2015 Challenge Fund Programme West Africa Food Market (WAFM)

West Africa Food Markerts (WAFM) - Considering the vulnerability of the Sahel to food crises and recognizing the potential of regional trade through its effect on price stability and supply availability, the UK Government through its Department for International Development (DFID) developed WAFM Pilot Programme to tackle the causes of market failures in West Africa’s staple food markets.

The ultimate beneficiaries are farmers and consumers in food-insecure regions of the Sahel in the target countries. They are expected to benefit in terms of increased availability of staple foods and purchasing power, as well as increased resilience to hunger and malnutrition during the regular hungry seasons and periodic shocks. The programme is expected to reach over 130,000 farmers and more than 700,000 people (including household members) by 2018. The Programme also contributes to DFID's Sahel Disaster Resilience Strategy by improving the functioning of food markets in the Sahel in order to make food more affordable to poor people.

We believe the future of West Africa lies in Agribusiness and regional trade. Yet the potential for regional trade in staple food has yet to be unlocked in the region.

The West Africa Food Markets (WAFM) programme is now accepting concept note applications for the Challenge Fund Competition to promote regional trade. We are looking to support innovative business ideas that will increase regional trade in staple foods along the Burkina-Ghana and Nigeria-Niger trade corridors in the following staple food value chains: Maize, Sorghum, Millet and Cassava.

The West Africa Food Market (WAFM) hereby invites applications from interested candidates/Companies for:

2015 WAFM Challenge Fund Programme

Description
The Challenge Fund process is a mechanism for efficiently and fairly allocating and disbursing funds provided by UK Government with UK aid from the British people. The fund aims to challenge and incentivise companies in Burkina Faso, Ghana, Niger and Nigeria to identify and co-invest in innovative business ideas that will not only expand their own businesses but also strengthen national and regional trade for targeted staple foods, namely maize, millet, sorghum and cassava.

Businesses or companies are invited to bid based on rules that are set and publicized. These rules cover eligibility, the bidding process and how bids will be evaluated. To maintain transparency, ensure fairness and integrity and maximise efficiency, four separate bodies administer the process and decide on who gets funding. These are: the Challenge Fund Management Team (CFMT), the Internal Review Committee (IRC), the Independent Assessment Panel (IAP), and the Programme Steering Committee (PSC).

The intention is to get funds to businesses or companies that truly need them and can use them effectively. The funds are to help the companies realize the broader aims of the programme, which are to increase availability of staple foods, increase purchasing power of farmers and consumers in food-insecure regions of the Sahel as well as their resilience to hunger and malnutrition during the regular hungry seasons and periodic shocks.

WAFM Challenge Fund runs competitions for for-profit private companies only. These companies are invited to submit proposals outlining the business idea or concept for which they are applying for funding.

WAFM Challenge Fund offers two Funding Windows focusing on production and marketing of targeted staple foods. The production window is for projects focusing on increasing agricultural yields and/or reducing post-harvest losses. The marketing window is for projects aiming to improve the grading, packing, storage, processing, distribution, advertising and sale of the staple foods targeted (maize, millet, sorghum and cassava).

Requirements To qualify, you must have a viable business idea that requires additional support ranging between GBP100,000 and GBP1,000,000. In addition, the proposed project idea must seek to:

• Increase the availability of staple foods and the purchasing power of farmers in food-insecure regions of the Sahel
• Increase their resilience to hunger and malnutrition during the regular hungry seasons and periodic shocks
• Applicants company must be legally registered and demonstrate that they can match the funds requested from WAFM

The Challenge Fund process
The Challenge Fund process is divided into four (4) stages, and these four stages are further explained below:

1.) Applying

Project Concept Note Submission

• At the beginning of each competition, the Programme Management Unit (PMU) launches a call for Project Concept Notes (PCNs) and publicises it. The main marketing channel is this WAFM website.
• The PCN is a short summary of the business idea proposed and its commercial viability, the capacity of the company to implement the idea, the innovative nature of the idea and its potential impact. The call for concept notes details the objective of the competition, the particular type of projects expected and the Evaluation Criteria to guide the applicants.

Concept Note Review and Short-listing

• Once the PCN have been submitted, they pass through a three-step selection process with the most promising innovators selected to fully develop their proposal. This process is managed by the WAFM Challenge Fund Management Team (CFMT) and its Internal Review Committee (IRC).

The eligibility check is carried out based on the following five (05) criteria listed and discussed in the manual, with specific assigned weights:

• The applicant must be a for-profit-company.
• The project must have a regional focus, i.e., project activities must focus in one or more of the focus countries, but the impact must be displayed in at least two of these countries.
• The project must be working in the target staple foods value chains (maize, sorghum, millet and cassava/gari).
• The grant amount requested must be between GBP 100K and GBP1m.
• There is a requirement of co-financing of at least the same amount by the applicant.

The applicant will generally have to meet all eligibility criteria. Ineligible applications are declined and a feedback letter sent to the applicant. Limited comments will be provided to unsuccessful applicants and they may be requested to contact the PMU where they require additional information.

