The United Nations Capital Development Fund (UNCDF) invites prospective businesses and organisations to submit proposals for the second round of a call for proposals in order to access the funding facility on a competitive basis.
The fund will be disbursed in successive phases over a three-year period, with total funding of up to EUR 9.7 million.
The CookFund Programme, which is financed by the European Union (EU), is a three-year programme (2022-2024) that aims to accelerate the market rollout of clean cooking solutions in mainland Tanzania, focusing on Dar es Salaam, Pwani, Morogoro, Dodoma, and Mwanza.
The Programme is administered by the United Nations Capital Development Fund (UNCDF) in cooperation with the United Nations Industrial Development Organisation. (UNIDO). UNCDF is both the Fund Manager and the Program Implementer.
The primary objective (impact) of the programme is to mitigate the effects of climate change in Tanzania by expanding access to sustainable culinary solutions. The specific objective (result) is to increase the use of modern and clean culinary solutions in urban areas for the betterment of the environment and the well-being of the entire population.
CookFund seeks to bridge a critical divide between early-stage support, equity financing, and concessional/commercial debt required to transition to large-scale modern, clean cooking.
Competition-based funding will be made available to address end-user affordability barriers as well as undercapitalization on the part of enterprises and companies (category one) and to leverage technology-focused business models to overcome affordability areas, particularly up-front costs for residential energy products. (category two).
Category One consists of investment and working capital growth grants in addition to performance-based subsidies. The latter will be provided as a result of achieving a certain sales volume or number of units to end users, as well as third-party verification of sales at a reduced price.
Category Two: Working and Investment Capital – Pay-As-You-Go This CookFund programme also encourages the development of new digital innovations to reach more end users. Working capital and capital for investment will be provided to businesses and organisations that reach out to consumers with clean culinary products and services via flexible payment systems and digital communications.
Funding Information Individual awards will range from €10,000 to €300,000, with the possibility of additional funding contingent on performance and funding availability.
Beneficiaries and Locations of Interest
CookFund targets urban suppliers of clean culinary technologies in Dar es Salaam, Pwani, Morogoro, Dodoma, and Mwanza. Suppliers of clean culinary technologies include manufacturers, importers, wholesalers, super-dealers, and retail distributors. CookFund indirectly targets end users of clean culinary technologies.
CookFund’s primary objective is to incentivize businesses and corporations to reduce prices for household end-users. However, sales of energy-efficient stoves to commercial and institutional cooking services serving essential requirements (such as food vendors) could be considered.
Focus on Cooking Technology
The Programme provides technical and financial assistance to eligible businesses and organisations in order to increase their operating capacities and end-user adoption of Liquified Petroleum Gas (LPG), Liquified Natural Gas (LNG), Bioethanol/Ethanol, Electric Cookers, Briquettes, and Improved Charcoal Stoves. (only energy efficient charcoal stoves). CookFund places a heavy emphasis on the delivery of high-quality, sustainable clean culinary services that utilise clean cooking technologies (CCT) and sustainable fuels.
Uses of Money
Depending on the needs of the organization, funding may be used for a variety of purposes, such as end-user discounts, business expansion, and increased outreach.
The applicant is encouraged to consider the following areas when outlining multiple applications for the funds: A price reduction to encourage end-users to adopt a greener, more energy-efficient cooking technology.Improving the marketing and sales strategy and effectiveness, including staff training and the refinement of marketing and sales methods.
Conducting pilots or expanding businesses pertaining to product distribution and payment facilitation for end users.Market new products and/or new business models through innovation (final phase – close the market solutions), refining design, production of existing products, product piloting, and/or offering innovative financial solutions to increase end-users’ affordability.
Developing, refining, and modelling culinary solutions and commercial and go-to-market strategies.Motivating end-users to adopt greener, more energy-efficient cooking technologies.Implementing or refining management information systems in order to enhance business processes and unit sales monitoring and reporting.
Expenditures on capital assets, such as the acquisition of production equipment, distribution vehicles, and storage facilities, are made to expand business operations, energy access, and outreach.Applicants proposing non-listed alternative grant uses will be evaluated on a case-by-case basis.
Small and medium-sized businesses (SMEs), companies, and innovators engaged in commercially driven and environmentally responsible cooking technologies are eligible for support from the CookFund programme. Businesses and operators with a strong combination of outreach and end-user affordability, innovation, energy efficiency, and lower carbon emission cooking technologies that are suitable for rollout in the programme areas will be prioritised for funding.
The following types of businesses and corporations will be considered: SMEs/companies (producers, importers, distributors, assemblers, wholesalers, and retailers) utilising a variety of clean culinary technologies: These businesses include those that can increase production and/or sales to penetrate the market, as well as those that can import and replicate proven and certified energy-efficient culinary technologies for local assembly and/or distribution.
Innovators and providers of alternative energy culinary solutions with end-user payment options. These are businesses with innovative solutions that make it simple for end users to access alternative cooking solutions, such as flexible payment systems (e.g., Pay as You Go platforms), financing options, etc.
The CookFund Program is available to SMBs and businesses that meet the following criteria: Only conduct business in the urban areas of the Dar es Salaam, Pwani, Morogoro, Dodoma, and Mwanza regions.NOTE: Applicants for the bio-ethanol cooking solution for Dar es Salaam should register through a separate UNIDO-managed window.
Thematic Scope and Eligibility of Products: Committed to comply with designated cooking technologies (LPG, Natural Gas, Ethanol, Electricity, Briquettes, and ICS) and related quality standards and industry best practises established by Tanzania Bureau of Standards (TBS) or comparable regional/international standards setting and certification bodies.The size and method of financing requirements correspond to the budget levels and tranches outlined in the Request for Proposals.
For profit and market-driven businesses and corporations: Have an existing enterprise, a well-developed business plan, positive cash flow, and profitability, or demonstrate a clear path to expansion and profitability as a result of Programme support.
Professional capacity necessities: Applicants must be able to demonstrate that they have the necessary resources, skills, and experience to execute initiatives in the clean cooking market.Applicants will also be required to construct a project management team responsible for its execution and coordination.
The team members’ qualifications must be adequate for the execution of the proposed project activities. Market experience requirements: Applicants must demonstrate sufficient market experience operating in one or more national, regional, or local markets.(s).
Applicants must specify the total quantity of funding requested and their anticipated annual funding needs for the duration of the project’s implementation. (2023-2024).
The funding should not replace the pre-allocated national expenditures in the sector or subsector, nor should it prevent commercial lenders from servicing the enterprises or businesses. This is consistent with the EU’s additionality principle.
The recipient of a CookFund grant must establish a distinct and dedicated bank account. The grant awarded to the business or organisation should not be used to satisfy existing financial obligations, such as a bank loan or similar.
Impact-driven and employing a business model that includes selling to the household market or agents who sell directly to households, businesses, or institutions as end-users. To receive programme funding, successful applicants must deliver and sell directly to end-users affordable and high-quality clean culinary services that are sustainable.
Monitoring and Reporting: The capability and readiness of the applicant to monitor and report sales to end users of the technology, including data management and data quality checks. Provide data on the current performance as a baseline.
For further details, please visit UNCDF.
Deadline: 30th September, 2023