The Agribusiness Challenge Fund is a significant opportunity for Small and Medium-sized Enterprises (SMEs) in the agricultural sector to receive substantial financial and technical support. The Mastercard Foundation Fund for Resilience and Prosperity is a US$ 126 million Fund established in 2023 that aims to support Small and Medium sized Enterprises (SMEs) across three sectors in 20 countries in Sub-Saharan Africa.
If you’re considering applying or simply want to understand what this fund entails, here are 20 key things you should know:
1. Rolling Call for Proposals
The Agribusiness Challenge Fund operates with a rolling call for proposals, meaning applications are accepted continuously from March 18, 2024, until the final deadline on November 22, 2024.
2. Harvest Periods
There are three “harvest” periods within the application window where submissions are collected and assessed. The deadlines for these periods are June 7, August 30, and November 22, 2024.
3. Global Eligibility
The Fund is open to SMEs from any country, provided the project is implemented in one of the 20 focus countries in Africa.
4. Funding Range
SMEs can request grant funding ranging from USD 500,000 to USD 2,500,000, depending on the project’s development stage, scalability, and business model.
5. Three-Year Disbursement Period
The grant funds are disbursed over a three-year period, with releases tied to agreed-upon milestone targets.
6. Tailored Technical Assistance
In addition to financial support, successful applicants will receive customized technical assistance aligned with the Fund’s objectives, ensuring the long-term success of the projects.
7. Primary Focus Areas
The Fund is particularly interested in projects related to primary production, processing and aggregation, and trading and market linkages within the agriculture sector.
8. Value Chain Categories
The Fund supports a wide array of agribusiness activities, including forestry, fishing, horticulture, plant breeding, and various cash crops such as cocoa, cotton, coffee, and tea.
9. Diverse Agricultural Interests
Beyond traditional farming, the Fund encourages projects in livestock (dairy, beef, goats, pigs, poultry), solar-powered agricultural tools, early warning systems, and climate-resilient crop varieties.
10. Innovation and Scalability
SMEs applying must present innovative, practical, and scalable business models that have the potential to create employment opportunities, particularly for young women, men, people with disabilities, and refugee youth.
11. Climate Adaptation and Digital Integration
Applicants are encouraged to integrate climate adaptation, climate mitigation, or digital aspects into their projects, reflecting the Fund’s commitment to sustainable development.
12. Matching Contribution Requirement
Eligible SMEs must provide a matching contribution of at least 30% of the total project cost, demonstrating their commitment and ability to leverage the grant effectively.
13. Adherence to Human Rights and Environmental Standards
All applicants must adhere to fundamental human rights, labor standards, and environmental management laws, both nationally and internationally.
14. Exclusion of Terrorism-Related Activities
The Fund strictly prohibits any involvement in or support for terrorist activities, ensuring all funded projects align with global peace and security standards.
15. Comprehensive Selection Criteria
Applications will be assessed based on project description and objective, alignment with Fund priorities, project impact, financing plan, team structure, and additionality (how the project adds value beyond what is currently available).
16. Support for Agribusiness in Africa
The 20 focus countries for the Fund are all located in Africa, emphasizing the Fund’s mission to bolster agribusiness development on the continent.
17. Strategic Alignment with Resilience and Prosperity
Projects must align with the Fund’s overarching goals of enhancing resilience and promoting prosperity within the agricultural sectors of the focus countries.
18. Significant Job Creation Potential
The Fund places a strong emphasis on projects that can generate work opportunities for youth, particularly in underserved or vulnerable populations.
19. Important Application Deadlines
Mark your calendar with these crucial dates: June 7, August 30, and November 22, 2024. These are the cut-off dates for each harvest period where applications will be reviewed.
20. Final Application Harvest
The final application harvest on November 22, 2024, marks the end of the Fund’s call for proposals, concluding this opportunity to secure significant support for agribusiness projects.
The Agribusiness Challenge Fund represents a substantial opportunity for SMEs in the agricultural sector to receive both financial and technical assistance. By focusing on innovation, scalability, and alignment with key priorities, applicants have the chance to make a meaningful impact on agricultural development in Africa while fostering job creation and sustainable practices. If you’re an SME with a vision for the future of agriculture, this is an opportunity you shouldn’t miss. Apply now and be part of a transformative initiative that could reshape agribusiness in Africa.
