Feed the Future Rwanda Hinga Wunguke Activity

Request for Applications (RFA) No. CNFA-HW-RFA-002-2023  

Improve Value Addition Capacity for Crop-based Food Processing to Increase Availability of Healthy Food in Rural Communities of Rwanda

Issuance Date: December 11, 2023

Deadline for Questions: January 10, 2024

Deadline for Submission: January 20, 2024 

Dear Applicant, The Feed the Future Rwanda Hinga Wunguke Activity (Hinga Wunguke) is releasing a Request for Applications (RFA) to identify Co-Investment Fund (CIF) partnerships that will support new or existing businesses focused on value-addition (processing and/or fortification) of crop-based nutritious foods. These CIF partnerships and subsequent grant awards should contribute to increasing availability of safe, nutritious, affordable foods in the 13 Hinga Wunguke target districts. Eligibility Criteria is outlined in Section 2 and instructions for completing the application can be found in Attachment 1. Applicants who responded to the Hinga Wunguke Annual Program Statement (APS) are also encouraged to apply to this RFA. 

The purpose of the Hinga Wunguke Co-investment Fund (CIF) is to co-invest in new and sustainable business models or technologies, expanding existing models to new geographies or new food products, and to support achievement of Hinga Wunguke objectives with prioritization of the inclusion of women, youth and persons with disability (PWDs). CIF partnership activities will apply a market systems development (MSD) approach and be demand-driven, competitive, and performance-based. 

Value Addition. In this context, value addition refers to the conservation, processing or transformation of crop-based food products. Hinga Wunguke defines value-addition as a result of the change in physical state or the manner in which the agricultural commodity or product is produced and segregated. 

Fortification. Hinga Wunguke defines fortification as "the practice of deliberately increasing the content of an essential micronutrient, i.e. vitamins and minerals (including trace elements) in a food, to improve the nutritional quality of the food supply and to provide a public health benefit with minimal risk to health", whereas enrichment is defined as "synonymous with fortification and refers to the addition of micronutrients to a food which are lost during processing." There are three types of fortification (commercial and industrial fortification, biofortification and home fortification). This RFA refers to commercial and industrial fortification. 

Geographic Requirements. Partners are required to be working within or directly targeting participants/consumers in Hinga Wunguke’s targeted districts: Bugesera, Ngoma, Kayonza, Gatsibo, Gakenke, Burera, Nyabihu, Rubavu, Rutsiro, Ngororero, Karongi, Nyamasheke, and Nyamagabe. For example, an eligible business may be located in Kigali if sourcing from farmers in a target district and/or supplying to end consumers in a target district. 

Target Value Chains. Grantees are required to be working with at least one of the following 11 crops: maize, Irish potatoes, sweet potatoes (orange fleshed and other varieties), beans (dry high iron beans, french beans, fresh beans, other varieties), soybeans, tomato, carrots, passion fruit, avocado, mango, and peas (dry and green peas). Businesses that fortify or mix other foods with one of the target value chain crops to develop a nutritious food product are invited to apply. 

Target Co-Investment Partners. Hinga Wunguke invites small, medium, and large enterprises[1] currently involved in or expanding into value addition (processing/fortification) of the above listed foods to apply to this RFA. Partners must be committed to increasing value addition to deliver affordable, safe, nutritious crop-based food products to rural markets in the above target districts. This may be achieved by investing in or adopting innovative technologies and/or infrastructure to develop new food products or to increase production of existing products that support healthy diets. The RFA is also open to processors interested in food fortification initiatives and/or increasing the commercialization of affordable fortified products in rural markets. Successful applicants should be willing to improve the supply, distribution, and marketing of safe, nutritious crop-based food products to reach rural consumers. 

Anticipated Co-Investment Range. Hinga Wunguke grant awards are anticipated to range from RWF 12,000,000 to 185,000,000. The period of performance is anticipated to be up to 18 months from the date of signing the award. CIF grants will be awarded and implemented in accordance with the USAID and US Government regulations governing grants and Hinga Wunguke internal grants management policies.

