FoodTrade East & Southern Africa has launched a Soybean Challenge Fund open to applicants in nine countries across East and Southern Africa.
The fund seeks to stimulate innovative business models in private sector companies and private sector led consortia that will unlock barriers in the regional soybean value chains.
FoodTrade ESA will provide up to 49% of the total proposed budget of proposals received, with successful applicants entitled to grants ranging between Sh25 million to Sh80 million per proposal.
“The development and improvement of regional soybean value chain systems is the third pillar of our programme, which focuses on enhancing and promoting trade in staple foods. By working with the private sector and other development actors, we aim to promote the participation of small-scale farmers in the production and marketing of soybeans,” explained Marc Van Uytvanck, the Team Leader of the FoodTrade ESA programme.
He added, “Partnerships that help address market failures in storage, inputs, service markets, as well as coordination mechanisms and policy regulation will help improve the yields and livelihoods of soybean farmers, contribute towards strengthening food security, and translate into several benefits to consumers.”
The grants are aimed at stimulating increased production and value addition of soybeans in East and Southern Africa, with benefits anticipated including increased availability of livestock farming inputs, secured livelihoods for small-scale soybean farmers, improved supply of soybean crops and processed products, as well as improved access and health for consumers.
The Soybean Challenge Fund is targeted at private sector organisations, or private-sector-led consortia in any of the FTESA countries of interest including Zambia, Kenya, Uganda, Tanzania, Rwanda, Burundi, Zimbabwe, Malawi and Mozambique. These private sector companies, along with their partners, will be expected to provide smallholders farmers with an off-taker market for soybean produce at a fair price, adequate input supply, as well as agriculture extension and support services.
A wide number of projects are eligible for funding. These include projects involved in: farmer mobilisation; processing and value addition; bulking and aggregation storage mechanisms; marketing; as well as investments aimed at increasing the production of soybean at the farmer level.
The Soybean Challenge Fund round is expected to last for 18 months. The call for proposals is already live on the FoodTrade ESA website. Applications will be accepted until May 6, 2016. This will be followed by verification, due diligence and inception stages, with disbursement of funds expected to commence from Q4 2016. Applicants are encouraged to demonstrate evidence of support to women and youth, as well as collaboration with farmer organisations, input suppliers, agriculture extension service providers, credit providers and other providers working to increase soybean production.