Tanzania Agribusiness Window
(TZAW): Round 4
The Presentation
Introduction to the AECF
 Goal/Purpose of the AECF
 Funders and Partners
Finding the right projects
TZAW R1-R3
Tanzania Agribusiness Window Round 4
 Introduction
 Selection Criteria
 Competition Process
Contact Information
What is the AECF?
The AECF is a fund of donor money available to the private sector on
a competitive basis
It is a special partnership initiative of the Alliance for a Green
Revolution in Africa (AGRA)
Funded by a multi-donor consortium (Dutch, DFID, DANIDA, SIDA,
IFAD, CGAP). The donors form the Governing Council of the AECF
Managed by a KPMG led team (the Fund Manager). Triple Line
services provides M&E support.
Initial capital was US$36m; now over US$245m
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Aims & Objectives
Goal: accelerate pro-poor growth in Africa – increasing
employment, livelihood opportunities and income thereby
reducing poverty.
Purpose: to make agribusiness, finance, renewable energy
and information market systems work better for the poor in rural
areas in Africa
Result: by improving the way market systems work, we aim to
have a positive impact (jobs and incomes) on large numbers of
people living in rural areas.
Modus Operandi: The AECF works by supporting private sector
companies to develop and test new and innovative business ideas
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AECF is a special
initiative of
Funded by
The members of donor consortium of the AECF include:
How the AECF works
The Model:
The Focus :
Agribusiness, rural financial services,
renewable energy, adaptation to
climate change, information and
media services
“Bespoke” competitions open to the
private sector with eligibility and
evaluation criteria to allocate funds
to “best bids”
AECF
The Offer:
The Reward:
US$100,000 to US$1M, available to
great business ideas (grants and/or
repayable grants)
Financial support for innovative
business ideas (using matching fund
principles)
Starting Races rather than Picking Winners
We seek projects that are commercially
motivated & innovative to get systemic
impact
SCALE
Commercial Motivation: Scale required for
systems impact; scale will only be reached
if business model is (very) profitable
Disruptive Innovation: as a key indicator of
systemic change potential
• Upsetting the market such that others
will copy and replicate – the more
innovative the better
Principle: Start races rather than picking
winners
VIABILITY
(SOCIAL)
IMPACT
What is Tanzania Agribusiness
Window (TZAW)?
A special funding window for business ideas in agribusiness and
information or financial services that will be implemented in
Tanzania
Goal: Contribute to wealth creation and rural poverty reduction in
Tanzania
Objective: To catalyse private sector investment and innovation
in agribusiness and rural financial services projects that are
commercially viable, have significant developmental returns and
wider systemic impact.
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What types of ideas are
eligible?
“Agribusiness” under the broadest possible definition
– Farmers, planters, horticulturalists, livestock keepers
& outgrower scheme operators
– Inputs manufacturers, distributors & suppliers
– Traders, merchants
– Agro-processors and value adders
Information services projects related to agriculture
Financial services projects related to agriculture
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TZAW To Date
Three rounds of the competition completed with 37
businesses selected for funding
US$ 22.9 million in grants and interest free loans
committed
US$ 57.3 million committed by awarded businesses as
matching funds
Funded by DFID and the Swedish Embassy
Over 60,000 households reached in 2014
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TZAW R1-3 Competitions
Awarded grants
Business plans
Shortlisted for IC
Concept notes submitted
Registered companies
37
74
154
789
2,852
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Agribusiness Projects in Tanzania
Export Trading
Ngongoseke
Chobo
Kilimo Markets
Mara
Kagera Tea
Meru Agro
Mount Meru Millers
Kagera
Arusha
MSK Nsagali
Quality Food Products
Mwanza
SmartMoney
Africado
Shinyanga Misenani
Equity for Tanzania
Serengeti
Fresh
Dorfra Trading
SeedCo
MeatKing
Kigoma
Tanga
Verbruggen
Dodoma
Singida
Ruaha Farms
Rukwa
Uncle Milo
Iringa
Lima Limited
= TZAW R1 Projects (10)
Mruazi Heifer
Manyara
Tabora
= GW/AAW Projects (5)
Beth Equisolutions
Olivado EPZ
Mtanga Farms
Mbeya
Rungwe Avocado Co
Rift Valley Tea
Sibesonke Ltd
Agriseed
Tanfeeds
Greenbelt
Mgolole
AKM Glitters
Darsh
Morogoro
Tanga Fresh
Out-Growers Ltd
Pwani
Soko Fresh
Sao Hill
Kokoa Kamili
DSM Corridor Group
Kilombero Plantations
= TZAW R2 Projects (10)
Lindi
= TZAW R3 Projects (17)
Ruvuma
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TZAW R4!
