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Grant Analysis

Purpose & Target

This grant aims to strengthen Business Membership Organizations (BMOs) and Civil Society Organizations (CSOs) in Ethiopia. The core objective is to enable these organizations to better represent private sector interests and engage more effectively in policy dialogue within key value chains. It targets non-profit-making organizations, specifically CSOs and BMOs, operating locally. - Target recipient type: Non-profit Civil Society Organizations (CSOs) and Business Membership Organizations (BMOs). - Target recipient size: Established organizations with demonstrated experience in managing significant grants (min EUR 250,000) for CSOs, and for BMOs, those with a membership base of more than 150 companies/cooperatives. - SECTOR-SPECIFIC: Focuses on agro-processing, health, energy, manufacturing, and ICT sectors. - Geographic scope: Actions must take place exclusively in Ethiopia, and lead applicants must be effectively established in Ethiopia. - Key filtering criteria: Applicant must be a non-profit legal person, established in Ethiopia, with relevant experience and, for BMOs, a substantial membership base. - Grant frequency and program context: This is a call for proposals for 2025, framed under the EU's Multi-Annual Indicative Programme for the Federal Democratic Republic of Ethiopia (2024-2027).

Financial Structure

Total overall budget available for this call for proposals is EUR 2,000,000.
Indicative allocation by lot:
Lot 1 (Strengthening of CSOs): EUR 1,000,000
Lot 2 (Strengthening of BMOs): EUR 1,000,000
Minimum grant amount per project: EUR 250,000.
Maximum grant amount per project: EUR 333,333.
Co-financing/Funding Rate:
Minimum percentage of total eligible costs covered by the grant: 75%.
Maximum percentage of total eligible costs covered by the grant: 95%.
The balance (5% to 25%) must be financed from sources other than the general budget of the European Union or the European Development Fund.
Full financing (100%) by the grant is possible if justified and approved by the contracting authority.
Eligible Costs:
Reimbursement of actual costs incurred by the beneficiary(ies) and affiliated entity(ies).
A contingency reserve not exceeding 5% of estimated direct eligible costs is allowed.
Indirect costs are eligible for a flat rate funding, not exceeding 7% of the estimated total eligible direct costs (excluding volunteer costs and project office costs).
Ineligible Costs:
Debts and debt service charges (interest).
Provisions for losses or potential future liabilities.
Costs declared and financed by another EU/EDF grant.
Purchases of land or buildings (unless necessary for direct implementation, with ownership transfer requirements).
Currency exchange losses.
In-kind contributions (except personnel costs for volunteers).
Staff bonuses.
Negative interest charged by banks.
Credit to third parties.
Salary costs of personnel of national administrations.
Financial Reporting: Beneficiaries are required to submit interim and final narrative and financial reports.
Audit Requirements: For grants exceeding EUR 750,000, an audit report by an approved external auditor is required for the last 3 financial years. For other grants, a self-declaration of accounts validity is sufficient.
Financial Guarantees: A financial guarantee may be required for the first installment of pre-financing, if deemed necessary by the contracting authority.

Eligibility Requirements

Legal Status

Lead applicant must be a legal person.
Lead applicant must be non-profit-making.
Lead applicant must be effectively established in Ethiopia.
Lead applicant must be directly responsible for the preparation and management of the action.
Lead applicant must not be in any of the exclusion situations listed in Section 2.4 of the practical guide.

Organizational Type and Experience

For Lot 1 (CSOs): Lead applicant must be a Civil Society Organization (e.g., non-governmental organization).
Must have at least three years of existence operating in Ethiopia.
For Lot 2 (BMOs): Lead applicant must be a Business Membership Organization.
Must have a membership base of more than 150 companies, cooperative aggrupation, or similar.
Must have at least five years of existence operating in Ethiopia.
All lead applicants must have demonstrated experience managing at least one donor-funded grant contract amounting to no less than EUR 250,000, as a consortium, in the past four years.

Geographic Location

All actions must take place in Ethiopia.

