Operating Guidelines

CARI Rice Matching Grant Fund

Competitive African Rice Initiative (CARI)

03.11.2014

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Contents

1. BACKGROUND ------------------------------------------------------------------------------------ 2

2. PURPOSE OF THE FUND ------------------------------------------------------------------------ 2

3. WHO CAN APPLY FOR THE FUND? ----------------------------------------------------------- 5

4. FUNDING VOLUME ------------------------------------------------------------------------------- 6

5. MATCHING GRANT LIMIT ---------------------------------------------------------------------- 6

6. THE USE OF SERVICE PROVIDERS ------------------------------------------------------------ 7

7. ELIGIBLE COSTS ---------------------------------------------------------------------------------- 8

8. ACCOMPANYING TECHNICAL ASSISTANCE ------------------------------------------------- 9

9. MATCHING FUND BUSINESS PHASE ------------------------------------------------------- 10

10. APPLICATION AND IMPLEMENTATION PROCESS ------------------------------------ 10

11. MANAGEMENT ------------------------------------------------------------------------------- 12

12. TECHNICAL EVALUATION OF CONCEPTS AND PROPOSALS ------------------------ 12

13. MONITORING, LEARNING AND EVALUATION ( MLE) -------------------------------- 13

Annexes --------------------------------------------------------------------------------------------------------------------------------------- 15

ANNEX 1: MAIN ACTIVITY AREAS TO BE FUNDED UNDER THE MATCHING GRANT FUND--------------------------- 15

ANNEX 2: GUIDELINES FOR IN-KIND CONTRIBUTIONS ------------------------------------------------------------------------ 18

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1. Background

The Competitive African Rice Initiative (CARI) aims to improve livelihoods of rice farmers in selected

countries in the sub-region by increasing the competitiveness of domestic rice supply to meet

increasing demand. CARI will be implemented in Burkina Faso, Ghana, Nigeria and Tanzania with the

aim of reaching 120,000 male and female rice producers.

CARI’s strategy focuses on four intervention areas in order to improve the African rice value chain:

(1) Increased productivity and quality of paddy rice; (2) Increased efficiency of local rice sourcing,

processing and marketing through structured value chain linkages, improved technology and process

management, (3) Improved access to financial services to all value chain actors; (4) Improved policy

framework for rice sector development.

The overarching CARI strategy builds on the identification, optimization and expansion of sustainable

and context-specific business models that integrate small-scale rice producers. CARI’s technical and

financial assistance is based on a value chain approach. The principal aim is to address coordination

failures; create better linkages among rice value chain actors and as a result, increase the expected

economic returns for all stakeholders.

CARI supports diversification of production systems to balance production risks, increase food

security and nutrition and generate additional income for rural households throughout the year.

Complementary interventions will focus specifically to benefit women, e.g. vegetable production.

The consortium implementing CARI comprises of national and international companies and

institutions and is led by GIZ, Technoserve (TNS), Kilimo Trust (KT) and on a policy level by the John A.

Kufuor Foundation (JAK). The project is based on a co-financing agreement between private and

public partners providing both cash and in-kind contributions. The two key funders are the German

Federal Ministry for Economic Cooperation and Development (BMZ) and the Bill & Melinda Gates

Foundation (BMGF).

CARI is a partnership based program and will employ a Matching Grant Fund (MGF) as the main

instrument for implementing its activities and to accelerate and strengthen the value chain and the

rice industry in its four project countries of Burkina Faso, Ghana, Nigeria, and Tanzania. The fund will

co-fund activities and investment into the development of business models undertaken by private

enterprises, farmer associations and, to some extent, public sector agencies operating in the rice

value chain of the selected countries.

The Matching Grant Fund instrument is already successfully applied in similar BMGF/GIZ project –

the African Cashew Initiative (ACi) and on the NEPAD/CAADP climate change fund. CARI will thus use

the experience gained within ACi and other MGF models to efficiently manage a competitive

matching grant fund scheme.

2. Purpose of the Fund

The overall aim of the Rice Matching Grants Fund is to serve as a vehicle or instrument for achieving

the vision and objectives of the CARI project. Thus, the Matching Grant Fund will support activities

aligned with CARI’s vision which is the sustainable success of the African Rice Industry and objectives

1-3.

