MCTI Zambia Agribusiness and Trade Project II (ZATP II): Matching Grant For Producer Organisations

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The Ministry of Commerce, Trade and Industry (MCTI) through the Zambia Agribusiness and Trade Project Phase II (ZATP II) is inviting Business Proposals from Cooperatives/Producer Organisations and Farmer Associations with innovative concepts or ideas with high potential for developmental impact, climate resilience and financial sustainability.

ZATP II is a Government of Zambia (GRZ) Project under the Ministry of Commerce, Trade and Industry (MCTI), supported by the World Bank Group. The Project aims to contribute to increased access to markets and finance and promote firm growth in Zambia’s agribusiness sector. To achieve this, the Project design is anchored on three mutually reinforcing Components: 1) Support Access to Markets and Finance; 2) Promote Trade and Agribusiness Competitiveness; and 3) Project Management. With a national coverage of all the ten (10) provinces and One Hundred and Sixteen (116) districts of Zambia, the Project has a duration of five years, from December 2023 to December 2028.

Component 1 on Support Access to Markets and Finance aims to address firm level challenges related to market linkages, access to finance, firm capabilities, climate mitigation and adaptation, profitability, growth, and eventually resilience for farmers and agribusinesses in Zambia. For farmers, this will be achieved through a Productive Alliances approach.

The Project promotes creation of ‘Productive Alliances’ bringing together producers, agro-processors and buyers for long-term commercial relationships. The objective is to connect producers to markets in a way that is profitable and sustainable. These alliances will be strengthened by providing essential inputs, making productive investments, offering technical support, and providing business development services. This support aims at raising the capacity of the producers to meet the quality, quantity and consistency demands of the buyers.

What will the Project Support?

Market Brokerage: Linkages to new and high value markets to enable farmers to get better conditions and earn assured incomes;
Matching Grants:For the acquisition of:
- productive assets or investment expenditures – productive inputs and small infrastructure investments that will enhance the productivity and market position;
- Climate resilient production technologies for stronger market participation; and
- Product certification – new licences or renewal of existing licences; and
Technical assistance including Mentoring and Coaching.

Zambia Agribusiness and Trade Project Phase II Targeted Beneficiaries

Producer Organisations (POs) such as Cooperatives, Cooperative Unions, District Business Associations, District Farmers’ Associations, and Community Based Organisations that have Business Registration.

Eligibility Criteria

The Project will support Producer Organizations from all the 116 districts of Zambia that meet the following criteria:
Must be smallholder producers (small and emergent) that are formally grouped and are registered;
Should have at least 10 Zambian farmer households, and at least 90 percent of these need to fulfil the requirements of small and emerging farmer definition of the Project;
Must have legal business registration, for example, Cooperatives, District Business Associations, District Farmers’ Associations and Community-Based Organisations formally registered to do business in Zambia. N.B. Enterprises registered as Limited Companies shall not be considered for Matching Grants;
Should be tax compliant with a valid Tax Clearance Certificate (TCC);
Should have proof of land ownership;
Have at least two years of experience in the productive activity proposed for the Alliance;
Should be market oriented and willing to be assisted to be linked to specific markets, with specific agreements, having established (or potential) demand from the private sector or public sector for the types of produce and services they are offering;
Attach Letters of Intent from prospective/existing Buyers and Off takers, where applicable;
Should have a track record of success in group enterprises and good governance practices;
Develop a viable Business Proposal and financing plan, based on a sound organisational profile that includes evidence of:
- A cohesive group which is in good standing with registration authorities and having no less than ten (10) paid up members willing to participate;
- No history of fraud or illegal activity;
- No current or active grants from donors or government (except FISP), to ensure that assistance goes to those who actually need it;
- Financial stability and capacity to match the competitively allocated grant financing as per grant financing guidelines of 40%:60% match; and
- Matching Grant funds being requested not exceeding the threshold of US$50,000 per sub-project.
Active Bank Account showing at least 3 months’ Bank Statement;
Be smallholder farmers, whose land holding is less than 5 hectares (ha) for small scale and between 6 and 20 hectares (ha) for emerging farmers. Their major source of income should be from production/harvesting and sale of commodities produced from this land;
Be producers of crop, livestock, aquaculture or non-timber forestry commodities, working together in the production of one (or one set of) commodities to an agreed set of market requirements as determined and should be in active discussion with a buyer or buyers;
Must NOT have Public/Civil Servants;
Must NOT be involved in any of the activities on the ZATP II Exclusion List;
Members (small and emergent farmers) must live in the district and area of the subproject and their major source of income should be farming;
ALL Business Proposals need to be accompanied by supporting documents. The following are the required supporting documents:
- Registration Certificate;
- TPIN Certificate;
- Membership Register;
- Minutes of the last AGM;
- Minutes that endorse application to ZATP-II;
- Bank Statement (At least 3 months);
- Letter of Intent/Orders from Buyers (on buyers’ official letterhead);
- Quotations to support items in the Business Proposal Budget, where applicable;
- Designs and Bill of Quantities (BOQs), where applicable (e.g., construction related sub-projects)
- Site Plan/Sketch Map of the location of the proposed subproject;
- Asset ownership documents (Land documents, White Book etc.); and
- By-Laws/Constitution.