Approved E-SAPP MGF Manual For NO ME

REPUBLIC OF ZAMBIA
MINISTRY OF AGRICULTURE
Draft E-SAPP MGF Manual
OPERATIONAL PROCEDURES AND ADMINISTRATIVE

MANUAL
Contents
I. INTRODUCTION 1
II. ENHANCED SMALLHOLDER AGRIBUSINESS PROMOTION PROGRAMME (E-SAPP):
A SUMMARY PRESENTATION 1
III. MATCHING GRANT FACILITY FRAMEWORK AND GOVERNANCE 5
IV. MATCHING GRANT FACILITY (MGF) PRIORITIES, ELIGIBILITY CRITERIA AND
CONDITIONS FOR PARTICIPATION, AND PROCESSES. 11
V. THE MGF DEVELOPMENT PROCESSES 14
VI. ADMINISTRATION OF WINDOW 3 - PRO-SMALLHOLDER MARKET PULL
AGRIBUSINESS PARTNERSHIP 28
VII. IMPLEMENTATION ARRANGEMENTS 36
Appendix 1: Application for Participation in the E-SAPP-MGF 40
Appendix 2: Project Concept Note - Summary Sheet 44
Appendix 2: MGF – Project Concept Note (Template) 45
Appendix 3: MGF - Application Screening Form (Window 1 & 2) 52
Appendix 4: Project Concept Note Screening Form (Window 1 & 2) 54
Appendix 5A: Call for Full Project Proposal 56
Appendix 5B: Differed Aproval of Application and Project Concept Note 58
Appendix 5C: Rejection of Application and Project Concept Note 59
Appendix 6A: Full Project Proposal (FPP) - Project Summary Sheet 60
Appendix 6B: Full Project Proposal (FPP) Template 61
Appendix 7: Due Diligence/Field Verification Format (Windows 1 & 2) 71
Appendix 8: MGF - Full Project Proposal - Evaluation Template 74
Appendix 9A: Offer of Matching Grant Facility 78
Appendix 9B: Differed Approval of Full Project Proposal 80
Appendix 9C: Rejection of Full Project Proposal 81
Appendix 10A: Full Project Proposal - Evaluation Report by External Reviewers Window 1 82
Appendix 10B: Full Project Proposal - Evaluation Report by External Reviewers Window 2 83
Appendix 11A: Full Project Proposal - Evaluation Report by Internal Review Committee Window
1 84
Appendix 11B: Full Project Proposal - Evaluation Report by Internal Review Committee Window
1 85
Appendix 12: MGF: PCO- Summary Reporting for MGF - Approval Committee Meeting 86
Appendix 13: TOR for MGF Approval Committee (MAC) 91
Appendix 14: TOR for Internal Review Committee (IRC) 94
Appendix 15: TOR for External Reviewers 96
Appendix 16: Matching Grants Procurement (MGP) 98
Appendix 17: Financial Management Guidelines & Procedures 101
Appendix 18: ToR for Service Provider to Implement Window 3 105
Appendix 19: ToR for External Auditors to audit the MGF Processes 109
Appendix 20: Matching Grant Agreement: Template 112
2
Abbreviations and Acronyms
4Ps - Public-Private-Producer-Partnerships
ABM - Agribusiness and Marketing Department
ABU - Agribusiness Unit
AWPB - Annual Work Plan and Budget
BDS - Business Development Strategy
CS - Commodity Specialist
DoA - Department of Agriculture
DoF - Department of Fisheries
DA - District Accountant
DAC - District Agriculture Committee
DACO - District Agricultural Coordination Office
DCDO - District Cooperative Development Officer
DFLC - District Fisheries and Livestock Coordinator
DFLMO - District Fisheries and Livestock Marketing Officer
DFO - District Fisheries Officer
DLD - Department of Livestock Development
DMDO - District Marketing Development Officer
ER - External Reviewer
E-SAPP - Enhanced Smallholder Promotion Programme
FaaB - Farming as a Business
FLMD - Fisheries and Livestock Marketing Department
FPP - Full Project Proposal
GA - Grant Agreement
GALS - Gender Analysis and Learning Systems
GMO - Grants Management Officer
GRZ - Government of the Republic of Zambia
IAPRI - Indaba Agricultural Policy Research Institute
IDIQ - Indefinite Delivery, Indefinite Quantity
IFAD - International Fund for Agricultural Development
IRC - Internal Review Committee
KM - Knowledge Management
LPO - Livestock Production Officer
M&E - Monitoring and Evaluation
MoA - Ministry of Agriculture
MFL - Ministry of Fisheries and Livestock
MGF - Matching Grant Facility
MAC - Matching Grant Facility Approval Committee
MCTI - Ministry of Commerce, Trade and Industry
MSMEs - Micro, Small and Medium Enterprises
MoU - Memorandum of Understanding
MS - Microsoft
NGO - Non- Governmental Organization
NO - No Objection
NUSFAZ - National Union of Small-Scale Farmers in Zambia
PA - Provincial Accountant
PAC - Provincial Agriculture Committee
PAM - Programme Against Malnutrition
PACO - Provincial Agricultural Coordination Office
PAO - Provincial Agricultural Officer
PAP - Provincial Agricultural Planner
PARM - Platform for Agricultural Risk Management
PC - Programme Coordinator
PCN - Project Concept Note
PCO - Programme Coordination Office
PFLCO - Provincial Fisheries and Livestock Coordinator
PFO - Provincial Fisheries Officer
PPD - Policy and Planning Department
PPID - Policy, Planning and Information Department
PSC - Programme Steering Committee
RUFEP - Rural Finance Expansion Programme
SAO - Senior Agricultural Officer
SAPP - Smallholder Agribusiness Promotion Programme
SCDO - Senior Cooperatives Development Officer
SFLMO - Senior Fisheries and Livestock Marketing Officer
SH - Smallholder
SLPO - Senior Livestock Production Officer
SMDO - Senior Marketing Development Officer
SP - Service Provider
TA - Technical Assistance
TAG - Technical Advisory Group
ToR - Terms of Reference
ToT - Training of the Trainer
ZACSMBA - Zambia Chamber of Small and Medium Businesses Association
ZEMA - Zambia Environmental Management Agency
ZNADS - Zambia National Agribusiness Development Strategy
ZMW - Zambian Kwacha
ZNFU - Zambia National Farmers Union
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I. INTRODUCTION
1. The Enhanced Smallholder Agribusiness Promotion Programme (E-SAPP) is a seven-year
follow-on programme to the Smallholder Agribusiness Promotion Programme (SAPP), which closed
on 30 September 2017. SAPP was a seven-year programme with a goal of increasing the income
level of poor rural households involved in production, value adding and trade of agricultural
commodities. The development objective was to increase the volume and value of agribusiness of
small-scale producers. The goal and development objective were pursued through promoting effective
participation of poor rural households in the value chains of selected commodities, enhancement of
productivity and commercialization of selected commodities through capacity building and provision of
matching grants. Effectiveness and efficiency of implementation, and sustainability were addressed
through the integration of implementation within the Government decentralized administration system
and promoting Public-Private-Producer-Partnerships. E-SAPP will build on the experience and
achievements of SAPP to significantly increase the volume and value of agribusiness outputs of
smallholder farmers. This objective will be achieved through establishing an enabling policy and
institutional environment for agribusiness development and promoting sustainable partnerships
between smallholder producers and other value chain operators.
2. A Matching Grant Facility (MGF) has been included in the programme to promote sustainable
development of innovative linkages and partnerships between smallholder producers and
agribusiness operators involved in production and/or value addition in selected agricultural value
chains where smallholders effectively participate. The grant is designed to meet needs in
commercialisation of small-medium agriculture, including capital investment, capacity building
focussing on commercial skills that promote market-based solutions and growth opportunities, that
benefit smallholder producers. The Matching Grant Facility accounted for a base cost of USD11.73
million or about 42% of the total programme base cost of USD28.13 million. Support will be provided
to operations which are technically feasible, commercially viable, climate resilient, financially and
environmentally sustainable. The Facility will also focus on increased commercialization of
smallholder agriculture through improved productivity, enhanced quality and increased efficiency of
selected value chains. The following commodity groups have been selected: legumes (groundnuts,
soya beans, common beans and cowpeas); rice; small livestock (village poultry, goats, sheep, and
pigs); and aquaculture. However, the larger grants to be covered under the Public-Private Producer
Partnership (4P) will not be restricted to the above specific value chains but will be merit-based and
determined by proposals from promoters.
3. In order to facilitate effective implementation of the Matching Grant Facility under the
programme, this Operational and Administrative Manual builds on the implementation experiences of
SAPP, other IFAD assisted programmes in Zambia especially RUFEP, and initiatives of other
development partners in this respect. A comprehensive review of Matching Grant Facility Operational
Manual employed under SAPP, as well as those of other relevant programmes in Zambia, has been
carried out. Suggestions for improvements in SAPP Operational and Administrative arrangements
were made during the Project Completion study and contained in the Project Completion Report.
These have been further refined during the design of E-SAPP. Furthermore, it should be noted that
certain design changes have been made in E-SAPP which also influenced the up-dating of the
Operational and Administrative procedures and guidelines for implementing Matching Grant Facility
under E-SAPP. The important design changes include intensive training, mobilisation and mentoring
of subsistence farmers to improve their business skills, involvement of a Service Provider to directly
implement part of the MGF, and increased grant financing at all levels. These experiences as well as
the design changes in E-SAPP have been considered in producing this Operational and
Administrative Manual for E-SAPP.
II. ENHANCED SMALLHOLDER AGRIBUSINESS PROMOTION

PROGRAMME (E-SAPP): A SUMMARY PRESENTATION
4. The Programme Goal is to increase the incomes, and food and nutrition security of rural
households involved in market-oriented agriculture. The development objective is to increase the
volume and value of agribusiness outputs sold by smallholder producers.
5. The Target Group: The following have been defined as the target group for the programme.
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- Subsistence Farmers – These are poorer smallholders with access to about 0-1.99ha of
land. They undertake subsistence farming but make occasional sales of livestock and crop.
They experience occasional food insecurity of about 2 months in a year. The programme will
assist to raise their production and productivity, and mentor them to transform them into
business organisations that can become active actors in their chosen value chains. A total of
about 40,000 households in this category will be supported and will inter-alia comprise; 30%
women in male headed households, 23% female headed households, and 20% will be youth
headed households.
- Economically Active Farmers – These will be smallholders with access to 2-4.99ha of land
and owning on average 3.61 tropical livestock unit, living just above the subsistence level and
producing some surplus for the market. They have an average annual income estimated at
ZMW4228. They already engage in value chain activities of selected commodities. A good
number of them have organised themselves into business organisation of different form and
sizes, (MSMEs), and in some cases have established partnership with higher level value chain
actors for better penetration into markets. The programme will reach about 16,000 households
from this category, of which at least 30% will be women, 23% female headed households, and
20% youth headed households.
- Commercially Oriented Farmers: These are farmer households with access to 5-19.99ha of
land and already producing consistently, surplus for the market. They are food secure but
vulnerable to agricultural seasonal shocks, low prices and lack of markets. On the average they
make a gross value sale of crops and livestock of ZMW15,994. They are able to partner with
private sector operators in response to market opportunities to supply sustainable quantity and
quality of required commodities and to access inputs and services on a commercial basis. They
can also adopt the right business model, after capacity building. They could link with upstream
market actors who are large agribusiness operators involved in agricultural production,
processing, input supply, or service delivery, in a market-pull arrangement. The programme will
reach about 5000 households in this category, of which at least 30% will be women, 23%
female headed households, and 20% youth headed households.
Programme Outcomes/Components
6. The programme has three components namely: (i) Enabling Environment for Agribusiness
Development Growth; (ii)Sustainable Agribusiness Partnerships; and (iii) Programme Implementation.
They are briefly described below.
7. Component 1: Enabling Environment for Agribusiness Development Growth– The
objective of the component is to support the Government of the Republic of Zambia (GRZ), to create
an enabling policy and institutional environment for commercially driven agriculture and rural
development, and to put in pace, structures to address agricultural risk, and management-related
issues. The component has two sub-components which are summarised below.
- Sub-component 1.1: Agribusiness Policy Development – This will facilitate the
development and implementation of Zambia National Agribusiness Development Strategy
(ZNADS). Support will be provided to an appropriate GRZ institution to lead the effort. The
whole process will be facilitated by Indaba Agricultural Policy Research Institute (IAPRI). The
strategy development will involve identification, analysis, and defining measures to overcome
bottlenecks hampering the achievement of agricultural sector potentials. Concreate and
strategic actions that will enable stakeholders in agriculture and agribusiness operation
especially smallholder producers to take opportunities of local, national, and regional markets. It
will also introduce measures and structures to promote a dynamic and competitive agribusiness
sector in the country. The strategy will be developed in a participatory way involving
consultation with, and active participation from the public, private, the smallholders and
stakeholders from national and sub-national level. Key studies which will support strategy
development and its implementation will be carried out. The sub-component will also provide
support to consolidate various policy initiatives promoted under different IFAD assisted
programmes and those developed by other Development Partners, to initiate the development
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of a comprehensive agribusiness policy. The sub-component will also support the design of a
sound agricultural risk management system to address risks at different levels. The Platform for
Agricultural Risk Management (PARM) in collaboration with Zambia Research Centre will be
supported to undertake the tasks.
- Sub-component 1.2: Institutional Strengthening for Agribusiness – The sub-component
will strengthen the capacity of public institutions and relevant private sector organisations that
will be involved in E-SAPP implementation. The institutions to be strengthened will inter-alia
include – the relevant departments of Ministry of Agriculture (MOA), and Ministry of Fisheries
and Livestock (MFL), especially Agribusiness and Marketing departments, and Policy and
Planning departments at Headquarters, Provincial and District levels; the Department of
Cooperatives of the Ministry of Commerce, Trade and Industry (MCTI); and the Ministry of
Community Development and Social Welfare. Support will be provided for MSME’s and
selected community organisations including their leaders, in governance, and Gender Analysis
and Learning Systems (GALs).
8. Component 2: Sustainable Agribusiness Partnerships – The component will build the
capacity of smallholders and their service providers to compete for matching grants to design and
implement projects in commercialising agriculture including livestock related agribusinesses. Capacity
improvement will facilitate the upgrading of smallholder producers’ position in the agricultural value
chains, improving their crop/livestock productivity, income and nutrition. The component has three
sub-components namely: (i) Strategic Linkages of Graduating Subsistence Farmers to Markets; (ii)
Enhancing Agro Micro, Small and Medium Enterprises (MSME) Development; and (iii) Facilitating Pro-
Smallholder Market – Pull Agribusiness Partnerships. They are described below.
- Sub-component 2.1: Strategic Linkages of Graduating Subsistence Farmers to
Markets-
The objective of the sub-component is to support the target subsistence farmers to transit from
subsistence farming to the economic active category and eventually to the Commercially
Oriented Category. This objective will be achieved through capacity improvement and provision
of financial resources to procure productive assets but not including inputs such as seeds,
fertilizers, agrochemicals, animal feed and veterinary drugs. Assets that can be financed using
MGF include inter-alia, simple production and processing equipment/machinery, mechanisation
storageequipment, storage infrastructure, community-based seed processing facility. In order to
qualify for such investment, viability and sustainability must be demonstrated through a
business plan. Capacity building will involve training in practical skills required to make
investment decisions, plan development, mechanise and operateing a business. Such training
can bewill be delivered through the FaaBS which must be taken before submission of business
proposals. The following modules will be emphasized during training (i) a general introduction
to the business of agriculture aiming to move a subsistence smallholder to commercialisation,
(ii) commodity specific Farming as a Business, (iii) Agricultural service provision as a Business,
(iv) Training of Trainers (ToT) for suitable government staff at district and Provincial levels,
potential private sector trainers at district level or village level, (v) Agribusiness consulting for
district-based consultants to assist in developing business plans/application proposals. (vi)
Markets, marketing and trade. (vii) Contracting and contract management. Two pilot agro-
business development services (BDSs) will be supported in two major E-SAPP catchment
areas. Each BDS will comprise of 3 young graduates wishing to become career professionals in
agro-business plan development. GRZ staff responsible for implementing E-SAPP will be
trained on how to engage with the private sector and financial institutions. A FaaB service
provider will be recruited competitively to offer training of ToT in FaaB, and undertake agreed
selected training activities.
- Sub-component 2.2: Enhancing Agro-Micro, Small and Medium Enterprises (MSME)
Development – This sub-component will support operators of MSMEs engaged in value chains
of group of commodities being supported by E-SAPP. The support will include capacity building
especially in climate risk analyses and adaptation options, and improvement of technical skills
as may be required; and provision of matching grants for agricultural and agribusiness
development. Individuals, producer groups, cooperatives, and companies will be eligible for
support subject to meeting set-out criteria. The maximum amount of matching grant for an
enterprise will be USD150,000. The grant amount that will be provided to an enterprise will be
decided by the total amount of eligible expenditures of the approved business plan, the number
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of smallholder beneficiaries, and the level of benefits per benefiting smallholder. The grantee
will have to provide a minimum matching contribution of 40% in cash. Such contribution cannot
be from other donors or other sources of soft money. Eligibility criteria for grantee are inter-alia
the following: Individual producer, company, registered farmer groups, cooperative
societies/unions engaged in agricultural production, processing, input or service delivery
business activities; providing or intend to provide services, inputs or market access to
smallholder farmers; evidence and commitment to operate as a viable and sustainable
commercial business. Proposals will be evaluated for support based on the following criteria:
impact on target smallholder farmers and rural poor incomes; the extent to which the grant will
enable business expansion, make for greater impact than would happen without the grant;
sustainability/scalability after grant support, environmental/social impacts of the programme
interventions, indirect benefits/impacts of the programme interventions, and indirect
benefits/impacts to other smallholder producers, rural poor and MSMEs.
- Sub-component 2.3: Facilitating Pro-Smallholder Market – Pull Agribusiness
Partnerships – The sub-component will support inclusive investments by large scale private
agribusiness aiming to increase the profitability and sustainability of smallholder farmers and
rural MSMEs. Capacity building for engaged smallholders and rural MSMEs will be also
supported and aim to improve their skills in making informed business decisions, enhanced
capability to become equal partners with the grantee, and environmental management. In order
to strengthen and scale-up engagement with smallholder farmers/rural MSMEs a grant of up to
USD0.35 million will be provided. The actual grant to be provided will be determined by the total
amount of eligible expenditures of the approved business plan, the number of smallholder
beneficiaries, and the impact per smallholder. The grant disbursement will be matched by at
least, an equal amount of contribution in cash by the agribusiness grantee. The business scope
will not be restricted to specific value chains or regions of the country but determined by the
business plan proposal submitted by the prospective grantee and approved by the programme.
The grant will however, not be used to finance non-commercial corporate social responsibility
infrastructure or activities e.g. schools and health clinics; and large scale infrastructure
development or activities in sensitive ecological areas. Activities that can be financed may
include inter-alia, infrastructure for market access or services directly relevant to the
smallholder engagement strategy; FaaB training; agricultural/technical training; development of
village-based service provision e.g. mechanisation; investments relevant for smallholder
engagement e.g. packing line for small size input packages; crop, fish and livestock processing.
Eligibility criteria will include inter-alia, proven experience in and/or commitment to establishing
business partnership with smallholder producers in Zambia; ability and willingness to provide
market access to key inputs and services; willingness to invest in human and financial
resources in the partnership; a business strategy that includes long-term business relationship
with smallholder farmer and MSMEs; and business dexterity. Business proposals will be
evaluated using inter-alia, the following criteria: Contractual arrangement that are beneficial to
both parties, the financial viability and sustainability of the proposed business model, and its
pro-poor nature; the number of smallholder farmers engaged with special emphasis on women
and youth, and the technical expertise of the grantee.
Component 3: Programme Implementation – The component provides for the establishment of a
Programme Coordination Office (PCO) for an overall coordination of E-SAPP implementation. The
PCO will be provided with necessary staff, Technical Assistance (TA) to address specific needs,
equipment, vehicles, office accommodation and operation costs to carry-out planning, financial
management, coordination of procurement of goods and services, progress reporting, monitoring and
evaluation/knowledge management, and administration of MGF. Training will be provided to PCO staff
as needed to carry-out their responsibilities. The PCO will undertake annual AWPB review meetings,
annual outcome surveys, biannual implementation progress reviews and annual national
stakeholders’ knowledge sharing workshops.
Programme Costs and Financing

E-SAPP total cost was estimated at USD29.67 million of which the base costs are USD28.13 million.
Component 1 accounted for USD3.86 million (13.01%), Component 2 – USD20.54 million (69.23%)
and Component 3 – USD5.27 million (17.76%). The programme financing is as follows. An IFAD loan
of USD21.25 million (71.62%) and a grant of USD1.01 million (3.4%) resulting in a total contribution of
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USD22.26 million (75.3%), GRZ financing is USD2.01 million (6.77%); the beneficiaries will contribute
USD1.23 million (4.15%); the private sector will finance USD3.35 million (11.29%); IAPRI and PARM
will provide USD0.51 million (1.72%), and USD0.2 million (0.67%) respectively.
Programme Implementation Arrangements
9. The programme has adopted mainly, a market-pull approach; however, a supply-push approach
will also be adopted especially for subsistence farmers wishing to transform into commercial
agriculture. E-SAPP will work with the entire value chains of the target commodities and will seek to
identify and address areas where efficiency, productivity, and quality can be improved to increase
economic surplus generated by agriculture and agribusiness. The programme will coordinate the
efforts of GRZ institutions and the private sector to improve efficiency of implementation and to better
reach the smallholders and MSMEs. A two-pronged approach will be adopted involving direct
interventions at critical points in value chains to link smallholder producers with inputs and output
markets; and undertaking initiatives to address weaknesses in the enabling environment for
agriculture and rural commercial development.
10. The programme will be implemented over a seven-year period. The MoA will be the lead
executing agency and will work closely with MFL and other line ministries and partners whose
mandates are relevant for the achievement of the programme goal and development objective. The
Policy and Planning Department (PPD) of MoA will be responsible for the overall administration and
coordination of the programme. The PCO will provide planning, coordination, financial management,
procurement, M&E, day-to-day management, and supervision of the programme. A Programme
Steering Committee (PSC) chaired by the Permanent Secretary of MoA or his/her nominee and
composed of membership from GRZ line ministries with mandates relevant to achieve the goal and
development objective of the programme, and representatives of industry organizations which are key
actors in the value chains of selected commodities. The PSC will be responsible for: Provision of
strategic guidance for the achievement of programme objective; approval of AWPB, progress, and
annual programme audit reports; facilitation of inter-ministerial coordination, and where appropriate
ensure that E-SAPP interventions are coordinated with other development programmes and projects;
providing oversights and organizing annual implementation review of IFAD portfolio. A Technical
Advisory Group (TAG) will be established and will be responsible for reviewing and synthesizing
technical documents for the PSC final scrutiny and approval.
11. The programme implementation will be within the GRZ’s decentralised system. However, a
number of programme interventions will be implemented by service providers with experience in the
defined subject matter. They will work in partnership with Provincial and District staff. The relevant
technical departments of MoA and MFL will coordinate planning, and implementation of activities at
the national level. The Provincial Coordination Office and the District Coordinating Office for MoA and
MFL will serve as the focal points for coordinating planning, implementation, and programme
reporting, at the province and District levels respectively. The Zambia Environmental Management
Agency will be engaged at the provincial level in cases where certificates are required for
implementing environmentally sensitive activities.
III. MATCHING GRANT FACILITY FRAMEWORK AND GOVERNANCE