Please note that applications in response to this RFA are due by January 30, 2024. For any questions during the grant application process, please contact the Hinga Wunguke Partnership and Investment Team at coinvestmentfund@cnfarwanda.org. This RFA contains the following documents:

• Attachment 1 – Grant Application Form
• Attachment 2 – Grant Application Checklist
• Attachment 3 – Grant Applicant Cover Letter
• Attachment 4 – Hinga Wunguke Factsheet

SECTION I. PROGRAM DESCRIPTION 

I.1 OVERVIEW OF FEED THE FUTURE RWANDA HINGA WUNGUKE 

Launched in January 2023, the Feed the Future Rwanda Hinga Wunguke Activity is a five-year USAID-funded initiative implemented by Cultivating New Frontiers in Agriculture (CNFA) in consortium with Market Share Associates (MSA). Using a market systems development (MSD) approach, Hinga Wunguke will increase incomes and improve nutritional outcomes by sustainably increasing agricultural productivity and strengthening domestic consumption of and markets for nutritious agricultural products. Hinga Wunguke is designed to achieve four complementary objectives: (1) sustainably increase agriculture productivity, (2) increase farmer and agribusiness access to finance, (3) improve market and nutrition outcomes for producers, and (4) strengthen the enabling environment to foster market-driven agriculture.

To contribute to improved market and nutrition outcomes, Hinga Wunguke will implement multi-sectoral nutrition programming and foster partnerships with market actors (private and public) working to increase availability of (supply), access to (proximity and affordability), consumer demand for, and consumption of safe, nutritious crop-based food products. To do this, Hinga Wunguke will support the private sector to develop, improve, and promote safe and nutritious food products. This may involve conducting market research that supports business to address consumer preferences and constraints. Hinga Wunguke will also explore partnerships with market actors incentivized to educate the target market segments on the importance of consuming a healthy, diverse diet. 

I.2 CO-INVESTMENT FUND PROGRAM DESCRIPTION

The Co-Investment Fund (CIF) is one of the main mechanisms through which Hinga Wunguke will operationalize strategy, formalize partnerships and achieve project objectives. The CIF will be used to leverage private sector investment and formalize partnerships with market actors to inclusively strengthen food market systems in the Hinga Wunguke target districts. The overall objective of the CIF is to formalize partnerships through grant awards to co-invest in new and sustainable business models or technologies, expanding existing models to new geographies or new food products, and support achievement of Hinga Wunguke objectives, with prioritization of the inclusion of women, youth and PWDs. 

Awards resulting from the CIF will represent a partnership between CNFA and grant recipients to introduce new or expand existing business models and technologies. Applicants will be required to match investments from their own businesses, or own funding source, to ensure ownership and sustainability of new business activities or innovations introduced through the grant mechanism. Hinga Wunguke recognizes that some co-investment partners may need capacity building support or technical assistance to carry out these activities. Applicants are encouraged to specify their needs for technical assistance and/or training in their application, which will be considered for approval and funding on a case-by-case basis.

More information on eligibility is outlined in “Section 2 – Eligible Recipients” below. 

I.3 ADDITIONAL RFA INFORMATION 

Hinga Wunguke is releasing this RFA to identify CIF partnerships that will support value-addition (processing and/or fortification) of nutritious crop-based foods. These CIF partnerships and subsequent grant awards should contribute to increasing availability of safe, affordable, nutritious food products in rural communities of Rwanda. Partners must be willing to address an identified constraint and have the capacity and skill to deliver a sustainable solution (or be willing to accept necessary capacity building to do so). Hinga Wunguke invites potential partners to submit applications that contribute to achieving the below objectives.

