The Matching Grant Scheme (MGS) is a financing mechanism aimed at strengthening and integrating selected value chains with local and regional markets. There would be yearly calls for proposals under the MGS.
The purpose of the MGS is to:
a) Provide support through matching grants to downstream financially viable Agribusiness, Agritech, SMEs, Aggregators, Productive Alliances (PA), and Farmer Based Organisations (FBOs)) to improve existing inclusive business arrangements, in order to maximize production potential among smallholders and offtakers as well as downstream processing and marketing potential of relevant value chain actors.
b) Support investors, with matching grants, to rehabilitate existing, and/or construct/purchase new agricultural infrastructure (e.g., irrigation infrastructure, storage facilities, processing, farm machinery, etc.) to improve marketing and financing opportunities for smallholder farmers, as well improve agricultural trade services for SMEs, all aimed at integrating selected value chains with regional markets.
Under the MGS, a Productive Alliance (PA) is a formal agreement between an organized group of farmers or Producer Organizations (PO) and a buyer for the provision of a certain good in specified quantities and quality standards.
The Matching Grants Scheme would be implemented under two (2) separate funding arrangements known as funding windows one (1) and two (2).
Funding Window 1 – Under this window, the MGS would fund activities directly related to environmentally sustainable climate smart production and production related activities including, but not limited to, provision of equipment such as farm machinery, irrigation infrastructure, seed production equipment, etc. Direct beneficiaries under this window are financially profitable Aggregators, Anchor Farmers, FBOs and Productive Alliances (PAs). For Funding Window 1, the threshold would not exceed USD150,000.
Funding Window 2 – Activities to be supported under funding window 2 would focus on environmentally sustainable, climate smart, post-production activities along the value chain. This would include, but not limited to, storage facilities, processing equipment, storage/cold storage facilities, drying facilities, processing facilities, haulage trucks, etc. Funding window 2 would target financially profitable Agribusiness, Agritech, SME, firms/companies operating in post- production activities but with strong linkages to smallholders and FBOs. The threshold for this funding window would not exceed USD500,000.
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