SIP stands for the SAGCOT Investment Project. The SIP Project supports select aspects of the overall SAGCOT Initiative. SIP works to benefit smallholder farmers through investments that are financially, socially and environmentally sustainable, in line with its development strategy for Tanzania and Tanzania’s own National Strategy for Growth and Reduction of Poverty (Mkukuta II), specifically Cluster I, which calls for the “modernization and commercialization of private sector-based agricultural activities, through accelerating productivity growth and removing bottlenecks along agribusiness value chains.”
The Project aims to support innovative strategies to generate agricultural growth and poverty alleviation, through building successful partnerships between smallholder communities and agribusiness investors. It is also intended to contribute to “catalyzing” the integration of smallholder farmers into competitive agribusiness value chains to help create the opportunity for technology acquisition, productivity improvement and income growth of farmers.
The SAGCOT Initiative is a public-private partnership launched at the World Economic Forum on Africa in May 2010 in Dar es Salaam, Tanzania, and in Davos, Switzerland in January 2011, as a means to implement the country’s transformational agricultural vision, the Kilimo Kwanza. As outlined in the SAGCOT Investment Blueprint, the Government of Tanzania (GoT) seeks to attract USD 2.1 billion of new agribusiness investment over the next 20 years. To bring at least 350,000 additional hectares into commercial production, incorporating Tanzanian smallholders into internationally competitive supply chains. The SAGCOT Initiative aims to create at least 420,000 new jobs and lift more than 2 million people out of poverty.
SIP has three components:
- Component 1: Strengthening of SAGCOT support institutions (total USD 14.33 million, IDA USD 95 million). The component will support two institutions: (a) SAGCOT Centre Ltd. (total USD 11.83 million, IDA USD3.45 million); and (b) Tanzania Investment Centre (total USD2.5 million, IDA USD 2.5 million)
- Component 2: Strengthening smallholder business linkages (total USD 85.76 million, IDA USD 55.65 million). This component will comprise two sub-components:
(a) Fund Management (KPMG USD 7.79 million); and
(b) Matching Grants (USD 77.98 million, IDA USD 47.86 million).
- Component 3: Project management and monitoring and evaluation (total USD 8.41 million, (of which USD 3.80 million have been provided as a Project Preparation Advance (IDA USD 8.41 million).
The SAGCOT Investment Project (SIP) is financed by the International Development Association (IDA) of The World Bank through a loan to the Government of Tanzania (ref: The SAGCOT Investment Program (SIP), Project Appraisal Document, PAD 345, of February 4, 2016). It seeks to develop income-generating opportunities for 100,000 smallholderfarming households by providing them new technologies and improved farming practices, connecting them with markets and expanding partnerships with reputable agribusinesses in the Southern Agricultural Growth Corridor of Tanzania (SAGCOT).
The Project will be implemented over a period of 5 years; following its effective start in August 2016, it will run until August 2020, with Fund Manager contracted to manage the funds until 2022.
The World Bank financed SAGCOT Investment Project is structured to increase commercial benefit flows to smallholder farmers derived from the growth of existing agribusinesses that have clear, undisputed land titles and land rights. Only such agribusinesses are eligible for World Bank financing. SIP does not support investments that involve the reallocation of land from smallholders to agribusinesses or that involve the acquisition of new land by private investors.
In supporting SIP, the World Bank recognizes that Tanzania has one of the strongest land law frameworks in Sub-Saharan Africa for the protection of rural land rights. Under the 1999 Village Land Act, most rural land (70 percent of total land available in the country) has been placed under the control of villages and the Act includes robust procedures governing the reallocation of land to private investors.
Yes, and the Government of Tanzania (GoT) has since provided a “Letter of Sector Policy on Land” confirming its commitment to protect the land rights of rural households and village communities. And further ensures any land allocation to agribusinesses within the wider Initiative, will be based on community consent, with appropriate compensation and well defined sharing of benefits and commitment to partnership between the community and the investor. The GoT is also committed to ensure land allocations are transparent and publicly-documented.