 Improve availability and supply of safe, affordable nutritious food products 

• Improving access to and use of value addition technologies (e.g., quality of produce, dryers, food machinery, food processing, food packaging, etc.). 
• Expanding geographic scope or product offerings for processors of nutritious food products. 
• Promoting innovative concepts or business models that will improve marketing and increase availability of targeted nutritious food products in the Hinga Wunguke districts. 
• Developing or expanding retail distribution networks for nutritious food products to rural areas of Rwanda. 
• Increasing farmers’ access to profitable markets for high-value and nutritious agricultural products (e.g., business linkages between producers and processor buyers, rural food industry business models, etc.) 
• Supply chain integration, supply chain development and/or improving supply chain management for processing of nutritious food products. 
• Innovative business models that will reduce food loss and food waste. 
• Improving business quality standards to meet national certifications for food safety and fortification requirements. 

Increase Consumer Demand for and Consumption of Nutritious Foods 

• Improving advertising, branding, and/or packaging of nutritious food products to increase desirability. 
• Expanding agri-food businesses, food companies and vendors of nutritious food products with strategies for a) responding to growing consumer demand for safe, nutritious foods, and b) understanding and responding to consumer preferences and constraints.
• Improving product specifications (e.g., taste, aroma, packaging, size) to respond to consumer preferences and/or constraints.
• Adopting certifications and quality improvement standards that respond to consumer expectations and/or increase the desirability of a product.
• Increasing consumer demand for and consumption of nutritious foods in the Hinga Wunguke target districts, with specific focus on healthy diets for women and children under two. 

Promote Gender Equity and Social Inclusion

• Business models demonstrating impact for a significant number of women, youth and/or people with disabilities by increasing their access to productive economic resources (e.g., through employment opportunities or as producers earning fair prices in the supply chain).
• Applicants proposing measures to ensure an inclusive workplace, including facility design to be responsive to the practical needs of women and people with disabilities.
• Businesses that develop affordable, nutritious products for women and children under two years and address constraints for accessing nutritious foods.
• Businesses that empower and engage women, youth, and PWD by addressing barriers that otherwise limit their earning potential from crop production or post-harvest work.
• Businesses that include initiatives to transform gender norms and cultural beliefs’ barriers related to food and nutrition.

1.4 APPLICANT CO-INVESTMENT 

Hinga Wunguke will require co-investment from all selected Partners in varying amounts, depending on capacity, grant value, selected award mechanism, and other factors, to demonstrate grantee commitment to sustainability and achievement of the objectives. The applicant’s proposed co-investment may include project costs to be incurred by the applicant from its own funds, project costs financed with cash, services, or property contributed or donated to the grantee from other non-US Government sources. Co-investments help to ensure that applicants are both committed to the achievement of the activity and financially capable of implementing and sustaining the activity after the grant agreement ends.  

In general, the applicant’s proposed co-investment should adhere to the following criteria:  

1. Are verifiable from the grantee’s records; 
2. Are not included as contributions for any other US Government-assisted program; 
3. Are necessary and reasonable for proper and efficient accomplishment of this grant’s objectives; 
4. Are considered Allowable Costs consistent with the cost principles contained in 2 CFR 200 and other relevant regulations; 
5. Are not paid by the US Government under another grant or agreement; and 
6. Are included in the approved grant agreement budget;
7. Conform to other provisions communicated by Hinga Wunguke.

Hinga Wunguke is seeking partnerships with a minimum 50%-50% Grantee-Hinga Wunguke co-investment ratio. Hinga Wunguke may consider contributing a larger investment in the case of individual agrodealers, women and youth entrepreneurs, and women and youth associations. However, Hinga Wunguke reserves the right to prioritize applications with higher contributions (e.g. 70%-30% Grantee to Hinga Wunguke ratio) as outlined by the Evaluation Criteria in Section 4.

Hinga Wunguke will evaluate co-investment proposed and negotiate the source, type (either cost share or leverage), and amount of co-investment with each selected Partner depending on the proposed award mechanism, partner capacity, and other factors.