12. The operation of E-SAPP Matching Grant Facility will build on the successes achieved under
SAPP while at the same time addressing a number of challenges encountered. The key successes
included the following.
(i) Creating an institutional framework involving public-private and smallholder producers’
partnerships that promote commercialization of smallholder agriculture including livestock
and fisheries.
(ii) Developing innovative processes of improving access of smallholders’ producers to
markets;
(iii) Facilitating engagement of smallholders’ organizations at a higher level of the selected
value chains; and
(iv) Creating interest in developing policy and strategy for addressing major value chain
constraints and inefficacies that hamper effective participation of smallholders’ farmers as
major actors in agricultural/agribusiness value chains.
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13. The major difficulties were; how to address structural development sustainability and scalability;
how to facilitate sustainable financing, how to improve the countervailing power of smallholder
farmers/ producers and weak policy environment that are constraining the participation of target
group, how to improve efficiency of agricultural/agribusiness value chains; and how to ensure fairness
in sharing benefits from partnership.
Matching Grant Facility; Objective and Framework.
14. In light of the above, the objectives of E-SAPP MGF is to ameliorate the constraints hampering
effective participation of smallholder producers and rural agribusinesses in the selected value chains,
and reducing market inefficiency through enhancing competitiveness, improving capacity of
smallholder producers/rural agribusinesses, to better access markets, and become active actors in
the selected value chains through linkage to other value chain actors, and promoting fair partnerships
with large scale agribusinesses. These objectives will be addressed through the establishment and
operation of three MGF windows that will provide capacity building, services and finance to facilitate
an effective participation of smallholder producers/rural agribusinesses in the selected value chains.
The windows are described below.
Window-1: Strategic Linkages of Graduating Subsistence Farmers to Markets
This window will support subsistence farming households organised in enterprise groups. It provides
assistance to raise their technical and business capacity so that they can produce surplus for markets,
become actors in value chains through their business organizations and linkage or partnering with
other value chain actors. Focus of support will be through three activities namely (a) Training in
farming as a business (See para 8, sub-component 2.1). Training will be coupled with mobilization
and mentoring aiming to cause them to form and register groups/business organizations or join
existing groups or business organizations. This activity will be undertaken by a service provider who
will carry out Training of Trainers (ToTs) for MSMEs (service providers) who will provide training of
smallholder farmers mostly on business organizations and management, mentoring them to become
actors in selected value chains, and compete for MGF. The MSMEs (service providers) will work in
close collaboration with the Provincial/District coordinating offices and will be supervised by PCO-
Agribusiness unit. (b) Improvement in family diet/nutrition: This aim to mainstream nutrition into
value chain operations including production, processing, marketing/trading, and family diet. Training,
mobilization and mentoring will be supported. An experienced NGO will be appointed and will work in
close collaboration with provincial/district coordinating offices and supervised by PCO. (c) Provision
of grant financing: This will target graduating subsistence farmers and their business
groups/organizations which are the outputs of (a) above. They will be encouraged and supported to
become actors in the E-SAPP focused value chains and compete for MGF. They will go through MGF
processes. An approved project under the window can receive a grant of up to US$150,000. A
minimum contribution of 10% of the matching grant provided is required from the grantee in cash,
kind, or a combination of both.
Window 2: Agro-Micro-Small- Medium Enterprises (MSME) Development

This will support MSMEs that are engaged in value chains of commodities being promoted by E-
SAPP. Engagement will be through direct support to eligible MSMEs, or through linkage to other value
chain actors, or partnership with upper level agribusinesses. Support will be through two activities
namely: (a) Capacity building to upgrade their FaaB capacity, climate risk analyses and adaptation,
and improvement of technical capacities. Just as in window 1, a service provider will be appointed to
implement those activities in close collaboration with Provincial/District MGF coordination offices. The
PCO will oversee the operation. (b) Matching Grant Facility: This will be implemented by PCO
-Agribusiness unit in collaboration with Provincial/District coordination offices. The maximum amount
of matching grant per enterprise will be US$150,000. The grantee will have to provide a minimum
matching contribution of 40% in cash. Such contribution cannot be from other donors or other sources
of soft money.
Window 3: Pro-Smallholder Market-Pull Agribusiness Partnership

This window seeks to encourage large scale Private Agribusiness to partner with smallholder farmers/
producers; farmer groups and rural MSMEs to enhance the commercialization of their businesses,
increase profitability and promote sustainability/scalability. Operations, under this window will not be
restricted to specific value chains or regions of the country but will be determined by the proposal,
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submitted by the concerned agribusiness and approved for support. However, the window will not
finance social infrastructure or activities such as schools, health clinics etc.; and commodities with
limited market competition such as maize or with known health hazards such as tobacco, large scale
infrastructure development, and activities in sensitive ecological areas. The grant ceiling will be
US$350,000 and the matching contribution will be at a minimum of the amount of grant approved, and
the contribution will be on cash basis.
Cost allocation and framework for MGF: The base cost allocation by windows and activities is
shown in table 1.1,1.2, and 1.3 below. Table 2 reflects the expected minimum investments on MGF
(USD 15.132 million), the minimum expected number of value chain organisations to be supported
(73) and average investment per beneficiary by windows.
Table- 1: MGF-Summary of Base Cost

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Table 2 - MGF Resource Allocation, Estimated No of projects to be supported, and expected

No. of Beneficiaries.
Resource/outputs Window 1 Window 2 Window 3
Unit Allocation/Project
Minimum grantee contribution US$15,000 US$60,000 US$350,000
Maximum grant allocation US$150,000 US$150,000 US$350,000
Total Allocation US$165,000 US$210,000 US$700,000
Total MGF support estimate

Minimum total grantee contribution US$680,000 US$1,472,000 US$1,250,000
Maximum total grant allocation US$6,800,000 US$3,680,000 US$1,250,000
Estimated total allocation to projects US$7,480,000 US$5,152,000 US$2,500,000
Expected outputs
Estimated No of Beneficiaries (HH) 40,000 16,000 5,000
Estimated No of Projects-Programme (rounded) 45 24 4
Average resource allocation/ beneficiary

Minimum grantee contribution/beneficiary (HH) US$17.00 US$92.00 US$250.00
Maximum grant allocation/beneficiary US$170.00 US$230.00 US$250.00
Total support/beneficiary US$187.00 US$322.00 US$500.00
Matching Grant Facility Administration and Governance
15. The Matching Grant Facility will be administered by the Programme Coordination Office in close
collaboration with the relevant departments of MoA and MFL including their Provincial and District
structures, and support of service providers. The governance of the MGF will essentially be the same
as for SAPP except that a Service Provider will implement Window 3, and an Internal Review
Committee will be established to review projects to be financed by the MGF resources in addition to
external reviewing as was the case under SAPP.
16. The Agribusiness Unit (ABU) of PCO will have direct responsibility for the day to day
implementation of windows 1 and 2, with the support of a service provider that will undertake capacity
building including training, mobilization and mentoring of subsistence smallholders to become
economically active actors in selected value chains. The Service Provider will also provide support to
economically active farmers to enhance their business capacity. The service provider will carry-out
ToTs and work closely with the Agribusiness unit of the PCO, the Province and the Districts for
synergy, effectiveness and efficiency. Mainstreaming of nutrition in value chain development will be
entrusted to a suitable NGO that will work in similar manner as the Service Provider for FaaB. The
day to day implementation of window 3 will be by a Service Provider under the direct supervision of
Programme Coordinator. The Finance Management and Administration unit, the Procurement and
Contract unit, and Monitoring and Evaluation unit of PCO will provide support within their mandate
under E-SAPP.
17. The MGF development process, eligibility criteria, conditions and terms for participation,
proposal review guidelines, approval of projects, and implementation arrangements including:
planning, matching grant management, financial management, procurements, and
Monitoring/Evaluation will be standardized. Both the Agribusiness Unit of the PCO and the appointed
Service Provider will follow these guidelines to manage the MGF processes. The details of operational
arrangements for the MGF are covered in the following chapters. The organization arrangements and
operational framework are reflected in figures 1 and 2 below.
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Figure 1: Administration and Governance of the Matching Grants Facility

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PSC
TAG
MoA-PPD
MGF
Committee
Programme Coordination Office (PCO)
Finance &
Agribusiness Procurement &
M&E Unit Administration
Unit Contracts Unit
Unit
4P Service
Provider
Window 3
Window 1 Window 2
Large
Emerging MSMEs MSMEs
Agribusinesses
Subsistence Economically Active Commercially Oriented

Smallholder Farmers Smallholder Farmers Smallholder Farmer
Figure 2: Matching Grants Facility Operational Framework
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Subsistence Farmers
Capacity Building
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IV. MATCHING GRANT FACILITY (MGF) PRIORITIES, ELIGIBILITY

CRITERIA AND CONDITIONS FOR PARTICIPATION, AND
PROCESSES.
A. Priority Activities / Projects for Support
18. The MGF will promote a demand and market driven approach that will respond to the priority
needs of market-oriented smallholder farmers/producers and agribusinesses. Projects to be
supported within the selected commodities value chains will adopt appropriate and affordable
technologies and business initiatives that will raise productivity, product value, and incomes of poor
rural households. Specifically, focus will be on improving quality to enhance market access and
acceptability; productivity that promote competitiveness, and profitability. Agribusiness should seek to
add value and promote market demand for smallholder farmers/producers produce, enhance linkages
between smallholder farmers/producers and processors, traders and service producers. Capacity
building will receive major attention to improve business planning, operation and management of
smallholders and agro MSMEs, enhance market countervailing powers of producer groups and their
associations, improving the capacity of relevant Government institutions and those of the private
sector to support smallholder agriculture commercialization, and raise the capacity of smallholder
farmers/producers to become active operators in the value chains of selected commodities. Support
will be provided only to projects which are commercially viable, sustainable, and with positive or
neutral environmental and social impact.
The types of eligible investments will include but not limited to the following;
- Procurement of assets such as: post-harvest handling equipment e.g. mobile threshers,
primary aggregation centres for crops, fish and small livestock, value addition facilities: rice
mills, peanut butter grinder/extruder, community-based seed processing equipment, Animal
feed mill, slaughter facilities (e.g. Small size abattoirs);
- Agriculture support services such as mechanization, including land preparation, ploughing,
harrowing, ridging, harvesting, threshing; weed control and crop/livestock protection services;
- Input repacking into packages suitable for smallholder farmers/producers;
- Infrastructure for market access/service provision, including production and marketing i.e.
storage, value addition facilities;
- Warehousing and credit support services
- Capacity building including training in FaaB, business planning, operation and managements,
agronomic/technical support services, livestock production, post-harvest handling, value
addition and marketing, climate risk analyses including adaptation options, social and
environmental risk management;
- Capacity building in nutrition activities for subsistence farmers including main streaming
nutrition in value chains, through production, processing, preparation and promotion of
nutritious foods, and products;
- Food safety promotion and improvement.
- Mobilization and mentoring to enhance the capacity of business organizations
Activities not to be Supported
19. Several activities will be ineligible for financing. They inter-alia include the following;
- Non-commercial social infrastructure such as schools, health clinics etc.
- Large scale infrastructure development or activities in sensitive ecological areas
- Commercial stocks of inputs-fertilizers, chemicals, seeds.
- Expenditures made before the signing of MGF agreement.
- Participation in a firm’s share capital.
- Expenses not directly related to the project being financed.
- State owned enterprises.
- Commodities not supported by E-SAPP and large agribusiness supported by MGF.
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- Maize, and crops with known health hazards, e.g. tobacco.

- A legal monopoly.
- Prohibited agricultural chemicals.
- Company overheads
- Land purchase rent or leasehold
- Costs of debt finance such as interest or other related charges
B. Special Considerations for Project Support
1) Seasonality of Agriculture and Agribusiness
Agriculture and agribusiness operations are to a large extent seasonally determined. Therefore,
timeliness of planning, operation and decisions in consonance with production/marketing seasons are
crucial for the success of agricultural and agribusiness projects. Farmers and agribusiness operators
should be educated in this regard and MGF administrators and decision-making structures should
keep to the agreed schedules. For example, a soya bean production project submitted in August, in a
situation where project review and decision-making process takes 8 months, cannot be expected to
attain results envisaged because grant release will be out of planting season. Such a project cannot
be expected to disburse more than 50% of grant approved within the 2-year financing period. There is
also a good possibility that the grant resources will be diverted to other uses. A one-month slippage in
approval process, even when a project is timely submitted is expected to have a similar consequence.
2) Project Duration and Financing Period
At any one time, only 2 years are allowed for financing period. This period should not limit the project
duration to 2 years. The project duration should be determined by the project gestation period. Costs,
financing arrangements, benefits analysis and implementation period should be defined accordingly.
Request for funding and contribution of applicant should be phased accordingly. Suppose a project
period is for 4 years and utilization of the grant requested will be for 3 years, request for support
should be in two phases. The requirement for the first 2 years can be requested in the first phase of
two years, while the remaining financing could be requested in the third year provided the total
request is not more than the allowed ceiling for the window. The approval of the first phase will then
be made with the explicit approval of the whole project including the financing of the second phase,
subject to a satisfactory implementation of the first phase, and full compliance with all other terms and
conditions. This will address the problem of non-completion of financed project in two years and also
ease any cash flow constraints of the applicant. The phases should not extend beyond the closing
date of E-SAPP.
3) Project Cost Estimate in Relation to Grant Ceiling and Grantee Contribution
Under the SAPP, many projects were under-costed to keep within the ceiling and grantee
contribution, a situation that accounted for the failure of such projects and loss of investments.
Projects should be fully costed, and the grantee should seek for additional funding from other sources
or increase their own contribution to meet any shortfall in financing. If full funding cannot be
guaranteed, it is better not to embark on the project, or scale down the project, otherwise, not only will
the project fail, the grant and the grantee contribution will all be lost. Another reason that may account
for such a situation is the tendency of applicants to undertake several projects at the same time or
diverting earmarked resources to other activities. Proper project evaluation, due diligence, financial
advice and close supervision/monitoring may address this problem.
4) Financing Uncompleted but Promising Projects
Projects that have been financed by other donors or Government can be considered for support
provided that the activities financed by the third party is in good standing and have been completed
but the projects itself remained uncompleted, and necessary reports have been submitted, and all
obligations to the financing party have been met. Some cases of SAPP supported projects in this
category can also be considered by the PSC for approval especially where implementation has been
delayed through protracted procurement or delay in disbursement that did not permit full disbursement
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of approved grant within allowed 2-year financing period, and where there are good prospects of a
successful completion. In such cases, the project will be assessed by PCO and additional support will
not lead to exceeding the grant ceiling, nor implementation beyond the closing date of E-SAPP. The
support from E-SAPP will only cover the milestones (cost items) that were approved under SAPP.
Applicants who wish to scale up their activities/business will have to apply under the new E-SAPP
processes.
C. Eligibility Criteria and Conditions for Participation
Eligibility Criteria
20. Any organization/institution intending to access assistance through the MGF should meet any
of the criteria listed below. The eligibility of an applicant will be reviewed by MGF-District/Provincial
review Committees based on application submitted by an applicant. The final vetting will be carried
out by the Programme Coordinating Office (PCO).
1) Be legally registered in Zambia to operate as a business organization with a central objective
of engaging in agriculture (crops, livestock, aquaculture and agribusiness).
2) Such business organization could be registered as:
i) Public/Private Company
ii) Partnership
iii) Sole Proprietorship
iv) Self-sustaining Cooperatives (Societies or Union)
v) Commodity Association
vi) Resilient Other type of Farmer Group with good governance and proven management and
financial capacity.
Conditions for Participation

21. The following are the general conditions for participation in the E-SAPP MGF. The conditions
have been classified in two categories namely for Windows 1 & 2, and window 3.
General conditions for participating in Windows 1 & 2.
1) Involvement in agriculture (crops, livestock, aquaculture) production, and/or rural
agribusiness- processing, input supply, technical services delivery, warehousing/credit support
services
2) Operating in the value chains of commodities supported by E-SAPP: Legumes (especially
soya beans, groundnuts, common beans, and cowpeas), small livestock- (sheep, goat, pig,
village poultry) aquaculture, and rice.
3) Providing or intending to provide services such as inputs support services, market access,
technical services, financial/credit support services to smallholder farmers/producers and/or
their groups.
4) Demonstrated commitment to operate as a fully commercial organization without dependence
on donor soft financing
5) For window 1 (only available to), smallholder farmers who have graduated under the Farming
as a Business Schools (FaaBS), and have demonstrated skills and knowledge in business
management, planning and governance.
For window 2, the MSME has provided training in Farming as a Business (FaaB) for
smallholder farmers or shown commitment to anchor a Farming as a Business School
(FaaBS) which will provide training as required by the programme.
6) Financial viability or demonstrated ability to become financially viable with the support of the
MGF
7) For Window 1 - Ability to pay required contribution in cash, kind, or a combination of both.
For Window 2 – Ability to pay required contribution in cash.
8) Sound governance and proven management capacity.
9) Demonstrate evidence of fair business contracts/MoUs with smallholder farmers/producers
and rural agribusinesses, and willingness to submit such contracts/MoUs to E-SAPP PCO for
review and comments.
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General Conditions for Participating in Window 3
1) Commercial viability and appropriate Governance.

2) Extent of impact (number of SHF, volume and value of agribusiness) on the beneficiary
smallholders, rural MSMEs and rural poor.
3) Additionality – the degree to which MGF support will enable the grantee to refine and
expand its engagement strategy more rapidly and with deeper impact than would happen
without the partnership.
4) Scalability – The potential for commercial scale-up of the activity by the grantees and
smallholder farmers and MSMEs during and after the grant support.
5) Systemic Impact – Impact that goes beyond the impact on the direct beneficiaries.
6) Proven experience of business partnership with smallholder farmers/producers and/or rural
agribusiness or demonstrated willingness to partner with smallholder farmers/producers
and rural agribusiness.
and rural agribusinesses, and willingness to submit such contracts/MoUs to E-SAPP PCO
for review and comments.
8) Willing to invest human, financial and knowledge resources in the partnership, and to
consider stable and continuous commercial relationships.
9) Demonstration of intention for a long- term business relationship with partner smallholder
farmers/producers and rural agribusiness.
10) Ability to timely pay the required contribution in cash.
11) Financial Robustness and solid business track record.
V. THE MGF DEVELOPMENT PROCESSES

22. The following processes will be adhered to in the development of the MGF.
(a) Stakeholder Engagement
(b) Capacity Building as a pre-requisite for Window 1 applicants.
(c) Application and Project Concept Note Submission and Review.
(d) Full Project Proposal Submission and Review Processes.
(e) Pre-disbursement Processes.
23. These processes are described in detail below.

