The Norwegian Agency for Development Cooperation (Norad) is accepting proposals to contribute to the innovation and entrepreneurship in sub-Saharan Africa in terms of food security, economy blue, climate adaptation, marine litter, renewable energies and clean cooking and aquaculture solutions.

This call is aimed at two areas

• Encourage incubators, accelerators and investment funds for SMEs (with a focus on early-stage companies) that mobilise knowledge and private capital for start-up companies/SMEs in sub-Saharan Africa.
• Risk reduction measures with banks/financial intermediaries that can increase innovations (e.g. end-user financing) and/or improve access to credit for micro, small and medium-sized enterprises (MSMEs) that have the potential to increase the scale of innovations.

This call aims to achieve

• Companies and foundations in Norway and in the beneficiary countries, priority will be given to incubators, accelerators and investment funds for SMEs, on the one hand, and local banks and financial institutions, on the other.
  • Incubators, accelerators and investment funds for SMEs By incubators and accelerators, Norad means entities that provide start-ups and early-stage companies with the support and resources to grow and scale. Their support usually involves early-stage funding, access to networks, investors and mentors or coworking space alongside other companies and experienced professionals. These projects and investment funds for SMEs can apply for TA support.
  • Local banks and financial institutions with risk reduction instruments (such as a first loss facility). A "first loss facility" is a financial arrangement in which Norad agrees to assume a portion of the potential losses associated with a particular loan or loan portfolio, while the lender or investor assumes the remaining risk. This type of facility is often used in situations where the overall risk associated with a loan or loan portfolio is considered too high for a lender to assume on its own. By agreeing to take the first loss, the lender can help reduce the overall risk and make the operation more attractive to other investors or creditors.
• It is also possible for incubators/accelerators to submit a joint application with a financial institution, where part of the grant can be used for the incubation/acceleration activity, while the first instalment of the loss can be used to scale up innovation.

The aim of this call

• To contribute to innovation and entrepreneurship in the developing countries of sub-Saharan Africa in the areas of food security, the blue economy, climate adaptation, marine litter, renewable energies, clean cooking solutions and aquaculture.
• Increase the establishment of competent accelerators/incubators in African countries and mobilise more private investment for the objectives of sustainable development in sub-Saharan Africa.
• Increase access to credit/financing with local banks/financial institutions to scale up solutions.
• Strengthening and expanding the pipeline of bankable projects.

Objectives and Thematic Areas

The main focus of this call is innovation and entrepreneurship and the expansion of solutions with the aim of fulfil to one or more of the following objectives:

• Promote more sustainable management of ocean resources and better protection of marine ecosystems.
• Investments in ocean-based climate adaptation and emissions reduction measures, including nature-based solutions, have increased in partner countries and regional organisations.
• Reducing marine litter and other forms of marine pollution in developing countries;
  • Improving plastic waste management on land will be prioritised.
• Support adaptation to climate change and increase risk reduction of disasters;
  • Increase investments to prevent and treat losses and damage.
  • Strengthen the ecosystems that protect communities from the adverse effects of climate change.
• Greater access for the target population to affordable, reliable, sustainable and modern energy solutions.
  • An increase in the proportion of the population with access to electricity.
  • An increase in the proportion of the population with access to clean cooking solutions.
  • Increased production of renewable energy.
  • Priority will be given to candidates whose portfolios have a high percentage of companies and projects working with access to and productive use of renewable energies, such as through off-grid and micro-grid solutions. In addition, priority will be given to accelerators and first loss facilities within the clean cooking solutions value chain. Links with the other sectors of this call will be prioritised, especially food safety.
• Improve sustainable food production (including aquatic food) in underserved markets through technologies and solutions that:
  • Increasing access to finance for entrepreneurs and primary food producers.
  • Improving agricultural value chains, including, for example, logistics, storage, transport, inputs, equipment and best agricultural practices.
  • Improving access to healthy, nutritious and locally produced food.

Information on financing

• The support period is 2023-2026. Multi-year projects are encouraged. Norad expects approximately NOK 180 million to be made available for each year.
• Norad expects to conclude a limited number of agreements. Priority will be given to larger applications, i.e. applications over NOK 20 million for incubation/acceleration and NOK 50 TA and mill projects for first loss facilities. Applications must not exceed NOK 100 million.
• The selection of projects will reflect the quality of the proposals, as well as a balance between different geographical areas and types of interventions.

Target groups

• The main final target group is the population of sub-Saharan Africa, with priority given to Kenya, Tanzania, Mozambique, Ghana e Malawi.

Eligibility Criteria

• Eligible recipients for this call for proposals are private actors in Norway and the beneficiary countries. Priority will be given to accelerators, incubators, SME investment funds for the technical assistance facility, commercial banks and non-bank financial institutions, including guarantee funds.
• The candidate must, together with the concept note, submit documents proving that the following criteria are met in order to be eligible for this competition:
  • The applicant must be an independent legal person. Precise and complete information on the nature of the organisation must be provided.
  • The candidate should provide an overview of their skills and experience relevant to implementing the proposal.
  • The candidate must demonstrate their administrative capacity to carry out the project.
  • If applying as an incubator/accelerator, please provide a description of relevant experience and background, including previous experience in the field and private fundraising efforts. funds.
• The following four cross-cutting issues must be duly taken into account in all projects:
  • Human rightswith a particular focus on participation, accountability and non-discrimination
  • Women's rights and gender equality
  • Climate change and environment
  • Anti-corruption.

Ineligible

• Multilateral, governmental and civil society.
• Academic institutions and research.
• However, these institutions can be partners in the project alongside companies/funds dedicated to incubation and acceleration and financial institutions.

For more information, visit Norad.