GREENTech4CE Project Call III for Business Development Service Providers (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 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.

Specific Objectives of 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 financial support will also enable BDSPs to develop and implement incubation and acceleration programs for MSMEs, especially those led by women and youth, to strengthen their capacities, facilitate market access, and attract investment within the green, circular, digital economy, and CRM sectors. Approximately EUR 1.5 million will be allocated to BDSPs which will be delivered using a milestone-based payment mechanism. The financial support sizes per eligible BDSP will range from EUR 60,000 and EUR 150,000.
• The Project has also earmarked catalysing at least EUR 20 million 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

• The intervention logic for the project as described in the Description of the Action seeks to address the challenges facing MSMEs to create a sustainable Green, Circular and Digital Economy. This action responds directly to the attainment of the overall Project Objective to accelerate growth in Zambia through creating and sustaining green, circular and digital economic opportunities for SMEs, women, men and youths.
• Specifically, this Call creates the necessary platforms that will enhance the competitiveness of startups and MSMEs through capacity building. The Call is responsive to how the project will deliver the following outputs.
  • Output 1.1 – 550 start-ups and micro-enterprises use technical assistance and grant support for business development. The call is critical not only for capacity building but also the delivery of the Business Growth and Innovation Competition where enterprises will access competitive cash prizes.
  • Output 2.1 – Business Development Service Providers (BDSPs) use technical assistance and grant support to increase the provision of services to MSMEs particularly in the green, circular and digital economy.
• Through the implementation of this Call, the project will create a pathway for the following actions.
  • Access to GCD specific bespoke business development services by Start-ups, Micro, Small and Medium enterprises valued at EUR1,576,750.00
  • Through pitching competitions start-ups, micro and small enterprises will have the opportunity to access competitive prizes ranging for EUR2,000 to 25,000 for a total value of EUR1,383,936.00
  • Development of a pipeline of investment ready Start-ups, and Small enterprise to apply for small grants ranging between EUR25,001 to 100,000 for a total value of EUR2,619,156.00

Funding Information

• Funds Available: EUR 1,576,750
• Min Grant: EUR 60,000
• Max Grant (Per Applicant): EUR 150,000

Cost Eligibility

• Operating Expenditure (Opex) – working capital for enhancing operational capacity such as management systems e.g. ERP tools, or client management tools, and business analytics, Data Security & Compliance: Systems ensuring regulatory adherence. Event logistics, promotional materials.
• Capital Expenditure (Capex) such as purchase and installation of equipment, technologies, business analysis tools, 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.

Eligible Sectors

• Applicants must provide services to green, circular, or digital enterprises operating in the following sectors:
  • Manufacturing
  • Artisanal and small-scale mining with a focus on critical raw materials
  • Services
  • Construction
  • Creative Arts
  • Digital
  • Transport and Logistics
  • Energy (including waste to energy)

Eligibility Criteria

• There are three sets of eligibility and all three must be fulfilled to be eligible
  • the applicant
    • BDSPs must be legally registered organizations providing non-financial support to startups and MSMEs, including training, market linkages, incubation, and technical assistance within the green, circular, and digital economy, including critical raw materials (CRM). Applicants must demonstrate a track record of supporting MSMEs.
  • the actions:
    • Actions/initiatives for which a grant may be awarded, and size of support required.
  • the costs:
    • Types of cost that may be considered in setting the amount of the grant.

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 business registered in Zambia and demonstrate capacity to meet the requirements of this expression of interest.
  • Must have been operational in Zambia uninterrupted for at least 2 years.
  • Must have two years of financial statements including audited accounts for the most recent year. 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).
  • Proven Experience: Demonstrated relevant track record in delivering incubation or acceleration programs for MSMEs for at least three (3) years.
  • Technical Capacity: Expertise in providing capacity-building services for MSMEs. Specialized knowledge in advising businesses in green, circular, and digital economy sectors will be an added advantage.
  • Financial Sector Partnerships: Providers with experience working relationships with financial institutions or facilitating MSME access to financing will be an added advantage. Existing memorandum of understanding (MOU) or letter of intent (LOI) may be provided as proof of partnership.
  • Local Market Knowledge: Deep understanding of Zambia’s MSME landscape, financial environment, and regulatory requirements.
  • Must be able to raise the prescribed matching grant requirement. The co-financing must be demonstrated and is required at the contracting stage.
  • To be committed to sustaining practices of the green circular models both during and post the secured investment.
  • Must demonstrate willingness to undertake specialised Circular Economy Training and Certification with an accredited CE institution for all key project team members assigned to the Assignment for standardisation of quality of services during the engagements with enterprises.

For more information, visit Self Help Africa.