(a) Stakeholder Engagement
24. The PCO, in order to stimulate institutions/organizations to seek assistance from the MGF, will
provide information widely on how to access assistance from the MGF. Such information will include
general information on E-SAPP overall assistances; the details of assistance available through the
MGF reflecting the three Windows of assistance including conditions for their access, capacity
building, eligibility criteria for institutions/organisations; the processes for project submission, review,
approval and implementation of projects financed by grants under MGF, and the target group for
support. Information dissemination will be through various media including information leaflets to be
distributed through provincial/district/sub-districts offices, circulars addressed to potential applicants,
and service providers, posters at strategic places, advertisement in key newspapers, radio including
local/community radio stations, web-based platforms, and if necessary, on television stations.
25. Training will be provided by PCO to Provincial Officers on general information dissemination,
and specific training on MGF processes, various formats to be used by applicants to access MGF
including application format, Project Concept Note format, and Full Project Proposal Formats.
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Resources will be provided to provinces to train district level staff who will in turn provide training to
sub-district staff. Sub-district staff under the supervision of district staff will be facilitated to train the
potential applicants and the target group.
26. Team building workshops will be held. Information from up-dated agribusiness scoping studies
will be used to identify participants to be invited to the workshops. The aim is to promote matchmaking
and partnerships, including identification of common business interests, promoting/strengthening
linkages, and building trust. Special attention will be given to promoting Public-Private-Producer-
Partnerships (4Ps), and the involvement of financial institutions in value chain development. The
workshop will also provide opportunity for call for proposals and elaboration of procedures including a
continuous process of submission of applications and project concept notes, two monthly batches of
application/project processing. The workshop will be facilitated by PCO using the offices of PACOs
and DACOs.
27. The information and knowledge management officer in the M&E Unit of PCO, will be
responsible for the stakeholder engagement, planning and operation in close collaboration with
Agribusiness Unit (ABU) of PCO.
b) Capacity Building
28. Capacity building has been emphasized to improve the ability of smallholder farmers/producers,
and rural agribusinesses to become major actors in the value chains of the selected commodities.
Subsistence farmers will receive the major focus. Capacity building will be a pre-requisite for their
accessing MGF as competitive applicants. They will receive training in FaaB following specified
modules (see para 8, sub-component 2.1), mobilized and mentored to develop business organizations
that can effectively participate as actors in selected value chains, collaborate with other value chain
actors to raise productivity and better access the market. Training will enhance their business skills to
make investment decisions, engage in business planning including submission of project proposals to
attract financing from the MGF. It will also improve their ability to operate as businesses. A service
provider with experience in FaaB will be competitively recruited to develop training materials building
on the modules developed by SAPP, carryout Training of Trainers (ToTs) from both the government
and the private sector institutions, and engage closely with GRZ provincial/ district personnel to carry-
out their assignments under MGF. Special attention will be given to training of mentors at district and
provincial levels, who will provide support to smallholder farmers and MSMEs in developing business
plans, making applications and developing business proposals for financing. In addition, provision has
been made to improve agro-business development services (BDS) at the district and sub-district
levels. Two pilot efforts in two major E-SAPP catchment areas will be supported. Each BDS will
comprise three young graduates who will be trained and provided capacity to carry-out BDSs services
for E-SAPP beneficiaries. All FaaB training will include sensitization of smallholder households on
gender using GALs methodology so as to provide gender equality and make men and women to take
control of their lives. Climate risk management and social environment control procedures will be part
of the capacity building efforts. The Government officers once trained will undertake training of
smallholder farmers producers and their business groups, on how to access MGF, including
guidelines on submission of applications, concept notes, and full project proposals using standard
MGF formats. However, they will not be involved in the direct preparation of Project Concept Notes
and Full Project Proposals. They will serve as mentors and facilitators.
29. Nutrition: Capacity building activities on nutrition will also be supported to provide training to
subsistence farmers on nutrition education, and behaviour change communication. Bio-fortified
staples including improved beans and rice will be promoted. Livestock and aquaculture supply
management practices that enhance nutrition will also be promoted. Promotion of improved
processing for high quality, low glycaemic and nutritive rice products will be supported. An
experienced NGO in nutrition education will be contracted to undertake the nutrition training. This
NGO is expected to work closely with the Food and Nutrition Unit of the MoA so as to gain from the
experiences and lessons learnt from the Scaling-up Nutrition (SuN) for the First 1000 Most Critical
Days Programme. The SuN project developed a number of information and communication materials
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for field extension workers and rural farmers which E-SAPP should make use of or adapt to undertake
the planned interventions.
30. Capacity building support will also be provided to MSMES MGF applicants. Emphasis will be on
climate risks, and social and environmental risk management. Training in climate risk analysis,
including adaptation options to be considered as part of their proposals will be provided. Also, criteria
to be used in the assessment of their project proposals with respect to social and environmental
procedures will be shared with the applicants. Service providers will be identified from either scientific
research institutions or private consulting firms. Training will be in the form of workshops to promote
peer learning, and knowledge and skill development.
31. Applicants for the large grants are also expected to transfer skills in relation to environmental
management to the smallholders they work with. This will be ensured through contractual agreements
with the grantees. Further, capacity building in skill and experience to make informed business
decisions and to negotiate on equal terms with the large agribusinesses will also be assured through
FaaB training. Efforts will be made to front-load required capacity building to ensure benefits to
partners. The capacity building will be the responsibility of Pro-Smallholder Market-Pull Agribusiness
Partnerships Service Provider. Training materials will derive from a careful review of international best
practices and Zambia experiences. The capacity building will be through workshops or other
mechanisms as may be determined by the Service Provider engaged to implement Window 3.
(c) Grant Approval Process
32. There are three phases for the process as indicated above, namely; Application and Project
Concept Note Phase, the Full Project Proposal Phase, and Pre-Disbursement Phase. The
implementation of MGF under E-SAPP will be through two channels. Windows 1 & 2, will be
implemented by PCO, while window 3 will be implemented by a Service Provider under the
supervision of PCO. Irrespective of the implementation channel the three phases will be followed.
Applicants can apply for assistance through any window they desire, at any time. However, the
processing of applications for windows 1 and 2 will be in batches, of two-month intervals. All
applications will be screened to ascertain eligibility of applicants, and adherence to general conditions
for participation under the window applied for. All project proposals will be subject to external and
internal technical reviews and approval by an independent approving committee. The MGF-Approval
Committee (MAC) will be responsible for approving or deferring or rejecting of project proposals
submitted for assistance under Windows 1 & 2, while the E-SAPP PSC Sub-Committee will take
similar decisions for project proposals submitted for assistance under Window 3.
33. The duration of processing an application/project, under Windows 1 & 2, and Window 3 vary
due to the number of applications/projects, expected for each batch. Many more applications are
expected from Windows 1 & 2, while fewer applications are expected from Window 3. Processing
steps also differ. Nevertheless, the processing of all applications/projects will be done with
transparency and within as short a period as possible. In this regard, the duration of processing from
the receipt of application and concept note until the first disbursement shall be recorded and
monitored. For this purpose, the Grants Management Officer in the Agribusiness Unit of PCO, shall
establish a database for recording all applications received. The database shall reflect, the date of
receipt of application, and those of all steps during processing until first disbursement. The expected
processing period for Windows 1 & 2, has been estimated and shown in Table 3. For Windows 1 & 2,
a maximum processing period of about 111 working days and has been approximated to about 5
months. Concept Note Phase will take about 1 month, with 4 months required for Full Project
Proposal Phase. An application submitted for assistance under Windows 1 & 2 will take no more than
7 months to become operational.
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Table 3 - Processes for the submission and approval of sub-projects under Windows 1 and 2
Stages/Steps Working Days Responsibility
Application / Concept Note Phase
1.) Receipt / acknowledgement of Concept Note and compilation of batch 1 DACO’s offices
2.) District review and recommendation for acceptance 4 District Committee
3.) Provincial quality control, consolidation and submission to PCO 5 PACO’s offices
4.) Vetting by PCO / Due Diligence 5 PCO Agribusiness unit
5.) Issue of letters (call) for full project proposal / notification of rejection / 3 Programme
advice on improvements (generate unique identifier) Coordinator
Sub total 18
Full Project Proposal Phase
1.) Training / Mentoring by district/province 5 PCO / GMO
2.) Proposal preparation and submission 10 Applicant
3.) Receipt and acknowledgement by DACO / submission to PCO through 5 DACOs/PACOs
PACO
4.) Revalidate eligibility / general conditions 3 PCO Agribusiness unit
5.) Selection and notification of Independent Reviewers 2 PCO Agribusiness unit
6.) Submission of proposals to Independent Reviewers/ discussion with 3 PCO
both ITRs and IRC
7.) External review of proposals and submission of recommendations to 10 ITRs
PCO IRC
Internal review of proposals and submission of recommendations to
PCO
8.) PCO prepares a summary evaluation report / submits to MGFC 4 PCO Agribusiness
Manager
9.) MGFC meeting: consider and make decision on the summary evaluation 10 MGFC members
report
10.) PCO informs applicants of MGFC decision 3 Programme
Coordinator
11.) Applicants accept or reject the offer / Preparation of draft Grant 10 Applicants / PCO PCM
Agreements
12.) Hold consultation workshop / Sign Agreements 2 Applicants / PCO ABU
13.) Audit / Confirmation of grantee deposits 15 Applicants / PCO
Finance
14.) Submit request for 1st disbursement 3 Applicant
15.) Make first deposit 3 PCO Finance Manager
Sub total 93
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Total number of working days 111
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34. The details for the activities involved in the three phases are described below.
(i) Application and Project Concept Note Phase (Windows 1 & 2)
35. The application (appendix 1) is designed to screen out applicants that do not meet the eligibility
criteria and general conditions for participating in the E-SAPP MGF. The Project Concept Note
(appendix 2) is used to determine projects which fall in line with the objective of the MGF and which
show potential for viability. The principal applicant is responsible for the submission of application for
assistance and the Project Concept Note on standard formats provided by PCO (Appendices1 & 2).
An authorized representative must sign both the application and the Project Concept Note. Three hard
copies each of the application and Project Concept Note covered by original submission letter must
be submitted to District Agricultural Coordination Office (DACO), by post or delivered by hand. A
designated staff (by default the DMDO) in DACO’s office will stamp, date and sign the letters and
each copy of the application and Project Concept Note. If documents are delivered by hand, the
acknowledgement copy will be given to the person who delivered the documents, otherwise the
acknowledgement copy will be posted to the address of the applicant.
36. At two months intervals, the applications will be screened by District Marketing Development
Officer (DMDO) and District Cooperatives Development Officer (DCDO) for eligibility and general
conditions for participation using the screening form (Appendix 3). The applications along with the
Project Concept Note will be classified into i.) Compliant - those meeting eligibility criteria and general
conditions for participation, ii.) non-compliant - those rejected. The DMDO, who is the secretary of the
District Review Committee, will prepare the compliant applications along with the screening report and
the Concept Notes and forward them to the District Review Committee for a review of the Project
Concept Notes and the applications along with screening report for information on recommendations
of the DMDO and DCDO. The non-compliant applications and the attached Project Concept Note will
not be sent for a review by the Committee. However, the screening report along with all applications
received and screened will be made available to the Committee for information. The reasons for
rejecting of applications will be included in the report. The screening report will be signed by the
DMDO and DCDO.
Review of the Project Concept Notes.
37. Each of the Project Concept Notes will be reviewed by at least six members of the Committee
before the meeting using the Concept Note review template (Appendix 4). The reviewer provides a
brief comment on the project and his/her recommendation on whether the Concept Note be approved
and proceed to Full Project Proposal or rejected. The reasons for the recommendations will also be
provided. The reviewer will sign and date the report. The District Review Committee considers the
contribution of each member and makes its recommendations on each project which could be
approved, or rejected. Efforts should be made to clarify aspects of the applications/Concept Notes or
provide missing supporting documents before the MGF-District Review Committee sits to review a
particular batch. A decision is reached through a simple majority vote. The DMDO produces the
minutes of the meeting. The application screening and Concept Note reports are attached as annex.
The Secretary of the MGF-District Review Committee (DMDO) within three working days of
concluding the Committee review, will forward the committee report along with Concept Note review
report sheets, and the applications/Concept Notes to the PACO’s office for quality control and
consolidation. The membership of the MGF-District Review Committee is provided below.
i. District Agriculture Coordinator (DACO) Chairperson
ii. District Fisheries and Livestock Coordinator (DFLC) Vice Chair
iii. District Marketing Development Officer (DMDO) Secretary
iv. District Cooperatives Development Officer (DCDO) Member
v. Senior Agriculture Officer (SAO) Member
vi. Livestock Production Officer (LPO) Member
vii. District Fisheries Officer (DFO) Member
viii. District Fisheries and Livestock Marketing Officer (DFLMO) Member
ix. District Accountant (DA) Member
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x. District Agriculture Committee Representative (DAC) Member
Quality Control and Consolidation at Provincial Level
38. The MGF-Quality Control Committee at the Provincial level will not carry-out a review of the
applications and Concept notes but will check the application screening report, and PCN review
reports from the districts and provide comments/observations on districts’ reports as necessary. The
PAP will consolidate the districts’ reports to produce a provincial consolidated MGF report. This report
should be submitted to PCO not later than 3 working days of receipt from the districts. In order to
ensure effective coordination of report submission from the district, the PACO will provide to the
districts, a periodic report submission schedule for the year. The districts should keep to this schedule.
The composition of the Provincial MGF-Quality Control Committee is shown below.
i. Provincial Agriculture Coordinator (PACO) Chairperson
ii. Provincial Fisheries and Livestock Coordinator (PFLCO) Vice Chair
iii. Provincial Agriculture Planner (PAP) Secretary
iv. Senior Marketing Development Officer (SMDO) Member
v. Senior Fisheries and Livestock Marketing Officer (SFLMO) Member
vi. Senior Cooperatives Development Officer (SCDO) Member
vii. Provincial Agriculture Officer (PAO) Member
viii. Senior Livestock Production Officer (SLPO) Member
ix. Provincial Fisheries Officer (PFO) Member
x. Provincial Accountant (PA) Member
xi. Procurement Officer (Provincial MoA) Member
Vetting of Applications and Project Concept Notes
39. An Internal Review Committee (IRC) established within PCO will receive applications and
Project Concept Notes from the PACO’s offices along with the application screening and Concept
Note review reports of the Districts and comments/observations on the same from the PACO’s office.
The Grants Management Officer of Agribusiness Unit of PCO will give each project a unique identifier
number, input information from the receipt date to the time of receipt by PCO and vetting by PCO in
the database to track the time taken from receipt of the application and Concept Note to informing the
applicant of the result of his/her application. The package will then be sent to members of Internal
Review Committee (IRC) for review and vetting of reports from the Districts’ and Provincial
Committees and call for a meeting of IRC within three working days of receipt from PACO’s office.
Each member need not review all the Applications and Concept Notes. The applications/Concept
Notes along with reports from Districts/Provinces will be packaged into sets of equal numbers; with
each set reviewed by two members of the Committee. The Chairman of the Committee will not
participate in the review but will undertake an overview of the reports from the districts and provinces.
This will enable him/her to have an oversight on the final decisions of the IRC. Each member will
present his/her findings and recommendation to the Committee for discussion and decision on each
application and Concept Note. The Committees decision will be compared with the reports from the
districts and provinces, where significant differences emerge the Committee will discuss the
differences and come to an agreement through a Vote. Decisions will be based on a simple majority
vote. The Committee will produce its report classifying the application/Concept Notes into approved,
rejected and deferred approval and submit to PCO for further action.
40. The composition of IRC is shown below. The TOR are reflected in appendix 14
i. Ministry of Agriculture – PPD Focal Point Chairperson

ii. Ministry of Fisheries and Livestock – PPID Focal Point Vice Chair
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iii. E-SAPP – Grants Management Officer Secretary

iv. E-SAPP Agribusiness Manager Member
v. Ministry of Agriculture – ABM Focal Point Member
vi. Ministry of Fisheries and Livestock – FLM Focal Point Member
vii. Ministry of Agriculture – DoA Focal Point Member
viii. E-SAPP – CS – Crops Member
ix. Ministry of Fisheries and Livestock – DLD Focal Point Member
x. E-SAPP – CS – Livestock Member
xi. Ministry of Fisheries and Livestock – DoF Focal Point Member
Notification of Applicants of the Results

41. The Programme Coordinator (PC), within three working days of receiving the report, will
dispatch letters to all applicants including those whose applications were rejected at the district level
informing them of the results of their applications/concept notes giving reasons for deferring approval
or rejecting the application/PCN and advising them on any follow-on action. The letters will be sent
through the DACO’s office for ease of access, but the applicants will be notified to collect their letters
from DACO’s office through bulk SMS or other electronic means. The successful applicants will be
invited to proceed to the Full Project Proposal Phase. They will be informed of next steps including,
visits from the Province for Due Diligence, a proposal workshop, to be held within one week of
notification; and the requirement to submit a Full Project Proposal, three weeks from the date of
notification. The template for the preparation of Full Project Proposal (appendix 6) will be attached to
the letter. The workshop will provide an opportunity for explanation on the use of Full Project Proposal
Template, the further processes leading to the start-off of project, and for providing clarifications on
issues that may be raised by the applicants publicly or privately in discussion with PCO staff.
Applicants requesting for assistance in preparing Full Project Proposal will be assigned mentors who
can assist them but not to undertake the actual writing of the proposal. The letter to those with
deferred approval will advise them to address the issues leading to the deferment and resubmit to
PCO for consideration with the next batch. Those whose application/Concept Notes were rejected will
have to submit a new application/Project Concept Note to the DACO office. Sample notification letters
are shown in Appendix 5.
Field Verification/Due Diligence

42. After approval of Concept Notes and notification of successful applicants, Field Verification/Due
Diligence will be carried out by members of the Provincial MGF Quality Control Committee in close
collaboration with relevant District Officers. The concerned officers will duly inform the applicant of the
exercise. The Verification/Due Diligence report (appendix 7) will be submitted to PCO through the
PACO’s office along with the Full Project Proposal. The form for carrying-out Verification/Due
Diligence is shown in Appendix 6. The Due Diligence/Field Verification report must be signed by the
officers who carried out the visit and prepared the report, and the authorised representative(s) of the
applicant before the report is sent to the PCO.
(ii) Full Project Proposal Submission and Review Phase (Windows 1 & 2)
43. Applicants are required to submit a Full Project Proposal three weeks after a notification letter
calling for submission of Full Project Proposal. Using the Full Project Proposal Template, applicants
should submit four hard copies of their Full Project Proposal to the DACO’s office. DACO will receive
and acknowledge receipt as is the case for Application and Concept Note. The DACO, not later than 3
working days after the closing date for receiving applications for that batch, will compile the reports
and submit to PACO’s office. The PACO’s office will add the Field Verification / Due Diligence report
appropriately signed, to each proposal and forward to PCO with a covering letter to which will be
attached a list of proposals received by districts, date received at DACO’s office, date received by
PACO’s office and date dispatched to PCO. Similar information will be provided for Due Diligence
reports. The Grants Management Officer in Agribusiness Unit of PCO will receive the documents and
REPUBLIC OF ZAMBIA
record information on receipt dates at various levels in the database and pass them to the
Agribusiness Manager who will arrange, using the staff of Agribusiness Unit (ABU) to carry out
preliminary review of the proposals. This will involve ensuring that documentation submitted are
complete (Full Project Proposal Due / Diligence report, and where collaboration / partnerships are
involved, Contract / MOU between the parties), that all sections of the Full Project Proposal Template
are properly completed, and assessment of compliance with eligibility criteria and general terms and
conditions. It is expected that almost all proposals will meet the compliance test since these have
been rigorously checked during the Project Concept Note Phase. However, if some are found to be
non-compliant, they will be sent to the Project Coordinator (PC) who will notify the applicants.
External Review Arrangements

44. Recruitment of External Reviewers: The PCO will advertise widely a call for expression of
interest by experienced domestic and international Consultants using different media including local
print and internet to submit their expression of interest in providing services to review projects
submitted for assistance under the MGF. The normal procurement process will be used to recruit
highly qualified and experienced Consultants to be included in a roster of Consultants for reviewing
project proposals under Windows 1 & 2. They will be contracted using an Indefinite Delivery, Indefinite
Quantity (IDIQ) contract which will enable the PCO to quickly mobilize the consultants without
drawing-up new contracts for every review phase. IDIQ Contracts are often used for on-call service
contracts. Minimum and Maximum quantity limits are specified in the basic contract e.g. hours of
services, or dollar values for services). The roster will be periodically reviewed and up-dated. A
Consultant can be accredited or deleted from the roster based on a recommendation made by the
IRC, and approved by the PC. Reviewers will be paid a fixed honorarium as will be approved by PSC
and with NO from IFAD, per project reviewed. The fee to be paid will be US$50 per project. A change
in fee will require approval from PSC and No Objection (NO) from IFAD. The TORs for the External
Reviewers is shown in appendix 15.
45. External Review: Once the preliminary review has been completed, the ABU will select from
the roster and recommend for PC approval, external reviewers to review the cleared projects. The
projects will be packaged into sets. A set will be reviewed by at least two external reviewers. The
number of projects in a set to be allocated to the pair of reviewers will be such that can be completed
within 2 weeks allocated. The selected reviewers will be invited for a day’s workshop to discuss the
process of review and the use of scoring template (appendix 8). Consultants will also use the
opportunity to seek clarifications on the assignment and to quickly look through the assigned projects,
and to declare no personal interest in the project assigned to them. The Full Project Proposal without
any of the supporting documents such as Due Diligence report, will be made available to external
reviewers along with MS Excel based evaluation score sheet (Appendix 8). The external reviewers will
submit their reports to PCO within two weeks of receiving the proposals. The score sheet,
appropriately signed will be submitted through electronic means as prescribed by PCO along with
project documents delivered by hand. Full Project Proposals scoring an average of 70% and above
can be accepted for support. However, the reviewers can make comments on the strengths and
weaknesses of technical, management and financial aspects which the PCO will consider in making
recommendations to the MGF-Approval Committee (MAC). The Grants Management Officer will
prepare an External Reviewer report based on the scoring and recommendations of External
Reviewers. The format for the report is shown in Appendix 10.
Internal Review
46. The Internal Review Committee (IRC), following the same procedure used in reviewing the
Project Concept Note, will carry out the review of the Project Proposal during the same time (2 weeks)
as the external reviewers. The same score sheet will be used by the IRC. The IRC may identify issues
that need further clarification before approval by the MGF-Approval Committee. Consequently, the
IRC may make the following recommendations. Approval - where the applicant is found to be
compliant with the eligibility criteria and terms and conditions for participation, and project proposal
scores an average 70% and above, and without any issues needing clarification. Defer Approval – In
cases where the applicant is in full compliance, project proposal scored an average of 70% and
above, but clarifications on certain issues are required. Reject – In cases where the Applicant is not in
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compliance with eligibility criteria and general terms and conditions for participation and/or Proposal
scores an average of less than 70%. The Secretary of the Committee, will prepare the IRC evaluation
report, using the format shown in Appendix 11.
Summary Analysis and Appraisal of Project Proposals

47. The Agribusiness Manager will prepare a summary analysis and appraisal of all Full Project
Proposals within two weeks of receipt of proposals for review. Such report shall not exceed three
pages per project. If the number of projects is huge, experienced Consultants can be recruited to
assist, but the Agribusiness Manager is still fully responsible. Because of this important assignment
the Agribusiness Manager will not participate in the IRC. This report will be submitted to IRC for
consideration during its Project Proposal review meeting. The IRC will provide comments on the
report and ensure that each report covers required design areas and address issues that will aid the
MGF-Approval Committee in its decision. The report will cover the following aspects of the project:
 Background information on the Applicant, the project, the project area of operation, and
general social and environmental issues of importance to the project.
 Objective, goal and description of the project and relevance to MGF objectives and focus
(value chains).
 Project cost, and financing arrangements.
 Applicant implementation capacity and arrangements made for project implementation and
management.
 Markets/Marketing arrangement and issues.
 Benefits and Beneficiaries
 Sustainability issues and approach.
 Assessment of potential impact on nutrition.
 Risks and mitigation.
Composition and Operation of MGF – Approval Committee (MAC)
48. The MAC shall compose of nine members. The appointment of members will be by the E-SAPP
Programme Steering Committee (PSC) upon nomination by the respective Chief Executive Officer, or
other authorized representative of the institution concerned. Members who fail to attend three
consecutive meetings will automatically cease to be members of the Committee. The PC will inform
the respective Chief Executive Officer of the institution concerned for a replacement as soon as
possible but not later than a month after notification. A member of the Committee cannot be a member
of any review committee, or serve as an external reviewer, or Consultant to any Applicant.
Members of MAC
i) ZACSMBA Chairperson
ii) PAM Vice Chair
iii) NUSFAZ Member
iv) ZNFU Member
v) MoA PPD Member
vi) MoA ABM Member
vii) MFL DFLM Member
viii) Dept of Coops Member
ix) Programme Coordinator Secretary
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Submission of Report to MGF-Approval Committee: The PC will summarise the reports of External
reviewers and the IRC and provide its comments and observations on the summary report and invite
the MGF-Approval Committee to hold a meeting on a specific date not later than two weeks of report
submission to members. The Summary of External Reviewers report, the IRC report, and
Agribusiness Project Analysis and appraisal report incorporating IRC comments, will be attached to
the PC Summary report. The PC Summary report will show the summary by Province; and Summary
by Province and District. The format for PC report to MAC is shown in Appendix 12. There will be no
need to submit the Full Project Proposals to the Committee members as the Agribusiness Manager
report incorporating IRC comments/observations will provide necessary and adequate information on
each project proposal. However, members of the Committee can request for the Full Project Proposal
if needed. Also, the Committee members can contact the PC to seek clarification on any issue(s) as
desired in writing. PC will provide a response with copies to other members. If the response is not
satisfactory to the requesting, member or any member, the issue(s) can be raised in the meeting for
discussion and decision. The TOR for MAC are shown in Appendix 13.
49. MGF –Approval Committee Meetings: The PC is the convenor of and the Secretary to the
MGF – Approval Committee. The PC presents projects to the Committee for decision and prepares
the minutes of the Committee meeting. The PC can respond to queries from the members before the
meeting if so requested by any member of the Committee. The Committee will be convened every two
months by the E-SAPP Programme Coordinator (PC). The quorum for meetings will be five of the nine
members. As much as possible, decisions shall be made by consensus. However, if this is not
possible in certain cases, decision will be made by a simple majority vote of those present i.e. at least
five votes if all members are present or three if the quorum is five. If this majority vote is not attained,
the proposal is deemed rejected. The decision of the Committee is final. At the beginning of each
meeting members are requested to indicate any affiliation with, or/and any economic interest in any
Applicant/Partners whose proposals are to be considered by the Committee; or in Service Providers,
under contract with the Applicant. Members with affiliation and/or economic interest in any form shall
be excluded from participation/decision as regards the particular case. A member of the Committee
who fails to declare his/her affiliation and/or economic interest shall, if detected, automatically cease
to be a member. The Chairperson of the Committee will accordingly notify the Chief Executive of the
institution concerned and request a replacement as soon as possible, but not later than a month.
50. The members will not be required to undertake a review of project proposals but will base their
discussions and decisions on the report submitted by the PC including the recommendations from
External Review and IRC circulated to them by the PC, and any clarifications provided to them
regarding any queries raised and responded to by the PC before the meeting (see para 51 above).
Following a detailed discussion of a proposal, the Chairman can call for a decision on a consensus
basis if no opposing views are expressed. In cases of opposing views, a Committee member, will
propose a decision, which should be supported by another member before a vote is taken. A decision
will be reached by a simple majority of members present.
51. Minutes of Meeting: The PC who is the Secretary of the Committee will produce the minutes
of the meeting, obtain clearance by the Chairman and circulate to members within three working days
of concluding the meeting. The circulation shall be through E-mail. Each member is expected to
endorse the minutes as approved or disapproved or insert observations for note by PC/Chairman. If a
majority of members approve, the minutes are judged approved and subsequent steps will be taken
by PC. The minutes will be presented to and adopted formally by the subsequent Committee meeting.
The minutes will be signed, upon approval by the Chairman and the Secretary. A register shall be kept
by the Secretary for the minutes.
52. Payment of Members: All members of the Committee shall receive a fee to compensate them
for the time and efforts made to render professional services and advice to the Committee. The fee
shall be $200 per member for each committee meeting. Any change in fees shall be approved by the
PSC and should receive NO from IFAD.
53. Decision by the Committee: The Committee can make the following decisions.
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- Approval – Applicants that are in full compliant with eligibility criteria and
general terms and conditions, and project proposals that score at least 70%
without any reservation.
- Deferred Approval – The proposal has merit and would have been ordinarily
approved but for clarification of certain issues. If the Applicant is able to provide
satisfactory and timely response to the issues, the PC can circulate the
response to the members and if cleared by a majority of members through E-
mail, the proposal can proceed, otherwise the revised proposal can be
submitted to the next Committee meeting.
- Rejection – Applicants not in full Compliance, and Project rating is below the
minimum threshold for approval.
(iii) Pre-Disbursement Phase
54. Notification of Applicants: The PC will notify all applicants of the Committee’s decisions. In
the case of successful Applicants, the PC will send them an offer letter informing them of steps
necessary to bring the project to implementation including a workshop to discuss issues of
implementation and the draft Grant Agreement. Upon meeting all conditions, the Grant Agreement will
be signed. In the case of deferred approval, the PC will inform them of the reasons for deferred
approval and advise them on actions and process to obtain approval. For the rejection cases, the PC
will inform them of the reasons for rejection and advise them on the opportunity to re-submit the
application/proposals after necessary modification. The modified reports/application will be submitted
through DACO to PCO for review and consideration following the normal process. The sample
notification letters are shown in appendix 9.
Audit of MGF Processes and Resources Allocation
55. After the MAC decision but before first disbursement, an audit will be carried out by an
independent auditor appointed by the Auditor General, and under TORs to be provided by PCO and
NO from IFAD. The MGF processes for the whole circle shall be reviewed as well as the allocation of
grant resources for projects and by Windows. The Audit report will be sent to IFAD after due clearance
by PSC, for NO.
First Disbursement
56. Upon expression of NO on the audit report from IFAD, the PC will inform the Applicant to pay its
contribution into a dedicated bank account and inform PCO. This could be a new or existing bank
account that the applicant undertakes to use solely for the implementation of the project. The PCO will
certify that the payment is duly deposited and consequently request the Applicant to submit request
for first disbursement as per specification in the Grant Agreement. Upon receipt of the request and
certification of compliance with Grant Agreement conditions, PCO, shall make disbursement within 5
working days of receipt of Applicant request. For Applicants under Window 1, whose contribution will
be in-kind, the Provincial Accountant working together with an appropriate subject matter specialist
will visit the Applicant and certify that the in-kind contributions are ready for deployment.
57. The flow process for administering Windows 1 & 2 is shown in the diagram below.
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Fig - 3 MGF: Window 1 & 2 – Administration – Concept Note Phase
Engagement
Capacity Building
Subsistence Smallholder
1. Graduating Smallholder
Subsistence Farmers (Window 1)
2. Agro-MSMEs Development
(Window 2)
Submits application,
Project Concept Note and
MOU with collaborating smallholder
Groups/Cooperative Societies, if applicable
DACO Screening of
Applicant
Screened application report

