Open Call: Green Recycling Enterprises Engaging in New Technology for a Circular Economy in Zambia

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 (8 th NDP) objectives to achieve economic diversification, increase local value addition, create new and decent jobs. The project targets 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 small and medium businesses by providing 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 employs a blended financing model, combining business’s own contributions (skin in the game) with project financial support (matching grant) to stimulate further investment and commitment. It adopts an adaptive management approach, premised on co-creations as well as continuous improvements based on feedback and new information to address the needs of businesses and the community. It emphasises the inclusion such as of women and youth entrepreneurs, helping them overcome barriers to participating in the economy.

The Project is implemented by Self Help Africa (“SHA”) in a consortium with the Consortium Partners namely, Imani Development (International) Ltd (“IDIL”), Prospero Limited (“Prospero”) and Tandem Circular Consulting (“Tandem”). SHA is the Fund Manager for the GREENTech4CE.

Objectives

• 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 330 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 startups, thus helping diversify the investment landscape.
• Over its duration, the project will support, through financial support and technical assistance, approximately 800 MSMEs , engage between 8-15 business development service providers (BDSPs) , financial service providers (FSPs), and set up and equip two (2) Fabrication Laboratories (FabLabs) for design/prototyping offering entrepreneurs’ access to advanced software and technologies.
• The Project has 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.

Funding Information

• The Project has been designed to provide financial support to enterprises through grants and prizes amounting to EUR 15.7m. This amount will be disbursed through several calls during the lifespan of the project.

Eligible Sectors 

• To be eligible PCNs and FPs submitted must fall within the following eligible sectors:
  • Manufacturing
  • Mining (upstream and downstream) with a focus on artisanal mining in CRM
  • Services
  • Construction
  • Digital
  • Creative Arts
  • Transport and Logistics
  • Energy

Eligibility Criteria 

• There are three sets of eligibility and all three must be fulfilled to be eligible
  • the actors:
    • The applicant, i.e. enterprises with annual turnover ranging from EUR150,000 to EUR2,500,00 and financier/investor backed Startups with a minimum annual turnover of EUR20,000. The Revised National Micro, Small and Medium Enterprise Development policy adopted by the Government of Zambia in December 2023 has been considered in arriving at the targeted enterprises on this call.
    • The GREEN Tech4CE Project will also consider applications from innovative and disruptive Startups that can demonstrate commitment in securing necessary match contribution from investors.
    • The Project has defined a Startup as a young enterprise, generally in the early stages of development, which has high and rapid growth potential, innovation and scalability and is characterized by innovative products, services or business models. A startup is associated with high levels of uncertainty, risk and innovation, and emanates from research and innovation output. It is disruptive to existing production, service or market structure; and potentially has significant economic impact.
  • the actions:
    • Actions/initiatives for which a grant may be awarded, and size of support required.
  • the costs:
    • Types of cost that may be taken into account in setting the amount of the grant.
• 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 an established Zambian medium enterprise (as above). Individuals are not eligible.
  • In the case of two enterprises applying as a joint venture (JV), they must provide proof of the JV/partnership agreement. One of the entities shall be the ‘Lead applicant’ and the other as ‘Co-applicant(s)’.
  • The lead applicant must be directly responsible for the preparation and management of the action with the co-applicant(s), not acting as an intermediary.
  • Must be compliant with all national and local laws and regulations, including meeting all obligations relating to the payment of taxes and social security contributions and relevant health and safety and environmental standards.
  • Must be a for-profit entity and seeking expansion and/or growth capital.
  • 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 200, 000 as evidenced by audited accounts.
  • Youth/Women owned enterprises with yearly turnover of EUD150,000 are eligible
  • Youth/women owned enterprises must have at least one year of management accounts prepared in accordance with International Financial Reporting Standards (IFRS) by an accountant accredited by the Zambia Institute of Certified Accountants (ZICA).
  • Must be able to contribute at least 50% of the project cost through a blend of cash and cash equivalents , credit or equity from own or third-party sources.
  • To be committed to sustaining practices of the green circular models both during and post the secured investment.

For more information, visit SHA.