CFAs: AECF Sudan SME Catalyser Initiative

SMEs form a dynamic and independent part of the economy in Sudan, yet many have suffered losses of capital, markets, and sources of supplies. Amid these challenges, SMEs have demonstrated to be a remarkable source of resilience. They offer the potential to address the current crisis by improving the availability of much-needed products and services and providing income and employment to low-income households.

The Sudan SME Catalyser is an initial EUR €12.5 million facility funded by KfW German Development Bank (KfW) and implemented by the AECF, a development finance provider based in Nairobi, Kenya and operating across the continent.

Programme Objectives

• Improve access to finance for enterprises that create economic opportunities across geographies and value chains, e.g., through employment creation, market linkages (market access), and suppliers of inputs/produce/services along the value chain.
• Provide targeted business development technical assistance and capacity building for businesses. or businesses.

Focus Areas

• Eligible businesses must demonstrate that their offerings are accessible and affordable, directly create jobs, and improve livelihoods. Offerings must add value to one or more focus value chains in the renewable energy and agriculture sectors.
• Proposed initiatives can include but are not limited to one or more of the following focus areas to be eligible for funding:
  • Market aggregators that provide reliable and new market opportunities for economic development.
  • Agro-processors and manufacturing companies creating economic opportunities through employment creation and as suppliers of produce/services along the value chain.
  • Innovative digital solution providers.
  • Production and distribution models that support local entrepreneurship and growth of SMEs within the applicable value chains.
  • Business models that provide incentives for rural areas to access and adopt improved input use, including renewable energy, seed, fertilizer, soil and water management practices, post-harvest handling, improved technology, e.g., irrigation, regenerative agriculture, integrated forestry management practices, etc.
  • Business models that address climate-smart technology, services, and practices at the manufacturing and farm levels, e.g., solar-powered technology, biogas, bio-slurry use, chemical-free grain storage, etc.

Funding Information

• Applicants are expected to submit a short funding application with their concept, justifying their requirements for the business and/or idea to be funded, the funding amount, and the project duration. Shortlisted applicants will be requested to submit a more comprehensive full proposal and business plan.
• Funding must be additional – it must be used for a specific project in one or more of the target sectors, e.g., introducing new services or products, scaling up an existing enterprise, or replication/expanding to a new market. Grantees can apply for a range of funding depending on their proposed business idea/project/requirement:
• Minimum funding is EUR 250,000 while the maximum funding per grantee is EUR 750,000.
• Funding is subject to meeting a certain level of match funding (see Matching Contribution). Businesses should apply for funding depending on their project requirements and capacity to absorb funding for the proposed project. Funding will be in the form of non-repayable grants and disbursed in US dollars, Euro, and/or local currency equivalent.
• Funding payments for Capital Expenditure may be disbursed in US dollars or Euro on behalf of businesses direct to suppliers outside of Sudan. Operational Expenditure shall be disbursed in local currency equivalent.
• Duration of the funding agreement with investees: 12 months

Types of support

• The support package includes:
  • Provision of non-repayable grants.
  • Provision of targeted technical assistance on business development services as the grantee requires.
  • Access to further funding through investment advisory and investment facilitation support

Geographical Focus

• Funding is available for private sector companies that are commercially active in the respective value chains in Kassala, el Gadarif, and Port Sudan in Sudan.

Eligibility Criteria

• To be eligible for funding, private sector companies must meet the following criteria:
  • Request a grant within the stipulated range.
  • Be legally registered and physically established in Sudan.
  • Have been in operation for a minimum of 6 months, with the ability to provide the necessary business permits.
  • Be compliant with fundamental laws and regulations in-country, including tax compliance laws.
  • Be compliant with international human rights, labor standards, and environmental management laws.
  • NOT be involved in any act of corruption. AECF requires that the applicant (including its staff, contractors, and suppliers) not be involved in offering third parties, or seeking, accepting, or being promised by third parties, for themselves or any other party any gift, remuneration, compensation, or benefit of any kind whatsoever, which could be interpreted as an illegal or corrupt practice.
  • Not be associated with activities prohibited by the government of Sudan, terrorism, money laundering, or a list that prohibits trading with some business (IFC, USAID, UN, EU, and any other networks), United Nations Security Council resolutions issued under Chapter VII of the UN Charter.
  • Not be a representative of a government or a semi-governmental agency of any sort. This includes government
  • owned or partially owned enterprises or companies that have ownership or substantial business ties with government
  • or quasi-government bodies. Any subsequent identification of such links will lead to the immediate termination of the
  • grant agreement.
  • Allow regular due diligence.

For more information, visit AECF.