As part of the discussions during preparation of the SIP, the GoT requested a waiver to the application of the World Bank Indigenous Peoples Policy (OP 4.10) stating that the policy was inconsistent with the Tanzanian Constitution which emphasizes unity and calls for equal treatment of all ethnic groups by not giving special preference to individual ethnicities.
The waiver requested was approved by the Bank’s Board of Executive Directors. A Vulnerable Groups Planning Framework (VGPF) was prepared to guide project implementation and includes measures to ensure that such groups would be involved in a process of free, prior and informed consultation; any adverse impacts on such groups are mitigated; that the groups benefit from the project in a socially appropriate manner; and a process for grievance redress is available to them. The VGPF includes monitoring and evaluation to assess the project’s impacts on and benefits for vulnerable groups.
The World Bank’s standard accountability mechanisms remain unchanged, including access to the Inspection Panel, the independent complaints mechanism for people and communities who believe they have been, or are likely to be, adversely affected by a World Bank-funded project.
For more information on the Project Coordination Unit, at the Prime Minister’s Office, in the SIP Project please contact firstname.lastname@example.org.
For information on SAGCOT Catalytic Trust Fund’s role in the SIP Project please contact email@example.com
For information on SAGCOT Centre Ltd’s role in the SIP Project please contact firstname.lastname@example.org
For information on Tanzania Investment Center’s role in the SIP Project please contact email@example.com
Southern Agricultural Growth Corridor of Tanzania (SAGCOT) Investment Project http://documents.worldbank.org/curated/en/621921468190165214/Tanzania-Southern-Agricultural-Growth-Corridor-of-Tanzania-SAGCOT-Investment-Project
and the Vulnerable Groups Planning Framework (VGPF). http://documents.worldbank.org/curated/en/684491468165274986/pdf/SFG1663-REVISED-EA-P125728-Box396313B-PUBLIC-Disclosed-10-4-2016.pdf
The SIP Matching Grant Fund Manager is KPMG-Tanzania, the International Development Advisory Services Group. All questions about the roles and responsibilities of the SIP Matching Grant Fund Manager should be referred to the SAGCOT CTF, since they manage the work which KPMG Tanzania has been contracted to do for the CTF. KPMG provides advisory services to CTF to ensure effective and efficient operation of the CTF MGF (Matching Grant Fund).
No, but you can get in touch with SAGCOT Catalytic Trust Fund’s Executive Secretary, John Kyaruzi, on firstname.lastname@example.org.
What is SAGCOT Centre Ltd?
The SAGCOT Centre Limited (SCL) was established as a limited company by guarantee in 2011. The SCL works as a broker and catalyst of partnerships among registered partner organizations to incubate initiatives around inclusive, sustainable and viable agricultural value chains. The key role of the SCL is to facilitate partners to deliver on inclusive, sustainable and commercially viable agricultural value chains in the SAGCOT Corridor. By having the visibility of and connection to actors in the whole ecosystem, the Centre’s role is to:
- inform private and public investment about partnership opportunities as well as priority policy reforms to achieve the SAGCOT objectives;
- track progress, through monitoring and evaluation, within the partnership, ensuring follow up of partner commitments and progress towards their objectives;
- encourage and facilitate active participation of the private sector in promoting a cohesive partnership;
- promote policy and regulatory reforms necessary for achieving SAGCOT objectives;
- derive lessons, adopt approaches to cluster planning and partnership facilitation, and to communicate on behalf of the SAGCOT Partnership; and
- promote the SAGCOT partnership, and its opportunities, to a wider audience and array of both regional and international partners.
SAGCOT Catalytic Trust Fund?
The SAGCOT Catalytic Trust Fund (CTF) is an innovative financing mechanism for the SAGCOT Initiative; created in response to the challenges of catalysing private sector investment in a commercially and financially viable agribusinesses.
