Call for Proposals: CookFund Programme (Tanzania)

UNCDF is inviting eligible Small and Medium Enterprises (SMEs) and companies which are involved in the clean cooking value chain/technologies to apply for technical and financial assistance to accelerate market roll-out of clean cooking technologies in Programme targeted urban areas/regions. Financial assistance will mainly focus on addressing end-user affordability and enterprises/companies’ under-capitalization.

The Programme is implemented by the UNCDF in collaboration with United Nations Industrial Development Organisation (UNIDO). UNCDF is both the Fund Manager and implementor of the Programme.

Objectives

• The main objective (impact) of the programme is to reduce climate change impact in Tanzania by increasing the share of the population with access to sustainable cooking solutions. The specific objective (outcome) is to increase usage of modern and clean cooking solutions in urban areas for improved environment and inclusive wellbeing of the population. CookFund aims to bridge a critical gap between early-stage support, equity financing and concessional/commercial debt needed to transition to modern, clean cooking at scale.

Funding Information

• The size of individual awards will range from €10,000 – €300,000, with a possibility for follow-on funding subject to performance and availability of funding.

Use of the Funds

• The funding will be deployed for the following activities:
• Provide end-user discounts for clean cooking solutions.
• Expand businesses and increase outreach, depending on the requirements of the enterprise by:
  • Improving the marketing and sales strategy and effectiveness,
  • Establish new sales points and retail outlets.
  • Implement new processes and systems that facilitate end user payment and financing.
  • Capital expenditures including purchase of production equipment, distribution trucks, storage facilities all aiming at scaling up business operations, energy access and outreach.

Target Beneficiaries

• The CookFund targets suppliers of clean cooking technologies in urban areas in the targeted regions of Dar es Salaam, Pwani, Morogoro, Dodoma and Mwanza. Suppliers include producers, importers, wholesalers, super-dealers and retail distributors of clean cooking technologies. Indirectly, the CookFund will target end users of clean cooking technologies. The primary aim of CookFund is to incentivize enterprises and companies to make sales to household end-users more affordable. However, sales of energy-efficient stoves to commercial and institutional cooking services to serve critical needs could be considered.

Eligibility Criteria

• The CookFund Programme is open to SMEs and companies that will have the following criteria:
  • Geographical Scope: Have operations in the urban areas of Dar es Salaam, Pwani, Morogoro, Dodoma and Mwanza regions only. NOTE: Preference for bio-ethanol business will be given to enterprises and companies serving Pwani, Morogoro, Dodoma and Mwanza
  • Thematic Scope and Product Eligibility: Committed to adhere to targeted cooking technologies such as LPG (PAYGO & Canisters), Natural Gas, Ethanol, Electricity, Briquettes, andICS.For some technologies must comply torelated quality standards and industry best practices set by Tanzania Bureau of Standards (TBS) or similar regional/international standards setting and certification bodies.
  • For profit and market-oriented enterprises and companies: Have existing business, a well-developed business plan, cash flow positive and profitable, or showing a clear path to expansion and profitability following support by the Programme.
  • Professional capacity requirements;
    • Applicants should be able to show that they have/has sufficient resources, competence and experience to implement projects in the clean cooking market.
    • Applicants will also be required to establish a key management team responsible for performing and coordinating the project.
    • The qualification of the team members must be adequate for the implementation of the proposed project activities.
  • Market experience requirements;
    • Applicants should demonstrate that they have sufficient market experience of working in one or more country, region, or district level market(s).
  • Applicants should specify the total amount of funding being requested and their predicted annual funding requirements for the project implementation period.
  • The funding should not replace the pre-allocated national expenditure in the sector/sub-sector or crowd-out commercial lenders from serving the enterprises or companies. This is in line with the EU principle of additionality.
  • The successful applicant should open a separate and dedicated bank account for receiving CookFund grant support. The grant paid to the beneficiary enterprise or company should not be used to service pre-existing financial obligations i.e., bank loan etc
  • Impact driven as well as operating a business model which includes selling to the household market or agents who are directly selling to end-users either households, businesses, or institutions. To receive programme funding, successful applicants are required to deliver and sell affordable and high-quality clean cooking services directly to end-users in a stable and sustainable manner.
  • Monitoring and Reporting: The applicant’s capacity and readiness to track and report sales to end users of the technology, including data management and data quality checks. Baseline data on existing performance should be provided.

For more information, visit UNCDF.