PCN, MOU
MGF District Review

Committee
Screened application Review report

PCN
Provincial MGF Quality
Control Committee
Consolidated application/PCN
Application screened reports
PCN Review Reports
PCO – IRC – Vetting

of reports
Decision, Notification
Rejection For Successful

applicant – Call for
Full Project Proposal
and inform of visit for
Due Diligence
Full Diligence
Visit by Province/District Officers
Provincial Quality Control

Committee prepares Due
Diligence report
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Fig - 4 MGF: Window 1 & 2 – Administration – Full Proposal Phase

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Successful Applicant
-Submit Full Project Proposal
-Contract/MoU if Applicable
DACO
-Submit Document to PACO
PACO
Consolidates District
Report
-Submits to PCO
PCO
IRC Extension reviewers
PCO – Prepares Summary Reports

for IRC & ER; Overview of Project,
Report to MGF: Approval
MGF- Approval Committee

Applicant
Applicant
may submit
resubmits
a New
Revised
Proposal
Proposal
Decision
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PCO- Prepares minutes
Notification of Results to Applicants
Rejection Approval Deferred Approval
Workshop –Review Implementation

Arrangement and Grant Agreement
signing
Grantee Submits Request for First

Disbursement
PCO – ABU/FAM Clear Request
FAM Makes First Disbursement
Acknowledgement of
Payment
Grantee Receives First

Disbursement
Grantee Commences
Implementation
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VI. ADMINISTRATION OF WINDOW 3 - PRO-SMALLHOLDER MARKET

PULL AGRIBUSINESS PARTNERSHIP
58. MGF-Window 3 will be administered by a Service Provider that will be competitively selected.
The Service Provider will be responsible for administering the grants’ processes including
supervision/monitoring of approved projects, and provision of capacity building for MSMEs partnering
with the large Agribusinesses. The Service Provider will be directly supervised by the Programme
Coordination Office (PCO). The Service Provider will also work closely with Provincial and District
staff. At the Province and District levels, the Provincial Agricultural Coordination Office and the District
Agricultural Coordination Office respectively will serve as the focal points. The Service Provider,
building on the Operational and Administrative Manual developed by PCO, and considering the higher
level of target applicants, and their business procedures, will draw-up a suitable operational manual
including operational forms and templates in close collaboration with PCO. The manual will be
approved by E-SAPP PSC and will receive No Objection (NO) from IFAD. The procedures and
process will be similar to those adopted by PCO for Windows 1 & 2 but modified as necessary to
reflect operation at a higher level of the value chains and the non-restriction on value chains to be
supported and regions. The Service Provider will work within the Government administrative
framework as much as possible and as necessary for efficiency and policy harmonization. The Public
Private-Producer Partnerships approach (4Ps) will be adopted. In order to facilitate the development
of the operational manual for window 3, the basic changes to be made in the procedures described in
chapter V are highlighted below as well as where there are congruences.
Eligibility criteria: These will virtually be the same as for window 1 & 2.
1) Be legally registered in Zambia to operate as a business organization with a central objective
of engaging in any agriculture enterprise (crops, livestock, aquaculture and agribusiness).
2) Such business organization could be registered as:
i) Public/Private Company
ii) Partnership
iii) Sole Proprietorship
iv) Self-sustaining Cooperatives (Societies or Union)
v) Commodity Association
vi) Resilient (long established and experienced in operating business) Farmer Group with good
governance and proven management and financial capacity
Condition for Participation: This will be different in many respects. The proposed terms and
conditions are set out below.
1) Commercial viability and appropriate Governance.
2) Extent of impact (number of SHF, volume and value of agribusiness) on the beneficiary
smallholders, rural MSMEs and rural poor.
3) Additionality – the degree to which MGF support will enable the grantee to refine and
expand its engagement strategy more rapidly and with deeper impact than would happen
without the partnership.
4) Scalability – The potential for commercial scale-up of the activity by the grantees and
smallholder farmers and MSMEs during and after the grant support.
5) Systemic Impact – Impact that goes beyond the impact on the direct beneficiaries.
6) Proven experience of business partnership with smallholder farmers/producers and/or rural
agribusiness or demonstrated willingness to partner with smallholder farmers/producers
and rural agribusiness.
and rural agribusinesses, and willingness to submit such contracts/MoUs to E-SAPP PCO
for review and comments.
8) Willing to invest human, financial and knowledge resources in the partnership, and to
consider stable and continuous commercial relationships.
9) Demonstration of intention for a long- term business relationship with partner smallholder
farmers/producers and rural agribusiness.
10) Ability to timely pay the required contribution in cash.
11) Financial Robustness and solid business track record.
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Stakeholder Engagement:
59. The process will be as for windows 1 & 2. The exception will be in regard to team building;
Instead of focusing on selected commodities and related agribusinesses, the workshop focus will be
on engaging large Agribusiness in agriculture and livestock, and agribusiness, with smallholder
farmers, producers’ groups, cooperatives and agro-MSMEs.
Application and Project Concept Note
60. The templates for application, and Concept Note as well as the Application screening format,
and PCN review template will be similar. However, the Service Provider is free to make modifications
as it deems fit for window 3.
61. The screening of application, reviewing, and vetting of PCN will be done directly by the Service
Provider through a vetting committee that will be proposed by the Service Provider in consultation with
the PC, and approved by PSC. The Committee will comprise representatives from private sector,
public sector, civil society, and PCO. The Committee will have functions similar to IRC under PCO for
Windows 1 & 2, and operational procedures will also be similar. For quality control and transparency,
the decision of the Committee will be sent for final review and approval by PCO. The Service Provider
will also establish a database similar to the one for Windows 1 & 2 to track the processes of operation.
A total of about 94 working days have been estimated for Window 3, reflecting about 16 working days
for Application and Concept Note Phase and 78 working days for the Full Project Proposal Phase.
Project submitted for assistance under Window 3 will take no more than 7 months to become
operational. The time schedule for the processes has been estimated and shown below. The Service
Provider can review and modify if necessary. The revised schedule will be reviewed and approved by
PCO.
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Table 4 - Processes for the submission and approval of projects under Windows 3
Stages/Steps Period Responsibility
Working
Days
Application / Concept Note Phase
1.) Receipt / acknowledgement of Concept Note 1 Service Provider
2.) Service Provider review and recommendation for acceptance 4 Service Provider
3.) Vetting by PCO 3 PCO
4.) SP Issues letters (call) for full project proposal / notification of rejection / 3 Service Provider
advice on improvements
5.) Field verification / due diligence 5 Service Provider
Sub total 16
Full Project Proposal Phase
1.) Proposal preparation and submission to Service Provider 20 Applicants
2.) Receipt and acknowledgement by Service Provider 1 Service Provider
3.) Service Provider submits Full project proposals, due diligence reports, and 1 Service Provider
Contracts/MoUs to PCO/IRC
4.) IRC Revalidates eligibility / general conditions / Reviews and submits to 10 PCO - ABU
PCO
Service Provider reviews and submits recommendations to PCO
5.) PCO consolidates the scores and prepares a summary evaluation report / 3 PCO – ABU
submits to PSC
6.) PSC members review the evaluation report and make comments for PCO 10 PSC members
attention
7.) PSC meets and makes decision on proposals submitted 1 PSC
8.) PCO informs SP of the PSC decision and submits to IFAD for a NO 1 PCO
9.) PCO receives IFAD decision and informs SP 2 PCO
10.) SP informs applicants of final decision – Approved, Rejected, Reservation 1 SP
11.) Service Provider prepares draft agreements / invites successful applicants 10 SP / PCO
for workshop with PCO / Sign
12.) Audit / Confirmation of grantee deposits 10 Applicant / PCO Finance
13.) Submit request for 1st disbursement 3 Applicant
14.) Make first deposit 5 PCO Finance Manager
Sub total 78
Total number of working days 94
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62. Notification of applicants: The same process for window 1 & 2 will be followed. Upon clearance
by PCO, the Service Provider will inform the successful applicants and call for Full Project Proposals in
the same way as established for Windows 1 & 2; and inform unsuccessful applicants as for window 1 & 2.
Due Diligence: This will be the responsibility of the Service Provider using a form that it will design and
approved by PCO. However, the format for window 1 & 2 (appendix 7) shall be considered for use with
modifications as needed.
(ii) Full Project Proposal Phase

63. The applicants under window 3 are expected to have appropriate capacity to prepare a satisfactory
business plan - Full Project Proposal, therefore pre-implementation workshop and allocation of mentors to
assist applicants will not be necessary. However, for quality control and uniformity of presentation, the
Service Provider should provide a standard template to be used by all applicants for Full Project
Proposal. Nevertheless, applicants can seek clarification from Service Provider on procedures and other
issues as may be required.
64. For transparency, it is proposed that two level review be adopted as proposed for Windows 1 & 2.
The vetting Committee will serve as internal review Committee. The external review arrangement as
established under SAPP and adopted under E-SAPP (windows 1 & 2) will be used. The Consultant roster
established by PCO can be used but the Service Provider can establish its own roster if it so desires or
can set-up supplementary roster which can complement the roster established by PCO. The review
processes established for Windows 1 & 2 can also be used, modified, or a new process defined by the
Service Provider. The process if modified or if new should be approved following the normal procedure.
The Service Provider will also produce a template for proposal evaluation and scoring. The template will
be used by both the vetting Committee and the external reviewers. The Service Provider will produce a
summary of the review reports and prepare an overview of each project as done by PCO for Windows 1 &
2. The recommendation should also be as for Windows 1 & 2, viz Approval, deferred approval or
rejection.
Submission of Projects to PSC for Approval
Consideration of project for financing under window 3:

65. The procedure for submitting projects to PSC for approval will be as for arrangements for project
submission to MGF-Approval Committee (para 51). The only difference is that the documents to be
submitted will be prepared by the Service Provider and cleared by PCO. The projects will be submitted by
the PC who is the Secretary of the PSC.
PSC Constitution and Meetings:

66. The PSC has already been constituted and approval of projects for support under window 3 is one
of its responsibilities. To this end, the sub-committee constituted by the PSC may approve projects on its
behalf. The Service Provider, if so requested by the Chairman of PSC or its sub-committee, can attend
the meeting to provide information/clarification of issues on the projects submitted for decision. The
guidelines and procedures for the running of the MGF-Approval Committee will also apply to PSC or its
sub-committee. (para 52-53).
67. Decision by the Committee: The possible decisions of the PSC or its sub-committee will be as set
out for the MGF-Approval Committee (para 56)
68. Minutes of Meetings: The PC, as the Secretary of the Committee prepares the minutes of the
meeting and carries out all administrative responsibility on behalf of the Committee. The other
processes will be as for the MGF-Approval Committee (para 54).
69. Notification of applications: The PC will notify the Service Provider of the Committee decisions.
Thereafter, the Service Provider will notify the applicants following procedures established for
Windows 1 & 2 (para 57).
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70. Audit of MGF Processes and Resource Allocation:

The same Auditor selected for auditing the processes/resource allocation under Windows 1 & 2 will
be used. The TOR will be the same, and other guidelines will also apply (para 58).
71. Expression of NO by IFAD:
The PC will make the request to IFAD along with necessary documentation including the PSC
decision and the audit report. Upon receipt of IFAD’s opinion, the PC will advise the Chairman of
PSC and forward a copy to the Service Provider, with a request to proceed with the implementation
arrangements.
The Grant Agreement
72. Following the approval of projects and obtaining No Objection from IFAD as necessary. The
Service Provider in collaboration with PCO i.e., the Procurement and Contract Manager in close
collaboration with Agribusiness Manager and Finance and Administration Manager, will prepare a draft
Grant Agreement which will be discussed and agreed with the concerned grantees during the
implementation workshop. The Grant Agreement will be standardized as much as possible except for
schedules which will be specific for each project. The Grant Agreement Template is shown in appendix
20.
73. The Grant Agreement Template will include the following
- General provision
- Definitions
- Objective, Contribution of Parties and Duration.
- Obligation of parties
- Accounting, Financial Management and Audit
- Procurement and Disbursement
- Supervision and Monitoring
- Suspension, Conflict Resolution and Force Majeure
- Reporting
- Confidentiality
- Severability and Renegotiation
- Non-waiver
- Termination
- Survival
- Governing law
- Notices
Schedules 1 - Programme Description and Implementation Arrangements

2 - Resource Allocation
3 - Disbursement.
(iii) Pre-Disbursement Phase
Implementation Workshop: The Service Provider will invite the potential grantee to a pre-
implementation workshop which will be held by the PCO and with the participation of Managers in PCO,
and the Service Provider. The workshop will discuss the details of procedures for implementation
including the preparation of AWPB, procurement plan, reporting obligations of grantees, supervision of
project by Service Provider with the participation of PCO staff, disbursement arrangements,
monitoring/evaluation and knowledge management. The Grant Agreement will be discussed and agreed.
By the end of the workshop two clean originals will be provided to each grantee for signature by their
respective authorised representatives. The grantees will be instructed to pay their respective contributions
into an agreed and dedicated project bank account and submit the information on the deposit to PCO
through the Service Provider. This could be a new or existing bank account that the applicant undertakes
to use solely for the implementation of the project.
First Disbursement
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REPUBLIC OF ZAMBIA
The procedures set-out for Windows 1 & 2 will be followed. It should be noted that financial management
under E-SAPP including grant management is centralized. Therefore, the Finance and Administration
Manager in PCO will be fully responsible. However, disbursement requests will be routed via the Service
Provider who should endorse and recommend for action by the PCO. Upon disbursement the Service
Provider will be accordingly informed. If problems are faced in honouring the disbursement request, the
Service Provider will be informed for follow-up action. After the grantee has made necessary amendments
as requested by the PCO, the revised document will be sent back to the Service Provider for transmission
to PCO for disbursement.
74. The flow of processes for administering window 3 is shown in the figure below.
Fig –5 MGF: Window 3 – Administration – Concept Note Phase
Engagement
Large Agribusiness
Submit application
Project Concept Note
Preliminary Partnership
Contract/MoU
Service Provider receives

document
Project Vetting Committee

for screening of
application/Review
PCN/Contract/MoU
Report to
Service Provider receives
report, Review and provide
comments
PCO/ASU vets Report from

Service Provider
Final Decision
Service Provider
Informs applicants of results

Of their application
Rejection Successful Applicant

call for proposal
REPUBLIC OF ZAMBIA
Fig – 6 Window 3 – Administration – Full Project Proposal Phase
Successful Applicants
Submits Full Project Proposals, and other documents

Service Provider received Documents
1. Full Project Proposal
2. Final Contracts/MoU
3. Due Diligence
4. Documents forwarded
External Reviewers Project vetting committee
Service Provider prepares

1. Summary Report
combining ER &
PVC
2. Oversight report of
projects
PCO (ABU)
PCO prepares documents

for PSC
PSC Approved Committee

meeting
Decision of meeting
PCO – Minutes
- Decision Report
Audit Review & Report
PCO – IFAD for NO
IFAD NO
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REPUBLIC OF ZAMBIA
PCO Received NO,

Prepares letter & attach
PSC Decisions
Service Provider
notification to applicants
Rejection Successful Applicant; Deferred Approval

Letter for follow-on and a
call for Workshop at PCO
Implementation
Workshop
PCO Grant Agreement

Signing
Grantee Deposits
Contribution into bank
Account
First Disbursement Request
Service Provider
Review/Endorsement
Requests
PCO Review Request & For information

disburse
Acknowledgement Service Provider

informed
Grantee Receives 1st
Disbursement & commence
implementation
REPUBLIC OF ZAMBIA
VII. IMPLEMENTATION ARRANGEMENTS
Overall Management
75. Under the institutional framework of the Ministry of Agriculture (MoA), the lead executing agency of
E-SAPP, the Policy and Planning Department (PPD) of MoA, the overall administrator and coordinator of
the Programme, the PCO will be responsible for overall management of the MGF. This includes managing
the process of project development, review, approval and execution including inter-alia, Financial
Management, Procurement and disbursement, planning, supervision, monitoring and evaluation. The
grantees will directly implement the projects with technical support of Service Providers. It is their
responsibility to ensure implementation within terms and conditions as stipulated in the Grant Agreement
including utilization of grants as intended, achievement of the objective of the project, sound financial
management and timely submission of progress reports. The financing period of each project will not be
more than two years.
Pre-Implementation Workshop
76. Following the approval of projects, prior to first disbursement and beginning of implementation, the
PC will arrange a workshop to be attended by grantees, the PCO staff and concerned Provincial and
District Officers. The workshop will discuss in detail the implementation arrangements. These will include
up-dating the implementation schedule, the disbursement schedule, accounting, financial management
including formats, and reporting schedule, project supervision, monitoring and evaluation including
generation of data, analysis and management, and Knowledge management.
Planning Monitoring and Evaluation

77. The preparation of AWPB by E-SAPP is participatory, therefore the relevant staff of grantees should
participate to ensure that their respective plans and budgets are captured in the E-SAPP AWPB. The
Service Providers, involved in the implementation of MGF should also submit their AWPB detailing
activities and related budget, as well as implementation schedule.
Progress Reporting, Monitoring and Evaluation

78. The grantees and related Service Providers under all windows will produce and submit quarterly
reports starting from the date of first disbursement. The first report should end with the beginning of
subsequent quarter of the calendar year permitting subsequent reports to coincide with the end of each
quarter of the calendar year. Upon first disbursement, M&E officer, information/knowledge management
officer, and ABU staff should hold a workshop with relevant grantee officers to guide them on data
generation, analysis and management, reporting obligations and formats.
79. A suitable M&E system for the MGF should be established and integrated into the overall M&E of
E-SAPP. As each project is expected to be different, there will be a need to define for each project,
monitoring indicators and milestones against which progress will be measured. The Grant Management
Officer of ABU will review, synthesize the quarterly progress reports from grantees, and produce a six
monthly and annual progress reports for MGF for integration into E-SAPP six monthly and annual
progress reports. Similarly, Financial Progress reports will be prepared. In addition, ABU in collaboration
with M/E unit and field officers will arrange field supervision on a six-month basis, to check and review
implementation status and collect necessary data and information that will feed into the M&E system.
Furthermore, PCO will collect information, and data necessary to monitor output indicators that relate to
MGF, to measure contribution to the E-SAPP objective and goal. These indicators are reflected in E-
SAPP logical framework which is shown in the E-SAPP Final Design Report.
Impact Evaluation
80. The M&E unit of PCO will carry out annual surveys of MGF operations to set the basis for impact
evaluation of MGF. The impacts of MGF will also be measured through Mid-Term-Review, Beneficiary
Impact Evaluation, and Project Completion of E-SAPP that will be conducted by PCO. Grantees should
participate in these activities.
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Knowledge Management (KM)

81. Information and Knowledge Management Officer will be responsible. She/he shall work with the
grantees to develop a knowledge management plan including publications for the different projects in line
with the KM strategy of E-SAPP. She/he shall provide guidance to grantees, the Service Providers, and
other implementing agents on how to identify and record interesting human and other stories. Any
publication, including contents and mode of publication shall be jointly approved by the PCO and the
concerned grantee before publication. Knowledge dissemination for learning shall be in line with the
policy and strategy of E-SAPP but shall be agreed with the grantee. Grantees, and other implementing
agencies shall provide data and reports for at least a period of two years after grant closure on the
outcomes, innovations, products and facilities created by grantee through MGF funding.
Accounts, Disbursements and Financial Management

