CATALYZE MS4G seeks to engage FIs via pay-for-results, fixed-amount awards to expand access to finance for smallholder farmers and MSMEs by providing them with an incentive to extend fertilizer and input loans to actors in the agricultural value chain
REQUEST FOR APPLICATION
MS4G Fertilizer Blended Finance Program for Financial Institutions
RFA No: RFA-CATALAYZE-21772-Ethiopia-2023-0060
USAID CATALYZE Market Systems for Growth (CATALYZE MS4G), an initiative funded by the United States Agency for International Development (USAID) and implemented by Palladium LLC, is inviting financial institutions (FIs) that are interested in increasing access to finance for smallholder farmers, micro, small, and medium enterprises (MSMEs) with a special focus on fertilizer and input financing. Palladium is implementing this Blended Finance mechanism under USAID Prime Contract 7200AA19C00080.
Palladium is a global leader in the design, development, and delivery of Positive Impact —the intentional creation of enduring social and economic value. We work with corporations, governments, foundations, investors, communities, and civil society to formulate strategies and implement solutions that generate lasting social, environmental, and financial benefits.
CATALYZE MS4G seeks to engage FIs via pay-for-results, fixed amount awards to expand access to finance for smallholder farmers and MSMEs by providing them with an incentive to extend fertilizer and input loans to actors in the agricultural value chain. This financing may include working capital, capital investment, debt, and any type of structured finance investments. FIs get incentive payments based on the amount of finance extended.
CATALYZE MS4G expects partner FIs to lend up to USD 35 million in input and fertilizer financing. Banks and MFIs are expected to finance up to USD 19 million and 16 million, respectively.
Banks: For qualified farmer or MSMEs, MS4G will offer a 5.0% incentive fee on the financing/investment to fertilizer and inputs, paid in USD currency. In the case of financing women-owned businesses (with women holding 50% plus ownership stake), the incentive fee shall be 6.0%. Banks could also provide wholesale lending to MFIs so that they can provide onward lending to finance fertilizer and input purchases.
MFIs: To assist qualified and selected partner MFIs that are willing to provide loans to eligible Agri-SMEs for the purpose of purchasing fertilizer and inputs, MS4G’s blended finance activity will provide an upfront payment of part of the approved incentive grant. The aim of this pre-payment is to enhance the liquidity of MFI.
CATALYZE MS4G, through all grants issued under this RFA, seeks to achieve mobilization a minimum of $35 million USD.
Important notes for interested bidders:
RFA released on March 01, 2023, on CATALYZE website, interested bidders can access the RFA by clicking the link below:
Attachments can be found by visiting the CATLAYZE procurement website the Current Opportunities – My CMS (catalyze-procurement.com)
- If potential applicants have any questions, queries, or clarifications, they may forward them to the following email address before the date stated on the cover page of this RFA: CATALYZE-Ethiopia.firstname.lastname@example.org Answers will be shared through an amendment to this RFA. We are kindly inviting the applicants to send their expression of interest in participating in the conference related to this RFA through an email no later than March 07, 2023, @ 5:00PM EAT to: CATALYZE-Ethiopia.email@example.com . Late questions will not be accepted and entertained.
- Virtual/In-person bidders conference: March 08, 2023, from 11:00 AM to 12:00 PM, Nairobi time (UTC +3).
- Submission: CATALYZE MS4G requires that applications be submitted electronically (e-mailed) to CATALYZE-Ethiopia.firstname.lastname@example.org . no later than March 21, 2023,@ 5:00PM EAT.
- Late bid submission will not be considered. Issuance of this RFA does not constitute an award commitment on the part of CATALYZE MS4G, nor does it commit CATALYZE MS4G to pay for any costs incurred in the preparation and submission of an application. Further, CATALYZE MS4G reserves the right to reject any or all applications received. Applications are submitted at the risk of the Applicant, and all preparation and submission costs are at the Applicant's own expense.