Any questions on contribution can be submitted by email to coinvestmentfund@cnfarwanda.org prior to submission deadline.   

1.5 AUTHORITY AND GOVERNING REGULATIONS 

Hinga Wunguke grant awards are made under the authority of the US Foreign Affairs Act, Code of Federal Regulations (CFR) (2 CFR 200), and USAID’s Automated Directive System (ADS) Chapter 303, “Grants and Cooperative Agreements to Non-Governmental Organizations.” Grants administered under Hinga Wunguke will adhere to the terms of the applicable USAID Standard and Required as Applicable Provisions, as well as Hinga Wunguke grants procedures.

Hinga Wunguke is required to ensure that all applicants receiving USAID grant funds comply with the requirements found in these regulations, as applicable to the respective terms and conditions of individual grant awards. Under the Hinga Wunguke grants program, USAID will retain the right, at all times, to terminate, in whole or in part, Hinga Wunguke grant-making authorities or any grants in progress.

Section 2. Eligibility

2.1. ELIGIBLE RECIPIENTS 

Applicants that submit applications in response to this RFA must be legally registered, private Rwandan entities (e.g., Ltd, Cooperative, Individual Enterprise, socio enterprises) and must submit registration documents as a pre-requisite for receiving grant awards. 

Types of actors. Formal CIF grant support may be extended to the following private sector actors working in or targeting Hinga Wunguke priority districts and crop-based value chains:

• Food processors
• Agribusinesses and agri-food businesses
• Agricultural cooperatives

Other types of market actors with proposed partnership activities within the scope of the RFA may be considered.

Size of actors. Small, medium, and large enterprises are eligible to apply. Hinga Wuguke is following the GoR 2020 SMEs Development Policy definition of enterprises as follows:

• Small enterprises have net capital investment between 0.5 to 15 million RWF, 0.3 to 12 million RWF annual turnover and 4 to 30 employees.
• Medium enterprises have net capital investment between 15 to 75 million RWF, 12 to 50 million RWF annual turnover and 31 to 100 employees.
• Large enterprises have more than 75 million RWF net capital investment, more than 50 million RWF annual turnover and more than 100 employees. 

2.2. ADDITIONAL CONDITIONS OF ELIGIBILITY 

To be considered eligible for grant receipt, applicants must meet the following eligibility criteria: 

• Be a legally registered Rwandan entity. 
• Be located within or directly target beneficiaries within Hinga Wunguke’s targeted geographic zone. 
• Objectives of the proposed partnership activity must be aligned with Hinga Wunguke objectives and results.
• Have the ability to impact a significant number of beneficiaries, leading to increased employment and incomes or other Hinga Wunguke expected outcomes.
• Be in compliance with Rwanda Food and Drugs Authority (FDA) food safety requirements or be willing to receive technical assistance to become compliant. The applicants should present two FDA certificates (premises and products) or present the documents that they are in acquisition process.
• Be willing to share data related to the partnership with Hinga Wunguke.
• Ensure compliance with Rwandan and USAID environmental standards, including requesting relevant institutions (i.e. REMA and RDB) to conduct necessary environmental impact assessment and obtain certificate prior to establishing FSC. Hinga Wunguke will conduct an additional environmental review following USAID requirements and reserves the right to disqualify those applicants not in compliance with these standards. 
• Have the ability to impact a significant number of beneficiaries, leading to increased employment and incomes or other Hinga Wunguke expected outcomes. 
• Be willing to contribute co-investment and meet requirements (see Section 1.3).
• Be committed to adhering to high ethical business standards, including transparency in business dealings and record keeping. 
• Be implementing Rwandan Accounting Standards.
• Be prepared to undertake an independent financial review or audit, as requested. 
• Demonstrate ability to maintain business, financial, and technical records, either manually or electronically. 
• Complete and pass a site-visit and pre-award assessment, as applicable.
• Agree to and sign the applicable certifications, such as the Certification Regarding Lobbying; Certification Regarding Terrorist Financing; Prohibition on Assistance to Drug Traffickers; and Certification of the Recipient.
• Agree to the terms and conditions of the Mandatory Standard Provisions and Required as Applicable Provisions for Non-US NGOs, if applicable.
• Certify that the organization/individual is not debarred, suspended, or proposed for debarment from receipt of USG funds. 
• Have or be willing to obtain a Unique Entity Identifier (UEI) (see Section 4.2: Unique Entity Identifier).  