It targets smallholder linkages along the value chain and aims to provide bridge financing for commercially viable agricultural businesses that incorporate and support smallholder farmers.
The SCTF combines high developmental impact with commercial viability in order to leverage investment in the agribusiness value chain. The SCTF has two investmentvehicles: The Matching Grant Fund (MGF) and the Social Venture Capital Fund (SVCF).
SCTF is an independent Trust with its own governing board. The SAGCOT CTF administers and manages the contract with KPMG-Tanzania to implement the Matching Grant Fund (MGF).
The Tanzania Investment Centre (TIC)
The Tanzania Investment Centre (TIC) was established in 1997 by the Tanzania Investment Act to be the primary Agency of the Government to coordinate, encourage, promote and facilitate investment in Tanzania and advise the Government on investment policy and related matters.
Yes. Both SAGCOT Centre Ltd. and SAGCOT CTF have qualified Safeguards and Environmental Specialists in addition to safeguard environmental sustainability on top of the Environmental and Social Safeguards Criteria and procedures assembled based on inputs (derived from ESMF, PMP, RPF, and VGPF). For example, KPMG has hired an Environmental Safeguards Expert and a Social Safeguards Expert to provide advice and assistance during the MGF application process and in the MGF Team’s analysis during deliberations about making award recommendations to the SCTF Investment Committee and/or SCTF Board of Directors for agribusiness matching grant awards.
The purpose of the MGF is to facilitate the expansion of sustainable market linkages and business relationships between smallholders and agribusinesses operating in the SAGCOT area. “Smallholders” include sedentary farmers growing crops and/or keeping livestock (e.g. dairy cows and beef cattle) and semi-sedentary or nomadic pastoralists. It also includes smallholders engaged in fish farming or aquaculture.
The MGF objectives are to: (1) drive improvements in smallholder productivity through the adoption of new technology and improved management practices; (2) connect smallholders to markets through agribusiness partnerships which will raise their incomes; and (3) create employment opportunities in rural areas, especially for vulnerable groups like women and youth, which will raise rural household living standards, improve food security and reduce malnutrition.
The Matching Grants Fund (MGF) is a USD 40 Million fund, with a USD 5 million management contract between the SCTF and KPMG, for KPMG to manage the MGF. This is designed to catalyse investments in the SAGCOT Region through grants in size ranging from a lor of USD 250,000 to a maximum ceiling of USD 1.5 Million grants in capital, operational expenditure or technical assistance to improve the productivity of smallholder farmers and link them more effectively into commercial demand and supply market systems. The CTF Social Venture Capital Fund (SCVF) is a USD 20 Million fund designed to offer debt financing to earlier stage companies to facilitate the growth of emergent agribusinesses to a commercial scale and develop greater engagement with smallholder farmers.
The SACOT CTF proposes to provide agribusiness linkage Matching Grants (MG) of between USD 250,000 (the minimum) and USD 1.5 million (the maximum) to successful applicants.
Tanzania agribusinesses (firms with a 51% Tanzanian ownership or more) applying for the MGF must make a minimum matching investment contribution of 30 percent, whereas regional or multinational agribusiness firms which are registered to do business in tanzania and meet the other eligibility criteria must make a minimum matching investment of 40 percent to the proposed project that will directly benefit smallholder farmers. Applicants who contribute more than the minimum, in their own funds, will receive preference for an award. The SAGCOT CTF hopes to approve a minimum of three (3) MGsby 31 October, 2018.
Applicants should meet the following criteria:
- Be a Tanzanian registered private agribusinesses with legitimate licenses and/or permits to do business in Tanzania.
- Be a financially viable agribusiness, with two years’ (CY 2016 and CY 2017) audited financial statements from an independent, recognized and registered firm which provides accounting and auditing services.
- Have existing relationships with smallholder groups, associations or cooperatives and want to deepen, strengthen or expand those relationships.