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To the extent that the design of the matching fund permits, it may also be used for activities related

to objective 4 which is concerned with improving the policy framework for the rice sector. Projects

approved under the fund shall result in sustainably increasing income for rice farmers through:

Increased productivity and quality of paddy rice and complementary crops (related to CARI obj. 1)

Increased efficiency of local rice sourcing, processing and marketing (related to CARI obj. 2)

Improved access to financial services for all value chain actors (related to CARI obj. 3)

The logical framework of the Matching Grant Fund showing CARI objectives, a list of possible

activities, expected outputs / Key Performance Indicators (KPIs) and outcomes are summarized in the

table below (see Annex 1 for further details):

CARI VISION

Sustainable Success of the African Rice Industry

Objective 1: Increased productivity and quality of paddy rice

Main outcome indicators: Paddy yields (t/ha) improved

& Profitability (net income/ha) of farming is improved

Mandatory Activities

Activities Output / KPI Outcome

1. Train the Trainer (ToT) on Good

Agricultural Practices (GAP) to

create a multiplier effect

# of trainers trained to conduct GAP trainings

Project farmers have adopted

GAP according to production

system.

Post-harvest losses have been

reduced

Farmers’ have purchased and

planted improved seeds

Farmers have access to and

purchase improved inputs

2. Train Farmer Based Organizations

(FBOs) on GAP

# of FBOs trained on GAP of which 80% apply GAP

3. Train FBOs on post–harvest

technologies

# of FBOs trained on post-harvest technologies of

which 80% apply training

4. Introduce technical packages for

rice and complementary crops

farming

# of technical packages introduced

5. Link farmers / FBOs to improved

seeds

# of farmers linked to seed providers

Volume of improved sees available to farmers

increased

6. Link farmers/FBOs to input service

providers

# of farmers linked to input service providers

# of farmers who purchased improved inputs

7. Link farmers / FBOs to technology

services providers

# of FBOs linked to service providers

8. ToT on business skills

# of trainers trained on business skills or FBS

Project farmers have improved

their business skills

At least 80 % of Project farmers

practice crop diversification in

9. Train FBOs on business skills /

conduct Farmer Business School

(FBS)

# of FBOs trained in business skills or # of FBS

conducted

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10. Train farmers on diversification of

crops in paddy based farming

systems

# of farmers trained on crop diversification their farming systems

Optional Activities

Activities

Output / KPI

Outcome

11. Build Capacity of agro-input service

providers

# of agro-input service providers trained

Project farmers have improved

access to input delivery services

12. Build capacity of providers of

irrigation services

# of irrigation service who offer services to farmers

Labour productivity increases 13. Build capacity of providers of tractor

hiring services

# of tractor hiring services used

Objective 2: Increased efficiency of local rice sourcing, processing and marketing

Main outcome indicators : Quantity and quality of paddy to mills improved

& Quality of rice is in line with market requirements

Mandatory Activities

Activities

Output / KPI

Outcome

1. Strengthen FBO linkages to rice mills and

buyers through out-grower models, contracts

etc.

# of contracts established among FBOs, processors

and off-takers (buyers) / number of farmers

contracted

FBO – processor / off-taker

business relationships improved

(i.e. services provided improved,

amount of inputs delivered,

quality of rice delivered by

farmer improved, number of

clashes between farmer and

miller etc.)

2. ToT on cooperative business models as

appropriate

# of trainers trained to conduct cooperative trainings Profitability of rice farming is

improved

Quality of rice is in line with

market requirements

3. Train FBOs on cooperative business models

(as appropriate)

# of FBOs trained on cooperative development

4. Introduce and train FBO's on paddy quality

improvement measures

# of FBOs trained on paddy quality improvement

measures and applying them

5. Train processors, rice traders and other

relevant entities, on quality and support their

achievement of a min. HAACP or other national

standards

# of processors, rice traders and other relevant

entities achieving a minimum of HAACP or other

national standards

Adherence to a minimum of

HAACP or other national

standards for rice improved

Optional Activities

Activities

Output / KPI

Outcome

5. Support FBOs and / or other entities to

manage and / or own warehouses or

aggregation points

# of FBOs and / or other entities supported to manage

and / or own warehouses or aggregation points

Profitability of rice farming has

improved

6.Train rice trading associations on cooperative

business models

# of rice trading associations trained

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7. Improve marketing (i.e. packaging) of locally

produced rice

# of marketing strategies introduced based on facts

from country level consumer study conducted by CARI

Consumer perception of locally

milled rice improved

Objective 3: Improved access to financial services for all value chain actors

Main outcome indicators : Additional types of financing arrangements agreed between

enterprises, FBOs and financing institutions & Additional smallholders benefitting from

financing arrangements

Mandatory Activities

Activities

Output / KPI

Outcome

1. Sensitization of value chain

actors on financial Institutions

# of FBOs sensitized on access to finance

Value chain actors’ awareness of financial services

improved

2. Sensitization of financial

Institutions on rice sector &

viability

# of financial institutions sensitized on rice sector

and viability

Optional Activities

Activities

Output / KPI

Outcome

3. Business plan support and

facilitation to financing access

# of viable business plans developed and

submitted to financial institutions

Additional value chain actors benefitting from

financing arrangements

Important notices: (1) All applications shall include the mandatory activities and at least 2 optional

activities (2) Applicants must be committed to systematically ensure female participation in program

implementation in all countries and benefits achieved on the principles of equity; at least 30% of

benefiting farmers must be females.

