Call for Proposals for the Provision of Financial Services to MSMEs under GreenTech4CE in Zambia

The GREENTech4CE project implemented by Self Help Africa and its Implementing Partners (Tandem Circular, Imani Development and Prospero Limited) and funded by the European Union is dedicated to fostering sustainable and inclusive economic growth in Zambia. The project promotes sustainable practices by supporting the development of start-ups and MSMEs within the green, circular economy, and digital (GCD) sectors, or those seeking to transition to GCD business models. Through comprehensive technical and financial support, GREENTech4CE drives innovation, creates employment opportunities, and facilitates economic diversification.

The project is targeting the “missing middle” which are businesses that are considered too risky because they are in new or innovation led sectors, and growth stage businesses not too mature for commercial financing and other investments. The key approach of the GREENTech4CE project is to support the growth and success of startups, micro and small and medium businesses by providing quality business development support, expert advice and funding. The project involves collaboration with various stakeholders, including the government, businesses, and consumers, to foster sustainable and positive changes in the green economy.

The GREENTech4CE project supports the implementation of the recently launched Zambia’s Green Growth Strategy to generate economic growth that is also socially inclusive and environmentally sustainable. It supports the Eighth National Development Plan (8th NDP) objectives to achieve economic diversification, increase local value addition, create new and decent jobs.

Specific Objectives of the GREENTech4CE Project

• The intervention logic of the GREENTech4CE project aims to address the challenges MSMEs face in transitioning into a sustainable and diversified green, circular, and digital (GCD) economy. The project intends to enhance MSMEs’ capacities through technical assistance and financial support, to increase local value addition and sector diversification, to link value chains associated with CRMs and increase market awareness and access for GCD products. By improving the availability and diversity of financial products for MSMEs and fostering public-private learning and policy advocacy, the project seeks to attract more investments and facilitate MSME growth in Zambia’s GCD economy.
• Specific objectives include support and development of 550 start-ups and micro-enterprises through technical assistance and grant support for business development; boost economic growth by enhancing market access, including local, regional, and international markets to 300 start-ups and micro-enterprises and 250 SMEs. Further, impact investors/venture capital will develop and provide access to financial options for GCD MSMEs, joint ventures and start-ups, thus helping diversify the investment landscape.
• Over its duration, the project will support, through financial support and technical assistance, approximately 800 MSMEs. It is estimated that eight to fifteen BDSPs will be supported BDSPs will be supported through grants to enable them to recruit startups and micro enterprises, particularly those working or transitioning to the GCD economy.
• The Project has also earmarked catalysing at least EUR 20million of new investment for GCD MSMEs and start-ups, eventually translating into job creation – 2,000 new full-time equivalent (FTE) jobs and 4,000 existing FTE jobs sustained within the targeted MSMEs, thereby generating a significant economic impact for employees and their households.
• An estimated 500 individuals from targeted MSMEs will complete specialised training and attain relevant qualifications through courses and modules in circular economy and financial, digital, and management literacy – this will include advising on curricula improvements for TVET qualifications related to circular economy. In addition, from a social inclusion perspective, the project will target 50% women and 75% youth entrepreneurs as participants, enhancing their participation in sustainable GCD economies.
• The project will also award business growth & innovation competition prizes via a competitive process. Enterprises with a demonstratable commitment to improving, through successful engagement with BDSPs, will be eligible to receive cash prizes to invest in feasibility/market studies, technical support, equipment and staff etc.