- Preference will be given to applicants which are registered SAGCOT partners under the broader SAGCOT Initiative, a Public-Private Partnership. For further information please contact the SAGCOT Centre Ltd. (See: http://sagcot.co.tz/index.php/partnership/).
- Applicants may form partnerships or consortiums that include NGOs and/or community organizations, but the lead applicant must be a private sector agribusiness.
Disclaimer Clause: MGF Applicants are requested please to note the following:
- The MGF is a competition with clear criteria. If you do not meet the criteria, please do not apply.
- If you meet the criteria and you apply, please realize that not all applications will pass through. Please think about your “Concept Note” application carefully and demonstrate clearly why your proposed project idea justifies MGF support.
- We will acknowledge all applications received and provide standard letters of acceptance/rejection to all applicants.
- At the “Concept Note” stage, we judge applications solely on the eligibility criteria and quality of the written application form. We will engage with and visit applicants that reach Stage Two (the Full Proposal stage).
- The MGF “Concept Notes” will be assessed by the SAGCOT Catalytic Trust Fund (CTF) Team and the SAGCOT Board which will decide which business ideas will progress to the Full Proposal stage.
- The CTF and MGF will be looking for the best leverage of funds. Therefore, reducing the size of your grant request and increasing the amount that you intend to provide as matching counterpart funds in the proposed project will improve your score and improve your chances of winning approval to develop a Full Proposal for SAGCOT CTF MGF funding.
The SAGCOT CTF and the MGF agree to regard as confidential all information attached to the application and submitted as subsequent progress of the project that is not in the public domain. Only the SAGCOT CTF (and its staff and MGF consultants), SAGCOT Investment Program (SIP) implementing agencies (i.e. the Prime Minister’s Office and The World Bank) and members of SAGCOT CTF Board and Investment Committee will have access to your application. No other entity may see your application without your prior permission.
Applicants’ projects must be paired with and for the benefit of smallholders in the following six (6) SIP clusters:
(1) Dakawa; (2) Ihemi; (3) Kilombero; (4) Mbarali; (5) Rufiji; and (6) Sumbawanga. For more information on the clusters in SAGCOT, please see: http://sagcot.co.tz/index.php/sagcot-clusters.
- All applicants are required to use the SAGCOT-CTF “Concept Note” template which is available on the SAGCOT-CTF web site.
- Applicants who are approved at the “Concept Note” stage will then move on to complete a more detailed “Proposal.” Guidance for proposal preparation will be available to successful “Concept Note” Applicants.
- All “Concept Notes” with the required, complementary documentation must be submitted by e-mail to two (2) separate, but complementary, e-mail addresses: email@example.com and firstname.lastname@example.org on or before 5:00 PM on Friday, August 24th, 2018. Proposals submitted in any other manner than electronically will not be accepted and will be deemed to be ineligible for consideration. Proposals not submitted on time will also be deemed ineligible.
- Successful “Concept Note” applicants should be informed on or before Wednesday, September 5th, 2018 that they are eligible to proceed to the second stage of the application process and develop a Full Proposal which will be before 5:00 PM on Friday, September 28th, 2018.
- Successful “Concept Note” applicants may be eligible to receive technical assistance from an expert advisory team, appointed by the SAGCOT-CTF, for development of their full business plan which must be included in the final “Full Proposal”application.
The PCU has management oversight and reporting responsibilities for all components of the Project. It integrates the financial and technical progress reports from each of the agencies being funded, and carries out the overall M&E for the Project. The PCU also takes overall procurement and financial management responsibility during the first six to 12 months of the Project implementation until sufficient capacity has been built in the other implementing agencies (an assessment will be undertaken to assess the agencies capacity).
Matching Grant Fund FAQs
Yes, there is no limit on the number of applications an agribusiness may submit, either now, during the first funding opportunity or during subsequent funding opportunities. An agribusiness can make as many applications as it believes are possible for it to implement successfully.