The Matching fund will leverage contributions from stakeholders e.g. Processors, FBOs and other off

takers/traders, Public and development institutions as well as governments, to enable them to

implement specific interventions that lead to desirable outcomes for the rice sector. Processing mills

will be the fulcrum of the matching fund projects. The direct beneficiaries shall be rice farmers,

farmer based organizations and processors/millers, off-takers and consumers expected to benefit

indirectly.

3. Who can apply for the fund?

A wide variety of stakeholders can apply for the CARI matching grant fund. Broadly, potential

grantees include:

a) Private Sector Organizations (PSOs) – organized agribusinesses i.e. processors, millers, off-takers,

seed and input companies, technology service providers etc. that are legally recognized and

empowered to enter into binding agreements

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b) Public Sector Institutions (PSIs) – research institutes, ministries, departments and agencies of

governments that are legally recognized and empowered to enter into binding agreements.

c) Non-Governmental Organizations (NGOs) / Non State Actors (NSAs) that are legally recognized

and empowered to enter into binding agreements

In order to enhance private sector linkage along the supply chain, an application may be

made by one entity (in case of government organizations/research institutions or

Agribusiness companies), or a combination of two or more entities if they are able to

establish common goals and have agreed to combine their efforts in the same direction.

Where the application is made by two or more entities, one party shall take the lead in the

implementation and contracting, and shall have sub-agreements with the other entities or

partners. Nevertheless, where the environment is more conducive for the establishment of a

consortium of partners (i.e. Tanzania situation) an application can be made by partners in a

single consortium in order to build end-to-end business linkages. In this case however a

partner in the consortium who has a clearly defined legal status will be required to serve as a

lead firm for contractual purposes.

The partnering entities must have existing operations in Africa in the rice industry at the time

of their application

4. Funding Volume

The total funding volume for the matching grant fund for project implementation shall be the Euro

equivalent of $ 7.7 million provided by BMGF. Out of the total funding volume the specific allocations

for the matching grant fund across the four project countries are related to the number of farmers

targeted in each country and amount to Nigeria ($3.3 million), Ghana ($1.9 million), Tanzania ($1.75

million), and Burkina Faso ($ 675,000). Within each country there could be further re-allocation to

consider e.g. rain fed lowland production, dry season / irrigation production, parboiling groups, small

and medium rice mills, rice traders etc. The fund expires at the end of the project in December 2017.

However, to allow for effective closure, all matching fund projects will terminate in August 2017.

5. Matching Grant Limit

The maximum amount per processing mill/project financed by the grant shall be fixed at

200,000 EUR. The minimum amount of grant from the Rice Matching Grant Fund per

processing mill/project financed shall be 36,364 EUR; The minimum amount may be varied

by the Board of the Matching Fund depending on the country circumstance, though it should

be recognized that opting for many smaller projects will have higher cost and monitoring

implications for the fund.

The grants provided by the Rice Matching Grant Fund shall be matched as follows:

Minimum matching ratio of Euro 1 from Matching Grant Fund to Euro 1.5 private

funding for projects for all private partners applying for the fund.

Minimum matching ratio of Euro 1 from Matching Grant Fund to Euro 1 public funds for

all public partners applying for the Fund.

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The contribution of the private or public may be in the form of cash or in-kind or both

(see Annex 2 for guidelines on in-kind contribution)

Submitted proposals should target a minimum outreach to 5,000 farmers when

requesting for the maximum grant allocation.

An example for a proposed project with a total cost of EUR 500, 000 for Private Partners and a total

cost of EUR 400, 000 for Public Partners is shown graphically below:

Cost Structure of a Typical Rice Matching Grant Project

Co-funding of other donors for individual projects is in principle intended and wished,

however not obligatory. Where such co-funding is obtained by the partners, it could be

considered as a replacement for part of the partners own contribution. This allows for

leveraging funds from the public/government and other developing institutions, taking into

account the level of development of some of the actors in the rice value chain who will not

have the resources to make sufficient own contributions.