Hinga Wunguke will consider all applicants; however priority will be given to projects that impact larger numbers of beneficiaries, address under-served populations, including women, youth, people with disabilities, and/or create significant numbers of sustainable new jobs when selecting potential partners.  

2.3. INELIGIBLE APPLICANTS, ACTIVITIES AND UNALLOWABLE COSTS 

The following entities are not eligible for co-investment funding: 

• Entities that are not legally registered. 
• Any public international organization (PIO).  
• Any entity that has been found to have misused USAID funds in the past. 
• Political parties, groupings, or institutions or their subsidiaries and affiliates. 
• Organizations that advocate, promote, or espouse anti-democratic policies or activities. 
• Faith-based organizations whose objectives are for discriminatory and religious purposes, and whose main objective for the co-investment is of a religious nature. 
• Any entity whose name appears on the List of Parties Excluded from Federal Procurement and Non-Procurement Programs (http: //www.epls.gov/). 
• Any entity with a member that appears on the Office of Foreign Assets Control (OFAC) Specially Designated Nationals (SDN) and Blocked Persons list. 
• Any entity whose name appears on the United Nations Security Council Consolidated List. 
• An entity having as key staff a direct relative (spouse, child, parent or brother/sister/sibling) of CNFA or USAID staff, unless this is identified in the grant application and issues of conflict of interest are addressed. 
• Entities or members engaged, transacting with, or providing resources to individuals or organizations associated with terrorism. 
• Entities or members engaged in any activities related to Trafficking in Persons. 
• Entities which have been debarred, suspended, or otherwise considered ineligible for an award by the US Government. 

Hinga Wunguke Co-Investment Funds cannot be utilized for the following: 

• Private ceremonies, parties, celebrations, or "representation" expenses. 
• Purchases of restricted goods, which include agricultural commodities, motor vehicles, pharmaceuticals, pesticides, used equipment, or fertilizers, without the prior waiver and approval provided by Hinga Wunguke. Purchase of these goods requires additional approvals from USAID before they may be allowed and procured. As such, applicants are discouraged from requesting funding for these restricted goods unless the goods are necessary to the accomplishment of the grant objectives. 
• Ineligible goods under USAID regulations, including but not limited to; military equipment; surveillance equipment; police or law enforcement equipment; abortion equipment and services; weather modification equipment; luxury goods; and gambling equipment. 
• Any purchases or activities deemed unnecessary to accomplish CIF purposes as determined by Hinga Wunguke, including any headquarters expenses that are not directly linked to the implementation of the proposed project. 
• Previous obligations and/or bad debts. 
• Fines and/or penalties. 
• Creation of endowments. 
• Indirect costs such as, but not limited to, overhead or indirect fringe, unless the applicant has documented proof of such rates through audits or USAID-issued NICRA; and 
• Costs that may affect endangered species, result in wetland or biodiversity degradation or loss, support extractive industries (e.g., mining and quarrying), promote timber harvesting, provide support for regulatory permitting, or procure or use genetically modified organisms 
• Any other costs unallowable per 2 CFR 200 Subpart E – Uniform Administrative Requirements, Cost Principles, for Federal Awards.  

Section 3. Application Submission Information 

3.1 QUESTION SUBMISSION REQUIREMENTS 

Any questions related to this RFA must be submitted to the Hinga Wunguke Partnership and Investment Manager at CoInvestmentFund@cnfarwanda.org no later than 11:59PM CAT on January 10, 2023. 

