Dairy Matching Grant Facility Rolled Out

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Zimbabwe Agricultural Growth Programme – Transforming the Zimbabwe Dairy Value Chain for the future (2019-2022)
Dairy Matching Grant Facility
A Matching Grant Facility (MGF) has been established within the framework of the EU funded Agricultural Growth Programme – Transforming Zimbabwe’s Dairy Value Chain for the future Action. The Action which includes the MGF is managed by We Effect and its partners, Zimbabwe Association of Dairy Farmers (ZADF), Zimbabwe Farmers Union (ZFU), Zimbabwe Dairy Industry Trust (ZDIT).
The purpose is to support investments that enable increased; milk production and milk sales, participation by small-scale farmers in the DVC, greening of manufacturing and production processes, decent job creation and local production of affordable feed. All applications will be assessed against the above purposes.
The MGF is limited to capital investments in productive assets such as machinery, equipment and buildings and does not include finance for working capital and services. Interested parties are welcome to submit applications within the framework of the following Windows:
MGF Window 1: 50:50 match
Large scale dairy processors and dairy farmers are eligible to submit co-finance proposals that aim for the establishment of out grower schemes that are targeting minimum of 10 small-scale farmers especially women and young farmers, currently producing below 200 litres of milk per day. The MGF will cover 50% of a capital investment cost not exceeding USD 92,000 per scheme.
Applicants are required to submit a business plan which includes a list of:
1. the productive assets required and an estimated cost for the capital investment,
2. the number of small-scale farmers (including age and gender) in the scheme,
3. the expected increased milk intake,
4. the green technology to be used,
5. the expected decent job creation,
6. the intended-out grower scheme management and service provision (including extension, logistical support, aggregation of insurance, input purchase, extension, monitoring of performance) and
7. the expected improved business performance of the business of the applicant as a result of the investment.
Applicants are also expected to explain why co-finance for this investment cannot be obtained through banks and other Financial Institutions.
MGF Window 2: 70:30 match
Small and medium-scale processors and/or farmer owned milk collection centres are eligible to submit co-investment proposals that improves the performance of their businesses. The MGF will cover 70% of a capital investment cost not exceeding USD 16,200.
Applicants are required to submit a business plan which includes a list of:
1. the productive assets that are required and an estimated cost for the capital investment,
2. the number of farmers (including age and gender) in the scheme,
3. increased milk intake as a result of the investment,
4. green technology to be used,
5. expected job creation,
6. the intended management and service provision and the expected improved business performance.
Applicants are also expected to explain why co-finance for this investment cannot be obtained through banks and other Financial Institutions.
MGF Window 3: 70:30 match
Within this window small-scale dairy farmers, especially women and youth (with a current milk production not exceeding 200 litres per day), and feed entrepreneurs are invited to submit co-investment proposals that improves their farming business performance. The MGF will cover 70% of a capital investment cost not exceeding USD 3,200.
Applicants are required to submit a business plan which includes a list of the productive assets required and an estimated cost for the capital investment, increased milk production as a result of the investment, green technology to be used, and the expected improved performance of the farm business as a result of the investment.
Areas for possible support
Examples of productive assets that can be procured under the MGF includes but not limited
to:
1. Construction/upgrading of milk bulking centres
2. Cooling facilities
3. Milk pasteurizers
4. Packaging machines
5. Small scale processing equipment
6. Solar energy and energy saving technology
7. Irrigation equipment
8. Fodder and silage making equipment
9. Construction of milk parlors,
10. Milking machines
11. Milking equipment
12. Small-scale technology for land preparation
Special conditions for the MGF
1. The MGF is limited to capital investments in productive assets such as machinery, equipment and buildings and does not include finance for working capital and services.
2. All procurements will be conducted by We Effect, in compliance with We Effect’s procurement policy.
3. Transport and installation costs of the equipment should be included in the cost of the investment
4. The matching funds from the applicant must be secured before payment of assets takes place. The matching funds should be in USD.
5. All successful applicants shall not dispose acquired assets during the lifetime of the project and be required to sign agreements to this effect.
6. All assets procured with use of funds from the MGF must carry a sticker with the ZAGP strap line.
How to apply
All applicants are expected to submit business plans which include a list of the productive assets required and estimated cost for those investments, the number of beneficiaries (including age and gender), increased milk production, green technology to be used, expected job creation, and the expected improved business performance because of the investment.
Applicants are expected to explain why co-finance from the MGF is necessary in order to carry out the investment and why the finance cannot be accessed from banks and/or other Financial Institutions.
All applications will be competitively assessed by the Grant Management Committee based on three main criteria:
• Desirability
• Feasibility
• Viability.
For more information and application forms please contact:
– We Effect on +263 (242) 707494/ 795865
or email rudo.zenda@weeffect.org or edson.chifamba@weeeffect.org
– ZADF on +263 (242) 251848 or email ceo@zadf.co.zw
– Dairy Services provincial offices.
All applications for Window 1 to be submitted electronically to MGF@weeffect.org
addressed to the Matching Grant Manager.
Closing date for applications is 31st July 2019.
Windows 2 and 3 applications to be submitted to ZADF offices or electronically to:
ceo@zadf.co.zw addressed to the CEO.
Closing date for applications is 31st August 2019

By Francis Bingandadi Managing Editor: AgriSeason

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