The duration for implementation of funded activities shall be between 6 and 24 months, and

not to be extended beyond August 2017. The duration of implementation must be long

enough to demonstrate an impact that is attributable to the project.

6. The use of Service Providers

It is mandatory for activities/interventions (related to objectives 1& 2) funded through the Matching

Grants Fund to be implemented by a prior accredited service provider. The service providers will be

suggested by partners applying for matching fund projects or recommended by the implementing

partner. However the accreditation shall be done by the implementing partner in the respective

country and shall be guided by ‘accreditation schemes’ adopted in the country for such types of

Service Providers. Where such accreditation schemes do not exist, the following general eligibility

criteria shall apply:

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Evidence of being a legally registered entity or recognized government institution

(e.g. farmer extension department of a government) in case of corporate bodies

Demonstrated knowledge of the rice value chain

Evidence of possessing technical expertise and delivery methodology in an

intervention area relevant to the Matching Grant Fund. Capacity in terms of human

resources to provide the desired services must be evident.

Prior experience in effective implementation and management of development

projects

Knowledge of and experience in monitoring and evaluation of projects

Evidence of possessing local knowledge of the intervention area or target group

A possible list of service providers who could support the applicants to effectively implement the

activities is as follows:

Agribusiness companies

Agro-dealers/suppliers

Operators of agricultural machinery

Research institutes

Agricultural consultants/trainers

Agricultural extension officers

Seed companies + local nurseries + extension farmers

Processors

FBOs

NGOs

Food scientists, food safety experts in rice

BDS consultants

7. Eligible costs

The following costs are applicable for funding, and can be accounted for by private partners as in-

kind or cash contributions:

The cost of external technical staff or own staff assigned on the project to provide specific

services on the indicated activities

Travel and subsistence costs of the above-mentioned technical staff, where such travel

are relevant for the execution of the project activities

Cost of conference, seminars, workshops and other facilities emanating from the project

Cost of research and dissemination of information, printing etc.

Direct travel expenses in relation to for instance improved planting material development

and dissemination or training delivery.

Machinery and equipment needed to demonstrate a skill, (the ownership of this

equipment needs to be transferred to farmers, farmers groups, NGOs or Civil Society

Organizations)

Expenses in relation to pilot test of the improved planting material or inputs or

execution models

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Auditing of final project accounts

Capital investment are only eligible for funding if the object to be funded (i.e., small scale

equipment or rehabilitation of assets and facilities e.g. irrigation) is subject to shared

ownership with farmers or a direct benefit to farmers (beneficiaries) can be demonstrated

contractually. A minimum of 30% of the project volume has to be allocated for Technical

Assistance in such circumstances. (See section 5 for a cost structure of a typical Rice

Matching Fund project).

The following costs are not eligible for funding:

Purchase of land

Contingency

Taxes, including VAT

Items or activities previously financed by the Rice Matching Fund or another Funding agency

Debts and provisions for losses

Transport of goods, insurance and bank transaction costs

Capital costs which are related to the normal operation of the applying entity but does not

have a demonstrated contractual benefit or ownership of farmers

8. Accompanying Technical Assistance

In order to guarantee good quality of activities under the matching grant fund, technical assistance

services for implementation, monitoring and reporting may be required, depending on the nature of

the project arrangement or the capacity of the project partner. This technical assistance could

encompass:

a) To all value chain actors: Supporting partners to prepare proposal for possible funding

under the matching fund

b) To all value chain actors: Advising the preparatory stage of a project under the matching

fund

c) To off takers/traders and processors: Mediating with farmer organizations regarding the

fulfillment of buying/supply agreement

d) To processors/farmer extension unit: Training staff (training of trainers) on extension

methodology and content

e) To consultancies and NGOs who implement projects for the private sector: Extension

methodology and content (training of trainers), value chain mechanisms

f) To farmer organizations: Organizational support to become reliable partner with

processors, training on management of organization, accountability, bulk selling and

warehouse management

g) To all value chain actors in the project under matching grant fund: Process monitoring

and advising during and after the implementation

The individual project implementation support needs by the CARI implementing partners will be

assessed together with the project partner during appraisal and included in the grant budget. TA

services assuring quality delivery of the project may be provided by independent service providers or

CARI implementing partners on request by the project partner.

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9. Matching Fund Business Phase

The business (operational) phase of the Rice Matching Fund will be March 2014 to August 2017.

