The Challenge FundMATCH FUNDING
The financial support will require match funding from the agri-enterprise making the application. The match funding may be through own resources available to the agri-enterprise or may be sourced through external finance such as credit or external equity investment. Match funding can also come from co-applicants. In cases where applications are made by consortia the match fund contributions can be provided by any of the consortia members. Successful applicants will be required to fully secure match funding before contracting.
The European Investment Bank (EIB), under the same AgriFI Kenya programme, is providing long term local currency financing to Equity Bank (Kenya) Limited for on-lending to eligible food and agriculture sector projects. This facility is also available for match funding to the applicants.
The beneficiaries of the Equity Bank/EIB credit line will be required to meet the following basic criteria;
- Applicants must be legal entities duly incorporated under the laws of Kenya and duly licensed to carry out business and carrying out business in Kenya
- The business must have obtained all mandatory and relevant certifications for their line of agri-business enterprises
- The applicants’ business must be operational and must have been in existence in Kenya for at least a period of 3 consecutive years
- The business must have operated profitably or can empirically prove that a positive trend has been registered over the last immediate 3 years.
- Applicants must be agro-based entities who have integrated small holder farmers on valid commercial agreements. Such integration may include but will not be limited to farm inputs supply contracts, produce offtake contracts, technical support to farmers, agricultural technology and solutions to small holder farmers, etc.
- The applicant must have an existing (or is willing to set up) a strong and effective management structure with appropriate and relevant skills and experience to implement the project being funded
- Applicants must have or be willing to open and operate an active account with Equity Bank Kenya
- Applicants’ business must prove that its operations promote adoption of Good Agricultural Practices (GAP) by the smallholder farmers that they partner with.
- Applicants’ business must not be in the list of restrictions/exclusions of sectors and activities as per the NACE classification codes for business activities.
- Both the applicant and the directors of the applicant’s business must have positive listing status with approved Credit Reference Bureau (CRB)
- The applicant or its affiliates must not be involved in any actions of crime or anti-money laundering activities
- The activities of the applicant’s business must not have any adverse environmental and social impact.
- The applicant must proof existence of market for produce (where applicable) sourced from the smallholders integrated in their business operations
- All incorporated entities should have audited financial reports for the previous 3 years and management account
Additional criteria will be applied based on the specific loan applicant’s business.