82. The Finance and Administration Manager of PCO is responsible for ensuring that all grantees keep
adequate financial records and carry-out audits as consistent with the E-SAPP accounting and auditing
procedures. Each grantee has the primary responsibility of keeping accounting records and for ensuring
sound financial management as contained in the Grant Agreement. It shall maintain accounting records,
along with all supporting documents including purchase orders, invoices, receipts, vouchers etc. for
expenditures financed by the grant. Such accounts and records will reflect all receipts and use of grant
funds (both E-SAPP and beneficiary contribution). The grantee shall maintain similar accounting records
of its own contributions. The grantee shall submit regular, financial reports backed by a copy of all
documents justifying the expenditures. The originals of such documents should be kept appropriately for
inspection during supervisions and for audit purposes. A complete assets register shall also be
maintained in accordance with guidelines that shall be provided by the Finance and Administration
Manager of PCO. All financial reports shall be signed by an authorized representative of the grantee.
83. Accounts: Grantees, Service Providers and other implementing partners will keep separate
accounts for expenditures financed by grants from MGF. For the purpose, Finance, and Procurement unit
of PCO will assess, during the pre-implementation workshop to establish the capacity of grantees to
maintain accounts and carry-out necessary financial management and procurement. The result of the
assessments will advise assistance necessary to meet Government and IFAD requirements. For windows
1 & 2, there may be a need to provide templates to track expenditures and procurement data, as the
organisation drawing assistance from these windows may not have a formal financial, M&E or
procurement systems. The grantees under window 3- Large Agribusinesses are likely to have suitable
systems that can be used. However, care must be taken to include measures that can isolate
expenditures and procurements relating to grant financing under MGF.
84. Disbursements: All disbursements in relation to grants to grantees shall exclusively be made
through bank transfer in local currency into a bank account specified by the grant recipient. The bank and
authorized signatories shall be provided to PCO. The bank account must be opened under conditions
satisfactory to PCO including protection against set-off and seizure. No cash or in-kind payments from
PCO will be permitted. Requests for payment from grantees under window 1 & 2 shall be submitted to the
Finance unit of PCO. The Finance unit shall submit it to Agribusiness Manager for clearance. Upon
clearance, it will be sent to the PC for payment authorization before payment by the Finance unit. For
Large Agribusiness [Window 3], requests will be submitted to the Service Provider who will clear as
necessary and submit to PC for authorization before payment by the Finance unit of PCO. Recipients are
expected to confirm receipt by e-mail within a week of receipt. Requests for payments should be backed
by necessary documentation. Payments out of the bank account shall be made exclusively for eligible
expenditures as specified in the Grant Agreement. Disbursements of the grant shall be in tranches. The
documentation for the first disbursement shall be signature of the Grant Agreement, evidence of deposit
of grantee contribution in a bank account; procurement plan, and disbursement request on approved
form. For subsequent disbursements, documentation will be: Project progress report showing
achievement measured against agreed milestone as set out in the Grant Agreement, supporting
documentary evidence confirming utilization of past grant disbursement, and contribution of grantee,
fulfilment of progress reporting (Technical and Financial), and bank statement confirming balance not
exceeding 30% of past disbursements, and payment request. In certain cases, direct payments may be
REPUBLIC OF ZAMBIA
made upon request from the grantee, to a vendor of goods and services. In such cases, the grantee has
to provide the necessary documentation and a disbursement request, specifying the details for the
payment i.e. name of payee, bank account number, purpose for payment and certification that payment is
for eligible expenditure under the grant.
85. The financial management procedures and guidelines for MGF is in appendix 17.
86. Procurement: In order to ensure timely procurement, ensure adherence to the principles of
economy, efficiency, and transparency, and facilitate monitoring, a procurement plan will be prepared and
approved along with AWPB. All goods procured by the grantee using the proceeds of the grant shall be
used exclusively for the purposes of the project as stipulated in the Grant Agreement. Procurements will
be carried out directly by the grantee in accordance with procedures satisfactory to the Government and
consistent with IFAD guidelines and procedures. In certain cases when grantee cannot undertake the
procurement, it can seek assistance of PCO. In such cases, a formal request will be made by the grantee.
Technical specifications will be prepared by the grantee and reviewed and certified by PCO. The
PCO/Province shall undertake the procurement following a suitable procurement procedure. In such
cases the representative of grantee will sit on the procurement evaluation committee to ensure
transparency. Procurement of Service Providers will follow the procurement procedures of GRZ for
recruiting Consultants, consistent with IFAD procedures and guidelines. For procurement of external
reviewers, the IDIQ procedure will be applied for reasons indicated in para 46. A procurement guideline
for MGF is shown in appendix 16.
Ownership of Goods, Data and Information

87. All goods purchased with the proceeds of the grant shall remain the property of the grantee upon
satisfactory completion of the project. The grantee shall take good care of the goods including carrying
out appropriate repairs and maintenance and insuring them against losses, damages and other risks. All
data and information including intellectual property and copy rights shall also be the property of the
grantee but shall be made available freely to GRZ, IFAD and other MGF target group for own use. They
should be made freely available to PCO for reporting, publication and dissemination to the general public.
In case of cancellation of grant, goods, data and information shall remain the property of the grantee.
However, with respect to goods, the GRZ reserves the right through the PCO, to demand reimbursement
of the full grant amount or a portion thereof. In respect of data and information, the grantee shall make
them freely available to PCO for use as necessary.
VIII. PROJECT COMPLETION AND CLOSURE

88. The implementation and disbursement period shall be two years after the date of first
disbursement. All disbursements must be made within this period except for 5% of grant retained by PCO
for post completion activities. This amount will be disbursed after all conditions for orderly closure of
project have been met. Project will close not later than 60 days after completion date. There can however,
be a premature termination of a project if the applicant does not keep to terms and conditions specified in
the Grant Agreement, or Force Majeure, or termination of IFAD finance to E-SAPP MGF.
Completion and Closure Procedure

89. Three months to the completion date, the PC shall send a letter to the grantee reminding it of the
project completion and closure dates. The letter will also list all technical and financial reports outstanding
and which must be submitted before the completion date, inform the grantee of undisbursed amount
remaining with PCO, and that an amount of 5% of grant will be retained for post completion activities, and
that any excess not disbursed by completion date shall be cancelled, and similarly any disbursed amount
remaining un-used in the grantee grant account should be returned to PCO grant account. The letter will
also list post completion activities which must be completed not later than 60 days after completion, they
include (i) An end of project report in a format agreed with PCO, (ii) Final Accounts report, and (iii) list of
assets and their condition. Following the meeting of all conditions, the PC shall send a project closure
letter to the grantee announcing the formal closure of the project, and disburse the 5% of grant
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REPUBLIC OF ZAMBIA
outstanding. All terms and conditions as contained in the Grant Agreement remain in full force and effect
until the grantee receives the close-out letter from the PC.
Forced Project Closure

90. The project can be brought to untimely closure through termination or cancellation of Grant
Agreement. The Permanent Secretary of MoA upon recommendation of PC can terminate the
implementation of a project under the following conditions;
i. Delay in starting the implementation of the project and the PC believes that the project can
no longer meet its objective.
ii. Failure to account for the any amount received after a month’s notice from PC.
iii. Use of grant fund for activities and purposes not approved under the project and not
permitted in the Grant Agreement.
iv. Failure to follow the provisions in the Grant Agreement.
v. Persistent delays in submitting due reports (Technical and Financial), and/or failure to
maintain records and accounts following guidelines
vi. Impossibility to reach the agreed objectives of the project due to force majeure or other
reasons
vii. IFAD terminates financial support to E-SAPP MGF or upon the expiry of the E-SAPP
Financing Agreement.
91. The PC will recommend to the Permanent Secretary of MoA to undertake remedies as contained in
the Grant Agreement for project termination or cancellation.
92. Appendices: All the application templates and other relevant documents used in the E-SAPP MGF
processes are attached in the appendices below. These templates may be revised periodically by the
PCO in consultation with the Internal Review Committee for the purpose of making these documents
more relevant and appropriate for effective programme implementation.
REPUBLIC OF ZAMBIA
Appendix 1: Application for Participation in the E-SAPP-MGF
APPLICATION FOR PARTICIPATION IN:

ENHANCED SMALLHOLDER AGRIBUSINESS PROMOTION PROGRAMME
(E-SAPP)
MATCHING GRANT FACILITY (MGF)
We wish to apply for assistance from Enhanced Smallholder Agribusiness Promotion

Programme (E-SAPP) – Matching Grant Facility. We provide below detailed information about
our Organisation and confirm that we met the eligibility criteria and conditions to participate
under Window …….
I. Profile of Organization
1. Name and Acronym of Organisation …………………………………………………
……………………………………………………………………………………………
2. Type of Legal Registration ---------------------------------------------------------------------
Registration No:………………………………….. Date: ……………………………
3. Central Business Objective:

……………………………………………………………………
……………………………………………………………………………………………
4. Trade Licence Number: ……………………………………………………………….
5. Headquarters Physical Address: ……………………………………………………
……………………………………………………………………………………………
Email Address: ……………………….Fax: ………………Tel………………………
6. Name of Contact Person: ……………………………………………………………..
Title: ……………………………………………………………………………………..
Address: …………………………………………………………………………………
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E-mail: ………………. Land Phone: …………… Mobile Phone: ………………….
7. Board Chairman: Name………………………………………………………………
Address: …………………………………………………………………………………
E-mail: ………………. Land Phone: …………… Mobile Phone: ………………….
8. CEO: Name ……………………………………………………………………………
Address: …………………………………………………………………………
……………………………………………………………………………………
E-mail: ………………. Land Phone: …………… Mobile Phone: ……………
9. Indicate Branches/Address: If any ……………………………………………………
……………………………………………………………………………………………
……………………………………………………………………………………………
……………………………………………………………………………………………
II. Business Management Capacity, Governance and

Financial Status
1. Business Establishment:
Management Staff : No. ………………………………………………………
Senior Staff: No. ………………………………………………………..
Junior Staff: No. ………………………………………………………
Others: No. ………………………………………………………
2. Governance:
Last Board Meeting: Date . …………………………………………………….
Last Annual General Meeting: Date ………………………………………………….
Last Audit Report: Date ………………………………………………………
3. Financial Status:
Have you been running on a profit for the last 3 fiscal year?
REPUBLIC OF ZAMBIA
Yes/No, If No, when was the last year you ran on profit …………………………
Have you received loans from banks/other financing institution?
Yes/No, If Yes
What was the total amount of loan in the last 3 years ZMW ………………………
What was the loan used for …………………………………………………………
……………………………………………………………………………………………
What is the current total indebtedness: ZMW ………………………………………
Are you current in repayment? Yes/No
If No, how many instalments outstanding: No. ……………………………………...
Amount ZMW……………………………………………………………………………
III. Previous Experience with External Project Financing
1. Have you received grant financing in the past from any project including SAPP:
Yes/No
If Yes, How many; Please provide information on it/them
Name of Project: ………………………………………………………………………
Years of Assistance: …………………………………………………………………
Amount of Assistance ZMW …………………………………………………………..
Results (Please provide performance – successful/failed operation, reasons for

success/failure, did you meet your obligations? if not, why not, what were your
experiences and lessons).
……………………………………………………………………………………………
……………………………………………………………………………………………
……………………………………………………………………………………………
……………………………………………………………………………………………
2. Have you any collaboration/partnership with smallholder’s

farmers/producers/rural agribusiness in the past? If yes, please elaborate and
confirm willingness to continue/expand. If no, Are you prepared to establish
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such collaboration? If yes, have you undertaken any consultation to establish

collaboration/partnerships, please indicate status.
……………………………………………………………………………………………
……………………………………………………………………………………………
……………………………………………………………………………………………
……………………………………………………………………………………………
IV. Attachments (Copies)
1. Certificate of Incorporation/ or any other legal Business

Registration Certificate
2. Memorandum and Articles of Association.
3. Last two years Audit reports
4. Any Contract/MOU for collaboration with smallholder
farmers/producer Groups, Agro-rural MSME
5. Board Resolution permitting seeking of assistance from E-
SAPP; MGF.
I confirm that the information is current and correct to the best of my knowledge.
Title of Authorised Representative: …………………………………………………
Name of Authorised Representative: ………………………………………………
Passport/ID No. ………………………………………………………………………
Address: ………………………………………………………………………………..
Phone No. ………………………………………………………………………………
E-mail: …………………………………………………………………………………
Signature: ………………………………………………………………………………….
Date: Day …………………….. Month …………………………… Year …………………

REPUBLIC OF ZAMBIA
Appendix 2a: Project Concept Note - Summary Sheet
PROJECT CONCEPT NOTE: SUMMARY SHEET
1. Submitting Organization ------------------------------------------Financing Window ------------------------
2. Project Title:………………………………………………………………………………………….
Location: Province ----------------------------------- District -------------------------------------
3. Type of operation: Agric production

Processing
Marketing/trade
Services
Warehousing
Others. (Please specify) ------------------------------------------------------------
4. Project implementation period --------------------------- years
5. Expected starting date ------------------------------- Expected Completion Date ----------------------
6. Total cost estimate ZMW -------------------------------------
7. Financing plan
Request from MGF; ZMW
Contributions
- In-kind estimate ZMW
- Cash ZMW
Total contribution ZMW
- Others (please specify) ZMW
Total financing
8. Estimated Net Income ZMW ………………………………………………………..
9. Collaborator/partner. --------------------------------------------------------------------------
Authorized representative: Name ---------------------------------------------------------
Signature -------------------------------------------------------
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Date: -------------------------------------------------------------
Appendix 2b: MGF – Project Concept Note (Template)
PROPOSAL FOR PARTICIPATION IN:

ENHANCED SMALLHOLDER AGRIBUSINESS PROMOTION PROGRAMME
(E-SAPP)
MATCHING GRANT FACILITY (MGF) OPERATION
PROJECT CONCEPT NOTE - TEMPLATE
Use of Project Concept Note (PCN)

Project Concept Note (PCN) is the first step in preparing a Full Project Proposal. PCN should
therefore, appropriately reflect the project envisaged to be submitted for eventual financing. The PCN
will be used to make a decision on whether to select the project for further elaboration for funding.
For Official Use Only
Date of Submission ………………………………… MGF Registration No. …………………………..
1. Proposed Project Title: …………………………………………………………….
2. Location: Province …………………………… District ………………………
3. Background of Principal Applicant
Name of Organisation: …………………………………………………………………………………….
Type of Organisation: ……………………………………………………………………………………….
Registration No. …………………………………………Date …………………………………………….
Organisation Headquarters Address: ………………………………………………………………………
Name of CEO: ……………………………Contact Phone No.……………………. Email……………….
Name of Chairman of Board: ……………………… Contact Phone No………………. Email…………
Short Statement of Organisations Operations: [ Central business objective, current operation and
location(s), Operational Capacity – no. of staff by post, financial capacity. Governance – Date of last
REPUBLIC OF ZAMBIA
Board meeting, Date of last Annual General meeting, last Audit report date. A brief description of key
partners if applicable, add any other useful information.]
4. Project Background
Provide an overview of the proposed project, including the main type of
activities (production, processing, marketing/trade, services, others please
specify, past experience with the type of project proposed, if new, relationships
with current operation, what is the project period, and when do you plan to
start, provide collaboration with other value chain operators or partnership if
applicable.
5. Problem Statement
What is the main problem that the proposed project will address in relation to
the existing operations.
6. Overall Objective
Provide the overall objective of the proposed project (Please relate this to the
problem statement).
7. Project Description
i) Project Component(s) and Activities
Please describe the component(s) of the proposed project and for each
Component describe the main activities that will address the problem
stated above. Indicate the project implementation period, and when you
intend to start operation.
(ii) Indicative Cost Estimate and Proposed Financing Arrangement (Use

the following table for Cost/Financing)
This should provide an indicative cost estimate for the entire period of the
proposed project but need not be broken down into years of
implementation. However, estimates should be realistic and close to what
is expected at full proposal. Financing Plan need not be limited to E-
SAPP: MGF provision and applicant contribution but could include finance
expected to be provided by other financiers’ loan or grant or contribution
in cash from Partner/Collaborator.
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Indicative Cost Estimates (ZMK)
Sources of Financing
Components Activitie Items Unit of Total Unit Total Applican Applican MGF Total Financing MGF
s of Measure Inputs Cost Cost t In Kind t In Cash Grant others, Financi
(Please inputs required (ZMK) Estimat please ng
name (Please e (ZMK) specify s% of
below) name total
below)
Component 1 1 1
2
3
‘’
‘’
Sub
Total --------- ----------- ---------
2 1
2
3
‘’
‘’
Sub
total
--------- ----------- ---------
Component 1: Total --------- -----------

Component 2 1 1
2
3
‘’
‘’
Sub
Total
2 1
2
3
‘’
‘’
Sub
total
Component 2: Total
Total Base Costs
Estimates
Contingencies
5%
TOTAL
Contingencies reflect possible underestimation of physical inputs and increase in unit costs due to inflation.
8. Existing Facilities and Other Resources to Be Made Available in Support

of Project Development
REPUBLIC OF ZAMBIA
Please provide in the table below, facilities that you and partners if applicable,
will make available in support of the proposed project. Such facilities can inter-
alia include: land, offices, warehouse, machinery, equipment, staff, staff support
facilities, insurance coverage independent or for the project within the overall
insurance of the organization, etc.
Facilities Description Quantity Use to be Estimate Comment

Name made d Cost s
under the ZMW
project
9. Indicative Outputs and Gross Income from Proposed Project

Provide, as closely as possible the outputs and gross income expected. Use
the table below.
Outputs Unit of Quantity Expected Expected Comments

Measure Price ZMW Out-Turn
or Gross
Revenue
ZMW
TOTAL ---------------- -------------- ---------------
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INDICATIVE GROSS PROFIT/LOSS STATEMENT
Product Name Unit of Estimated Quantity Out-Turn Comments

Measure Unit Price ZMW
ZMW
1
2
3
‘’
‘’
A. Total Out-Turn - - -
Cost
(ZMW)
Expenditures
Variable Costs
- Labour
- Salaries/Allowances
- Supplies
- Others (please
specify)
‘’
‘’
‘’
B. Total - - -
Expenditure
C. Gross Profit (A- - - -

B)
11. Implementation Arrangements

Please produce two or three paragraphs on implementation arrangements
indicating who will be directly responsible, others who will support and their
responsibilities, indicate whether the persons/facilities for implementation are
already available or will be made available by the project, provide briefly,
information on financial management, supervision, monitoring and control. You
can use the table for supplementary information. If you will seek technical
assistance please provide details – source, responsibility, experience and
period of use. Confirm availability.
Main Activities Responsibility Experience Comments

for (State by Title)
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Implementation
12. Product Markets/Marketing

Please provide information on how the products outputs will be marketed,
indicate market outlets, sales contracts if already in place, and who will be
responsible. You may also provide previous experiences.
13. Expected Direct and Indirect Beneficiaries and Sources/Type of Benefits

Please provide below the expected direct and indirect beneficiaries, please
disaggregate by gender and youth.
Expected Total Women Youth Benefits Sources Comment

Beneficiarie No. to derive of s
s benefits
Direct
Indirect
14. Environmental Considerations

Please describe briefly the location of the proposed project and indicate climate
risks exposure and how you have addressed them in the past, and how you
hope to address them under the proposed project. Also considering the nature
of the proposed project briefly discuss envisaged environmental and social
risks (dust/smoke emission, drainage problems, water pollution, environmental
sanitation issues, solid waste disposal, health, operation hazards and worker
protection etc), and how you intend to address them.
15. Project Risks and Mitigation Measures

You may use the table below and supplement with additional information as
may be required.
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Expected Risks Consequences of Risk Mitigation Measures
16. Declaration
I/We the undersigned, the authorised representative(s) of the applicant (name
of Organisation) herewith submit(s) this Project Concept Note for consideration
and eventual financing of resulting project under window …….? of E-SAPP
MGF. I/We confirm that (name of applicant) met eligibility criteria and
conditions for assistance under Window ….?. I/We further confirm that should
this PCN be accepted for further processing, we have the capability to prepare
and submit a Full Project Proposal within 4 weeks of notification to so produce.
Authorised Representative(s) of Organisation:
Name…………………………………. Signature …………… Date

…………………
Authorised Representative of Partner (if applicable):
Name…………………………………. Signature …………… Date

…………………
REPUBLIC OF ZAMBIA
Appendix 3: MGF - Application Screening Form (Window 1 & 2)
ENHANCED SMALLHOLDER AGRIBUSINESS PROMOTION PROGRAMME [E-SAPP]
MATCHING GRANT FACILITY (MFC)
APPLICATION SCREENING FORM [WINDOWS 1 & 2]
1. General information
Name of organization
Certificate of incorporation/or other form of Number: date:
registration
Window under which application is submitted
Date of application
2. Screening for eligibility criteria and general conditions for participation
Screening criteria Satisfactor Non-

y satisfactory
Yes No
Has the applicant fully filled the application form with required
attachments
Is the applicant an appropriate type of organization for the window
applied under
Applicant legally registered in Zambia to do business in
agriculture/agribusiness
Has the applicant been operating in the value chains of the focus of
E-SAPP-MGF
Has the applicant been collaborating or intend to collaborate with
smallholders/producers
Is the applicant operating as a fully commercial organization or
show
Has the nucleus of staff/members undertaken training in farming as
a business or is organization ready to undertake FaaB if required
For window 1 - demonstrated capacity to make required
contribution in cash or kind or both, for window 2, demonstrated
capacity to make desired contribution in cash
Has good financial standing
Has sound governance and proven management capacity
Appropriate body of the organization has approved seeking
assistance from E-SAPP-MGF.
Comment -------------------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------------------------------
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3. Certification
- Certified as meeting eligibility criteria and conditions for participation.
- Has not met eligibility criteria and conditions for participation
Screener particulars
Name Position Signature Date
4. Verification at provincial level
Checked and confirmed not confirmed
If not confirmed please provide reasons ----------------------------------------------------------------------------------
5. Vetting by PCO
Approved for participation
Not approved for participation
Note- if not approved for participation, please provide reasons ----------------------------------------------------

REPUBLIC OF ZAMBIA
Appendix 4: Project Concept Note Screening Form (Window 1 & 2)
ENHANCE SMALLHOLDER AGRIBUSINESS PROMOTION PROGRAMME (E-SAPP)
MATCHING GRANT FACILITY (MGF)
PROJECT CONCEPT NOTE SCREENING FORM (WINDOWS 1 & 2)
1. General information
- Name of organization ………………………………………………………………………………….
- Project title ………………………………………………………………………………………………
- Project location; Province ------------------------------------------------- district

-------------------------------------------
- Window under which project is proposed ---------------------------------------------------------------------
- Project implementation period (years) -------------------- years
- Collaboration with smallholder farmers/producers Yes. No
2. Project concept note Cost and Financing
- Total indicative project cost: ZMW--------------
- Request for grant financing from MGF: ZMW ------------
- Applicant contribution: cash ZMW
- Other Contributors (please indicate)
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3. PCN screening
Screening criteria Screening status

Yes No
Concept note submitted on E-SAPP: project concept notes
template
All sections of the template completed satisfactorily
Is the proposed project responsive to E-SAPP: MGF objective
agricultural commercialization, market access, competitiveness,
value addition
Will the proposed project be completed before or by E-SAPP
closing date
Will the project reach (through contracts/MoUs) a sufficient
number of smallholder farmers/producers (at least 200)
Does the proposed project fit into the policy of the window applied
under
Has the applicant demonstrated enough capacity to implement the
proposed project
Does the applicant have necessary experience to implement the
proposed project? At least 2years involvement in the type of
activities proposed
If No (above) does the applicant have a suitable technical partner
with requisite experience; or has made provision for necessary
technical assistance under the proposal project
Is the proposed project potentially viable technically and financially
Has the applicant submitted application in approved template with
necessary attachments
Comments (please add comments considered in making your recommendations
4. Reviewer recommendation: approve / rejection
Reviewer name ----------------------------------------------------- signature ------------------ date ----------
5. If the recommendation is to reject the PCN

Please provide reasons ……………………………………………………………………………….
……………………………………………………………………………………………………………
……………………………………………………………………………………………………………
…………………………………………………………………………………………………………..
6. Provincial level confirmation of recommendation; approve Disapprove
If recommendation is disapproved, please provide reasons --------------------------------------------------------

