person's spouse, partner, child, a close friend or relative works for or is negotiating to work for, or has a financial interest (including being an unpaid member of a Board of Directors) in any organization that applied currently under the panel's review.   Members of the panel shall neither solicit nor accept gratuities, favors, or anything of monetary value from parties to the awards.  

 

The status of the application received, whether accepted or rejected, shall be communicated to all applicants within thirty (30) days. All Applications that meet the Innovation Funding Opportunity requirements will be reviewed by the review panel.   

 

Eligibility

For this Innovation Funding Opportunity RRA is interested in partnering with for-profit private sector companies

foreign organizations (referred to as non-U.S. NGOs): either non-profit or for-profit organizations that meet the definition in 2 CFR 200.47 can apply as part of a consortium. However, the lead applicant

must be legally registered in Nigeria. Applicants have a DUNS number (a nine-digit identification number required for all procurement-related activities). A DUNS number is not required for application, but will be required for receipt of the award. Social enterprises such as community-based organizations with commercial business models. Applicants must be Nigerian licensed and legal private input companies, business organizations/associations/cooperatives working in Nigeria with established office(s) in State(s) intending to operate on this project or willingness to establish an office within the first month of implementation is successful. Individual consultants will not be considered for this NOFO. 

 

Information meeting

The information meeting will provide an opportunity for interested applicants to learn more about the opportunity and the process. Attendance at the information meeting is an optional requirement by applicants. If interested in participating, applicants should send an email requesting interest to participate in an information meeting to ng-consultancy@mercycorps.org and a meeting will be organized for applicants individually or as a group and as appropriate.

 

Section D: Evaluation Criteria

Upon submission, the RRA Team will evaluate all applications using the following criteria:

Category

A. Feasibility of design & Technical Approach ●        Viability of the proposed technical approach (i.e., the proposed technical approach can reasonably be expected to produce the intended outcomes) ●        Contribution of the proposed approach to RRA’s objectives and expected results.

B. Impact on Target Group ●        Does the approach correspond to the needs of the target groups (farmers, processors, traders, MSMEs) and directly benefit them? ●        Ability to enable targeted actors to earn reasonable and sustainable returns based on a clearly articulated business case.

C. Management & Programmatic Capacity  ●        Capability to undertake and accomplish the proposed activities.       Demonstrated ability to mobilize into Northeast Nigeria through available networks or existing presence.

D. Sustainability/Commercial viability Ability to build and strengthen the capacity of small-scale traders and farmers. Can the activity be sustained by the organization beyond the grant?

E. Inclusivity Does the proposed activity incorporate a gender component or represents a strong commitment to including women, youth, disabled and other vulnerable groups as beneficiaries?

F. Past Performance Evidence of previous or ongoing experience implementing similar activities.

G. Cost Efficiency Evidence of achieving desired result with a reasonable amount of cost as compared to its competitors and any other alternatives. Costs will be evaluated in equal weight for cost effectiveness and cost realism of the application.

Submission

All submissions should be sent to ng-consultancy@mercycorps.org on or before 17th February, 2022.