Notice of Funding Opportunity (NOFO)

The Inclusive Resilience in Somalia (IRiS) program funded by United States Agency for International Development (USAID) and the Foreign Commonwealth Development Office (FCDO) seeks to accelerate economic development for marginalized groups in the target areas of Somalia by increasing individual, household, business, and community, and system-wide resilience through rural and urban livelihood diversification and promoting inclusive economic market systems to combat real perceived grievances that contribute to violent extremism and conflict.  

The project will pursue two main objectives:                 

1)     Strengthen and diversity in rural and urban livelihoods for marginalized groups; and   

2)     Promote economic agency of marginalized groups.   

Implemented by a consortium partners Mercy Corps (MC), Save the Children (SC), Somali Agriculture Technical Group (SATG), and Itad and led by DT Global, an international development contractor, IRiS is seeking applications from qualified financial institutions, legally registered Somalia, for grant applications to support IRiS’s activity of - Improving the Quality of Fish Retailing in Mogadishu by Expanding Retail Kiosks Through Access to Finance.  The purpose of this Notice of funding Opportunity (NOFO) is to solicit applications from Financial Institutions (FI) interested in providing credit to women and youth engaged in fish retail through selected technology financing. IRiS will onboard technology providers/fabricators to offer options for mobile/fixed fish retail outlets.

To support the above-mentioned funding opportunity, IRiS will onboard business development service providers to profile all women and youth engaged in fish retail in Mogadishu and Kismayo and provide the list to financial institutions to ease the process of targeting and onboarding clients for the grant. IRiS anticipates disbursing grant amounts based on performance milestones.

The following an indicative breakdown of how IRiS envisions the technology for each fish kiosk retailer will be covered:

·       IRiS expects to cover 60% of the cost of technology for each fish kiosk retailer.

·       The financial institutions will cover 30% of the cost of the technology.

·       The individuals applying for the technology will cover the remaining 10%.

Program Description:

This activity targets women and youth in fish retail through financial institutions (FI). IRiS will partner with financial institutions interested in providing credit to women and youth engaged in fish retail through selected technology financing. IRiS will onboard technology providers/fabricators to offer options for mobile/fixed fish retail out late. In addition, IRiS will also onboard Business development service providers to profile all women and youth engaged in fish retail in Mogadishu and provide the list to financial institutions to ease the process of targeting and onboarding clients for the grant. IRiS will transfer the grant amount based on performance bases. The financial institutions will ask for reimbursement of 60% of the cost of technology from IRiS, availing required documentation. However, the financial institutions only collect 30% of the cost of the technology, which the financial institutions finance, While the 60% financed by IRiS will go as an in-kind to the Women and youth engaged in fish retail receiving the grant as smart subsidy through financial institutions.

Grant Activity Objective:

This intervention aims to boost the income of women and youth involved in fish retail by establishing more hygienic fish outlets in Mogadishu city and Kismayo. This activity is expected to increase domestic demand for fish (hence increasing volumes of fish sold) and minimize post-harvest losses, thus increasing employment opportunities and incomes.

Under this activity, IRiS will implement a smart subsidy scheme to support the strengthening/establishment of 400 standard fish retail outlets. This activity will significantly contribute to reducing post-harvest loss, stabilizing the price of fish, creating a sustainable supply of quality fish, demonstrating and promoting health and safety standard regulations application, and increasing domestic consumption. 

 Grant activity Outputs and outcome:

·       Number of fish retailers applying for loans from selected financial institutions.

·       Number of fish retailers accessing loans and grants from selected financial institutions.

·       Number of fish retailers received technical support from financial institutions.

·       Number of improved fish selling points (retail outlets) established. This translates to a reduction in post-harvest losses and increased incomes for fishmongers.

·       Number of women/youths engaged in fish retail as their own business by accessing loans and grants. 

·       Number of women/youths linked to financial institutions to access loans to buy improved technologies. The amount (in $) of loans provided to fishmongers for improved technologies.

·       Number of new technologies introduced.

·       Sale volumes of improved technologies by local fabricators.

·       Increased income of those engaged in fish retail. 

