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Grant Analysis

Purpose & Target

This grant, part of the AfriFOODlinks project, aims to financially support pioneering Micro, Small, and Medium Enterprises (MSMEs) in specific African hub cities. The core objective is to improve these MSMEs' circularity, internal processes, and capabilities to meet market demands for healthy and nutritious diets, while also facilitating access to other private funding through a blended finance approach. - SECTOR-SPECIFIC: This grant is specifically for businesses operating within the food system. - Target recipient type: Micro, Small, and Medium Enterprises (MSMEs). - Target recipient size: Businesses with 1 to 50 staff members and active annual revenue not higher than €50,000. - Geographic scope: Limited to MSMEs operating in five specific AfriFOODlinks Hub Cities: Mbale (Uganda), Kisumu (Kenya), Cape Town (South Africa), Ouagadougou (Burkina Faso), and Tunis (Tunisia). - Key filtering criteria: Must be an MSME within the food system, located in one of the specified hub cities, and have participated in the AfriFOODlinks incubation and training programs. - Grant frequency: This is an open call, part of a cascade fund mechanism from the AfriFOODlinks project.

Financial Structure

This grant provides direct financial support to eligible MSMEs. - The total budget dedicated to this grant call is €250,000. - Grants per successful applicant will range between €1,000 and €50,000. - A total of €50,000 is available per Hub City, supporting up to 15 applicants per city. - Funds will be released in tranches, with the schedule determined by the Selection Committee and outlined in the grant agreement. - The grant aims to improve MSMEs' circularity, internal processes, and capabilities; funds should be deployed to grow the business and its impact, not primarily to benefit external beneficiaries. - The grant support is envisioned to facilitate access to other private funding (loan, equity) as part of a blended finance approach, implying the grant can be combined with other financial mechanisms, but no mandatory co-financing percentage is stated for this grant itself. - There are no specific eligible/ineligible cost categories detailed, but the general purpose is to improve the MSME's operations and capabilities related to circular food systems.

Eligibility Requirements

To be considered for this grant, applicants must meet all of the following hard, non-negotiable criteria: Organizational Type and Size

Must be a Micro, Small, or Medium Enterprise (MSME).
Must have between 1 and 50 staff members.
Must have an active annual revenue not higher than €50,000.
Must be an active business operating within the food system of the specified city.

Geographic and Operational Requirements

Must be locally-owned with active operations in one of the five AfriFOODlinks Hub Cities: Cape Town, Ouagadougou, Kisumu, Mbale, or Tunis.
No member of the business is allowed to be employed by any sphere of government or by any entity majority owned by any sphere of government.

Program Participation

Applicant must have attended and participated in the AfriFOODlinks incubation and training programs (WP3, T3.2) in their respective Hub City.

Compliance and Funding Restrictions

All funded activities must comply with EU regulations.
Activities proposed for funding cannot be double funded by another funding source.

Application Specifics

The proposal must be submitted by the defined deadline.
Applications for Cape Town, Kisumu, and Mbale must be submitted in English.
Applications for Ouagadougou and Tunis must be submitted in French.
Applicants must fill in the Application Form specific to their own City only.

Application Process

This section outlines the steps and requirements for applying to the grant. Application Process

All applications must be submitted online via the AfriFOODlinks website: https://afrifoodlinks.org/grants-for-food-smes/.
The website will have separate application links for each specific Hub City.
Applications submitted through any other channel will be deemed ineligible.
Applications are free of charge.

Application Timeline

The submission deadline for all applications is September 17, 2025, at 23:59 UTC (which corresponds to CAT/CET).
The grant duration for successful projects is up to 12 months.

Required Documentation Applicants must submit a complete online application form, along with required supporting documents: - Declaration of Honour: A signed legal document accepting the conditions of the call. - Overview of questions: Applicants are advised to review this document to prepare for the submission. - Google Form: The primary submission method; may include annexures to be uploaded in PDF format (each under 100MB). Post-Award Requirements If selected, grant recipients must supply: - Bank account information and confirmation letter. - Sub-grant agreement: This will follow a template accessible on the application website and will determine the tranche release schedule. Reporting and Monitoring

A final report must be submitted by the grantee at the end of the program.
Reports will be assessed by someone within the AfriFOODlinks consortium, who may request additional information or changes.

Evaluation Criteria

Applications will be scored based on the following criteria: Impact (20% - maximum 4 points)

Alignment with the AfriFOODlinks goal to increase access to healthy, safe, and nutritious food in the Hub City.
Demonstrates circular business models focusing on:
- Production of healthy and nutritious foods.
- Processing healthy and nutritious food products.
- Trading, distribution, and marketing of healthy and nutritious foods and food products.
- Reducing food waste.
- Production and trading of organic inputs.

Excellence (35% - maximum 7 points)

Presentation of a well-defined problem.
Clear market opportunity identified.
Promising circular business model.
Evidence of an existing customer base.
Viable product or service.

Implementation (35% - maximum 7 points)

A compelling business plan that shows high potential for contributing to circular economy transitions in the food system and social benefit.
Demonstrates potential to grow (measured by staff or profitability) within 5 years.
Convincing demonstration of how funds will be deployed to grow the business and its impact, supporting the applicant's work and not primarily benefiting beneficiaries.

Extra Points Scheme (Up to 2 extra points, 10%)

1 point: Applicant business is majority-owned by youth (35 years old and younger) or has a clear benefit targeting youth.
1 point: Applicant business is majority-owned by women or has a clear benefit targeting women.

Applications will also be evaluated based on the formalization stage and operational capacity of the business.

Compliance & Special Requirements

This grant has specific compliance, technical, and strategic considerations. Regulatory Compliance

All activities funded by the grant must comply with EU regulations.
Activities cannot be double-funded by another source.

Technical Requirements & Expectations

The application will be evaluated based on the formalization stage of the business.
Businesses need to demonstrate operational capacity, including clarity on their business model, a well-defined problem, clear market opportunity, and a promising circular business model with an existing customer base.
A clear plan for growth is expected, showing high potential for contributing to circular economy transitions and social benefit, and a 5-year growth plan measured by staff or profitability.
Applicants must provide a clear fund allocation set against a list of activities with timelines, indicating how funds are expected to be released.

Special Considerations

There is a strong emphasis on supporting and prioritizing businesses led by or clearly benefiting youth (35 years old and younger) and/or women (additional points are awarded during evaluation for these criteria).
The grant focuses on pioneering MSMEs in circular food systems, emphasizing innovation and impactful business models.
The program highlights the importance of the AfriFOODlinks Data Management Plan for information.
Local contacts are available for each Hub City to provide support during the application process.

Grant Details