Request for Applications: Agri-focused Innovative Agency Banking models for Farmers (Sierra Leone)

The intervention will focus on developing financially profitable and sustainable agent networks that are prioritized, precise and customized to increase efficiency and reduce costs. The agency banking models will also be tailored to the local and country context.

Scope of Work

This RFA will engage institutional partners to deploy innovative agency banking solutions in selected agricultural communities to increase the distribution and access to financial services with focus on women, youth, farmers and persons living with disability. Activities will include market research, platform deployment, product development and financial and digital literacy. Market research will be to understand the financial behavior of the target group, mostly farmers and women. The intervention will also focus on deployment of agency banking platform and developing new products or enhancing already existing products tailored to the needs of the target group using a human centered design approach and based on findings from the market research conducted. Financial and digital literacy will also be an activity under the project. Activities within the project will be focused on engagement with Village Savings and Loans Associations (VSLA’s) and cooperatives in the Agricultural value chain, mostly women. Women groups mostly in the rural areas Sierra Leone are usually very organized and focused with very good governance structures in place. The project will collect gender disaggregated data on access, usage and quality. All the intervention areas of the project will focus on women; from market research, platform usage, product design and financial and digital literacy.

Areas of Intervention and Challenges/ Problem Statement and Objectives for Solution

For this request for applications (RFA), UNCDF invites applications from registered entities that can offer innovative and scalable solutions addressing one or more of the following challenges through four areas of intervention.

• Deployment of Innovative Agency banking solution.
  • Challenges: Limited access points for banking and other financial transactions.
  • Objectives:
    • Banking agents are recruited and trained in the target communities.
    • Banking agents’ points become a one stop shop for transactions including deposit, withdrawal, transfers and payments for goods and services.
• Market Research
  • Challenges: There is limited information and understanding of the financial behavior of the target group mainly farmers, youth and women.
  • Objectives: Conduct market research to understand the financial behavior of the target group.
• Product Design/Enhancement
  • Challenges: Lack of tailor-made products suited to the target group mainly farmers, youth and women.
  • Objectives:
    • Develop new products based on findings from the market research.
    • Enhance already existing products to suit the target group.
• Financial and digital literacy
  • Challenges Limited financial and digital literacy modules/materials suited to the target group mainly farmers, youth and women.
  • Objectives: Develop financial and digital literacy modules based on the financial behavior of the people and based on the products and services.

Funding Information

UNCDF’s contributions can range from USD 160,000 to USD 186,000 for 24 months and UNCDF will award up to two applications depending on the investment readiness level and outreach potential of the solution proposed.

Eligibility Criteria

• Entity registration
  • The applicant/ lead applicant must be a registered commercial bank with the license to operate agency banking.
  • The applicant/ lead applicant must have audited financial statements for at least one operating year; if audited financial statements are not available at the time of application, the applicant must provide latest management accounts.
• Relevant operation licenses (when applicable)
  • The lead applicant must be licensed to provide agency banking services.
• Country of operation
  • The lead applicant must be operating in Sierra Leone for at least three years and have financial statements for at least one year. Consortiums (when applicable).
  • Applicants can apply only once under this RFA, whether independently or in a consortium.
  • Joint applications between market players in the target country or countries are encouraged if the solution proposed will expand delivery networks and promote rural and/or other last-mile access to transaction platforms, tailor-made financial products and services, and financial and digital literacy.
  • Applications from consortiums of organizations must show that the partnership was established prior to this call for applications.
  • The lead applicant and their financial service provider partner must be registered entities with at least three years of operations, and must have statutory accounts and audited financial statements for at least one operating year. Project funding
  • Applicants must contribute at least 30 percent of the project’s costs (costs may include technical infrastructure, resources, and operations).
• Exclusionary criteria:
  • Applicants shall not have been the subject of bankruptcy, liquidation, judicial settlement, safeguarding, cessation of activity or any other similar situation resulting from a similar procedure.
  • Applicants and any of their staff or member of their board of directors shall not be included in the United Nations financial sanctions lists, particularly in the fight against the financing of terrorism and against attacks on international peace and security; and
  • Applicants must not be involved in any of the following activities
    • Manufacture, sale or distribution of controversial weapons or their components, including cluster bombs, anti-personnel mines, biological or chemical weapons or nuclear weapons
    • Manufacture, sale or distribution of armaments and/or weapons or their components, including military supplies and equipment
    • Replica weapons marketed to children
    • Manufacture, sale or distribution of tobacco or tobacco products o Involvement in the manufacture, sale and distribution of pornography
    • Manufacture, sale or distribution of substances subject to international bans or phase-outs, and wildlife or products regulated under the CITES
    • Gambling including casinos, betting etc. (excluding lotteries with charitable objectives)
    • Violation of human rights or complicity in human rights violations
    • Use or toleration of forced or compulsory labor
    • Use or toleration of child labor
  • Applicants shall have fullfilled all the obligations relating to the payment of social security contributions or obligations relating to the payment of taxes in accordance with legal provisions in force in the country of incorporation.

For more information, visit UNCDF.