REPUBLIC OF ZAMBIA
Name ------------------------------------Title ---------------------signature ------------------------ date ------------------
Appendix 5A:
The Programme Coordination Office

Enhanced Smallholder Agribusiness
Promotion
Programme (E – SAPP)
(Please insert physical Address and
Email)
Date_______________
To (The Organization name)
(Address to be inserted)
Dear Sir/Madam
CALL FOR FULL PROJECT PROPOSAL
We refer to (Name of Organization) Application and Project Concept Note submitted on (insert date of
submission) for consideration of assistance by E – SAPP Matching Grant Facility
Window________________
We have screened your application and confirm your meeting of Eligibility Criteria and General
Condition for participation in E – SAPP MGF Window__________. We have also reviewed your
Project Concept Note and found it consistent with the objective of E – SAPP MGF, and it is of the
quality to proceed to the preparation of a Full Project Proposal. Consequently, you are invited to
prepare and submit a Full Project Proposal to PCO through the District Agricultural Coordination
Office in the address shown below.
District Agricultural Coordination Office

Please insert full physical Address, E-mail, and Telephone contact
You are expected to submit the Full Project Proposal using the E-SAPP – MGF – Full Project
Proposal Template attached to this letter. The Full Project Proposal should be submitted within 4
(four) weeks of the date of this letter. You will submit 3 (three) copies of the report covered by a
submission letter and a copy for acknowledgement.
A one day pre-preparation workshop will be arranged and hold at the provincial headquarters within
two (2) weeks of the date of this letter to provide guidance on the preparation of, and submission of
the Full Project proposal, and also explain the processes leading to final decision on acceptance of
proposal or otherwise. We will advise you shortly, about the date as well as the details of the
workshop. We expect that the staff who will be involved in the preparation of the Full Project Proposal
will participate in the workshop. Should you need a mentor to assist you in the process of preparing
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the Full Project Proposal, you will be linked to the mentor. You will please note that the mentor will not
be responsible for preparing the Full Project Proposal.
If you decide to proceed with the preparation of a Full Project Proposal, a team from the provincial
office will visit you to carry out a field inspection/Due Diligence. You will be informed of the date of the
visit as well as the requirements for the visit. You will please note that the report of the mission will be
considered in deciding on acceptance of your project or otherwise, for funding.
Please confirm your decision to proceed with the preparation of Full Project Proposal, by signing and
returning to E-SAPP the duplicate copy of this Call for Full Project Proposal within 5 (five) working
days of the date of this letter.
We look forward to hearing from you shortly and to work with you on the preparation of the proposal.
Yours faithfully,
For, ENHANCED SMALLHOLDER AGRIBUSINESS PROMOTION PROGRAMME
Programme Coordinator. Name_____________________________________________
Signature ___________________________ Date______________
We hereby confirm that we will prepare and submit the Full Project Proposal on schedule, and attend
the pre-preparation workshop at a date to be notified.
For and on-behalf of (Name of Organization to be inserted)
Authorised Representative: Name _____________________________________________
Signature _________________________ Date _______________

REPUBLIC OF ZAMBIA
Appendix 5B:

Enhanced Smallholder Agribusiness Promotion Programme (E – SAPP)
(Please insert physical Address and Email)
Date_______________
Dear Sir/Madam
DIFFERED APPROVAL OF YOUR APPLICATION AND PROJECT CONCEPT NOTE
Window________________
We have screened your application and reviewed the Project Concept Note and found that certain
issues and information which are important for a firm decision on your request were missing.
Consequently we have differed approval pending the time you can address the issues and make the
required information available to PCO.
The issues and information required to be addressed are listed below for your consideration and
action as required.
(Please insert the reasons for differing decision on approval here).
Upon necessary amendment of the documents including a full response to the issues and information,
stated above, you may resubmit your application and Project Concept Note directly to PCO.
If amended documents are found satisfactory, a final decision will be made and you will be invited to
submit a Full Project Proposal.
If you need to discuss the reasons for deferment for further clarification you may visit PCO at your
convenience at the above address.
Yours faithfully,
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Signature ___________________________ Date______________
Appendix 5C:

Promotion Programme (E–SAPP)
Date_______________
Dear Sir/Madam
REJECTION OF APPLICATION AND PROJECT CONCEPT NOTE
Window________________
We have screened your application and reviewed the Project Concept Note and found both
inadequate for support under E –SAPP MGF window _____________. We regret, therefore to inform
you that your request for assistance has been refused. The reasons for this decision are listed below;
(Please insert reasons for rejection of application and project concept note)
If you wish to resubmit your request, you can do so by responding to the reasons for the rejection of
your request. You may submit your Application and Project Concept Note to the District Agricultural
Coordination Office as previously done. Should you so desire, you can visit PCO at the above
address, for discussion and clarification of the reasons for not accepting your request.
Yours faithfully,

REPUBLIC OF ZAMBIA
Signature ___________________________ Date______________
Appendix 6A:
FULL PROJECT PROPOSAL
PROJECT SUMMARY SHEET
1. Submitting Organization ------------------------------------------ Financing Window -----------------------
2. Project Title:……………………………………………………………………………………………….
3. Location: Province -----------------------------------
District -------------------------------------
4. Type of operation: Agric production

Processing
Marketing/Trade
Services
Warehousing
Others.(Please specify)
5. Project implementation period --------------------------- years
6. Expected starting date ------------------------------ Expected Completion Date --------------------------
7. Total cost estimate ZMW -------------------------------------
8. Financing Plan
Request from MGF; ZMW
Contribution
- In-kind estimate ZMW
- Cash ZMW
Total contribution ZMW
- Others (please specify) ZMW
Total financing
9. Estimated Net Income …………………………………………………………………….
10. Collaborator/Partner. --------------------------------------------------------------------------
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Authorized representative: Name -------------------------------------------------Title-----------------------
Physical Address ……………………………………………….. Phone No………………………..
Signature -----------------------------------------------------
Date ------------------------------------------------------------ Email ……………………………………..
Appendix 6B:
PROPOSAL FOR PARTICIATION IN:
ENHANCED SMALLHOLDER AGRIBUSINESS PROMOTION PROGRAMME (E-SAPP)
MATCHING GRANT FACILITY (MGF) OPERATION
FULL PROJECT PROPOSAL (FPP) TEMPLATE
Use of FPP
FPP should build on the PCN already approved and provide full details of the proposed project that will enable
a decision on whether to provide grant financing under a specified MGF window. Please note that project
implementation period should be realistic and not limited to the 2yr financing period of MGF. Costs should be
fully estimated and not tailored to MGF grant allocation and applicant contribution only. If these sources are
inadequate, applicant should seek additional financial support, as necessary, finance can be sought from MGF
in two phases as long as the ceiling is not exceeded, and project completion date does not exceed the closing
date of E-SAPP which is ----------------------- This template should be fully completed.
For Official Use Only
Date of Submission ………………………………… MGF Registration No. …………………………..
1. Proposed Project Title: …………………………………………………………….
2. Location: Province …………………………… District ………………………
3. Background of Applicant
Name of Organisation: …………………………………………………………………………………….
Type of Organisation: ……………………………………………………………………………………….
Registration No. …………………………………………Date …………………………………………….
Organisation Headquarters:
Address ……………………………………………………………………………………………………….
Name of CEO: ……………………………… Phone No……………………. Email……………………..
Name of Chairman of Board: ……………………… Phone No………………. Email……………………

REPUBLIC OF ZAMBIA
Short Statement of Organisations Operations: [ Central business objective, current operation and
location(s); Operational Capacity – no. of staff by post; financial capacity. Governance – Date of last
Board meeting, Date of last Annual General meeting, last Audit report date. A brief description of key
partners if applicable, add any other useful information.]
4. Project Background
Provide an overview of the proposed project, including the main type of activities (production,
processing, marketing/trade, services, others (please specify), past experience on the type of
activities included in the proposed project, if new, relationships with current operation, what is
the project period, when do you plan to start, provide collaboration with other value chain
operators or partnership if applicable.
5. Problem Statement
What is the main problem that the proposed project will address in relation to the existing
operation.
6. Overall Objective
Provide the overall objective of the proposed project (please relate this to the problem
statement above and objectives of E-SAPP).
7. Project Description, Costs and Financing

(i) Project component(s) and activities
Please describe the component(s) of the proposed project and for each component
describe the main activities that will address the problem stated above. Indicate the
project implementation period and when you intend to start operation. Specify the
technology base and specify past experience with the technology. If you have no
practical experience with the technology indicate support you have planned to
introduce the technology.
(ii) Detailed inputs (use the following table)

Describe for each year of project, the components, activities and inputs. State
sources of data and please indicate sources of inputs.
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Table ---Inputs Required by Component(s), Activities and Items of Cost.
Quantity of Inputs
Components Activities Items of Unit of PY1 PY2 PY3 PY4 Total Unit Total Comments
(Please inputs Measure Inputs cost Cost
name (Please (ZMW) (ZMW)
below) name
below)
Component 1 1 1
2
3
‘’
‘’
Sub Total ------------ -------- --------- ----- ----------- --------- -----------

- -
2 1
2
3
‘’
‘’
Sub Total ------------ -------- --------- ----- ----------- --------- -----------
Component 1: Total
Component 2 1 1
2
3
‘’
‘’
Sub Total ------------ -------- --------- ----- ----------- --------- -----------

2 1
2
3
‘’
‘’
Sub Total ------------ -------- --------- ----- ----------- --------- -----------
Component 2: Total
Total Base Costs
Estimates
Contingencies
5%
TOTAL
PY – Project Year
Note -No of years should be in line with the technology and gestation period. It can be less or more than four years.
(iii) Detailed cost

REPUBLIC OF ZAMBIA
Please estimate the detailed costs by year, component(s), activities and items
building on the table above. Also provide under comments any explanation needed to
understand the cost estimates e.g. sources of prices used.
Table – Detailed Cost Estimates by Year

Cost Estimate (ZMK)
Components Activities Items of Unit Cost PY1 PY2 PY3 PY4 Total Comments
(Please Inputs Cost
name (Please
below) name
below)
Component 1 1 1
2
3
‘’
‘’
Sub Total ------------

2 1
2
3
‘’
‘’
Sub Total ------------
Component 1: Total
Component 2 1 1
2
3
‘’
‘’
Sub Total -----------

2 1
2
3
‘’
‘’
Sub Total ------------
Component 2: Total -------------

Total Base Costs
Estimates -------------
Contingencies
5%
TOTAL
(iv) Financing Plan

Building on the cost table above, lease specify how the costs will be financed. Please
note that financing sources need not be limited to MGF grant and applicant’s
contribution (cash/kind) but could include finance expected to be provided by other
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financiers (grant/loan) contributions from collaborators/partners in cash should also

be reflected.
Table - Costs and Financing Plan (ZMK)
Sources of Financing
Component Activitie Items Total Applican Applican Total MGF Others Total MGF as
s s of Projec t in-kind t in-cash Contributio Grant (please (ZMK % of total
(Please Cost t Cost (ZMK) (ZMK) n (ZMK specify ) Financin
name (Pleas (ZMK) (ZMK) ) ) g
below) e (ZMK)
name
below)
Component 1 1
1 2
3
‘’
‘’
Sub
Total --------
2 1
2
3
‘’
‘’
Sub
Total ---------
Sub Total
Component 1: Total
Component 1 1
2 2
3
‘’
‘’
Sub
Total ---------
2 1
2
3
‘’
‘’
Sub
Total ---------
-
Component 2: Total
Total Base Costs
Estimates
Continge
ncies 5%
TOTA
REPUBLIC OF ZAMBIA
8. Existing Facilities and Other Resources to Be Made Available in Support of Project

Development
Please provide in the table below facilities that you and partners if applicable, will make
available in support of the proposed project. Such facilities can inter-alia include: land, offices,
warehouse, machinery, equipment, staff, staff support facilities, insurance coverage
independent or within the overall insurance of the organization, etc.
Table - Existing Facilities to Be Made Available to The Project
Facilities Description Quantity Use to be Estimate Comments

(Please made under Cost
Name) the project ZMW
9. Expected Outputs and Gross Revenue (Out-turn) from Proposed Project

Specify the outputs and gross revenue (out-turn) expected from the proposed project. Please
state sources of prices used in estimating out-turn. If some quantity of outputs has been
deducted for home consumption or other uses, please indicate. Also describe indirect benefits
quantitatively and qualitatively.
Table - Estimated Outputs and Revenue.
Outputs Unit of Quantity Expected Expected Comments

Measure Price Gross
Revenue/Out-
turn
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REPUBLIC OF ZAMBIA
Total -------------- --------------- ---------------
10. Implementation Arrangements

Please produce two or three paragraphs on implementation arrangements indicating who will
be directly responsible, others who will support and their responsibilities, indicate whether the
persons/facilities for implementation are already available or will be made available by the
project, provide briefly information on financial management, supervision, monitoring and
evaluation. You can use the table for supplementary information. If you will seek technical
assistance please provide details – source, responsibility, experience and period of use.
Confirm availability.
Main Activities for Responsibility Experience Comments

Implementation (State by Title)
1. Staff
2. Technical Assistance
11. Product Market/Marketing

Please provide information on how the products/outputs will be marketed, indicate market
outlets, sales contracts if already in place, and who will be responsible. You may also discuss
previous experiences. Examine competition and influence on penetration. Prospects for
future, branding and market penetration.
REPUBLIC OF ZAMBIA
12. Expected Direct and Indirect Beneficiaries, and Sources/Type of Benefits.

Please provide below the expected direct and indirect beneficiaries. Please disaggregate by
gender and youth.
Expected Total No. Women Youth Benefits Sources Comments

Beneficiaries to derive
Direct
Indirect
13. Projected Profit and Loss Statement.

This should be calculated using the table below when figures used cannot be traced to cost
and revenue estimates shown in this template, explanations will have to be provided e.g. for
fixed costs, depreciation charged will need explanation. No company overhead should be
included.
Table – Projected Profit and Loss Statement (ZMW)
How to YEAR YEAR 2 YEA YEAR 4 Comments

calculate 1 R3
A Quantity of products (specify unit)
B Price per unit of the product (a.

current or b. expected to be
achieved when product will be
sold) Tick one (a) ……. (b)……….
C VALUE OF PRODUCTS (C =AXB)
D Variable costs
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E Fixed costs (excluding company

overhead)
F TOTAL EXPENSES (F=D+E)
G PROFIT BEFORE (G=C-F)

INTEREST/TAXES
H Interest, taxes Pleas specify
TOTAL
J NET PROFIT (J=G-H)
CUMULATIVE NET PROFIT
14. Environmental Consideration

This section should describe clearly environmental and social issues related to the propoed
project. If infrastructure is involved or if large scale/intensive agriculture, please indicate
clearance with the Government authorities and describe possible impact and action you
intend to undertake during implementation to address them. Please describe briefly the
location of the proposed project and indicate climate risks exposure and how you have
addressed them in the past, and how you hope to address them under the proposed project.
Also considering the nature of the proposed project briefly discuss envisaged environmental
and social issues (dust/smoke emission, drainage problems, water pollution, environmental
sanitation issues, solid waste disposal, health, operation hazards and worker protection etc),
and how you intend to address them.
15. Project Risks and Mitigation Measures

You may use the table below and supplement with additional information as
may be required.
Expected Risks Consequences of Risk Mitigation Measures

Planned
REPUBLIC OF ZAMBIA
16. Sustainability/Scalability
Please describe measures that will enhance sustainability/scalability after grant financing.
You may refer to technology adopted, markets opportunity, environment and social issues,
financial outlook for the organization using the profit/loss statement, any plan already in the
pipeline for scaling-up etc.
17. Implementation Schedule

Please use the table below to present the implementation schedule of the proposed project.
Table – Detailed Project Implementation Schedule

Activities Project Year 1 Project Year 2 Project Year 3
QRT 1 QRT 2 QRT 3 QRT 4 QRT 1 QRT 2 QRT 3 QRT 4 QRT 1 QRT 2 QRT 3 QRT 4
18. Declaration.
I/We the undersigned, the authorised representative(s) of the applicant (name of Organisation)
herewith submit(s) this Full Project Proposal for consideration and eventual financing of
resulting project under window …….? of E-SAPP MGF. I/We confirm that (name of applicant)
met eligibility criteria and conditions for assistance under Window ….?. I/We further confirm that
should this FPP be accepted for financing, we have the capability to implement the proposed
project within the stipulated time.
Authorised Representative(s) of Organisation:
Name…………………………………. Signature …………… Date …………………
Title ……………………………………………………………………………………..
Physical Address ………………………………………………………………………
…………………………………………………………………………………………..
Mobile Phone No ……………………………………………………. Email ……………………….
Authorised Representative of Partner (if applicable):
Name…………………………………. Signature …………… Date …………………
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Appendix 7: Due Diligence/Field Verification Format (Windows 1 & 2)
MATCHING GRANT FACILITY
DUE DILIGENCE/FIELD VERIFICATION FORMAT (WINDOWS 1 & 2)
1. Project background information

- Name of applicant ----------------------------------------------------------------------------------------------
- Address ---------------------------------------------------phone no ---------------------- e-mail -----------
- Project title -------------------------------------------------------------------------------------------------------
- Project number --------------------------------------------------------------------------------------------------

REPUBLIC OF ZAMBIA
- Project location; province --------------------------------------- district -----------------------------------
- Project total cost; ZMW

----------------------------------------------------------------------------------------
- Prosed financing plan;
E-SAPP: MGF grant ZMW --------------------------------
Contribution from applicant cash ZMW -------------------- In-kind ZMW ---------- Total ZMW ----
Other: please specify; --------------------

ZMW ---------------------
Project period: years
2. Background Documents: Application submitted with attachments

3. Due Diligence
Date of field verification ------------------------------------------------------------------------
Participants in verification:
1. Name ------------------------------- Title ----------------------------------
2. Name ------------------------------- Title ----------------------------------
3. Name ------------------------------- Title ----------------------------------
Verification parameters operations Evidence/document to be

sought
Legal status Sight: registration documents Copy of sighted documents
viz certificate of
incorporation/other registration
document, memorandum and
articles of incorporation
shareholding Register, board
composition
Experience in business Discuss with the chief -company brochure

executive OFFICER and obtain -sample sales contracts;
necessary information viz: annual reports (1 or 2 years)
number of years in business by - Partnership Contracts or
type, places of operation, MOU
difficulties in operation,
financiers over the years,
partners, markets-
import/export. etc.
Management Capacity Discuss and obtain necessary -Company organogram me,
information and obtain backing personnel, manual
documents. Obtain key staff -Company brochure (already
profile especially- collected).
manager/chief executive, -Job description of key staff.
finance/administration -Operational manual (if
manager Head technical depts, released).
marketing manager, legal dept
head. Obtain number of staffs
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in each department.
Visit each department and get
acquainted with their
operations (if permitted inspect
their records) especially
financial records.
Financial status Discuss generally how the -obtain certified copies of audit
company/organization is reports (last 2years)
financed: share capital, from -tax clearance certificate
operations, from loan. current year XX
Establish if possible - Shareholder register
outstanding debt, over-
dues/period of over-due; if
permitted inspect shareholder
register; auditor name.
Litigation Obtain information on any on- -obtain necessary
going litigation, last two documentation, if no objection.
litigation concluded and
penalty/benefit.
Insurance Discuss type of insurance If available obtain sample of
coverage and amount of insurance contracts/certificate.
premium (last 2years). E.g.
Personnel insurance, fidelity,
property, fire, flood.
Insurance company in use.
Collaboration/partnership Obtain information on Obtain sample contracts/mou
ongoing/past collaboration
especially with smallholder
farmers/producers,
agribusiness. Share
experience-negative/positive.
Physical inspection of relevant You can seek clarification on -You can take pictures if
facilities; buildings, machinery, use for proposed project. allowed.
equipment warehouses etc. - Note level of maintenance
and repairs.
Governance obtain information on execute Copy of last board meeting
board meetings; annual minutes /resolutions, copy of
general meetings. Sight their last annual general meeting,
registers. minutes/resolutions and copy
of board resolution approving
collaboration with E-SAPP.
4. Appreciation- please appreciate attention given to your mission, and inform them of follow-on
actions including preparation of Report for PCO, and copy for organization.
5. Produce the report of your findings, conclusions and recommendations including any
improvement that you deem to be made. [provide necessary attachments-documents
collected]
6. Verification team: name/signature.
Name 1 ---------------------------------------------------- Signature ------------------- Date ---------
2 ---------------------------------------------------- Signature ------------------- Date ---------
3 ---------------------------------------------------- Signature ------------------- Date ---------
Applicant authorized representative(s)
Name -------------------------------------------------------------------- Signature ---------------------------- Date

------------
REPUBLIC OF ZAMBIA
Name -------------------------------------------------------------------- Signature ----------------------------- Date

-----------
[please note item 6 will be addressed when the report is finalized with attachment]
Appendix 8: MGF - Full Project Proposal - Evaluation Template
Enhanced Smallholder Agribusiness Promotion (E-SAPP)
MGF – Full Project Proposal – Evaluation Template

(To be used by Independent External Reviewers and PCO Internal Review Committee)
1) Project Identification Number
2) Project Name
3) Project Location: Province District
4) Name of the Applicant
5) Evaluation of Project Proposal
Evaluation Criteria Maximum Awarded

Score Score
PROBLEM STATEMENT AND STRATEGIC OBJECTIVE (RELEVANCE)
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1 Will addressing the problem respond to E-SAPP MGF-Objective: Agricultural

commercialization, enhancing smallholder participation in the selected value chains,
value addition, market access, competitiveness?
Poorly Little Moderately Highly Extremely Well
0 2 3 4 5
5
Comments:
2 Is the strategic objective responsive to the problem statement?
5
Poorly Little Moderately Highly Extremely
Well
0 2 3 4 5
Comments
PROJECT DESCRIPTION AND RELEVANCE TO TECHNOLOGY AND PROBLEM STATEMENT

3 Are components and activities clearly defined and responsive to strategic objective?
5
Unclear/ Little Clear and highly Highly responsive
unresponsiv responsive and very clear
e
0 2 4 5
Comments

Score Score
4 Are the inputs-output co-efficients detailed and in-line with the technology and industry
experience?
Vague/difficult to Very little Detailed and in- Excellent in all
relate to technology line with respects
Technology &
Industry norm
0 2 4 5 5
Comments:
5 Is the Technology well known by the organization and within its implementation
capacity?
5
New/may be Relatively new no Well known Very well-
difficult to experience in its use and within known
implement capacity of already in
organization use
implementatio
n
0 2 4 5
Comments
6 Will the proposed technology/initiative provide practical and economic solutions for the
problem identified?
REPUBLIC OF ZAMBIA
5
Not at all moderately Very well Highly responsive
0 2 4 5
Comments
7 Are Marketing issues considered and, arrangements including resources allocated for
marketing?
Not at all moderately Appropriate Extremely well
attention and considered
resources
allocated
0 2 4 5
5
Comments:
8 Is the period of implementation realistic?
5
Over optimistic Realistic but fail to Adequate Much more
accommodate delay realistic.
Very much
realistic
0 2 4 5
Comments
IMPLEMENTATION CAPACITY AND ARRANGEMENTS
9 Does the applicant demonstrate capacity to implement the proposed project in terms of
staff number, training and experience, track record of project management including
financial management, leadership and governance?
5
No evidence Fairly Very satisfactory Highly satisfactory
satisfactory with proven
experience
0 2 4 5
Comments

