Request for Applications: AAI Food Security Accelerator in Africa

The Goals of the AAI Food Security Accelerator are to:

• Foster the enabling environment for investment and innovation in African food systems solutions;
• Catalyze investment and innovation that enhance adaptation and resilience of African food systems;
• Foster the advancement of locally led sustainable economic transitions.

The AAI Food Security Accelerator will leverage grant funding provided by key donors and draw on the expertise of strategic partners in order to deliver the following key objectives.

• Catalyze investments in research and technology to foster African-led, science-based and climate-resilient agricultural innovations;
• De-risk African investment funds to a level compatible with DFIs’ and investors risk appetites in order to mobilize resources at the scale necessary to enable food systems resilience;
• Directly invest in viable adaptation solutions to improve access to cost-efficient, proven adaptation technologies;
• Provide technical assistance and increase access to financial advisory, adaptation expertise and capacity-development support for African investment fund managers;
• Develop standard investment models in new adaptation solutions to replicate across Africa;
• Bridge international capital and know-how with African talent and enterprise, supporting the continent’s transition toward enhancing capacities and capabilities for sustainable development.
• Promote knowledge sharing and network-building across markets to improve access to information, local insights, and catalytic capital.

Scope of Work

• The AAI Food Security Accelerator aims to have a positive impact on local economies, create green jobs, and reduce existing pressure on natural resources by investing through two avenues in food systems adaptation businesses.
  • Window 1 – Direct investments
    • Through direct investments in enterprises, the Accelerator will scale up access to essential green services, creating a ripple effect across the value chain. This will generate opportunities for growth and improve the liquidity of smaller companies.
  • Window 2 – Fund to Funds (investments in African investment funds portfolio)
    • Through a Fund of Funds approach, quasi-equity/concessional investments (I.e., capital that has a higher risk appetite to help de-risk a portfolio) will be provided to selected African investment funds to catalyse additional capital for African entrepreneurs working to achieve food systems adaptation.
• Both Windows’ applicants will be included in capacity building sessions for positive food systems adaptation impact. Thorough assessments will be conducted to ensure that the investments will not negatively impact the surrounding communities or the ecosystems and that any construction is carried out in a manner that is least socially and environmentally disruptive.

Budget

• FSA’s contributions will be in the range of USD 125,000 to 500,000 for direct investments in businesses and from USD 250,000 up to USD 1,000,000 for Fund to Funds interventions (investments in African investment funds’ pipeline) for each successful case.
• Contract Duration
  • The contract is expected to have a 24-month duration. Activities under this Financing Support agreement and review of evaluation reports are expected to be terminated no later than June 30, 2026.

Outcomes

• Sustainable, nature positive agricultural innovations enhancing food systems productivity and nutrition is promoted.
• Access to cost-efficient, sustainable adaptation solutions and its financing is increased.
• Locally led, climate resilient sustainable nature-positive economic transitions with a gender equality focus is advanced.
• Adaptive capacities of smallholder farmers and food value chain operators to climate risks is ensured.

Geographic Focus

• Eligible companies will be headquartered on the continent of Africa. Priority will be given to companies with African majority ownership. Given the focus on sustainable food production, smart agriculture, and targeting of marginalized populations experiencing poverty, UNCDF expects eligible companies to serve remote rural areas and high value ecosystems.
• Companies should be currently implementing and/or aiming to implement nature-positive and gender-responsive adaptation innovation solutions that support creating resilient agri-food systems as part of their business models, and may include African Investment Funds with a pipeline of such companies. Applicants may apply independently or in a consortium, provided that the consortium has a pre-established partnership prior to when this request for applications was issued.

Target Beneficiaries

• The target beneficiaries of the investments made by supporting companies and local investment vehicles are low-income households, farmers, farming communities, women, youth, and marginalized populations including indigenous communities that live and work in and around areas experiencing the adverse effects of food insecurity, climate change, and biodiversity loss. Selected applicants must apply a gender lens and gender-sensitive methodologies in their interventions.

Eligibility Criteria

• Eligibility Requirements Only applicants that meet the eligibility requirements and minimum criteria for the submission will be scored:
  • Entity registration: The applicant or lead applicant must be a registered business (for profit or non-profit)
  • Consortia: Applicants may apply independently or as part of a consortium, provided the consortium partnership was established prior to issuance of this request for applications
    • Joint applications between market players in the target country or countries are encouraged if the solution proposed expands delivery networks and promotes rural and/or other last-mile access to nature positive business models.
    • Applications from consortiums of organizations must show that the partnership was established prior to this RfA.
    • The lead applicant and their institution must be a registered entity as per applicable laws and must have statutory accounts and audited financial statements for at least two operating years.
  • Relevant operation licenses: The lead applicant must be legally authorized to provide services required to perform the RfA activities.
  • Revenue generation: Applicants must have a clear business model with clearly identified revenue streams and demonstrable climate resilient and SDG-positive impact.
• In case of a consortium of entities applying to the RfA, the lead applicant shall comply with the eligibility requirements. The lead applicant will be responsible for:
• Submitting the application form on behalf of the consortium.
• Ensuring that each partner is fully aware of the composition of the partnership and of the contents of the Application Form;
• Signing the Performance-based Agreement with UNCDF;
• Fulfilling all obligations set out in the Performance-based Agreement;
• Ensuring the allocation and the fulfilment of the funds amongst the partners in the consortium in compliance with the Performance-based Agreement;
• Ensuring the allocation and the fulfilment of the tasks amongst the partners in the consortium in compliance with the Performance-based Agreement.

For more information, visit UNCDF.