Questions must be submitted in writing via email; phone calls will not be accepted. Questions and requests for clarification—and the responses thereto—that CNFA believes may be of interest to other offerors will be circulated to all RFA recipients who have indicated an interest in submitting Applications. Only the written answers issued by CNFA will be considered official and carry weight in the RFA process and subsequent evaluation. Any verbal information received from employees of CNFA, or any other entity should not be considered as an official response to any questions regarding this RFA. 

3.2 APPLICATION SUBMISSION REQUIREMENTS 

Grant applications will be accepted only in the application format given in Annex A, Grant Application. Applications and any required supporting documentation should be submitted no later than 11:59PM CAT, on January 20, 2024. Applicants must strictly adhere to the requirements of this RFA. 

Electronic applications should be submitted to coinvestmentfund@cnfarwanda.org. Applicants should be sure to request a confirmation of receipt from Hinga Wunguke when submitting applications, to ensure their submission was received. 

Please reference the RFA number in any response to this RFA. Applications received after the specified time and date will be considered late and will be considered only at the discretion of CNFA. Applicants must strictly follow the provided deadlines to be considered for award.

4. Evaluation, Selection, and Award Information

4.1 Evaluation Criteria

All applications submitted in response to this RFA will be evaluated in accordance with the following criteria.

Application Process: Once applications have been submitted to CNFA, members of the Hinga Wunguke Grant Technical Evaluation Committee will evaluate applications in accordance with the above selection criteria. Applicants that score below 75 points will not be eligible for receipt of grant funding. Applicants will be notified within 60 calendar days following the closing date of the RFA whether their application was considered acceptable or not. 

If the application is considered acceptable, CNFA will contact the applicant to engage in further discussions. A decision to engage in more in-depth and specific discussion following initial selection is not a commitment to funding; it is simply a decision to move forward in the collaborative and joint effort to develop an impactful grant project. If the in-depth and specific discussions do not result in the identification and development of a grant activity worthy of further pursuit, then Hinga Wunguke will inform the applicant that it is no longer interested in advancing the grant project. However, if the more in-depth discussions result in a promising design and concept, Hinga Wunguke will inform the applicant of that determination. 

Applicants considered to be successful will be subject to a site visit from Hinga Wunguke staff for an applicant pre-award assessment to verify the accuracy of their submission, perform an administrative and financial review, and conduct environmental due diligence. If the site visit assessment uncovers no major issues, Hinga Wunguke will provide the necessary instructions, technical requirements, and next steps of grant award. 

4.2. CIF Award Mechanism  

Hinga Wunguke anticipates awarding fixed-amount award, in-kind or simplified grants as a result of this RFA. Relevant factors in determining the grant mechanism may include:  

• Nature of the grant activity 
• Value of the proposed project 
• Results of a pre-award assessment
• Whether the applicant’s administrative and financial systems are adequate to meet USAID accountability and reporting requirements  

4.3. Unique Entity Identifier (UEI)  

Although not required to be submitted with the RFA application, successful applicants under this will be required to provide their UEI number before a grant award is issued. If the applicant already has a UEI number, it should be included in the application. Otherwise, Hinga Wunguke will provide instructions to obtain a UEI during the full application/RFA stage prior to grant award.  

5. Terms and Conditions 

Applicants understand, by submitting a response to this RFA, that application submission does not constitute an award or commitment on the part of Hinga Wunguke, nor does it commit Hinga Wunguke to pay for costs incurred in the preparation and submission of an application. Further, Hinga Wunguke reserves the right to accept or reject any or all applications received, as well as issue amendments revising the terms of this RFA before or after receipt of applications. In submitting an application, Applicants understand that USAID is not a party to this solicitation and the Applicant agrees that any communications regarding this solicitation will be conducted with Hinga Wunguke, and not USAID. Applicants will be informed in writing of the decision made regarding their application.