REQUEST FOR APPLICATION

CATALYZE MS4G Partnership and Innovation Facility

RFA No: RFA-CATALAYZE-21772-Ethiopia-2023-0059

CATALYZE Ethiopia: MS4G, an initiative funded by the United States Agency for International Development (USAID) and implemented by Palladium LLC, is inviting interested parties to submit interest in receiving funding to implement activities to enhance the resiliency and sustainability of enterprises and create employment, particularly for youth and women in Ethiopia. under USAID Prime Contract #7200AA19C0080. This RFA solicits proposals for interventions that will be implemented in all areas of Ethiopia, with a preference for interventions implemented in secondary cities. 

Company Information:

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.

FUNDING OPPORTUNITY STATEMENT 

CATALYZE MS4G is designed to work with and through the private sector, NGOs, and local, regional, and international partners present and active in Ethiopia to achieve its program objectives and sustained systems change. Specifically, CATALYZE MS4G looks to explore new and innovative means to stimulate the adoption, adaption, and scaling of market-based, enterprise-led, inclusive approaches, solutions, initiatives, and business models to transform the lives of Ethiopians. This is achieved through the application of pay-for-results (P4R) awards and partnerships that involve significant partner contributions and co-investment alongside CATALYZE MS4G funding. Interested applicants are encouraged to propose:

1. pay-for-results (P4R) concepts where funding is based on achieving specific development outcomes with achievable targets such as job placements, farmers served, the value of financing provided, the number of SMEs supported or,
2. partnership concepts that involve no more than 50 percent MS4G funding, with a strong preference towards concepts leveraging significant non-USAID funds and achieving a high budget to impact ratio. 

Actual terms of collaboration and co-investment approach will be agreed upon in the co-creation phase.

Objective and Anticipated Outcomes

All concepts must propose activities that fall within the following domains: 

Food Security CATALYZE MS4G will support improved production, access, availability, and reliability of nutritious foods in the domestic market, while also improving and diversifying income and employment opportunities through fostering the growth of private enterprises and engaging with smallholder farmers operating within the food security sector. Areas of intervention include, but are not limited to, finance and investment; workforce capacity building; mechanization; and digital solutions designed to accelerate growth, improve market linkages, or decrease the effects of market shocks and food insecurity. CATALYZE MS4G is especially interested in partnering with enterprises led by women and young people and with those pursuing climate-smart solutions. Potential partners include, but are not limited to business advisory service providers, accelerators, incubators, anchor firms, financial intermediaries, innovators, and other relevant non-governmental organizations. Additionally, CATALYZE MS4G will support organizational strengthening of sectoral associations and other groups that provide training and relevant certifications, promote evidence-based advocacy of the enabling environment to the best interest of the private sector, and organize private sector responses to public policies that impact and enable private enterprises. 

Fertilizer Access and Investment CATALYZE MS4G will collaborate with partners to expand the fertilizer market, diversify fertilizer production and supply chains, and accelerate lending to smallholders and SMEs for fertilizer purchase. CATALYZE MS4G aims to scale production and distribution of both non-chemical and chemical fertilizers. Areas of intervention include but are not limited to, financing and investment; workforce capacity building; the introduction and scaling of digital solutions to increase access to fertilizer; and the coordination of private sector actors in the fertilizer space to jointly identify, prioritize and advocate for eased and enabling policy ecosystem for the expansion of existing businesses and enhance the attractiveness of the sector to potential investors. Potential partners include, but are not limited to enterprises, service providers, social enterprises, institutions, technology-based companies, financial intermediaries, and other relevant non-governmental organizations. Potential partners should be integrated into fertilizer value chains as suppliers, employees, distributors, retailers, and customers using commercially viable methods to expand access and improve lives through solutions that are sustainable, replicable, and scalable. 

Increasing the role of the private sector in WASH CATALYZE MS4G seeks to fund enterprise-led and market-based solutions designed to improve the quality and accessibility of water, hygiene, and sanitation products and services to underserved urban, peri-urban, and rural areas. Areas of intervention include, but are not limited to, capacity building of small, private WASH enterprises; development of innovative local WASH products and solutions; financial solutions that support both consumers and private WASH enterprises; development of WASH ecosystems that promote enhanced participation of the private sector; deployment of digital solutions in the WASH sector; last mile distribution of hygiene products for women; and business models promoting youth and women employment. Potential partners include, but are not limited to enterprises, innovators, business advisory service providers, accelerators, incubators, financial intermediaries, and other relevant non-governmental organizations. Additionally, CATALYZE MS4G will support organizational strengthening of sectoral associations and other groups that provide training and relevant certifications, promote evidence-based advocacy of the enabling environment to the best interest of the private sector, and organize private sector responses to public policies that impact and enable private enterprises.