Can an agribusiness make an application as the Lead Firm making the application and be included on another application, as a sub-contractor partner, with that application being led by a complementary firm? For example, could a seed company be the Lead Applicant on one MGF application but be a partner on a second application which is being led by an agro-processing firm?
Yes. An agribusiness may be a Lead Firm applicant as well as a sub-contractor partner names by another Lead Firm in their MGF application.
Given the fact that building a dam involves new construction to block a river or stream and could involve the inundation of land that would have a negative impact on the people, animals and plants in that water catchment area, there is no desire on the part of the funding agency (The World Bank) or the Government of Tanzania, through the SAGCOT CTF and the MGF, to undertake the in-depth analysis required before such a new construction project could get all the required permits to go forward. In addition, because the MGF project is only expected to be for four years’ duration, from June 2018 through to June 2022, there is not enough time to do all the environmental and social impact analysis which would be required before such a new construction project could obtain all the required permits to go forward. Thank you for your understanding of this important point.
Yes. As a matter of principal, the MGF is meant to be for the ultimate benefit of smallholder farmers in the SAGCOT. Therefore, we would not allow or accept any budget that proposed to use MGF monies to pay any portion of the salary and/or benefits of the CEO, President, General Manager (GM) or Managing Director (MD) or members of The Board of Directors of an agribusiness company applying for a matching grant. The Fund Manager would also not view favorably an application which proposes to use MGF monies to pay any portion of the salary and/or benefits of other senior management staff in the agribusiness.
However, the MGF recognizes that in order for an agribusiness to reach more smallholder farmers, it will have to hire more field staff. The salary and benefits of the newly hired field staff or extension agents are an acceptable personnel cost as long as the 30:70 or 40:60 matching principal is applied to their salary and benefits.
The MGF also recognizes that as the agribusiness applicant adds more field staff and personnel to do the work of the MGF co-financed project, the agribusiness may need to hire an accountant to handle the salary and benefits for the newly hired staff. Such personnel costs, including salary and benefits, are also considered eligible costs if the applicant applies the 30:70 or 40:60 matching grant criteria to their salary and benefits.
The MGF encourages all MGF agribusiness applicants to hire a minimum of one full-time Monitoring, Evaluation and Reporting (MER) Specialist using the same 30:70 or 40:60 matching grant criteria for their salary and benefits. Given the reporting requirements, which will become evident in the Matching Fund Grant Agreement, it would be very prudent applicants to hire at least one full-time dedicated staff to handle the MGF monitoring, evaluation and reporting requirements.
The KPMG Fund Management Team will over mandatory training for all successful MGF agribusinesses applicants. Training in MER will be one critical aspect of the training which the Fund Management Team provides to successful agribusiness applicants. No Matching Grant Agreement can be signed by any successful agribusiness applicant unless they participate in this mandatory training which will be offered by KPMG and the CTF.
Yes. We are confident that as a large international business, your company must have audited accounts for the previous two years.
No. We encourage you to find a for-profit agribusiness firm that will be the lead firm making the application and to partner and/or cooperate with them in an MGF application.
There is no minimum number required. However, projects will be judged on the return on investment. For example, if an agribusiness currently works with 200 smallholders, we anticipate that an MGF applicant would propose to use the MGF to work with 400, 600 or even 800 smallholders, depending on the amount of MGF monies requested and awarded.
We would hope that an agribusiness would have at least one season or one year of cooperating with smallholders and that this grant would enable the agribusiness to strengthen and deepen that relationship and scale out activities to include even more smallholders.
Yes. This is precisely the kind of investment in the SAGCOT which the CTF would like to support and encourage.
Yes. Applicants for the MGF must be for-profit agribusinesses. Cooperative societies and associations should partner with for-profit agribusiness if they wish to apply for a matching grant.
Only 10% of the company matching contribution can be of an “in-kind” nature.