Financial Capacity

Lead applicants must have stable and sufficient sources of finance to maintain their activity and, where appropriate, participate in funding the action.
For grants exceeding EUR 750,000, an audit report for the last 3 available financial years is required (unless statutory audit is not required by EU/national law).
In all other cases, a self-declaration certifying the validity of accounts for the last 3 available financial years is required.

Technical and Operational Capacity

Applicants must have the management capacity, professional competencies, and qualifications required to successfully complete the proposed action.

Partnership Requirements

Lead applicants may act individually or with co-applicant(s).
Co-applicants must satisfy the same eligibility criteria as the lead applicant.
Affiliated entities are permitted if they have a structural (legal or capital) link with the applicant that exists independently of the grant; they do not become beneficiaries but their costs can be eligible.

Exclusion Criteria

Applicants must not be in any situations of exclusion (e.g., bankruptcy, grave professional misconduct, fraud, corruption, conflict of interest). A 'Declaration on Honour' must be submitted.

Application Process

Application Process Overview This is a restricted call for proposals with a two-stage application process: 1. Concept Note Submission: Applicants submit a brief concept note for initial evaluation. 2. Full Application Invitation: Only pre-selected lead applicants are invited to submit a full application. Concept Note Phase

Application Deadline: October 6, 2025, at 16:00 (Brussels date and time).
Submission Method: Primarily online via PROSPECT system (https://webgate.ec.europa.eu/prospect).
- Offline submission (sealed envelope by registered mail/courier/hand-delivery) is possible only for documented technical or security/confidentiality reasons.
Required Materials: Concept Note (Annex A.1) and Declaration by the Lead Applicant.
Language: English.
Content Restrictions: The concept note must provide an estimate of the requested EU contribution and an indicative percentage. Detailed budget is only for the full application phase.
Modifications: Elements outlined in the concept note cannot be significantly modified in the full application, except for:
- EU contribution may vary by no more than 20%.
- Lead applicant may add, remove, or replace co-applicant(s) or affiliated entity(ies) with justification.
- Duration adjustment due to unforeseen circumstances, staying within the 24-36 month limits.
- Own contributions can be replaced by other donor contributions.

Full Application Phase

Invitation-Only: Only lead applicants whose concept notes are pre-selected will be invited to submit a full application.
Submission Deadline: Will be indicated in the invitation letter to pre-selected lead applicants.
Submission Method: Online via PROSPECT is mandatory, unless documented technical/security reasons necessitate offline submission (same method as concept note).
Required Materials (to be submitted with Full Application):
- Full Application Form (Annex A.2).
- PADOR registration form (Annex F) for lead applicant, co-applicants, and affiliated entities (if online registration is impossible).
- Budget (Annex B) and Logical Framework (Annex C).
- Declaration on Honour (Annex H) signed by lead applicant, co-applicants, and affiliated entities (for grants > EUR 15,000).
- Statutes/articles of association of lead applicant, co-applicant(s), and affiliated entity(ies) (or proof of eligibility from a former call).
- Latest accounts (profit and loss, balance sheet) for the lead applicant (audit report or self-declaration based on grant amount).
- Mandate for co-applicant(s) (Annex A.2 Section 5).
- Affiliated entities' statement (Annex A.2 Section 5).
Language: English, same as concept note.

Support and Communication

Information Session: August 25, 2025, at 14:00 (local time) at EU Delegation to Ethiopia and online. Email registration required by August 11.
Questions: May be sent by email no later than 21 days before the concept note submission deadline to '[email protected]'. Replies will be published no later than 11 days before the deadline.
IT Support: For PADOR/PROSPECT, contact '[email protected]'.
No Individual Eligibility Opinions: The contracting authority will not provide prior opinions on eligibility of applicants or actions.
Application Tracking: Lead applicants receive confirmation of receipt via PROSPECT and can track application status online.

