Call for Proposals with emphasis on Social Protection by the Facility Investing for Employment

The main purpose of the Facility is job creation in the private sector and by this enhancing improved social protection. Grant funding is therefore available only for projects which will create new jobs in the private sector. Preference is given to projects, which combine job creation with improvement of social protection aspects of employees, their families or third parties.

In addition to the creation of new formal good jobs, IFE aims to support national efforts to improve the social protection of existing and new employees, their families, disadvantaged groups and people, who have a (semi-)formal business relationship with the applicant(s) such as independent sale agents, drivers or similar.

Project Categories

• The proposed investment project, which will lead to job creation, must fall within one of IFE’s four categories. It is the responsibility of the applicant to correctly identify the project category which applies to the proposed project.
  • Category 1: Not-for-profit projects (no revenue generation neither by the lead applicant’s entities nor by the consortium members – if applicable)
  • Category 2: Not-for-profit projects (with revenue generation by the lead applicant’s entities and/or by the consortium members – if applicable)
  • Category 3: For-profit projects (majority of jobs will be created at independent 3rd party entities)
  • Category 4: For-profit projects (majority of jobs will be created at the applicant’s entity/ies)

Benefits

• Applicants, who will implement measures significantly above the national mandatory minimum requirements, can benefit from:
  • Bonus points for the formalization of jobs or for social protection measures for new jobs above the mandatory minimum requirements, which will be implemented for new emplyoees by the applicant and its consortium partners
  • Financial support for additional new social protection measures above the mandatory minimum requirements, to boost both one-off and/or ongoing social protection expenses.
  • Applicants can apply for financial support in form of an additional grant for contributions to employer-(co)financed social protection schemes, including:
    • Contributions to improved social protection of existing and new employees such as additional or new health, unemployment, accident insurances, pension schemes etc.
    • Contributions to improved social protection of people not formally employed by the applicant or its consortium partners, but with a business relationship with these entities (e.g. independent sale agents, truck drivers, seasonal workers etc.).
    • Transformation of existent informal schemes (e.g. company internal social funds) into formalised social protection product with a regulated provider.
    • Investment costs for other social protection measures such as construction and equipment costs for the establishment of a Kindergarten, IT platforms for the registration and placement (with access to social protection schemes) of informal workers, health care centre, conversion of workplaces with the aim of making them more accessible for persons with disabilities.

Funding Information

• IFE offers grants for the job creation component between:
  • 650.000 and 10 Mio. EUR/project, applicable to all countries of the Call for Proposal
• The specific grant size is subject to the specific project category:
  • Category 1:
    • Grant size: max. 90%
    • Own contribution: min. 10%
  • Category 2:
    • Grant size: max. 75%
    • Own contribution: min. 25%
  • Category 3:
    • Grant size: max. 35%
    • Own contribution: min. 65%
  • Category 4:
    • Grant size: max. 25%
    • Own contribution: min. 75%.

Eligibility Criteria

• Applicants can be any entity with a proper legal body. The Call for Proposal is open for applicants applying either as an Individual entity or in a Consortium of several entities.
• Registration and Years of Operation:
  • Applicant must be a separate legal entity duly registered in the concerned country, in Africa or EU/EFTA.
  • Applicant or at least one member in case of a consortium must be duly registered and operating in the concerned Country for the Call for Proposals.
  • All applicants (Individual or Lead Applicant and Consortium members) must have been operating for a minimum of 3 years.
  • Exception: In case of a recently registered entity in the country of call, which is an investee of an individual applicant or any of the consortium members (e.g. subsidiary, joint venture, Special Purpose Vehicle-SPV), then the respective shareholders of this entity must have been operating for a minimum of 3 years at the time of CN submission.
• Financial Capacity:
  • Private sector applicants:
    • Average yearly turnover must be greater than or equal to 50% of requested grant for the job creation component.
    • Debt-equity ratio less than or equal to 4.0 (in last financial year),
  • Positive EBITDA in at least 2 out of past 3 years. Public sector applicants, Civil Society or Non-Governmental Organisations:
    • Average yearly budget must be greater than or equal to 25% of requested grant for the job creation component.
    • Evidence of availability of the required own contribution.
    • Confirmation of financial capability to cover potential deficits during the operational phase of the project.
• Compliance:
  • Applicants are not engaged in activities that feature on KfW Exclusion List.
  • Applicants (individual or lead entity and consortium partners) must disclose linkages to any parent and sister/related companies – if applicable
  • Applicants (individual or lead entity and consortium partners) must disclose the names of shareholders/board of directors/owners up to the level of ultimate beneficial owners, or (in the case of entities without shareholders) the main sources of their annual budget or capital endowment.

For more information, visit Invest for Jobs.