The Matching Fund will make three Calls for Concept in total between the periods of March 2014 to

March 2016. There will be no call in 2017. The first call in March 2014 will skip the concept note stage

due to a lack of time. To allow for innovation, the second and third Calls might involve open

invitation for concepts from all actors in the rice value chain in the project intervention areas. Due to

a later season start for Tanzania compared to West Africa (Ghana, Nigeria and Burkina Faso), the call

for concepts for Tanzania does not coincide in time with the calls for the remaining countries of

intervention but instead will take place after a few months, in line with the planting season.

The Call for Concept may involve an official announcement of the availability of grants in key

electronic and print media, or a strong potential partner may be approached to submit a concept

note or a selected number of potential partners may be called to submit concepts notes depending

on the options that work best at the country levels. The announcement or invitation shall state,

among others, the purpose of the grant, the eligibility criteria, the grant limit and the web/physical

location where application forms can be obtained. The general outline for elaborating the

concept/idea and the deadline for submission of the application will also be indicated in the Call.

After the deadline, all concepts received shall be evaluated and decisions made.

The Matching Fund will exit in December 2017 by which period all projects will have ended although

the applicant could continue with beneficial projects.

The summary of the relevant Calls and dates are as shown below:

Location Call for Concept Concept Submission Deadline

Proposal Submission Deadline

Matching Fund Decision

1st Call West Africa

n.a n.a 8th of April 2014 Done

1st Call Tanzania

1st July 2014 31st July 2014 15th September 2014 Latest by 31th October 2014

2nd Call West Africa

3rd November 2014

1st December 2014 30th January 2015 16th February 2015

2nd Call Tanzania

1st July 2015 31st July 2015 15th September 2015 30th September 2015

3rd Call West Africa

2nd November 2015

30th November 2015 1st February 2016 15th February 2016

The call for concepts shall be followed by the submission of a full proposal by successful applicants.

The Matching Grants Fund may, depending on identified needs, announce different Calls for

Concepts or deadlines for different topics.

10. Application and Implementation Process

Typical process of a project under the matching fund mechanism:

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1. Concept Call: Mechanism, content of fund, and deadline for first round of applications is

announced to actors in the African value chains. However, different deadlines/ rounds can

be announced for the different topics. This step is omitted for the first call.

2. Concept Development and Submission: Interested beneficiaries (Private & Public

Institutions), wishing to apply for funds, would be requested to first submit a Concept Note

using a standard Application Form. Applicants will be allowed to submit detailed technical

proposals only after this preliminary stage has been evaluated and approved, with

adjustments where necessary.

3. Submission of Proposal: The technical proposal shall be prepared using specifications in the

Application Form and submitted to the project unit of the Rice Matching Grant Fund, for

review and recommendation to the Board of the Fund. The submission of the detailed

Proposal as well as decision making on the proposal shall not exceed eight (8) weeks.

4. Proposal Review and Decision Making: The Board of the Fund shall meet on set dates to

take decisions on the submitted proposals. The decision of the Board of the Fund shall be

communicated in writing to the Applicants within one (1) week.

5. Contracting: Following approval by the Board of the Fund, a project implementation contract

shall be prepared between the CARI project and the lead applicants. The lead applicant shall

be legally responsible the project implementation. In case of difficulties and for information

exchange, they will consult regularly with the project unit of the Rice Matching Grant Fund.

6. Funding and Implementation: The agreed funding shall subsequently be released to the

Applicant and the relevant Service Provider to implement the approved activities, according

to the agreed schedule of disbursement. The duration for implementation of funded

activities shall be between 6 and 24months.

7. Monitoring: CARI monitoring process as elaborated under section 14 shall be applied to the

projects under Matching Grant Fund. Joint evaluation is envisaged together with the private

and public partners.

8. Reporting: The grantee shall submit semi-annual reports to the Officer Coordinating the

MGF, who will give a summary report to the Board of the Fund, who in turn reports to the

Steering Committee.

9. Audit: At the end of the project, the grantee shall submit final accounts, which shall be

audited by an external auditing firm.

10. Closure: Based on the monitoring reports, final report, and audit report, the

results/outcomes, the project unit of the Rice Matching Grant Fund will close the project

formally. Joint publications may follow.

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11. Management

The Matching Grant Fund shall be managed by GIZ as an independent project unit, with an Officer

coordinating the Matching Fund, who reports to the CARI Programme Director and the Board of the

Fund. The officer shall have previous experience in the rice sector and in the management of similar

development oriented grants.

The 3-member Board shall be composed of: (1) the Senior Programme Officer of BMGF, (2) the

Programme Director of CARI who shall chair the Board and (3) the implementing partner of the

country where the matching fund originates shall also cast a vote on applications from their country.

