This United Nations Capital Development Fund (UNCDF) call for investment proposals is the first in Tanzania under the Local Finance Initiative (LFI) programme which is being implemented in partnership with the government of Tanzania through the Prime Minister’s Office – Ministry of Regional Administration and Local Governments (PMO-RALG).
The LFI programme provides project development and financing support in the form of seed capital, credit enhancements and technical expertise to unleash and trigger broader and deeper local economic development impact in the local communities. In other words, local economic infrastructure projects that are otherwise un-bankable are de-risked and taken to an investment ready stage where they are prepared to attract equity investors and access commercial capital.
The LFI programme supports commercially viable investments promoted by public and or private developers that aim to build productive capacity, sustainable consumption and will results in attaining transformative impact in the local communities. In addition, LFI supports projects to access private sector capital preferably domestic capital. It also provides local governments with innovative ways to access new sources of financing for their economic infrastructure projects. The limited public funding including donors’ support is leveraged by seeking private sector capital using financial structures and instruments that mitigate risks and therefore increase effectiveness of the public sector funding; and LFI deepens the private sector engagement, increase the capacities of local stakeholders and enhance the capital markets.
Investment Profiles and Selection Criteria
This Call for Investment Proposals is targeting commercially viable investment projects that:
- build sustainable production systems ‘small and medium size infrastructure’ and consumption patterns;
- increase productivity in agriculture and market access to small and medium sized agri-businesses and farmers;
- enhance women economic empowerment and gender equality;
- build resilience to climate change and access to clean and sustainable modern energy sources.
The selection process will focus on the identification, selection and development of projects that are a) commercially viable b) have transformative development impact and c) must be within the prescribed total project cost/size ranging from $100,000 to $20,000,000.
Eligible Investments for LFI Support
Projects selected from this Call will be considered for investment using the LFI selection criteria as a starting point. In addition, provision of technical support during development and financing stages, the LFI seed capital can be structured as: Quasi Equity/Subordinated Debt, Short term loan, Grant, Credit Enhancement and Guarantees in order to deepen private sector development and extend reach to SMEs, small and medium-scale farmers, local economic development actors, whether they are public or private businesses.
Eligibility Criteria for LFI Investment Proposals
In order to qualify for UNCDF LFI technical support and funding support through this Call, investment proposals must meet the following criteria:
- Sponsored by public or private entities.
- Must demonstrate impact to the local communities where the project will be implemented.
- Project development activities must have reached an advanced stage beyond a concept note or proposal with initial feasibility (business and technical) studies completed etc.
- Project takes place in Tanzania.
- Total project size should range from $100,000 to $20,000,000.
- Demonstrated profitability in the financial summary or evidence of long-term financial sustainability.
- High quality management.
- Compliance with UNDCF/UNDP Environmental & Social Performance Standards, including Human Rights.
Use Call for Investment Proposals Submission Form which can be downloaded at www.uncdf.org/lfi or here. The only way of responding to this Call for Investment Proposals is by submitting the Submission Form and the required information in it via e-mail (email@example.com).
Language of proposal: English is the operational language of this Call for Investment Proposals, thus submissions are expected only in English.
Deadline of Submission: Submission must be received by March 10th, 2015.