Evaluation Criteria

Concept Note Evaluation Concept notes are evaluated on relevance and design, with an overall score out of 50. - Each subheading is scored between 1 (very poor) and 5 (very good). - A score of 5 (very good) is only allocated if the proposal specifically addresses more than the required minimum number of priorities. - Only concept notes with a score of at least 30 out of 50 will be considered for pre-selection. - The number of pre-selected concept notes will be limited to ensure the total requested contributions do not exceed 200% of the available budget. Full Application Evaluation Full applications are evaluated on quality, proposed budget, and applicant capacity. There are two main types of criteria: Selection Criteria (Operational & Financial Capacity) These criteria assess the applicant's ability to carry out the project: - Financial Capacity: Applicant(s) must have stable and sufficient sources of finance to maintain activity throughout the proposed action and participate in its funding (applies to lead applicant only). - Management Capacity: Applicant(s) and affiliated entity(ies) must possess the management capacity, professional competencies, and qualifications needed to successfully complete the action. - Thresholds: If the total score for this section is less than 12 points, the application will be rejected. - If the score for at least one subsection under Section 1 is 1, the application will be rejected. Award Criteria (Quality of Application) These criteria evaluate the quality of the proposals in relation to the call's objectives and priorities: - Relevance: How well the action aligns with the objectives and priorities of the call for proposals, and the needs of target groups/beneficiaries. - Consistency: The coherence of the project design, including its logical framework and activity plan. - Quality: The overall quality of the proposed action, including the expected outcomes, deliverables, and methodology. - Expected Impact: The potential social, economic, or environmental impact of the action. - Sustainability: The likelihood of the project's results and benefits lasting beyond the grant period, including the financial sustainability of the organizations themselves. - Cost-effectiveness: The efficiency and effectiveness of the proposed budget in achieving the project's objectives.

Compliance & Special Requirements

Regulatory Compliance

Actions must conform with the 'Practical Guide' (PRAG) for EU external actions.
Applicants are subject to the EU's early detection and exclusion system.

Ethical Standards

Conflict of Interest: Applicants must not have any conflict of interest with other parties involved in the action.
Environmental Legislation & Labour Standards: Compliance with environmental legislation (including multilateral agreements) and core International Labour Organisation (ILO) conventions (e.g., freedom of association, elimination of forced/child labour) is mandatory.
EU Values: Commitment to and assurance of respect for basic EU values: human dignity, freedom, democracy, equality, the rule of law, and human rights (including minority rights).
Zero Tolerance Policy: Strict zero tolerance for sexual exploitation, abuse, and harassment (SEA-H).
For grants exceeding EUR 60,000, a self-evaluation questionnaire on SEA-H (Annex L) is required for non-natural persons (excluding pillar-assessed entities and public bodies).
Anti-corruption and Anti-bribery: Strict compliance with all applicable anti-bribery and anti-corruption laws. Discovery of corrupt practices or unusual commercial expenses may lead to project termination, exclusion from EU funding, and/or financial penalties.

Visibility Requirements

Applicants must ensure the visibility of the European Union as a funder/co-funder through the correct and prominent display of the EU emblem and funding statement, in accordance with EU Communication and Visibility Requirements.
Derogation from visibility obligations is permitted in exceptional situations (e.g., security issues, local political sensitivities) with prior EU agreement.

Financial Support to Third Parties

Financial support to third parties is permitted under specific conditions:
Maximum amount per third party is EUR 60,000, unless higher amounts are exceptionally justified.
Lead applicant must define overall objectives, specific objectives, outputs, eligible activities, types/categories of recipients, selection criteria for recipients, and criteria for determining the exact amount of financial support.
Recipients of financial support must be non-profit making, non-partisan, non-governmental, and/or community-based organizations registered at the local government level.
Third-party recipients must have experience implementing at least one project prior to receiving support, have dedicated financial/accounting staff, and capacity to provide proper reports.
Recipients cannot be on EU restrictive measures lists.

Important Notes

The Contracting Authority reserves the right to cancel the call for proposals procedure at any stage.

Grant Details