Background on the Accelerate Africa Entrepreneurship Challenge

USAIF’s Accelerate Africa Entrepreneurship Challenge is an initiative of USAIF’s Youth and Women Entrepreneurship Portfolio designed to address Africa’s youth bulge, economically empower youth and women, and impact job creation across Africa. The Accelerate Africa Entrepreneurship Challenge is intended to invest in Micro, Small, and Mid-Size enterprises (MSMEs) that:

• Address Africa’s youth bulge by prioritizing job creation to enhance youth productivity and livelihoods.
• Economically empower youth and women to apply business solutions to social problems and create sustainable employment across Africa.
• Address unmet needs of underserved and at-risk communities and/or market demand.
• Formalize market opportunities and supply chain linkages for youth and women-owned MSMEs.

Introduction

USAIF is excited to request proposals for the USAIF Accelerate Africa Entrepreneurship Challenge. Proposals of up to US$250,000 in grant capital per award will be considered. To be considered for the Challenge, applicants must be 100% African-owned and -managed MSMEs or ventures registered and operating in Africa. Projects must be innovative scalable enterprises that address local needs through the creation of jobs and wealth. These projects should clearly outline the expected impact on communities and livelihoods, an increase in job creation, improvement of women’s access to funding, reduction of poverty, and enhancement of youth productivity.

Winning applicants will receive:

• Grant capital of US$50,000 to US$250,000 from USAIF.
• Access to intensive local technical assistance and governance support.

Eligibility Criteria

USAIF will consider proposals from 100% African-owned and managed companies. Passports or other government-issued IDs of any of the owners or senior managers must be submitted with the applications. If the applying entity is owned wholly or in part by another entity, passports or other government-issued IDs of one of the owners must also be provided. The applying entity must be a for-profit or non profit enterprise and must not be government-owned, operated, or affiliated in any way. Applicants need to be legally registered in Africa and demonstrate the capacity to track and manage the project resources and operate in good standing with the local governments in which they operate.

Winning proposals must:

• Benefit underserved populations or low-income rural or urban populations.
• Demonstrate financial sustainability or the potential for financial sustainability.
• Propose a budget of no more than US$250,000. Proposals with budgets greater than US$250,000 must bring leveraged resources from one or more other sources that meet the total financing requirements. Leveraged funds from other private sector and donor sources are encouraged.
• Demonstrate clearly whether and how many new jobs will be created.
• Women-owned, youth or -managed business is a plus.
• Obtain accreditation or secure insurance at their own cost

Applications Will Only Be Considered If They:

• Entity is African 100% owned and managed, registered, and operating within Africa.
  • Applicant must provide passports or other government-issued IDs showing citizenship are submitted.
  • All shareholders, members of the board, and senior management must be citizens of an African country.
• Express clearly how they will benefit underserved populations across Africa including showing demonstrable positive impacts for youth and women.
• Express clearly how they will achieve sustainable growth.
• Fully and legally registered in Africa, and the registration is submitted.
• Document adequate expertise in the field they are proposing or document how they will acquire the necessary expertise.
• Clearly document how they will use USAIF grant capital to carry out their businesss.

Proposals

All applications will be reviewed in two phases: Phase I applications will be reviewed and evaluated by an expert panel of judges. Only shortlisted applicants will be contacted to begin Phase II of the application process. Applicants that are not shortlisted in Phase I will not be contacted. Winning proposals will have the following characteristics:

• Impact: The potential for impact and a demonstration of how the venture will improve and change underserved and at-risk communities in which the grants are implemented.
• Sustainability: How sustainable is the venture and/or enterprise?

Phase I Application Proposal Template:

Applicant Background Information

• Name and ownership details. Passport verification of citizenship.
• Business Certificate of Incorporation.
• Business Address.
• Tax Clearance Certificate.
• Applicant history, legal address, and contact information.

Applicant Profile

• Current Activity.
• Past track record of accomplishments (if applicable).
• Past Financial performance including 2 years of audited financial statements (if available).
• 3 Business References.

Proposed Use of Funds

• Description/narrative for the use of funds.
• Budget line details, including budget categories and budget estimates.
• Budget justification (line-by-line justification of each budget item):
  • A detailed budget justification is to be included. The narrative should describe why the proposed equipment is appropriate in size and scope for this plan. This is to show why each budget item proposed is required and why each budget item is needed at that level.

Required Submissions:

• Completed Proposal Form.
• Organization’s Incorporation Documents.
• Proof of Ownership.
• Previous financial statements/audited financial reports (if available).

Contact Details:

For more information and to submit proposals, please contact:

USAIF Office
Email: inquire@USAIF.org
Phone: +1 424 256 9969

USAIF is committed to supporting innovation and entrepreneurship across Africa. We look forward to receiving your proposal and partnering with you to drive positive change.