The matching grant fund is awarded and paid out on a cost-reimbursable basis. The applicant will submit invoices every quarter (or every three months) indicating what the agribusiness (and any potential sub-grantee partners) has spent on their matching contribution costs and what they have spent under the approved matching grant budget for which they wish to be reimbursed. The SAGCOT CTF will make every effort to make reimbursements for eligible MGF expenses within 30 to 45 days of receipt of the approved invoices.
The minimum ($250,000) and the maximum grant ($1.5 million) is awarded to the lead agribusiness applicant. If the lead agribusiness applicant has partners or sub-contractors cooperating on the project, it is the responsibility of the lead agribusiness grant recipient to allocate funds to any sub-contractors according to the budget which has been submitted and approved by the SAGCOT CTF.
Yes, funding new technology is definitely encouraged.
The MGF will have two (2) windows annually. Thus, since the first Funding Opportunity Announcement (FOA) was made on August 2nd, 2018, you can expect that the second FOA will be made on about February 2, 2019. The MGF will continue to publish FOAs until all $40.0 million of the MGF monies have been awarded.
Yes. Any agribusiness can make more than one application during the life of the MGF. And, if an agribusiness has applied for and received MGF monies and the project is winding down, but the agribusiness sees an opportunity to expand to cooperate with even more smallholder farmers or to deepen the relationship through investments in post-harvest handling infrastructure, equipment and machinery that would be based in the SAGCOT, we would welcome a follow-on application from such a successful company which has good relationships with smallholders and which exhibits environmental and socially responsible behavior.
Please see the original FOA (Funding Opportunity Announcement). At the bottom of the FOA is a prospective time line.
No. The eligibility criteria are clear and are based on World Bank and SAGCOT Investment Program criteria agreed to by the Government of Tanzania.
Yes, and we would encourage you to do so.
No. The matching grant will be made on a cost-reimbursable basis. The matching grant will also not exceed 60% of the total project budget (for foreign or multinational agribusiness companies) or 70% of the total project budget (for 51% majority-owned Tanzanian agribusiness companies).
If an agribusiness wishes to implement an investment project with smallholders in stages, it is up to the agribusiness to make the decision about how to apply for funds. An agribusiness could apply for funds for the first stage of a project that might last one year and then, depending on the results, apply for additional funding for a second stage of the investment project. All such decisions should be made by the agribusiness itself, not by the MGF manager.
Please see the response to Question 14, above.
It is not the role or the responsibility of the MGF Management team to propose that agribusiness applicants try to get a line of credit from one commercial bank or another. We encourage agribusiness applicants to survey the landscape of potential financial service providers and make your own decision according to what is in your best interests.
The MGF carries no interest rate. It is a cost-reimbursable grant made to an agribusiness, based on approved budget as contained in the Matching Grant Agreement.
Big business should ask that question of financial service providers. It would be inappropriate for the MGF Manager to comment on private banking matters.
The MGF encourages agribusiness to think creatively as to how they can be inclusive of smallholder farmers in their SAGCOT investment projects and under-write them and their assets.
The MGF is based on the principal of additionality. Thus, the MGF will not consider reimbursements for any core business costs, that is the costs associated with the applicant doing “business as usual,” including especially the salaries of the Managing Director and senior managers. The MGF encourages agribusinesses to propose doing business “unusual,” that is, scaling out its activities to include many more smallholders than they usually deal with, making new, unique investments in equipment, machinery or post-harvest handling (marketing) infrastructure in the SAGCOT where its smallholder partners live and work. The salaries of the new employees which the agribusiness hires to do the new work under the MGF would be eligible for the 30:70 or 40:60 split through the MGF. If a company re-assigns existing staff and gives the staff new roles and different responsibilities than they previously had, then the salaries of those staff working with smallholders would qualify. If the agribusiness has to hire a new accountant to maintain the books for the MGF-funded activities, the salary of that accountant would qualify for reimbursement under the 30:70 or 40:60 share. If the agribusiness hires a full-time MER specialist to make reports to the MGF Manager, that person’s salary could also be included in the eligible MGF costs, accordingly. Look at the roles and responsibilities of the staff and if they are involved in the new MGF activities, their salaries could be eligible for a matching grant according to the 30:70 or 40:60 cost-sharing arrangement.