Within these broader sectors, CATALYZE MS4G seeks to engage potential partners in multiple program areas, as presented below. Interested partners are encouraged to submit concepts that align with one or more of these program areas: 

Strengthening Enterprise Ecosystems CATALYZE MS4G seeks to engage private sector chambers and associations, business advisory service providers (BASPs), start-up incubators and accelerators, and anchor firms in partnerships that do the following:

• deliver market-based business and financial advisory services to Ethiopian SMEs,
• mobilize investment in SMEs,
• improve SME performance, growth, and resilience, or
• enhance the application of inclusive business strategies. 

Key results under this program area include number of SMEs receiving assistance to improve performance, increased sales of supported SMEs, and increased access to finance for SMEs. 

Youth Programming (Improving skills and productivity) CATALYZE MS4G seeks to engage employers, educational and training institutions, job matching/placement firms, chambers and associations, and NGOs in initiatives that result in the following new or better employment – including self-employment – opportunities for youth, women, and marginalized groups through skills building, training, certifications, networking, job placement and matching services, and entrepreneurship support. CATALYZE MS4G also seeks to partner with large employers looking to upgrade the productivity of their current workforce or improve the pool of qualified candidates to fill needed roles. Interested applicants are encouraged to propose a) pay-for-results (P4R) concepts where funding is based on achieving job training, placement, or self-employment outcomes and job retention or b) partnership concepts that involve no more than 50 percent CATALYZE MS4G funding.

Key results under this program area include the number of individuals who find new or improved employment as well as the enhancement of job matching services. 

Improving the Enabling Environment CATALYZE MS4G seeks to support private sector-led efforts to educate businesses on the current business enabling environment (BEE) and drive inclusive private sector-led policy research and advocacy in areas such as finance, investment, digital economy, industrial parks, start-up legislation, moveable assets, and commercial law.

Key results under this program area include: the number of private sector organizations with improved capacity to develop and implement BEE promotion strategies, and the number of BEE policies analyzed, consulted on, drafted, revised, approved, or implemented. 

Facilitating Access to Finance and Investment CATALYZE MS4G will engage financial institutions and financial advisory service providers to support private capital mobilization for growth of Ethiopian organizations with the potential for growth in areas of food security, WASH, fertilizer access and investment and COVID resilience. CATALYZE MS4G will work on both ends of the financial sector, expanding access to finance for small and medium enterprises through support to financial institutions and supporting enterprises interested in accessing investment opportunities and projects. CATALYZE MS4G will also work with private capital partners to support creative blended finance opportunities and solutions, e.g., moveable asset financing, etc.

Key results under this program area include the number of SMEs supported, the number of investment opportunities accessed, and the amount of private capital mobilized for innovative blended finance opportunities. 

Advancing the digital economy. CATALYZE MS4G seeks partnerships advancing the development of a private sector-led digital economy that is open, inclusive, and secure, to ensure inclusive prosperity. CATALYZE MS4G seeks innovative concepts from e-commerce platforms, business solution providers, digital solution providers, FinTech firms, chambers and associations and other business ecosystem actors for initiatives that accelerate digital transformation at the firm and sector level, use of digital payment solutions, or adopting e-commerce business strategies and solutions.

Key results under this program area include: the number of enterprises or private sector organizations with increased capacity to participate in the digital economy. 

Important notes for interested bidders:

This RFA is released on March 01, 2023, on CATALYZE website, interested bidders can access the RFA by clicking the link below:

https://catalyze-procurement.com/wp-content/uploads/2023/03/RFA-CATALYZE-Ethiopia-2023-0059-MS4G-Partnership-and-Innovation-Facility.pdf 

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.ms4g.grants@thepalladiumgroup.com 

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.

1. Rolling submissions are evaluated through January 31, 2024, or until available funding has been allocated to qualified applications CATALYZE-Ethiopia.ms4g.grants@thepalladiumgroup.com
2. Late questions will not be accepted and entertained.
3. First round Virtual/In-person bidders conference: March 20, 2023, from 2:00 PM to 4:00 PM, Nairobi time (UTC +3).
4. Submission: CATALYZE MS4G requires that applications be submitted electronically (e-mailed) to CATALYZE-Ethiopia.ms4g.grants@thepalladiumgroup.com on Rolling submissions evaluated through January 31, 2024, or until available funding has been allocated to qualified applications
5. Late bid submissions 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.