The decision of the Board shall be made by consensus, where no consensus is possible the decision

will be made by majority vote. The Board can be expanded in case of additional donor contributions

to the fund.

The Board shall be responsible for overall management of the Fund, the development of policies and

regulations related to the Fund, and decision making on proposals submitted for funding. The Board

shall report to the Steering Committee of CARI.

The Operations Manager, CARI shall be the officer coordinating the Project Management Unit of the

Rice Matching Grant Fund, and supported by the Implementing Partners (IPs) of the respective

countries. The IPs shall support the private partners in preparing concepts and proposals, review of

concepts and proposals as well as being involved in the monitoring of the projects. The Operations

Manager CARI shall be responsible for the overall administration of the fund and higher-level

monitoring and impact assessment.

While final proposals shall be evaluated and decided on by the Board of the Fund, the Operations

Manager together with the IP’s shall be responsible for the selection of eligible Concept Papers based

on pre-determined criteria.

12. Technical Evaluation of Concepts and Proposals

It is expected that the project management defines clear statement(s) of expected outcomes,

success criteria, identification of milestones, and availability of key resources required for the

project.

All proposals that fulfill the general eligibility criteria will be evaluated to determine their quality and

conformity to set criteria. The Board of the Fund and the project unit of the Rice Matching Grant

Fund Unit shall employ the following evaluation criteria in selecting/approving Concepts and

Proposals:

1. Alignment with Purpose of Matching Fund

Number of smallholder farmers reached and integrated into improved business

models, of which at least 30% are women

Contribution to increase in farmer incomes

Increase in productivity and quality of paddy rice and complementary crops

Increased efficiency of local rice sourcing, processing and marketing through

structured value chain linkages, improved technology and process management

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Contribution to enhanced diversification of production in paddy-based farming systems

Improved access to financial services for all value chain actors served

2. Relevance of Action/Project

Evidence of clear and logical link between solutions/actions proposed and the

identified needs or problems to be addressed

Clarity and SMARTness of stated objectives (SMART objectives are Specific,

Measurable, Attainable, Realistic and Time bound)

Consistency of the proposed activities/strategies in relation to expected results

Sufficiency of the project approach, methodology and work plans (tasks,

responsibilities, timing, milestones, deliverables) for achieving the set objectives of

the project

3. Implementing Capability

Evidence of the formation of a project team, including the assigning of

responsibilities

Sufficiency of technical expertise in relation to project approach, methodology and

planned activities

Capability of the project team to effectively implement projects, report on progress,

and support Monitoring and Evaluation of the Project.

4. Financial Capability

Evidence of having resources (cash or in-kind) to meet own contribution

Reasonability of budget and cost estimates

Cost efficiency and effectiveness of project activities and spending

Capability of the project team to effectively manage funds

5. Ability to replicate and Innovativeness

Ease, effectiveness and cost efficiency in the use of the approach and methodology in

other similar circumstances

Effectiveness of approach and methodology

6. Sustainability and Scalability

Evidence that the project can continue beyond the period of financial support

Ease, effectiveness and cost efficiency in expanding coverage/reach of benefits

13. Monitoring, Learning and Evaluation ( MLE)

The monitoring of the matching fund project shall be undertaken at three levels:

(1) At the level of the matching fund project by the applicant and partners and will involve

monitoring of performance in relation to agreed indicators and preparation of half yearly

narrative reports on the progress of activities. Projects will also prepare success stories on

major achievements made.

(2) At the level of the Implementing partner by monitoring actual implementation by applicants

in relation to activities contracted between the applicants and the fund. The learnings from

this level shall be compiled across projects and reported to the CARI Matching Fund

coordinating officer.

(3) At the level of the CARI Matching Fund coordinating officer there will be monitoring of key

performance indicators of each project in relation to the attainment or otherwise of the

objectives of CARI. Deviations and gaps observed through this monitoring will be passed on

through the implementing partners to matching fund projects.

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The lack of capacity on the level of matching fund projects for impact evaluation implies that

there will be a series of surveys, focus group discussions and spot checks implemented around

the matching fund projects directly by the Fund or through the implementing partners. The

purpose of this evaluation is to identify both qualitative and quantitative impacts made by the

matching fund projects within their intervention areas to help report on the overall impact of

CARI.

The learnings from the monitoring and evaluation around the matching fund projects shall be

shared on a common platform, at the national level, and through the facilitation of the

implementing partners. This peer to peer learning platform shall allow for the exchange of

information by the various matching fund projects in the country and for the challenges and

successes of the projects to be identified and shared with other projects in the other intervention

countries.