Objectives of the Assignment

• This Request for Proposals (RFP) invites Financial Service Providers (FSPs) to submit transformative, market-responsive solutions that expand and improve access to finance for startups, micro, small, and medium-sized enterprises (MSMEs) operating within the green, circular, and digital economies including critical raw materials value chain actors. The GREENTech4CE project aims to catalyze inclusive, sustainable economic growth by partnering with a diverse range of financial actors including, microfinance institutions, financial technology (fintech) companies, venture capital firms, and impact investment funds who can develop and deploy innovative, fit-for-purpose financial products and services.
• Through this RFP, the project seeks to address persistent financing gaps that hinder MSME growth and innovation, especially in high-potential but underserved sectors. Selected FSPs will be expected to propose solutions that are not only commercially viable but also aligned with the specific objectives of the GREENTech4CE initiative (see Section 2.0), including environmental sustainability, digital transformation, circular economy, and inclusive economic development.
• By leveraging the capital, tools, and expertise of microfinance institutions, venture capitalists, fintech innovators, and impact investors, this initiative will empower MSMEs to overcome structural barriers, build resilience, and scale their operations in increasingly competitive and resource-constrained markets. These strategic financial partnerships will serve as a critical enabler for MSMEs to contribute meaningfully to national development priorities, including green job creation, waste reduction, digital innovation, and climate resilience. In doing so, the GREENTech4CE project not only strengthens the entrepreneurial ecosystem but also fosters a more sustainable and equitable economic future.
• The objectives of thisAssignment are: –
  • Output 1: Support the development of Green Financial Productsi.e. loans, grants, equity, and other financing tools specifically for MSMEs in the GCD economy.
  • Output 2: Increase access to affordable and appropriate financial services for MSMEs.
  • Output 3: To enable digital payments and credit scoring solutions tailored towards MSMEs engaged in GCD activities. To lessen financial risk by encouraging trade finance and utilizing digital financial technologies (Fintech).
  • Output 4: To create stronger partnerships between FSPs, MSMEs, and other investors to enhance access to finance and promote sustainable business practices.
  • Output 5: To provide technical assistance on the green, circular, and digital economy and to offer training around business model clarity, investment sourcing, pipeline development, and product/strategy testing.
  • Output 6: Promote financial inclusion and sustainable economic growth through access to finance with specific focus on women and youth
  • Output 7: Strengthen the capacity of financial service providers to effectively serve MSMEs.

Funding Information

• In the context of the project, indicative total financial allocation under this call for proposals is EUR783,150. The call targets established financial service providers prescribed as; Microfinance institutions, Financial Technologyfirms, Venture capital firms and Impact investors providing financial products or services looking to support increased access to finance and tailor-made products for start-ups and MSMEs within the green circular and digital economy in Lusaka, Copperbelt and Northwestern provinces.
  • Grants will range from EUR50,000 to EUR250,000.

Duration of financial support 

• The planned duration of the financial support shall be valid for a period of twelve (12) to twenty-four (24) months. The project will retain the right to terminate or extend financial support as determined by the fund manager. During this period, the financial support will be disbursed based on a negotiated milestone structure to be agreed upon before the conclusion of the contract. The specific milestones will form part of the contract between the fund manager and the applicant.