The MGF does not have any criteria for a maximum or minimum cost which it expects an agribusiness to spend, per farmer under the MGF investment activity. The MGF agribusiness applicant should make that decision, calculate it and justify it accordingly.
Yes. The MGF is designed to encourage precisely these kind of post-harvest handling investments in infrastructure with the SAGCOT area.
It is called a matching grant fund precisely because in return for an agribusiness agreeing to invest 30% of the total costs of a new project (for a 51% Tanzanian majority-owned firm) or 40% of the total costs of a new project (for a foreign or multinational firm), the agribusiness can be reimbursed for the remaining 70% or 60% of its total investment costs, upon submission of invoices for the money invested and spent. The SAGCOT CTF is providing a matching grant of 60% or 70% for the total cost of the new project. The agribusiness is not expected to refund any monies to the SAGCOT CTF unless it violates the matching grant agreement or unless it fails to perform according to the terms and conditions of its matching grant agreement with the SAGCOT CTF.
The Matching Grant is paid as a reimbursement to the agribusiness which has spent funds on an MGF supported investment activity. Thus, 100% of the matching grant is paid as a reimbursement to the successful agribusiness. The matching grant funds are free in that there is no interest charged on the funds paid to the successful agribusiness and there are no fees to apply for a matching grant. The entire matching grant is free to agribusinesses that agree to make a new investment in a new project that involves smallholders in the SAGCOT area.
The agribusiness applicant who requests funds for on-going investments and is not doing anything additional, that is, the agribusiness is doing “business as usual,” will not be viewed favorably by the SAGCOT CTF if they make an application for the MGF. The SAGCOT CTF is seeking applications from agribusinesses that are committed to doing business “unusual,” by scaling out their investment activities to cover more smallholders, to deepen their relationships with smallholders through investments in farm equipment, machinery and post-harvest handling infrastructure, to name just a few illustrative examples.
It is up to the agribusiness applicant to propose who should own machinery or equipment being purchased using the 30:70 or 40:60 formula for the MGF. If, for example, an applicant has, as part of its application, a training program to strengthen the capacity of a Farmer-Based Organization (FBO) to manage a post-harvest storage center and the agribusiness believes that a specific FBO is capable of managing such an investment in a financially and economically sustainable manner, then the agribusiness may decide to gradually transfer ownership of the post-harvest storage center (and any machinery or equipment therein) to the FBO. But all such decisions should be made only by the agribusiness applicant; they will not be mandated by the SAGCOT CTF.
Please see section 2.2 of the Concept Note template.
The SAGCOT CTF and The World Bank are keen to promote collaborative and synergetic investments in the SAGCOT. Therefore, if an agribusiness does not yet operate in the SAGCOT designated clusters, the application must propose to operate in one of the six clusters or it would not meet the eligibility criteria.
The Fund Management team at KPMG has several designated Key Experts who can and will provide technical assistance and advice to successful agribusiness applicants as they implement their MGF activities.
Yes. It has been provided at the SAGCOT CTF web site.
That depends. The lead agribusiness applicant should be directly engaged with smallholder farmers in the designated six (6) SAGCOT clusters. That being said, if the agribusiness is selling agricultural inputs to smallholders and wants to have as a partner on the MGF application, a firm which will process what the farmers are going to produce/grow using those agricultural inputs, and that processing facility is located in another part of Tanzania, outside the SAGCOT, that would be acceptable to the MGF and SAGCOT CTF. However, we would look more favorably on such a joint application if the processing firm, for example, were to invest in a SAGCOT-based post-harvest handling center that would be close to the smallholders.