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Annexes

ANNEX 1: MAIN ACTIVITY AREAS TO BE FUNDED UNDER THE MATCHING

GRANT FUND

Objective 1: Increase in productivity and quality of paddy rice and complementary crops

The different activities to be funded by the matching grant fund under this section are mainly

concerned with farming activities, these are:

Introduce technical packages for rice and complementary crops farming - Here the

applicant shall introduce technical packages (i.e. small scale irrigation systems, hand

devices to sow rice, fertilizer, seeds, crop protection products etc.) that are

appropriate for the production systems, business models and agro-ecological

conditions in the participating countries. Projects funded under this activity are

expected to lead to enhanced use of technology and improved yields of paddy rice

and complementary crops, e.g. vegetables.

Building the capacity of trainers for training farmers - Such training of trainers may be

offered to e.g. extension officers to update their knowledge on improved production

and training methodology to enable them to offer effective training to farmers. This

also includes the development of didactic materials for training. Projects funded

under this activity shall lead to increased capacity of trainers for the sector.

Train FBOs in good agricultural practices including harvest and post-harvest handling

techniques and storage - Projects funded under this activity are expected to result in

increased number of farmers adopting GAP and contribute to reduced post -harvest

losses, thereby increasing the profitability of rice farming.

Train FBO's in business skills and / or conduct Farmer business Schools (FBS) for

farmers. The concept of the FBS entails equipping farmers with entrepreneurial skills,

record keeping skills and basic cost-benefit analysis to allow them to manage their

farms as a business and thus promoting market-oriented production.

Build capacity of providers of tractor hiring services and build capacity of providers of

irrigation systems. Activities funded under this project shall lead to improving the

number of farm mechanization services (including irrigation) to farmers to increase

farm productivity.

Build capacity of agro input service providers - Knowledge in and handling of agro

chemicals is often lacking especially regarding small agro input service providers. This

activity will build capacity and enhance knowledge of the proper handling of agro

chemicals while also linking farmers and farm associations to agro-input service

providers.

Link farmers to improved seed and quality inputs providers and sensitize farmers on

improved seed and input use - Knowledge of and access to improved and certified

seeds and quality inputs is a major challenge in the rice sector and contributes to low

productivity of rice fields and poor quality of processed rice. This activity will

therefore involve linking farmers and farmer associations to certified seed producers

as well as sensitizing farmers on the use of improved seeds.

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Objective 2: Increased efficiency of local rice sourcing, processing and marketing

The different activities to be funded by the matching fund under this section are mainly concerned

with rice processing and trading activities, these are:

Strengthen FBO linkages to rice mills and buyers through models, contracts etc. - This

will involve developing effective linkage models and facilitating business linkages

between farmers and processors and between processors and buyers through

mutually binding contracts and business agreements as well as joint implementation

of mutually beneficial activities.

FBO, and other entities, manage and own warehouses or aggregation points - The

issue of poor quality is closely linked to the post-harvest handling and storage of rice

and can be addressed with activities that provide farmers with warehousing facilities

or offer such facilities to farmers. At the minimum, aggregation points may also be

provided as part of the intervention to enhance bulk supply of rice to processors and

reduce their costs of transportation.

Introduce and train FBO's on quality improvement measures - This involves quality

improvement activities at the farm level to eliminate contamination (stones etc.) and

enhance the quality of rice supplied to processors.

Train rice processors, rice and vegetable traders and other relevant entities, on

quality and support their achievement of a minimum HAACP or other national

standards - Activities here shall include the introduction of food safety

standards/measures at the processor level and prepare processors to meet the

quality requirements of consumers and compete adequately with imported rice.

Improvement of marketing (i.e. packaging) of locally produced rice and

complementary crops - As marketing of locally produced rice and complementary

crops, e.g. vegetables and fish, is often a problem especially when it comes to

packaging, activities in this area will support the development of marketing

strategies that are relevant to contribute to improved branding and perception and

thus better sales of locally produced rice.

Objective 3: Improved access to financial services for all value chain actors served:

In this case matching fund activities shall lead to the development of financing arrangements that

lead to additional smallholders obtaining inputs via (pre) financing solutions and an increased

number of small and medium processors obtaining capital investment. The different activities to be

funded by the matching fund under this section are mainly concerned with support service activities,

these are:

Business Plan support and facilitation to financing access - The main activities here

involve accompanying actors in the value chain to prepare viable and bankable

business plans and submit to financial institutions for funding. Included here are also

activities that involve equipping the enterprise (i.e. FBO, processor, buyer etc.) to

prepare and manage cash flows as well as generate relevant information for business

planning.