Eligibility Criteria

• The Applicant (Targeted FSPs)
  • Financial service providers refer to regulated financial institutions that are licensed and supervised by the Bank of Zambia or the Securities and Exchange Commission. Targeted Financial institutions will include Venture Capitalists, Impact Investors, Private Equity Firms, Microfinance Institutions and FinTech’s. These will be firms that have intentionally developed or are in the process of developing strategy to provide financial products or services to Startups, Micro, Small and Medium Enterprises operating in the Green, Circular, Digital Economy and Artisanal/Small Scale Mining.
    • Venture capital (VC) is a type of private equity financing provided by investors to Startups and early-stage, high-growth businesses. VC firms or individual investors provide funding in exchange for equity (ownership shares), often taking an active role in the company’s growth. Venture capital is typically used by early-stage companies that may not yet qualify for traditional bank loans but have the potential for significant returns.
    • Impact investors are institutions that invest in businesses and projects with the goal of generating both financial returns and positive social or environmental impact. These investors focus on sectors that ensure their investments contribute to meaningful change while still being profitable.
    • Private Equity Firms (PE’s) are investment management companies that provides financial backing and make investments in the private equity of mature, established companies, often with stable cash flows, with the primary goal of generating profits on its investments.
    • Financial Technology companies (Fintech’s) that use innovative digital technologies to deliver financial services in new, efficient, and often more accessible ways such as peer-to-peer lending and automated investment platforms.
    • Microfinance Institutions (MFI’s) that provide tailored financial products and non-financial support to empower Micro, Small and Medium Enterprises, promote entrepreneurship, and drive economic development.
  • Eligible applicants must provide tailored financial solutions.
  • Applicant Criteria
    • To be eligible for financial support and/or technical assistance, the applicant must comply with all the criteria listed below: Technical support is to be provided on company specific needs basis.
    • Must be a 51% Zambian owned for profit entity incorporated in Zambia as a company and have the potential to finance startups and MSMEs in the GCD/ASM sectors and the Projects’ geographic coverage. (Public Limited Companies are not eligible)
    • Must be compliant with all national and local laws and regulations, including meeting all statutory obligations relating to the payment of taxes and social security contribution and relevant health and safety and environmental standards.
    • FSPs must be in good standing with national regulatory bodies such as the Bank of Zambia (BoZ), Securities and Exchange Commission (SEC) including any other relevant regulatory body.
    • The business must have minimum three (3) years of uninterrupted operations in Zambia at the date of application.
    • In addition, the business must have a yearly turnover in one of the last three (3) years of at least EUR 400,000 for established FSPs and EUR 40,000 for smaller /early stage FSPs as evidenced by audited accounts.
    • Demonstrated ability to provide co-financing of 50% of project cost for entities with providers with annual turnover >€400,000 and 25% requirement for smaller/early-stage providers with an annual turnover between €40,000 and €399,999.99.
    • The applicant must demonstrate adequate financial capacity to finance enterprises in the areas specified.
    • Applicants with a track record of financing MSMEs, and experience in the GCD economy or related sectors will have added advantage.
    • The applicant demonstrates a commitment to sustainability and green economy principles in their financial offerings.
    • Partnerships and Innovation: FSPs are encouraged to demonstrate partnerships with BDSPs, investors, or consultants to deliver technical support to MSMEs.
    • The business must have three (3) years of financial statements including audited accounts (2022, 2023 and 2024). The audited accounts should have been prepared in accordance with International Financial Reporting Standards (IFRS) by an accountant accredited by the Zambia Institute of Certified Accountants (ZICA).
    • To be committed to sustaining practices of the green circular models both during and post the secured investment.
• Eligible actions to be funded
  • Fund Beneficiaries
    • This initiative strengthens the capacity of Financial Service Providers (FSPs) in Zambia to enhance access to finance for startups, micro, and small enterprises operating in the green, circular, and digital economy including ASMs. By expanding tailored financial products and digital financial solutions, the initiative promotes financial inclusion, with a strong focus on supporting women and youth-led businesses. It also mitigates financial risks through innovative digital tools and data-driven approaches. Strengthened collaboration between FSPs, MSMEs, and investors will foster sustainable business growth.
  • Location
    • Activities must take place in the Republic of Zambia. Special attention will be given to initiatives and businesses within the eligible sectors in 5.2 above in Lusaka, Copperbelt, and North-Western.
  • Types of Activities and Initiatives
    • The Projects may include (but are not limited to):
      • Feasibility and Market studies to support the development of tailored financial products for startups and MSMEs.
      • Developing and piloting tailored financial products and services including new green financial products that cater to the unique characteristics and requirements of startups and MSMEs in the Green, Circular, Digital and ASM sectors.
      • Providing expertise in assessing and mitigating the risks associated with investing in startups and MSMEs in the Green, Circular, Digital, and ASM sectors. This includes developing risk management frameworks, conducting due diligence, and implementing monitoring and evaluation systems to track the performance of investments and identify potential risks early on.
      • Providing technical assistance and capacity-building support to startups and MSMEs to enhance their business skills, financial literacy, and operational efficiency. This may include training programs, mentorship, and access to resources and expertise in areas such as business planning, financial management, and technology adoption.
      • Establishing partnerships and networks with relevant stakeholders, including government agencies, industry associations, research institutions, and other financial institutions, to facilitate deal flow, knowledge sharing, and collaboration.
      • Procurement of equipment, software and expert support in the development of new green financial products that are aligned to the needs of MSMEs and startups (including women and youth led).
      • Support in navigating green finance, green bonds, and green financial letters, crucial for environmentally sustainable investments.
      • Launching digital lending platforms with scoring models that incorporate compliance metrics and credit worthiness.
      • Implementation of innovative delivery channels (e.g., mobile platforms, agent banking, partnerships with MSME networks).
      • Designing micro-insurance products for businesses in the GCD sectors to manage risks effectively.
      • Risk-sharing mechanisms (e.g., partial guarantees) to promote lending to underserved MSME segments.
      • Fostering the adoption of digital payment and credit scoring solutions tailored to the needs of Startups and MSMEs in the GCD/ASM sector.
      • Facilitating market expansion into new markets or geographical locations.
      • Development of tools and frameworks for measuring financial, social, and environmental performance.
      • Fundraising activities towards Green Circular and Digital support.
      • Promotional /outreach activities targeted at Startups and MSMEs in the GCD economy.
• Cost Eligibility
  • Operating Expenditure (OpEx) – working capital for enhancing operational capacity such as management systems e.g. ERP tools, financial risk systems (for FSPs), Tools for credit scoring (FSPs), Data Security & Compliance: Systems ensuring regulatory adherence. Events, logistics, promotional activities or materials.
  • Capital Expenditure (Capex) such as purchase and installation of equipment, technologies Investment in fintech solutions (FSPs), rental space in new locations outside primary operational area.
  • Capacity building, including skills and leadership development, financial literacy and management, record-keeping, creating business procedures and policies, etc.

For more information, visit Self Help Africa.