Anticipated key tasks and activities:

The successful applicant’s FI undertakes the following tasks and activities:

1.     Reach out to women and youth identified by Business Development Service (BDS) provider and pitch the existence of loan products and grants for fish retail kiosk technologies.

2.     Participate in a marketing event organized by IRiS to introduce technology providers, financial institutions and women and youth engaged in fish retail.

3.     Develop inclusiveness criteria in collaboration with IRiS to create equal opportunity for all categories of women and men.

4.     Select eligible candidates for loan and share the profile with IRiS before loan approval.

5.     Share a list of youth and women whose loans have been approved by technology providers to access the technologies.

6.     Undertake supportive monitoring of those who accessed loans.

7.     Provide full documentation of those who are accessing loans and produce quarterly reports.

8.     Establish sustainable relationships with financial institutions to provide clients with the same or similar technology loans.

Eligible Organizations: 

Only Banks and Microfinance institutions are eligible to apply.  Eligible FI shall be able to comply with and achieve the proposed outputs, outcomes, and results and have a satisfactory performance record and record of integrity and business ethics. These FI must have the ability to operate and be legally registered in Somalia.

·       Applicants must demonstrate that the organization has the human resources and capacity to manage and implement the proposed project.

·        Applicants must have registration from the Central Bank of Somalia.

·       (attach a copy of the Applicant’s valid registration). Applicants without a valid registration will be disqualified at the initial evaluation stage.

·       Should have branches or agents in Mogadishu and Kismayo.

·       Must have been operational for at least one year and audited financial statements.

·       Should have experience in the productive sectors. i.e., agriculture -Fish, farming, and livestock.

·       Financial institutions should be innovative, and technology driven.

·       Demonstrates interest in working with micro-businesses and low-income people.

·       The financial institutions are committed to sustaining the products promoted jointly with IRiS.

·       Must be willing to work in the program Geographic Focal Zone (GFZ).

·       Not be identified in the System for Award Management (SAM) as ineligible to receive U.S. government funds. 

·       Not appear on the Specially Designated Nationals (SDN) and Blocked Persons List maintained by the U.S. Treasury for the Office of Foreign Assets Control, or “OFAC List.” 

·       Not listed in the United Nations Security designation list. 

·       Be willing to sign and submit required certifications before awarding the grant.

·       All selected grantees are required to obtain a unique entity identifier (UEI) number before an award is made. UEI numbers may be obtained online at SAM.gov | Home

·       Applicants must display sound management in the form of financial, administrative, and technical policies and procedures and present a system of internal controls that safeguard assets; protect against fraud, waste, and abuse; and support the achievement of program goals and objectives. IRiS will assess this capability prior to awarding a grant. Any falsification of proposal information may result in rejection/cancellation of the award.

·       Provide financial reports for the previous 3-year period (which have been audited by a CPA or other audit agency satisfactory to USAID, if available)

Grant mechanism, size and period of performance:

Subject to the availability of funds, the IRiS Program intends to provide up to USD 300,000 to the successful grantees over a 12-month period. The award amount per guarantee depends on the number of grantees selected for this intervention. IRiS anticipates awarding Fixed Amount Award (FAA) grants to successful financial institution applicants. Under the Fixed Amount Award all payments will be a fixed sum payable upon completion of milestones, which will be defined in detail during grant agreement negotiations. The grant provided by the project goes through the financial institution to the participants, the FI will only collect back the percentage of the loan they provided.  

The applications must be received no later than on April 15th, 2024, at 11:59 p.m. EAT. Applicants must submit applications electronically to the Grants Management Unit (GMU), via email at [email protected]. Late applications will not be considered.  Applicants must meet the requirements of eligibility for this Notice of Funding Opportunity (NOFO), those who do not will be disqualified.

The grant(s) will be awarded and implemented in accordance with U.S. government regulations governing grants and the Project’s internal grant management policies.  The Successful Applicant(s) will be responsible for ensuring achievement of specified grant objectives, deliverables, and outputs/ results.

Please refer to Section 1 – Description of the Funding Opportunity for a complete statement of goals and expected results.

Please dowload application forms to the below link.