No. It would be a direct conflict of interest for the MGF management Team to provide direct assistance to any potential applicant in the drafting of their Concept Note or Full proposal application. That is precisely why we appreciate the efforts of the SAGCOT CTF Executive Secretary and the SAGCOT Centre Limited to hold an open forum like the one held in Dar es Salaam on Tuesday, August 14th, so that we can provide the same information to all potential applicants, thereby maintaining a level playing field for all applicants. If your firm does not have the in-house staff to draft an application, we encourage you to look for an experienced consultant or consulting firm that can help you do that.
The MGF can and will consider a portion, 10% of the matching contribution of MGF applicants, of existing investments in equipment, machinery, post-harvest handling facilities, etc., if they have been made within 12 months before the date on which Concept Notes are due. Receipts and/or invoices would eventually have to be provided to prove that such investments had been made within that specific time period. Otherwise, the MGF encourages your company to scale out your activities to more smallholders or to deepen your existing relations with smallholders using the MGF.
Yes. However, if your application does not pass through to the Full Proposal process or is rejected at the stage of the application process, we hope that you would improve your application and strengthen it so that it gets approved for funding in the next funding opportunity.
Please see above, section 1.3 of this document.
please see the response to Question 1, above.
No. But the management capacity of the lead agribusiness firm making the application as the head of such a consortium must be shown to be capable of managing all the partners in such a consortium.
The Matching Grant Fund Operations Manual will clearly describe the roles and responsibilities of the SAGCOT CTF team in the MGF process. In brief, the SAGCOT CTF Executive Secretary reviews and then presents the recommendations of the MGF team to the CTF Board for approval of Concept Notes. The SAGCOT CTF Executive Secretary reviews and then presents the recommendations of the MGF team to the CTF Investment Committee for approval of Full Proposals (stage two of the MGF application process). The SAGCOT CTF Executive Secretary also signs the matching grant agreements on behalf of the SAGCOT CTF Board of Directors. The SAGCOT CTF also administers a grievance process for the MGF.
No. Preference is given to SAGCOT Centre Limited (SCL) partners by the SAGCOT CTF when assessing MGF applications. But no one involved in the management or oversight of the SCL is involved directly or indirectly in evaluating and recommending for funding the MGF applications, whether Concept Notes or Full Proposals.
The grievance mechanism exists for any and all stakeholders in the SAGCOT area, including agribusinesses, smallholders, government officials and concerned citizens. The SAGCOT CTF will be responsible for addressing any and all grievances submitted and resolving them in a transparent, responsible manner within a specific period of time. The CTF Grievance mechanism and Flow Chart process should be available at the SAGCOT CTF web site by August 22, 2018.
You should report it to the SAGCOT CTF by following the SAGCOT CTF Grievance Mechanism mentioned above, in the response to Question 52.
No. Reimbursements will be made quarterly or based on invoices submitted every 3 months. Thus, it is highly unlikely that any agribusiness would spend 100% of its investment in one three-month period. As an agribusiness spends money, it can request reimbursements every quarter or every three months.
Based on world-wide standards, the 30% or 40% contribution by an agribusiness to receive reimbursement for the remaining 70% or 60% of a new agribusiness investment project is extremely generous. On a previous matching grant project, which the Fund Manager led in Ukraine, the matching contribution from private agribusiness was 2.50 to 1.00 – in other words, an agribusiness had to invest $2.50 of its own money in order to get reimbursed for $1.00 in complementary expenses. On another matching grant project which the Fund Manager led in Egypt, the matching contribution from a private agribusiness was 1.00 to 1.00 – in other words, an agribusiness had to invest $1.00 of its own money before it could get reimbursed for $1.00 in complementary expenses.
Please see the answers, above, to Questions 14, 23 and 24.
The Fund Manager (KPMG) has reporting requirements laid out in its contract with the SAGCOT CTF. Successful agribusinesses which receive an MGF through the SAGCOT CTF, will have reporting requirements which will be clearly articulated in their matching grant agreement with the SAGCOT CTF. This will include, but not be limited to, routine quarterly reports (i.e. a report which must be submitted every three months) on the progress of the MGF co-financed investment project and its activities.