PSA Sector Wide Competition Guideline

Sector-wide Competition Guideline

1. Background

Over the last years agribusiness has received increased attention from the Ethiopian government. Specific incentive packages have been devised for export oriented agriculture and agro-processing. Tax incentives, access to cheap land and relatively easy investment regulations have been put in place. At the same time information and service provision on (rapidly changing) policies and regulations is low. Specific private sector associations that want to advocate policy changes are in its infant stage and face challenges in passing their message in an evidence-based way. The existing PSAs (except for a few like EHPEA and EPOSPEA) are still relatively weak and are in their infant stages. In addition, the associations tend to have limited capacity to professionalize lobbying and advocacy or sector-wide activities. Overall support to the Agribusiness sectors takes places rather fragmented, supporting specific elements. Development partners and government institutions tend to address part of the challenges while often a more integrated approach is necessary. In addition, current activities have a tendency to take a rather ‘hands-off’ approach with distant calls for proposals and rather bureaucratic/rigid procedures, while for start-ups and expansion more in-depth sector information; intensive, hands-on support and specific, tailor-made capacity strengthening is necessary. With this in mind, the Addis Ababa Chamber of Commerce and Sectoral Associations (AACCSA) promoted a project called Agri-business Support Facility (ABSF) with a financial and technical support by the Embassy of the Kingdom of the Netherlands. The different activities and supports to be delivered by ABSF fall into five major components: Information and Services Hub; Technical and Entrepreneurship Support; Subsector Platforms and Partnerships; Business to Business Linkage Support and Private Sector Association (PSA) support. Two of the five components, subsector platforms and partnerships and private sector association support, are concerned with the development of different agri-business sectors/subsectors. One of the principal purposes of the private sector association is to contribute to subsector wide initiatives that address access to high-value markets, value-chain integration and business conduct through a fund developed to support PSAs. A maximum of €20.000 grant is available twice a year. PSAs are required to submit applications and proposal in order to be eligible for the fund.

2. Objectives

It is expected that the grant money will help the sectors/subsectors to enhance production and productivity of the agricultural sector, improve market access and value addition and sector institutional development and strengthening. The specific objectives of this subsector initiative are to:
  • Facilitate private-public dialogue on specific themes and areas in order to broker solutions on key regulatory and policy implantation issues; and

  • Contribute to subsector wide initiatives that address access to high-value markets, value-chain integration and business conduct

3. The Selection Criteria

Sector selection is based on three key criteria: economic aspects, environmental aspects and social aspects.

Economic aspects: turnover, share of the gross national product (GNP), number of firms, Size of membership, number of employees, export value, added value as the result of funding, economic trend, size of firms;

Environmental aspects: water consumption, waste production, risk of contamination of soil and groundwater, impact on natural vegetation, energy consumption, and environmental complexity like polyethylene bag wastes and hazardous gas emissions.

Social aspects: health issues, women and youth employment, community support, degree to which the association promotes social responsibility and corporate governance The applicants are expected to address the following issues briefly in their proposal to be submitted to ABSF with their applications. The assessment will cover the current role of the sector, the challenges facing the association and how the fund will be used to meet these challenges and how it contributes to the enhancement of the economic and the social benefits of the country. The judges will base their assessment on the following items.

Food & nutrition security: The food and nutrition security situation of Ethiopia is unsatisfactory. To this end, the country is the net importer of grains and nutrition foods. The proposal to be submitted by PSAs should indicate clearly the role of the sector in palliating the problem and how the grant fund will assist them in this regard.

Employment: Current employment size and future employment potential and contribution of the grant to this end should be briefly seen in the proposal

Women & youth involvement: Women and youth involvement in the sector/subsector either as entrepreneurs or as employees along with the possible impact of the fund in this connection should be shown in the proposal.

Production & Productivity: Outputs and productivity of the sector as well as expected increase in the same as a result of the grant funding

Economic significance of the sector: Share of the sector/subsector in the gross national product (GNP)

Export trend & potential: The proposal should also address the role of the sector/subsector in foreign trade and/or import substitution and how the fund will be utilized to enhance export volume and/or value from the sector.

Impact on/relation with other sectors: The sector/subsector connection with other key sectors at upstream or downstream of the supply chain.

Environment friendliness: Environmental issues such as the use of cleaner technology & cleaner products, environmental management systems; energy management systems and a lifecycle perspective on products are to be included briefly in the proposal.

Application Procedure

ABSF announces the competition program and receives applications from the sectors interested in the competition. Applicants are required to complete the application form and send to the address specified below with their proposal. The proposal is to be prepared in not more than 25 pages excluding appendices. Relevant appendices that are required to clarify or substantiate the business plan can be attached to the report.
A jury of five judges will be constituted to evaluate the proposal submitted by the applicants. The judges are selected from different organizations and institutions such as banks, Chamber of commerce, Academic & Research Institutions and notable business persons.

Deadline for Application

Interested applicants can send their applications with sector-wide proposals before or on December 31, 2013 by email to: Dr.Zerihun.Desalegn@addischamber.com Application forms can be obtained by mailing your request to the same email address or can be downloaded from: www.addischamber.com/absf
For more information, please contact the ABSF Team:
Tel: 011 5542405 (office)
Mob: 0923815384/0911614378/ 0911475515
P. O. Box: 2458, Addis Ababa, Kirkos Sub city, Woreda 10, near Michew (Mexico) square
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