Score Score
10 Does the project implementation include support from technical assistant? If yes, does
the technical assistance have training and experience to carry-out assigned
responsibility?
5
TA identified has Limited Satisfactory Highly
little or no experience experience Experienced
experience for the
assigned
responsibility
1 2 4 5
Comments:
PROJECT RESULTS AND BENEFICIARIES
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11 How early will the participating smallholders realise expected benefits?
After 3 years After 2 years Between 1-2 Within 1 year

years
1 3 4 5
5
Comments
12 How large is the number of smallholder farmers/producers who will benefit from the
proposed project?
5
Less than 500 - 1000 1000 - 2000 2000 - 3000
500
1 2 4 5
Comments
13 What is the percentage of women among the direct beneficiaries who will benefit from
the proposed project?
5
Less than 20% 20 – 40% 40 – 50% Over 50%
1 2 4 5
Comments:
14 What is the proportion of youths among the direct beneficiaries who will benefit from the
proposed project?
At least 15% 15 – 20% 20 – 30% Over 30%
1 2 4 5
5
Comments
15 How large will be the increase in in income of direct smallholder beneficiaries?
5
Less than 10-20% 20-30% Over 30%
10%
1 2 4 5
Comments

Score Score
SUSTAINABILITY/SCALABILITY/RELICABILITY
16 Does the proposed project contribute to the development of effective and sustainable
linkage with other actors in the value chains?
Very little To a large extent Very much Extremely
well
1 2 4 5 5
Comments
17 Is the annual net return of the proposed project significant compared to a similar scale
of operation in the industry?
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5
About 10% 10 – 20% Over 30% return Over 50% of
return on return on on investment return on
investment investment investment
1 2 4 5
Comments
18 Does the proposed project have a systemic impact in the value chain?
5
Less than 100 200 – 300 500 – 1000 new Over 1000
persons employed new employment employment
employment
1 2 4 5
Comments:
SOCIAL/ENVIRONMENTAL IMPACT/CLIMATE RISK

19 Has the proposed project adequately identify its social and environmental impact and
climate risks and included necessary measures for control and management?
No attention is given Very little attention Appropriate Very
satisfactory
attention
0 1 3 5
5
Comments
PROJECT RISK AND MITIGANTS

20 Has risk exposures been identified with mitigants?
5
To a limited Fairly well Satisfactorily Very well
extent addressed addressed addressed
1 2 4 5
Comments
6) General Observation: Please provide any general observations including additional

measures that can be taken during implementation to improve the performance of the
proposed project; or need to be taken before implementation.
7) EVALUATION SCORE AND DECISION

0 – 69% - Not recommended
70 – 90% - Recommended
> 90% - Strongly recommended
8) SCORE AND RECOMMENDATION

Please insert score awarded and your recommendation
9) DECLARATION
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I, the undersigned declared that:

1. Whereas, I have no direct or indirect interests in or benefits from the proposed project;
2. Whereas, I have made a professional and good quality evaluation of this proposed project
to the best of my knowledge;
3. Whereas, I have been impartial, and not influenced by external opinions or pressure;
4. To the best of my expertise, funding of this proposed project by E-SAPP-MGF is [insert
your recommendation as in 8 above].
Name of the Independent Reviewer
Signature Date
Appendix 9A: Offer of Matching Grant Facility

Date_______________

Dear Sir/Madam
OFFER OF MATCHING GRANT FACILITY
We are pleased to offer (Name of Organization), a matching grant facility in the amount of
ZMW--------- (express amount in words) under. The Enhanced Smallholder Agribusiness Promotion
Programme (E - SAPP) matching grant facility window-------------------- (insert number and the name of
the window). Subject to the terms and conditions to be agreed in the Matching Grant Agreement. The
(name of Organization) will provide a Matching Contribution of ZMW-----------------(amount in words).
The purpose of the matching grant facility and the Matching Contribution is to enable (Name of
Organization) to implement activities contained in the project, entitled (insert name of project) which
you submitted to E –SAPP on (insert date of submission) and approved for financing by the Matching
Grant Facility Approval Committee on (date of approval).
In order to facilitate the implementation of the Project, a one day pre-implementation workshop will be
arranged within two weeks of the date this letter. The workshop will discuss key issues of
implementation including, inter-alia, grant disbursement conditions and procedures, procurement
arrangements, Accounts and Financial management, reporting requirements, supervision, monitoring
and evaluation. The draft Grant Agreement will also be discussed and agreed. We will advise you
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shortly of the date and the details of the workshop. We expect however, that key staff who will be
involved in the implementation of the project will participate in the workshop.
In the meantime, kindly undertake the following and submit the related document to the address
above.
 Open a bank account in a commercial bank into which E –SAPP will disburse its funding, and
submit the details of the designated Bank Account along with a letter indicating the names
and signatures of authorized representatives to operate the account, and also sign the
request for disbursements to be submitted by (Name of Organization)
 Documentary evidence confirming the availability of matching contribution in a Bank Account.
 A certified copy of the (Name of Organization) Board resolution authorizing acceptance of
Matching Grant Facility from E – SAPP.
Please confirm your acceptance of this offer by signing and returning to E- SAPP, the duplicate copy
of this offer letter. This offer will lapse after 20 (twenty) working days from the date of this offer letter,
unless otherwise agreed in writing.
We look forward to hearing from you at your earliest convenience.
Yours faithfully,
For ENHANCED SMALLHOLDER AGRIBUSINESS PROMOTION PROGRAMME

Programme Coordinator (Name ___________________________________________________)
Signature _________________________ Date__________________
We hereby accept this offer of Matching Grant Facility, subject to the terms and conditions to be
agreed in the Matching Grant Agreement.
For and on behalf of (Name of Organization)
Authorized Representative; Name ____________________________________________________
Signature_____________________________________ Date _______________
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Appendix 9B: Differed Approval of Full Project Proposal

Date_______________

Dear Sir/Madam
DIFFERED APPROVAL OF FULL PROJECT PROPOSAL
We have reviewed the Full Project Proposal Submitted by (Name of Organization) on (date of
submission to be inserted), and found that certain issues need to be addressed before a firm decision
on the Proposal can be made. The reasons for deferring of the approval of the proposal are listed
below for consideration and action.
(Please insert reasons for deferring approval of the proposal)

REPUBLIC OF ZAMBIA
You may amend the proposal considering the above, and resubmit to PCO at the above address for
reconsideration. Should you wish to discuss the issues for clarification, you may visit our office at the
above address at your convenience.
Yours faithfully,
Signature ___________________________ Date______________
Appendix 9C: Rejection of Full Project Proposal

Date_______________

Dear Sir/Madam
REJECTION OF FULL PROJECT PROPOSAL
We have reviewed the Full Project Proposal Submitted by (Name of Organization) on (date of
submission to be inserted), and found them inadequate for support at the state they are at the
moment. The reasons for rejecting the Proposal are listed below for your consideration and action.
(Please insert the reasons for the rejection of the Proposal)
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Should you so desire, you can make necessary amendments considering the above, and resubmit to
District Agricultural Coordination Office as previously. Should you wish to discuss the reasons for
rejection, you can visit the PCO at the above address at your convenience.
Yours faithfully,
Signature ___________________________ Date______________
Appendix 10A: Full Project Proposal - Evaluation Report by External

Reviewers Window 1
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Full Project Proposal- Evaluation Report by External Reviewers- Window 1
Names of Names of Name of Score Score Averag Recommendatio Comment

Reviwer- Reviewer- e Score n
Province Districts Project 1 % 2% % *
1
3
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Notes
This table should be prepared by the Grant Management officer based on the evaluation reports of
the external reviewers.
*A-approval, DA-deferred approval, R-rejection.
Appendix 10B: Full Project Proposal - Evaluation Report by External

Reviewers Window 2
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Full Project Proposal- Evaluation Report by External Reviewers- Window 2
Names of Names of Name of Score Score Average Recommendatio Comment

Reviwer- Reviwer- Score n
Province Districts Project 1% 2 % % *
1
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Notes
This table should be prepared by the Grant Management officer based on the evaluation reports of
the external reviewers.
* A- approval, DA- deferred approval, R- rejection.
Appendix 11A: Full Project Proposal - Evaluation Report by Internal Review

Committee Window 1
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Full Project Proposal- Evaluation Report by Internal Review Committee Window 1

Province Districts Project 1 % 2% %
*
1
2
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Notes
This table should be prepared by IRC secretary during the IRC Evaluation Meeting.
Appendix 11B: Full Project Proposal - Evaluation Report by Internal Review

Committee Window 2
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Full Project Proposal- Evaluation Report by Internal Review Committee Window 2

Province Districts Project 1 % 2% % *
1
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Notes
This table should be prepared by IRC secretary during the IRC Evaluation Meeting.
Appendix 12: MGF: PCO- Summary Reporting for MGF - Approval Committee
Meeting
MGF: PCO- Summary Report For MGF-Approval Committee Meeting
No ----------------- date ----------------------
1. Introduction: update on number of meetings so far, the total number of applications received
and processed, the number approved, number deferred, and number rejected, the total number of
districts and provinces covered; the total costs of projects received ZMW— of which ZMW--- is total
grant approved or ……. % of total cost, and with applicant contributions of ZMW--------(cash ZMW
-------- In-kind, totalling ZMW ……………. Or …..% of total cost. The value chain covered are
----------------------etc.
Summary of committee decision on approvals so far (as at --------------date)
Province No of No of Total Total Total comments

Name application/ projects cost of grant applicant
projects approved projects approved contributions
received approved (ZMW) (ZMW)
(ZMW)
2. Over-view of submission to the current meeting

Brief description of submissions followed by summary table by province.
Summary of projects/grants for the committee consideration
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province No of No of projects Total cost Total Total Comments

application/ recommende of grant envisaged
projects d for approval projects proposed applicant
received proposals (ZMW) contributions
(ZMW) (ZMW)
Reference to attachments
Table 1- PCO projects overview report
Table 2- Summary of project reviewed with proposed recommendation by province/district
Table 3-1- 3- Province/district reports by windows
Table 4- External review report
Table 5- IRC report
Table 1 – PCO Projects Overview Report
To be prepared by Agribusiness Unit Manager as indicated in the Manual Para 49
Table 2 - Summary for All Provinces: Full Project Proposals/Recommendations
provinces No of districts No of No of project recommended Total Grant Applicant comment

submitting application cost for propose contributi
applications/pr Projects proposal d on ZMW
ojects received s (ZMW) (ZMW)
appro Deferred rejection
val approval
Province 1
(name)
Window 1
Window 2
Total
Province
2(name)
-
Window 1
Window 2
Total
-
-
-
-
Total for
the circle
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Table 3 - Full project proposal-review results and recommendations - Table to be prepared by

Window and for each Province that submits Proposals
Province --------------- window ------------------
Districts Applicant Project Average Average Average Total Propo Applican Recommendations
name name score score score project sed t
ER (%) IRC (%) ER&IRC cost grant contribut Appr Deferre Reject
(%) (ZKW) (ZKW) ion oval d ion (C)
(ZKW) (A) approv
al (B)
Name of
district 1
Total for
district
District
2
Total for
province
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NOTES:
1. Please list projects by recommendation status, by districts. A-(approval), B- (deferred
approval), C-(rejection)
2. ER- External Reviewer.
3. IRC-Internal Review Committee.
4. Table to be numbered by province E.g Province 1: 3-1, province 2: 3.2, province 3: 3.3
Table 4 – External Reviews Reports (APPENDIX 10)
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Table 5 – IRC Review Report (APPENDIX 11)

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Appendix 13: TOR for MGF Approval Committee (MAC)
ENHANCED SMALLHOLDER AGRIBUSINESS PROMOTION PROGRAMME (E – SAPP)

MATCHING GRANT FACILITY: (MGF)
TERMS OF REFERENCE FOR MGF APPROVAL COMMITTEE (MAC)
BACKGROUND
The Government of the Republic of Zambia, through the Ministry of Agriculture (MOA) is implementing
the Enhanced Smallholder Agribusiness Promotion Programme (E - SAPP). E – SAPP is a follow-on
programme to Smallholder Agribusiness Promotion Programme (SAPP) which closed 30 September
2017. E – SAPP has a goal of increasing the incomes, and food and nutrition security of rural
households involved in market – oriented agriculture. Its development objective is to increase the
volume and values of agribusiness outputs sold by Smallholder producers. The target group for the
programme comprise; Subsistence Farmers who undertake subsistence farming but make occasional
sale of crops and livestock. The programme will assist them to raise their production and productivity,
and mentor them to transform into business organization that can become active actors in their
chosen value chains. A total of about 40,000 households in this category will be supported. The
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second categories of the target group are Economically active Farmers, living just above the
subsistence level and producing some surplus for the market. They already engage in value chain
activities of selected commodities. The programme will reach about 16,000 households from this
category. The last category are the Commercially Oriented Farmers. They are already consistently,
producing surplus for the market. They are able to partner with private sector operators in response to
market opportunities. They could link with Upstream market operators who are large agribusinesses.
The programme will reach about 5,000 households in this category. The total direct beneficiaries are
61,000 households. The programme is national.
The programme has three components. (i) Enabling Environment for Agribusiness Development
Growth which has the objective of supporting the GRZ, to create an enabling policy and institutional
environment for commercially driven agriculture, and rural development, and to put in place,
structures to address agricultural risk, and management related issues. The component has two sub
components namely, Agribusiness Policy Development, and Institutional Strengthening for
Agribusiness. (ii) Sustainable Agribusiness Partnerships. This component will build the capacity
of smallholders and their service providers to compete for matching grants to design and implement
projects aiming at commercializing agriculture. The component has three sub-components: Strategic
Linkages of Graduating Subsistence Farmers to Markets; Enhancing Agro – Micro, Small and
Medium Enterprises (MSME) Development; and Facilitating Pro – Smallholder Market – Pull
Agribusiness Partnerships. The third component is Programme Implementation which provides
for establishment of a Programme Coordination Office (PCO) for an overall Coordination of E – SAAP
Implementation. The PCO includes an agribusiness Unit which is charged with the day to day
management of Margin Grant Facility.

E – SAPP total cost was estimated at USD29.67 million of which the base costs are USD28.13
million. Component 1 accounted for USD3.86 million (13.01%), Component 2 – USD20.54 million
(69.23%) and Component 3 – USD5.27 million (17.76%). The programme financing is as follows. An
IFAD loan of USD21.25 million (71.62%) and a grant of USD1.01 million (3.4%) resulting in a total
contribution of USD22.26 million (75.3%), GRZ financing is USD2.01 million (6.77%); the beneficiaries
will contribute USD1.23 million (4.15%); the private sector will finance USD3.35 million (11.29%);
IAPRI and PARM will provide USD0.51 million (1.72%), and USD0.2million (0.67%) respectively.
The Matching Grant Facility: Matching Grant Facility has three investment windows as follows:
(i) Strategic Linkages of Graduating Subsistence Farmers to Markets; (ii) Agro – MSME Development,
and (iii) Pro – Smallholder Market Pull Agribusiness Partnership. PCO is charged with the direct
implementation of window (i) & (ii) with the support of experienced Service Providers to assist in
capacity building. A service provider will be appointed to implement window (iii) under the supervision
of PCO. The GRZ has developed this Operational and Administrative Manual to provide guideline and
procedures for the implementation of the Matching Grant Facility (MGF).
Establishment of Matching Grant Facility Approval Committee (MAC) and its operation (CAP)
Constitution of the Committee
The MAC will be established by the Permanent Secretary of MOA with the oversight by Programme
Steering Committee (PSC). It will compose of nine members from the Public and Private sector. The
Chief Executive of nominated institutions will appoint their respective representatives who will serve
for 2 years and renewable for another year. The Programme Coordinator of PCO will serve as its
Secretary. The Committee will be provided a suitable meeting place at the headquarters of the MOA.
The institutional members are shown below.
MAC – Institutional Membership

ZACSMBA Chairperson
PAM Vice Chair
NUSFAZ Member
ZNFU Member
MoA PPD Member
MoA ABM Member
MFL DFLM Member
Dept of Coops Member
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Programme Coordinator Secretary
Operation of MAC
The main function of MAC is to consider and approve, defer approval until proposals are up-dated as
it may direct, or reject proposals which do not meet the objective and quality of MGF.
It will be assisted by Independent External Reviewers (IER) that will be appointed by PCO, and an
Internal Review Committee (IRC) appointed by the permanent secretary of MOA to carry-out detailed
technical reviews of projects under Windows 1 & 2 to be submitted to MAC. The PCO will summarize
the reports of the IER and IRC and add his/her own report for MAC to consider in taking decisions on
the proposed projects. The member of MAC can also request for the full project proposal for own
supplementary review if required in making decision. MAC will seek to reach a decision by consensus
but if this fails, a decision on respective projects will be made by a simple majority of votes of those
present and constitute a quorum. The MAC will meet on quarterly basis. The minutes of the meeting
including its decisions will be prepared by the secretary and after due consideration and approval by
members, will be signed by its chairman and secretary. The MAC will also periodically review
technical and financial reports on-going projects, and if necessary, take measures to resolve problems
and conflicts.
Specifically, MAC will undertake the following:

- Consideration of projects submitted for grant financing under window 1 & 2, and making
decisions on their support or otherwise.
- Consider six monthly and annual implementation progress reports and provide advice as
may be necessary to PCO, to improve performance.
- Participate in the Annual Implementation review workshop for E-SAPP.
- Provide advice to PCO on the operation of MGF especially for Windows 1 & 2.
-
.MAC decisions will be in the following order

(i) Approval- Applicant is deemed to be in full compliance with eligibility criteria and general
conditions for participation in MGF, and project proposal is consistent with the objectives
of MGF and meets the quality standard of MGF assisted projects.
(ii) Defer Approval- project proposal requires additional information and/or clarification. The
PCO will be tasked to obtain the additional information and/or clarification from the
applicant and resubmit to MAC.
(iii) Rejection – Proposals not compliant with terms and conditions. PCO will be requested to
inform the applicant accordingly and invite the applicant to correct the defects and re-
submit the project at a later date.
Remuneration: Members will be paid an agreed honorarium to account for the time, and efforts spent
on committee activities.
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Appendix 14: TOR for Internal Review Committee (IRC)
TERMS OF REFERENCE FOR INTERNAL REVIEW COMMITTEE
BACKGROUND
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Matching Grant Facility
Under Component 2 Matching Grant Facility has three investment windows as follows:
of PCO. The GRZ has developed this Operational and Administrative Manual to provide guideline and
Establishment of Internal Review Committee (IRC) (Cap)

The committee will be established by the Permanent Secretary of MOA. It will compose of eleven
members drawn from MOA, MFL and PCO. PPD focal point person will be the Chair person, PPID
Focal point person will be the Vice Chairperson, The Grant Management Officer will be the Secretary.
The proposed composition of the committee is shown
Composition of Internal Review Committee (IRC)

MoA – PPD Focal Point Chairperson
MFL – PPID Focal Point Vice Chair
MoA – ABM Focal Point Member
MFL – ABM Focal Point Member
MoA – DoA Focal Point Member
PCO – CS – Crops Member
MFL – DLD Focal Point Member
PCO – CS – Livestock Member
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MFL – DoF Focal Point Member

PCO – Agribusiness Manager Member
Operation and Functions of IRC

The guideline and operational procedures are included in the MGF Operational and Administrative
Manual. The functions of the committee are the following;
- Vetting the recommendations of District and Provincial committees on the organizations
qualified to participate in MGF Windows 1 & 2
- Reviewing the Project Concept Notes and making recommendation to PCO on accepting
projects to proceed to Full Project Proposal, defer approval or reject, based on its own review
of the Project Concept Notes and Consideration of the District and Provincial Review
Committees recommendation.
- Reviewing Full Project Proposals and making recommendations to PCO on approval,
deferring approval or reject Proposals based on the guidelines and quality standards
established for MGF operation
- Reviewing and providing comments on project analysis and appraisal carried out by the
Agribusiness Manager before forwarding it to MAC.
- Periodically carrying out performance appraisal of external reviewers and making
recommendation to PC on removal of those performing below expectation.
- Reviewing and providing comments as may be required on six monthly and Annual MGF
progress reports.
Meetings.
Regular meetings will be on a bi-monthly basis. Adhoc meetings can be arranged as may be
necessary and called by PC.
Appendix 15: TOR for External Reviewers
TERMS OF REFERENCE FOR EXTERNAL REVIEWERS
BACKGROUND
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Matching Grant Facility: Matching Grant Facility has three investment windows as follows;
of PCO. The GRZ has developed an Operational and Administrative Manual to provide guideline and
CONSTITUTION OF EXTERNAL REVIEWER ROSTER.