Sensitization of farmers, millers/processors and other input suppliers (demand side)

on available financial products as well as facilitation of actual meetings between

financiers (supply side) and the demand side (Intervention Box9b).

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Sensitization to financial Institutions on rice sector & viability - Activities here shall be

directed at improving the knowledge of financial institutions in the rice value chain

and the viability of the sector as well as supporting financial institutions to develop

responsive financial products for lending to actors in the rice institutions to develop

responsive financial products for lending to actors in the rice value chain.

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ANNEX 2: GUIDELINES FOR IN-KIND CONTRIBUTIONS

1. Introduction

The Matching Fund considers in-kind contributions to projects as important as cash contributions

because of the following:

In-kind contributions when factored as part of a project budget gives the real total cost of a

project

In-kind contributions are frequently the main contribution an applicant can make to a

project, therefore, accurately valuing these contributions are very important in determining

the real contribution of an applicant to a project

In-kind contributions demonstrate to donors that the applicants or private sector are

significant contributors to projects.

For these reasons applicants are required to budget/show the amount of in-kind contribution

to a project, based on actual costs. It also means that during project implementation each

grantee must use a standard method in documenting all in-kind contributions.

2. Calculating in-kind Contributions:

Valuation of in-kind contributions should be based on average commercial prices applicable in a

country or a region. For the results to be accurate the grantee will have to estimate and document

in-kind contributions as part of project preparation and project implementation and invoicing.

3. Documenting In-kind Contributions:

All relevant supporting documents which certify the value of in-kind contributions should be

presented with the full project proposals, subsequently with the monitoring and audit reports. These

documents should include the following:

Letter from applicants or owners of in-kind contribution stating the value and how it was

determined

Rental or tenancy documents where office space is offered

Evidence of ownership and value of equipment used or to be used for the project

Letter from applicants indicating the purpose for use of any in-kind item as well as the basis of valuation or cost computation used in arriving at the Total Cost.

4. The list of eligible in-kind contributions is shown in the table below:

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Applicants are to indicate the purpose for use of any in-kind item as well as the basis of

valuation or cost computation used in arriving at the Total Cost.

S/No. Eligible In-Kind Contribution Units of Measure Documentation (to be verified by external auditor)

1 Labour Input of project manager and other project personnel (including part-time project staff), own staff of applicant

Days/Months Time Sheets and Personnel Accounting

2 Labour Input of expert/consultant Days/Months/Hours Time Sheets and Personnel Accounting (own staff) or Contract with External Expert

3 Labour Input of volunteers Days/Months Use one of the following:

Voluntary work input calculated based on the official rate of such work, if available. Or

An average appropriate person-day rate used in the country or district at the relevant level of input.

4 Use of meeting hall/room (own/rented externally) Hours Voucher in Accounting/rent agreement based on market prices

5 Use of overhead projector (own/rented externally) Hours Voucher in Accounting/rent agreement based on market prices

6 Use of own or rented office equipment (computers, printers, etc.) and Use of own or rented Machinery/other equipment needed to implement the project

Month Use one of the following:

Calculate straight-line depreciation of full cost of equipment over 5 years and factor down according to usage on the project, e.g., a $5,000 piece of equipment over 5 years = $1,000 per year or $500 for six months or part thereof. Or

Rent agreement based on market prices

7 Donation of machinery, equipment or gadgets current accounting value

If machinery is given or donated for project activities for a period that is sufficient to fully reach planned results and impact, and will remain thereafter as property of the project or a charitable organisation, the full accounting value of the equipment at the date of donation may be used, supported by official document or data proving the value and the donation (Evidence of change of ownership, Valuation Report, accounting documents).

8 Communications Costs (phone, internet, post) Month Either actuals or a reasonable lumpsum per month, based on market prices

9 Use of vehicle (own) Km Project accounting

10 Rent of Vehicle Month/Day Rent agreement based on market prices

11 Use of electricity Month Reasonable lump sum or share attributed in overall accounting to the project

12 Use of buildings or sheds or storage Month If a building is given or donated for project activities for a period that is sufficient to fully reach planned results and impact, and will remain thereafter as property of the project or a charitable organisation, the full value of the building at the date of donation may be used, supported by official document or data proving the value and the donation (Evidence of change of ownership, Valuation

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Note: Any other form of in-kind contribution not listed here may be justified upon approval

Report, accounting documents).

If a building is given or lent for the project activities only for project duration, use the official rent price based on market prices. Price calculation should be supported by official documents and/or rent agreement.