2.) Being Selected
Being selected is the first of a three-part second stage of the funding process. It is structured in 6 steps. During this stage, WAFM Challenge Fund Management Team (CFMT) engages with and visits all companies preparing proposals. The final proposals are presented to the Independent Assessment Panel (IAP) followed by the Programme Steering Committee (PSC) for approval of projects that will win the competition.

Detailed Proposal Submission

• Applicants of PCNs short-listed will be provided with WAFM Challenge Fund Project Proposal templates and invited to submit a detailed proposal online via WAFM website or by email and within the stipulated deadline. Guidance on proposal length and details will be provided in the template.

Initial Assessment of Proposal

• Applications completed online will be automatically uploaded into WAFM database. Applications sent by e-mail will be received by the PMU and logged into the Tracker database. The PMU will then conduct a first review for completeness to ensure all annexes are included and all sections have been completed. If the proposal is not complete, the applicant will be informed and asked to resubmit in a short time frame (normally three days).
• The online application will prompt applicants when information is incomplete or all eligibility criteria are not met.

Technical Assessment and Feedback
Completed proposals will be assessed by the CFMT and the IRC based on the following seven (07) selection criteria:

• Sustainability and Viability
• Organisational Capacity
• Development Impact and Systemic Change
• Innovation and innovation ecosystem
• Commercial risk
• Cross-border focus and regional integration/regional markets
• Overall project risk

Due Diligence by the CFMT

• Due diligence assessments are conducted to understand the fiduciary risks associated with providing a grant to a potential grantee. Due diligence involves meeting key individuals of a potential grantee and, as appropriate, with critical relevant stakeholders. It also involves reviewing key documentation and, if necessary and applicable, conducting walk-through testing and limited sample testing.
• The CFMT also undertakes a site visit of the business to guide them through its finalisation and to perform organisational assessment.

Evaluation by the Independent Assessment Panel (IAP)

• The IRC presents the completed proposals to the IAP with overall portfolio analyses. The IAP then evaluates the applications and makes a recommendations to the PSC for final approval.

Approval by the PSC

• After consideration of the IAP assessment and recommendations, the PSC approves the applications that should be funded with the terms and conditions for disbursement of the grant.

3.) Being Awarded
Once awarded funding, successful businesses are informed and will receive guidelines on the process leading to the finalisation of the contract and fund disbursement. They will also be invited for an Induction Workshop prior to contract signing. The contracting process is followed by reporting and disbursement of funds.

Induction Workshop

• The induction workshop introduces post-award processes and procedures, particularly claiming and accounting process as well as progress reporting, monitoring and measurement of development impact. It also provides an opportunity for grantees to network and share lessons.

Contracting Process

• The contracting stage officially commences when the PSC has approved the project proposal for funding. Grantees will each be given a grant agreement template to review terms and conditions, including the contract period, the disbursement schedule and the obligations to commit to by the grantee in terms of reporting and adherence to the terms of the contract. Depending on the amendments an applicant will request on the terms and conditions of the grant agreement, a revised agreement may need to be submitted to the PSC for approval.

Disbursement Process

• The Fund Manager facilitates this process while GRM Futures Group actualises disbursements. Grantees report on project progress as they request a disbursement in line with the disbursement schedule agreed with the Challenge Fund Manager during contracting. Not more than 35% of approved funds per project will be released in a single disbursement. In addition, not more than 65% of funds approved will be disbursed in the first year. Exceptions to these rules will have to be approved by the PSC.
• As part of its mandate, WAFM monitors and evaluates the project over the contract life.

4.) Being Evaluated
It is mandatory for grantees to self-report semi-annually. The grantees can, however, chose to report quarterly if they need funds disbursed. The Fund Manager undertakes monitoring and evaluation visits to the projects semi-annually to assess both technical and financial progress. Some of the projects may be visited quarterly.

Reporting to WAFM

• WAFM requires all grantees to submit six-monthly narrative and financial reports to the Challenge Fund Grants Manager. These reports document project progress and expenditures under the grant following the programme year. Grantees will submit a progress report against key KPIs and milestones against their log frame, with a financial report of the project budget versus actual. On a six-monthly basis, they will also submit the management accounts for their business as a whole to the Challenge Fund Grants Manager.
• These reports must be approved before funds for the next period are disbursed.

Monitoring and Evaluation

• WAFM CFMT keeps constant communication with the grantee and undertakes scheduled field visits semi-annually to assess the project progress and discuss any challenges encountered during the implementation process. During the visits, the team assesses both the technical and financial viabilities of the business model; it also undertakes an organisational assessment.

The Grantee assumes full responsibility for effective and proper administration of the grant. WAFM reserves the right to audit the Grantee as described in the Grant Agreement.

Application Closing Date
9th March, 2015.

Method of Application
Interested and qualified applicant companies should:
Click Here to Register and Apply Online

Note:

• To apply to WAFM, you MUST register your business by providing your contact details, some information about your company and a valid email address.
• During the registration process, you must also read and accept the WAFM Terms and Conditions that are standard for all WAFM competitions.
• Once you are registered, you will be able to download the WAFM application form template and the guidance notes to help you fill in the application form.