Call for Expression of Interest: Agriculture Finance Innovation Challenge (Pakistan)

As a federal enterprise, the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH supports the German Government in achieving its objectives in the field of international cooperation for sustainable development.

GIZ Pakistan through its project, “Introduction of Innovative Climate Risk Financing Solutions” is supporting the World Bank’s Resilient and Accessible Microfinance (RAM) Project, which is being administered by the State Bank of Pakistan (SBP). The RAM Project aims to build resilience of the microfinance sector and its borrowers to climate shocks, and to support recovery following qualifying climate events. The Innovative Agriculture Liquidity (IAL) facility under RAM will provide medium-term liquidity to eligible microfinance providers (MFPs) offering new agriculture and livestock loans bundled with agriculture technology-linked services, particularly in underserved and climate-vulnerable regions. The IAL has several immediate objectives including: enabling MFPs to expand their agricultural portfolios supported with technology-based solutions; piloting and improving access to newer agri-technologies by the farmers; and bolstering farmer resilience and production. In the long term, this is expected to enhance the quality, resilience, and reach of agricultural lending by MFPs.

The Agriculture Finance Innovation Challenge (AFIC), implemented by GIZ Pakistan, is conceived as a catalytic precursor to the IAL facility. AFIC will identify, fund, and support high potential Agricultural Technology Companies (ATCs) to co-develop, and pilot bundled agri-finance solutions in partnership with MFPs. By offering targeted grants, technical assistance, and visibility to selected ATCS, AFIC will help test proof-of-concept models and de-risk future investment pipelines under the IAL. The AFIC will invite potential applicants to share proposals which highlight how their technology-based agriculture advisory services will be coupled with micro-loans. This can be accomplished by providing technology-based advisory services to the microfinance provider or directly to the borrower, as part of a microfinance loan. Solutions should aim to be scalable and demonstrate the potential to achieve measurable improvements in farm profitability, productivity, and resilience.

Funding Information

• ATCs which win the AFIC will benefit from a cash grant of up to EUR 100,000 to tailor and scale their products while partnering with MFPs. The grant will support the pilot of bundled products under the IAL, including integration of the proposed agri-tech solution with the MFP’s systems, training MFP staff, and gathering required information to demonstrate the solution’s relevance and results.

Eligibility Criteria

• Interested companies that have the required proven expertise and offer technology-based agricultural services or products such as advisory, digital tools, input linkages, crop monitoring, post-harvest services, and are willing to co-develop bundled products with Microfinance Providers (MFPs), including participation in pilot design, implementation, and monitoring are invited to apply to this EOI
• Companies submitting proposals are expected to meet the following minimum eligibility qualifications:
  • Must be a registered company (legal entity in Pakistan for the last 02 years).
  • Maintains an active NTN and Sales Tax with relevant tax authorities.
  • At least 2 years of experience in providing technology-based agricultural services or products (e.g. advisory, digital tools, input linkages, crop monitoring, post-harvest services, etc.)
  • Have audited financial statements (statement of last 02 years to be submitted) with a minimum turnover of PKR 50 million over the period of the last 02 years.
  • Must not be blacklisted by any public and private organization including any donor-funded Program (Declaration/Affidavit).

For more information, visit GIZ.