Applications Invited for CFC's 18th Open Call for Proposals - Support for Commodity Development
Organization: Common Fund for Commodities (CFC)
Apply By: 15 Jan 2021
About the Organization:
The Common Fund for Commodities (CFC) is an autonomous intergovernmental financial institution established within the framework of the United Nations. The Common Fund’s mandate is to enhance the socioeconomic development of commodity producers and contribute to the development of society as a whole. In line with their market-oriented approach, the Fund concentrates on commodity development projects financed from its resources.
CFC 18th Open Call for Proposals
The Common Fund for Commodities (CFC) is seeking applications for financing projects along the commodity value chains. CFC provides a range of financial and technical instruments to support projects proposed by SMEs/enterprises, cooperatives, and institutions along the entire commodity value chain in its member countries.
The support is offered mainly through loans for equipment, working capital or trade finance to invest in productivity and value chain upgradations. The CFC seeks applications of projects that have reached a state of economic, social and environmental sustainability. These applications should clearly show operational and financial viability, with a proven track record. Women entrepreneurs are encouraged to apply.
Project proposals incorporating innovative solutions for the commodity sector (e.g. new agritech applications, innovative productivity practices, regenerative technologies, increase availability of renewable and affordable energy, expanding environmental services, expediting green recovery, adding to the nutrition security, climate friendly practices contributing to biodiversity, saving deforestation, digitalization etc ) are especially encouraged to apply.
COVID-19 Update and Open Call For Proposals
The CFC is sentient to the vulnerabilities of the smallholders along the agricultural value chains in the face of COVID-19 pandemic. Problems facing vulnerable people in commodity value chain and their green recovery remain the focus of the CFC. It remains a matter of concern that the economic livelihoods of smallholders/SMEs are likely to be affected by the pandemic in multiple ways.
To ensure best level of support to its target groups and thereby to begin the process of green recovery, the CFC project cycle is running without interruption, and all proposals are considered as per schedule as indicated in the Call.
Objectives of CFC'S Project Financing
CFC supports activities which promote the contribution of the commodity sector to achieving the SDGs in CFC member countries. Our principal aim in productivity gain for enhanced income to the producers and subsequent value chain upgradation, with innovations and creativity, shall include the following aspects:
- Social: Create employment (particularly for youth and women), provide sustained increase in household incomes, reduce poverty, and enhance food security.
- Economic: Enhance production and productivity, achieve higher local value addition; improve competitiveness of producers, producer organisations and small and medium sized industries, support the financial sector development.
- Environmental: Enhance production taking into account the environment and its longterm possibilities for the same, or increased use of productive resources while maintaining or reducing the impact on the environment.
The CFC supports implementation of activities along the value chain that:
- are innovative, scalable and replicable,
- are financially sustainable,
- have a potential measurable positive socio-economic and environmental impact on the stakeholders in commodity value chains as compared to the prevailing baseline situation,
- develop stronger connections with existing markets or create new markets along the value chain,
- increase financial or other services available for commodity producers and commodity based businesses,
- enhance knowledge generation and information dissemination,
- `- Encourage and ensure nutrition security without harming people or planet.
- build effective and cost-efficient collaboration between producers, industry, governments, civil society organisations and other stakeholders for commodity based development, and
- enhance the efficiency and effectiveness of agricultural value chains inter alia including climate change and energy related sensitive components as appropriate.
- In a post pandemic era, CFC would continue to promote green recovery in the commodity sector
- added use of ICT and related innovations for enhanced digitalisations for ease of business and connectivity.
Eligible Entities and Co-financing Requirements
All legal public and private entities are eligible to apply under this Call for Proposals, provided they:
- operate in commodity value chains in CFC member countries or provide financial services to micro, small and medium sized businesses operating in these value chains,
- have a proven relevant track record of sound financial operations in their current and / or proposed activities over a period of at least 3 years, which can be documented by means of (audited) financial statements,
- share CFC’s values, including internationally recognized principles concerning human rights, labour, the environment and anti-corruption as reflected in the United Nations Global Compact, and
- do not fall under the exclusion criteria, as defined on CFC’s Exclusion list contained in Annex I.
The amount of finance requested from CFC should not exceed 50% of the total amount required to execute the project. The balancing amount of co-financing is to be provided by the applicant and/or by other co-financiers. Such co-financing should be relative to the new funding requirement for the (investment) project and should be reflected in financial projections for the project, which will be subject to verification if the project is financed by the CFC. Sunk cost are not eligible to be considered as a financial contribution.
A thorough assessment of the co-financing available will form part of CFC’s final due diligence verification.
For any questions related to the Open Call, please contact: OPENCALL@COMMON-FUND.ORG
Deadline: April 15, 2021.
For more information please check the Link
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