Applications due by 15 December!!!
The competition is funded by the UK Department
for International Development (DFID) – approx.
$5.4m funds available (approx. 10 companies)
Companies may be from Tanzania or domiciled
outside of Tanzania, but all projects must take
place in Tanzania
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Application Process
Online application
The competition launches at Stage 1
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Eligibility Criteria
Applicants must be for profit company, partnership or sole trader
Project must be implemented in Tanzania
Applications must be for new and innovative business ideas
Request range from US$100,000 to US$1m and companies must
match the funding requested in cash & kind (cash is preferable)
Project must have significant development impact in rural areas
Applicants must demonstrate that they would not go ahead without
AECF funding or, if they would, that it would me at a much reduced
pace or scale
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Selection Criteria for Stage 1
Criterion
Weighting
Capacity of company
20%
Strength of business case
25%
Development impact
35%
Innovation
20%
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How much can I apply for?
Applications can be for a mixture of grants and repayable
loans
Minimum amount US$100,000 maximum amount
US$1m
Remember:
You must at least match the amount requested
We are also looking for leverage – scores a better mark
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How do I apply?
Go to www.aecfafrica.org and register using your email
address
Download the guidance notes – essential for completing
application form
Fill out the application in Microsoft Word – you must
submit in Word.
Extra information (attachments, etc) will not be read
Submit the application to tzaw@aecfafrica.org by 15
December 2015
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Sections of Application
Brief Summary
Section A: Applicant Company Information
Section B: Project Information
Section C: Proposed Business Idea
Section D: Innovation
Section E: Additionality
Section F: Project Impacts
Section G: Risks & Assumptions
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Brief Summary
Complete at the end
Concisely summarize key points of idea and
expected impact and outcomes
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Section A: Applicant Company
Information
Provide basic data about your company
– Note: all contact will go to the person and contact
information listed on this form
Registration details, current business, past
financial performance, financing
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Section B: Project Information
Basic project details (title, location, etc.)
Funding information – both AECF and matching
– AECF funding is US$ 100,000 – US$ 1,000,000
– Matching funds must be equal to or greater than the
amount requested from AECF
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Section C: Proposed Business
Idea
Concise description of idea
Concise business case – include numbers!
Explain your market and your strategy for
reaching it i.e., distribution, logistics, sales, etc.
Capacity of the team – be specific but do not
paste CVs
List and justify how AECF funding will be used
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Section D: Innovation
AECF defines “innovation” as a new product,
service or business model being introduced in a
country or to a target group where it has not
been tried before
Make sure to substantiate your claims of
innovation
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Section E: Additionality
TZAW R4 will not consider projects which could
and would be funded fully by other, more
commercial, sources of funding
Answer the listed questions specifically
This section is not about why AECF should be
interested in your project and should not repeat
what you have said in other sections about the
innovation, impact, etc.
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Section F: Project Impacts
AECF monitors a set of standard quantitative
and qualitative Key Performance Indicators
(KPIs) for all TZAW projects
Provide figures on what you have achieved so
far (i.e. the baseline numbers) and estimates of
what your project is expected to achieve by the
end of the 6 year AECF project period
Numbers should address only AECF project
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Section F: Project Impacts –
Financial Indicators
Turnover
EBITDA
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Section F: Project Impacts –
Development Indicators
Number of Households Reached
– Direct beneficiaries – either your customers or
suppliers; not employees!
Net Benefit per Household
– Calculation of cost benefit or cost savings compared
to situation if project did not go ahead
Number of Household with Reduced Risk to
Extreme Weather Events
– Only if appropriate to your business; do not try to fit
something into this if it does not make sense
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Section F: Project Impacts –
Employment Indicators
Total number of people employed (full-time)
Total number of people employed (part-time) as
full-time equivalents
Percentage for women
Percentage for under 35
Wage bill
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Section F: Project Impacts –
Wider Impact
Impact on other businesses
Impact on laws, policies, regulations
Physical infrastructure
Sources of information
Reduction in other adverse business factors
Replication of your idea
Will anyone be “crowded out”?
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Section F: Environmental
Impact
Indicate whether or not an EIA is required
If required: explain the progress to date and
plans for completion
If not: explain why not and include information on
any clearances from the government that can
confirm this
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Section G: Risks &
Assumptions
Business
Environmental
Health & Safety
Social
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CONTACT DETAILS
+254 20 269 9137/8/9
www.aecfafrica.org
tzaw@aecfafrica.org
www.facebook.com/AecfAfrica
www.twitter.com/AecfAfrica