The PC, following the normal consultant recruitment procedure, will constitute a roster of external
reviewers. The Consultants will be placed on 101Q contract as detailed in the MGF Operational and
Administrative Manual. Consultants will be selected from the roster to carry–out upon demand, review
of assigned projects under Windows 1 & 2.
Functions
The following are the main functions of the external reviewer
1. To attend meetings as may be requested by PCO to receive briefing on the approach for
reviewing, evaluating and scoring projects for support under Windows 1 & 2.
2. Upon allocation of projects for review, check and confirm that he/she has capacity to
undertake the review, evaluation and scoring of projects assigned, and declare that he/she
has no economic/financial interest in the applicant, and that he/she has not served in the past
as consultant or service provider to the applicant.
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3. Undertake review, evaluation and scoring of projects assigned to him/her using standard
project evaluating template as provided by PCO.
4. Make necessary recommendation as per guideline and result of evaluation and score
awarded.
Remuneration
Each Full Project Proposal will attract a USD50 as compensation for time spent reviewing it. The fees
will be paid once the External Reviewer has submitted all the proposals allocated to him/her.
The Programme Steering Committee may review this fee from time to time to reflect economic reality.
Availability
External reviewers will be expected to make available at least two days every two months to attend
conferences organised by the Programme Coordination Office (PCO) whenever the applications are
available for review. Only reviewers that have attended such a conference are eligible to undertake
review of Full Project Proposals presented at that conference.
Appendix 16: Matching Grants Procurement (MGP)
Procurement Guidelines and Procedure
Matching Grants Procurements (MGP)
1. Preamble
Procurements under matching grants should be undertaken with the consideration that public funds
are involved. E-SAPP and Ministry of Agriculture officials will take a keen interest in how beneficiaries
conduct procurements. Public funds demand accountability, transparency and prudence usage. As
such, it is imperative that MoA, E-SAPP should have oversight on procurements undertaken under
MGF. Beneficiaries under registered farmer Organisations will form “Procurement Committees” to
undertake procurements.
2. Responsibilities of E-SAPP and Beneficiaries
I. Procurement with Community Participation shall be the method used for procurement of
goods, services, and works under the Matching Grant Facility. To build capacity in
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procurement processes, E-SAPP will conduct training to beneficiaries on all aspects of

MGPs.
II. For specialized procurements outside the scope of beneficiaries’ capacity to undertake, E-
SAPP will undertake the procurement process in liaison with the beneficiary. E-SAPP will also
undertake procurements for beneficiaries which will be stated and agreed upon in the Grant
Agreement. The Beneficiaries Procurement Committees under farmer organisations will
undertake those procurements stipulated to be undertaken by them in Grant Agreements.
There Grant Agreement shall have a section on Procurement processes which will clear
stipulate responsibilities of the beneficiaries and E-SAPP.
III. E-SAPP will have the responsibility to provide the necessary procurement training to the MGF
beneficiaries.
IV. E-SAPP will remain responsible for reviewing, supervising, and guiding the procurement
processes to ensure integrity, transparency, and accountability.
V. The beneficiary shall prepare a procurement plan in the format provided by E-SAPP.
VI. Procurement with Community Participation shall be the method used for procurement of
goods, services, and works under the Matching Grant Facility. To build capacity in
procurement processes, E-SAPP will conduct training to beneficiaries on all aspects of
MGPs.
VII. For specialized procurements outside the scope of beneficiaries’ capacity to undertake, E-
SAPP will undertake the procurement process in liaison with the beneficiary. E-SAPP will also
undertake procurements for beneficiaries which will be stated and agreed upon in the Grant
Agreement. The Grant Agreement shall include a section on Procurement processes which
will clearly stipulate responsibilities of the beneficiaries and E-SAPP.
VIII. E-SAPP will have the responsibility to provide the necessary procurement training to the MGF
beneficiaries.
IX. E-SAPP will remain responsible for reviewing, supervising, and guiding the procurement
processes to ensure integrity, transparency, and accountability.
The beneficiary shall prepare a procurement plan in the format provided by E-SAPP
3. Procurement Procedure
The Matching Grant beneficiaries will procure goods, services, and works using “Good
Procurement Commercial Practices” defined below:
I. When procuring, the matching grant beneficiaries shall pay attention for the need for
economy, efficiency, and transparency, timing, and quality of the procured goods and
consultancy services.
II. For procurements expected to cost below K50, 000 E-SAPP will verify the proof of
procurement through a process of review of invoices and contracts and conducting on-site
verifications on a sample basis.
III. For procurement of goods, services, and works estimated to cost above K50, 000 or as
agreed in the Grant Agreement, minimum three quotations with specifications of the
requirement shall be provided to E-SAPP for prior review and approval. If three competitive
quotations cannot be obtained reasons shall justifying single or sole procurement shall be
given to E-SAPP prior consent and approval.
IV. Procurement of goods, services, and works could be undertaken based on a single or sole
source circumstances taking in consideration of factors leading to such a decision.
V. The guiding principle in the selection of suppliers will be based on: (a) quality, (b) price, (c)
reliability, and (d) performance. The contract award shall be made to the lowest responsive
and qualified bidder. If the award is made not to the lowest responsive bidder, a justification
note shall be filed in the documents. Matching grant beneficiaries shall not award contracts to
their parent or affiliate companies unless there is an established arm’s length arrangement.
VI. The matching grant funds shall not be used for the procurement of second hand or
refurbished goods unless justified for E-SAPP no objection. Beneficiaries shall ensure that the
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matching grants funds are only used to procure goods, services, and works necessary to
carry out the project and that they are procured in the most economical and efficient and
transparent manner.
VII. All contract information and project-related facilities shall be available to E-SAPP and MoA
officials for their review. E-SAPP Procurement and Contracts shall routinely sample and
monitor for physical inspection of procurements under matching grants.
VIII. Recruitment of External Reviewers for business proposals shall be subject to procurement
procedures as outlined by E-SAPP. No External Reviewer will be appointed without approval
prior approval of E-SAPP, and formal contracts for External Reviewers with Indefinite delivery
and quantity (IDIQ).
The Matching Grant beneficiaries will procure goods, services, and works using “Good
Commercial Practices” defined below:
IX. When procuring, the matching grant beneficiaries shall pay attention for the need for
economy, efficiency, and transparency, timing, and quality of the procured goods and
consultancy services.
X. For procurements expected to cost below K50, 000 the PCO will verify the proof of
procurement through a process of review of invoices and contracts and conducting on-site
verifications on a sample basis.
XI. For procurement of goods, services, and works estimated to cost above K50, 000 or as
agreed in the Grant Agreement, minimum three quotations with specifications of the
requirement shall be provided to E-SAPP for prior review and approval. If three competitive
quotations cannot be obtained reasons shall justifying single or sole procurement shall be
given to E-SAPP prior consent and approval.
XII. Procurement of goods, services, and works could be undertaken based on a single or sole
source circumstances taking in consideration of factors leading to such a decision.
XIII. The guiding principle in the selection of suppliers will be based on: (a) quality, (b) price, (c)
reliability, and (d) performance. The contract award shall be made to the lowest responsive
and qualified bidder. If the award is made not to the lowest responsive bidder, a justification
note shall be filed in the documents. Matching grant beneficiaries shall not award contracts to
their parent or affiliate companies unless there is an established arm’s length arrangement.
XIV. The matching grant funds shall not be used for the procurement of second hand or
refurbished goods without prior (written) approval from the E-SAPP PCO. Beneficiaries shall
ensure that the matching grants funds are only used to procure goods, services, and works
necessary to carry out the project and that they are procured in the most economical and
efficient and transparent manner.
XV. All contract information and project-related facilities shall be available to E-SAPP and MoA
officials for their review. E-SAPP Procurement and Contracts unit shall routinely sample and
monitor for physical inspection of procurements under matching grants.
XVI. Recruitment of External Reviewers for business proposals shall be subject to procurement
procedures as outlined by E-SAPP. No External Reviewer will be appointed without prior
approval of E-SAPP, and formal contracts for External Reviewers with Indefinite delivery and
quantity (IDIQ).
1.1. Internal Controls for MGPs

In order to guarantee transparency of procurement, following internal controls will be put in place: i)
Each beneficiary shall have a Procurement Plan included in the Business Proposal. ii) The Beneficiary
Procurement Committee( only in farmer organisations) shall inform the MoA and E-SAPP officials
beneficiaries whenever goods are procured, the source, its prices and when delivered and iii) Rotating
procurement committee of the beneficiaries to ensure that no cliques form and that the committee
adheres to procurement procedures. Members of the procurement committee shall not be part of the
exective Board, but drawn from general membership) The chairman of the procurement committee,
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will not be a signatory to the beneficiary bank account but should be responsible for sanctioning
procurement and ensuring that procurement is done according to plan.
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Appendix 17: Financial Management Guidelines & Procedures
Financial Management Guidelines and Procedures
Accounting for Matching Grants

1. The programme does not channel money through Districts/Provinces for successful grantees.
93. Matching grants pose unique accounting issues;
 How to deal with the beneficiary counterpart contribution
 Under cash basis, how to account for matching grants in the pastel evolution
accounting system
 The need for specialised data base for matching grants
 The tax elements in grants
 The nature of accountabilities from grantees
94. While the specialised matching grant manual has already been developed, it is important to
explain in this module the accounting approach.
95. Beneficiary contribution: Beneficiaries/Grantees will deposit their respective contribution into
their own bank account in the same tranches as they expect to receive from ESAPP. If they
expect to receive from ESAPP 10% of the grant in given tranche, they should provide
evidence by way of bank statement that they have banked their proportion of 10%. It is after
confirming that the beneficiary has met their contribution that ESAPP will transfer its part into
the beneficiary account. Transfers will be in tranches based on achievements of certain
milestones by the grantees. For bigger grants, it will also be allowed for ESAPP to pay the
suppliers directly after the grantee has confirmed that they have paid the supplier their share
of the matching grant. What about contribution in kind???
96. Matching grants will be expensed at the point of disbursements and will be included in the
withdrawal application at that point. If the ESAPP was to wait for the grantees to submit their
returns, it would quickly deplete its initial deposit. A grant once given is a grant expensed;
the rest is more of monitoring and evaluation/follow up by the matching grant administrator
and the Monitoring and Evaluation Officer.
97. Since grants will be expensed at the point of disbursement, the ESAPP Pastel Accounting
system will not be able to provide ledgers for each grant.
98. The objective is to ensure that grantees are not paid beyond the grant ceiling and the agreed
milestone bases payment has been attached schedule is adhered to.
Grants Data Base maintained by the Matching Grants Administrator

99. In addition to the grants data base maintained by the, Grant Management Officer should
maintain their own data base so that the two data bases will actually check each other.
Taxes and Grants
100. It should be emphasised that the tax element in grants does not cause ineligibility as in
other transactions. It will be taken that the tax element is paid from the portion contributed by
the beneficiary.
Nature of Accountability from Grantee
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101. The matching grant represents an arrangement of equal partnership between ESAPP and
grantee and the accountability should be out put based as opposed to a series of paper
work.
Managing Service Provider Costs
102. Once Service Provider has justified the initial advance any further payments to it should be
on actual basis; as per submitted invoices. Being a time based contract a mere passage of
time triggers a payment-demand. This means the contract should be well managed.
103. Service Provider Reimbursable Costs: These costs much as they are included in the
Service Provider contract remain GRZ funds until justified by supporting claims with
supporting documents. The consultant should spend these funds only in accordance with
GRZ police/procedures. For example, the consultant cannot pay DSA rates beyond those
prescribed by Government. The consultant can only access this reimbursement after
submitting expenditure justification documents Service Provider; and the FAM (ESAPP) is
mandated to check these documents before honouring the reimbursement.
104. The programme does not channel money through Districts/Provinces for successful
grantees but will disburse directly to the beneficiary.
105. Matching grants pose unique accounting issues;
 How to deal with the beneficiary counterpart contribution
 Under cash basis, how to account for matching grants in the pastel evolution
accounting system
 The need for specialised database for matching grants
 The tax elements in grants
 The nature of accountabilities from grantees
106. While the specialised matching grant manual has already been developed, it is important to
explain in this module the accounting approach.
107. Beneficiary contribution: Beneficiaries/Grantees will deposit their respective contribution into
their own bank account in the same tranches as they expect to receive from ESAPP. If they
expect to receive from ESAPP 10% of the grant in a given tranche, they should provide
evidence by way of bank statement that they have banked their proportion of 10%. It is after
confirming that the beneficiary has met their contribution that ESAPP will transfer its part into
the beneficiary account. Transfers will be in tranches based on achievements of certain
milestones by the grantees. For bigger grants, it will also be allowed for ESAPP to pay the
suppliers directly after the grantee has confirmed that they have paid the supplier their share
of the matching grant. Contributions in kind will be confirmed by the Provincial Accountants
using a prescribed form that contains details of what has been contributed and the estimated
value.
108. Matching grants will be expensed at the point of disbursements and will be included in the
withdrawal application at that point. If the ESAPP was to wait for the grantees to submit their
returns, it would quickly deplete its initial deposit. A grant once given is a grant expensed;
what remains is for monitoring and evaluation/follow up by the Agribusiness and M&E units.
109. Since grants will be expensed at the point of disbursement, the E-SAPP Pastel Accounting
system will not be able to provide ledgers for each grant.
110. The objective is to ensure that grantees are not paid beyond the grant ceiling and the
agreed milestone based payment (attached as a schedule) is adhered to.
Grants Database maintained by the Agribusiness unit
111. In addition to the grants database maintained by the Finance unit, the Grants Management
Officer should maintain his/her own database so that the two databases will actually check
each other.
Taxes and Grants
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112. It should be emphasised that the tax element in grants does not cause ineligibility as in
other transactions. It will be taken that the tax element is paid from the portion contributed by
the beneficiary.
Nature of Accountability from Grantee
113. The matching grant represents an arrangement of equal partnership between E-SAPP and
grantee and the accountability should be output based as opposed to a series of paper
work.
Managing Service Provider Costs
114. Once Service Provider has justified the initial advance any further payments to it should be
on actual basis; as per submitted invoices. Being a performance based contract a
milestones should be agreed and annexed to the contract and the Agribusiness unit will be
responsible for certifying their achievement and approving payment.
115. Service Provider Reimbursable Costs: These costs much as they are included in the
Service Provider contract remain GRZ funds until justified by supporting claims with
supporting documents. The consultant should spend these funds only in accordance with
GRZ police/procedures. For example, the consultant cannot pay DSA rates beyond those
prescribed by Government. The consultant can only access this reimbursement after
submitting expenditure justification documents Service Provider; and the FAM (E-SAPP) is
mandated to check these documents before honouring the reimbursement.
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Appendix 18: ToR for Service Provider to Implement Window 3
TERMS OF REFERENCE FOR A SERVICE PROVIDER TO IMPLEMENT WINDOW 3 OF THE

E-SAPP MATCHING GRANTS FACILITY (MGF)
1. BACKGROUD
The International Fund for Agricultural Development (IFAD) is supporting the government of the
Republic of Zambia (GRZ) in financing Enhanced- Smallholder Agribusiness Promotion Programme (E-
SAPP). To strengthen the capacity of Programme Coordination Office (PCO), the GRZ is seeking
qualified and experienced firms to assist in implementing a part of the matching grant facility,
specifically Window3. The widow seeks to encourage largescale private agribusinesses to partner
with smallholder farmers, their producer groups and rural MSMEs to enhance commercialization of
their businesses, increase profitability, and promote sustainability and scalability.
2. SCOPE OF PROJECT
The government of the Republic of Zambia, through the Ministry of Agriculture (MOA) is
implementing the Enhanced Smallholder Agribusiness Promotion Programme (E - SAPP). E – SAPP is
a follow-on programme to Smallholder Agribusiness Promotion Programme (SAPP) which closed 30
September 2017. E – SAPP has a goal of increasing the incomes, and food and nutrition security of
rural households involved in market – oriented agriculture. Its development objective is to increase
the volume and values of agribusiness outputs sold by Smallholder producers. The target group for
the programme comprise; Subsistence Farmers who undertake subsistence farming but make
occasional sale of crops and livestock. The programme will assist them to raise their production and
productivity, and mentor them to transform into business organization that can become active
actors in their chosen value chains. A total of about 40,000 households in this category will be
supported. The second category of the target group are Economically active Farmers, living just
above the subsistence level and producing some surplus for the market. They already engage in
value chain activities of selected commodities. The programme will reach about 16,000 households
from this category. The last category is the Commercially Oriented Farmers. They are already
consistently, producing surplus for the market. They are able to partner with private sector
operators in response to market opportunities. They could link with Upstream market operators
who are large agribusinesses. The programme will reach about 5,000 households in this category.
The total direct beneficiaries are 61,000 households. The programme is national.
components namely, Agribusiness Policy Development and Institutional Strengthening for
Agribusiness. (ii) Sustainable Agribusiness Partnerships. This component will build the capacity of
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smallholders and their Service Providers to compete for matching grants to design and implement
Medium Enterprises (MSME) Development; and Facilitating Pro – Smallholder Market Pull
Agribusiness Partnerships. The third component is Programme Implementation which provides for
the establishment of a Programme Coordination Office (PCO) for an overall Coordination of E – SAAP
management of Margin Grant Facility. Under Component 2, a Matching Grant Facility with three
investment windows has been established and included: (i) Strategic Linkages of Graduating
Subsistence Farmers to Markets; (ii) Agro – MSME Development, and (iii) Pro – Smallholder Market
Pull Agribusiness Partnership.

E – SAPP total cost was estimated at USD29.67 million of which the base costs are USD28.13 million.
Component 1 accounted for USD3.86 million (13.01%), Component 2 – USD20.54 million (69.23%)
and Component 3 – USD5.27 MILLION (17.76%). The programme financing is as follows. An IFAD loan
of USD21.25 million (71.62%) and a grant of USD1.01 million (3.4%) resulting in a total contribution
of USD22.26 million (75.3%), GRZ financing is USD2.01 million (6.77%); the beneficiaries will
contribute USD1.23 million (4.15%); the private sector will finance USD3.35 million (11.29%); IAPRI
and PARM will provide USD0.51 million (1.72%), and USD 0.2million (0.67%) respectively.
Programme Implementation
The programme will be implemented over a seven-year period. The MOA will be the lead
implementing agency and will work closely with MRL with other line ministries and partners whose
mandates are relevant for the achievement of the programme goal and objective Policy Planning
Department (PPD), will be responsible for the overall administration and coordination of the
programme The PCO will provide planning, coordination, financial management, M/E, day to day
management and supervision of the programme. A Programme Steering Committee (PSC) chaired by
the permanent secretary of MOA or his/her nominee and com posed of membership from line
ministries of GRZ with mandates relevant to achieve the goal and objective of the programme. And
representative of industry organizations which are key actors in the value chain of selected
commodities A Technical Advisory Group (TAG) will be established and will be responsible for
reviewing and synthesizing technical documents for the PSC for final scrutiny and approval.
The implementation of the programme will be within the decentralized system of GRZ. However, a
number of programme interventions will be implemented by Service Providers with experience in
defined subject matters. They will work in partnership with provincial and district staff. The relevant
technical departments of MOA and MFL will coordinate planning and implementation at the national
level. PCO is charged with the direct implementation of windows 1 & 2 with the support of
experienced Service Providers to assist in capacity building. A service provider will be appointed to
implement window (iii) under the supervision of PCO. The window will support inclusive investments
by large scale private agribusinesses aiming to increase the profitability and sustainability of
smallholder farmers and rural MSMEs. Capacity building for engaged smallholders and rural MSMEs
will be supported and aim to improve their skills in making informed business decisions; enhance
their capacity to become equal partners with the grantee; strengthen their ability in environmental
management. to strengthen and scale-up engagement with smallholder farmers/rural MSMEs a
grant will be provided. The GRZ has developed an Operational and Administrative Manual to provide
guideline and procedures for the implementation of the Matching Grant Facility (MGF).
3. SCOPE OF THE ASSIGNMENT
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The assignment will include the management of Window 3 of the Matching Grant Facility and
building the capacity of smallholder farmers/producers, their groups and associations and rural
agribusinesses to strengthen and scale-up engagement between large agribusinesses and
smallholders and rural MSMES. Specifically, the following will be involved:
(i) In close collaboration with PCO, the provincial and district staff plan and execute a team
building workshop to promote partnership between large agribusinesses and
smallholder farmers/producers, their producer groups and associations, and rural
MSMES
(ii) In close collaboration with the PCO, prepare an operation and administrative manual
for the execution of window3, pro-smallholder market-pull agribusiness partnership.
(iii) setting-up, and operation of a transparent system of selecting large agribusinesses to
partner with smallholder farmers, producer groups and rural MSMES.
(iv) Invite large agribusinesses to submit applications for assistance along with Project
Concept Notes (PCN) providing a framework of projects for which they want financing
from MGF
(v) Screen applications and PCNS and recommend those suitable for assistance under
Window3 of MGF
(vi) Invite those selected to submit Full Project Proposals on an agreed standard format
(vii) Evaluate all Project Proposals submitted and recommend those to receive funding
(viii) Supervising approved projects to ensure effective and efficient implementation
including partnerships that enhanced business capacity of smallholders/producer
groups, rural - MSMEs, and fair benefits sharing, ensuring that social and environmental
considerations are properly integrated into project implementation, and establishing
monitoring and evaluation system that ensures a flow of information to and from the
project to PCO and other stakeholders
(ix) Proving training and capacity building to enhance business capacity of smallholder
farmers, their producer groups and rural MSMEs. Such capacity will include inter alia
business planning, operation and management, negotiating skills, marketing and trade,
business financing and risk management.
(x) Providing expert advice to Programme Coordinator in overall coordination of operation
under matching grant facility especially in policy and strategy that enhance agricultural
commercialization, promote rural agribusiness development with full participation of
smallholders/producer groups and rural MSMEs, and incorporating systemic economic
benefits
4. ADDITIONAL INFORMATION
Interested Organizations/Firms may obtain more information from PCO at the following address
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx Monday to Friday. The request should be in writing
and should be sent by e- mail followed by a Fax or a letter forwarded by Speed Post.
5. QUALIFICATION AND EXPERIENCE REQUIRED FROM INTERESTED ORGANIZATIONS/FIRMS
Prospective organizations/firms must possess relevant experience in implementing matching grant

facility financed by external financiers/donors. Experience in implementing agricultural/agribusiness
related matching grant facility in Zambia will be an advantage. The organizations/firms should have a
nucleus staff with qualifications and experience relevant for implementing agricultural, and
Agribusiness matching grant facility. Such staff should possess a minimum of a bachelor’s degree in
agricultural economics/economics, agriculture/livestock, business management, social
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sciences/public policy or related fields, with a minimum of 5years cognate experience. The head of
the team must have similar qualifications but with a minimum of ten (10) years cognate experience.
Possession of a post graduate degree in the above fields will be an added advantage.
6. CONTRACT TERM
Contract will be awarded for 2 years in the first instance and may be extended by another year
subject to satisfactory performance.
7. SUBMISSION OF DOCUMENTS
The following should be submitted:
- Letter confirming interest
- Evidence of having managed similar donor funded projects within the last five years. Please
provide the following: Name of project, Country of implementation, short description of project,
your responsibility and achievement, Financier of the project.
- List of proposed staff along with their up-dated and signed curriculum vitae.
- Availability of necessary skills and experience including financial management within the
organization/Firm.
An original copy and ------------other copies of expression of interest shall be delivered in a sealed
envelope clearly marked “EOI for the implantation of MGF under E-SAPP” and deliver to the address
below not later than -----------------------------------
The Ministry of Agriculture (MOA) is not bound to accept any submission of Expression of Interest
that it may receive, and therefore, it reserves the right to accept or reject any Submission without
incurring any liability to any affected party.
Address (ADDRESS TO BE INSERTED)
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Appendix 19: ToR for External Auditors to audit the MGF Processes
TERMS OF REFERENCE FOR EXTERNAL AUDITORS TO AUDIT THE MATCHING GRANTS

FACILITY (MGF) PROCESSES
BACKGROUND
Agribusiness. (ii) Sustainable Agribusiness Partnerships. This component will build the capacity of
smallholders and their service providers to compete for matching grants to design and implement
Linkages of Graduating Subsistence Farmers to Markets; Enhancing Agro – Micro, Small and Medium
Enterprises (MSME) Development; and Facilitating Pro – Smallholder Market – Pull Agribusiness
Partnerships. The third component is Programme Implementation which provides for establishment of
a Programme Coordination Office (PCO) for an overall Coordination of E – SAAP Implementation.
The PCO includes an agribusiness Unit which is charged with the day to day management of Margin
Grant Facility.

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Matching Grant Facility

The Matching Grant Facility (MGF) has three investment windows as follows;
Strategic Linkages of Graduating Subsistence Farmers to Markets;
Agro – MSME Development, and
Pro – Smallholder Market Pull Agribusiness Partnership.
PCO is charged with the direct implementation of windows (i) & (ii) with the support of experienced
Service Providers to assist in capacity building. A service provider will be appointed to implement
window (iii) under the supervision of PCO. The GRZ has developed an Operational and Administrative
Manual to provide guidelines and procedures for the implementation of the Matching Grant Facility
(MGF).
OBJECTIVE OF THE AUDIT
The objective of the audit of the MGF processes is to enable the auditors to express an independent1
professional opinion on the integrity of the MGF processes from application stage to approval by the
MGF Approval Committee or the Programme Steering Committee.
The Audit will be undertaken after the MAC or PSC decision but before first disbursement. The Audit
report will be sent to IFAD after due clearance by PSC, for NO.
RESPONSIBILITY FOR UNDERTAKING THE MGF PROCESSES IN ACCORDANCE WITH THE

MGF MANUAL AND GUIDELINES
The responsibility to ensure that the MGF Manual and Guidelines are followed in the administration of
the MGF rests with the Programme Coordination Office (PCO).
The PCO is also responsible to provide guidance and support to all structures to ensure that the
objectives of the MGF are met.
The auditors are responsible for the formulation of an opinion on the integrity of the MGF processes
based on their audit conducted in accordance with standards prescribed by the Office of the Auditor
General.
SCOPE OF THE AUDIT
The audit will be carried out in accordance with the Standards specified in 5.3 above and will include
such tests and verification procedures as the auditors consider necessary under the circumstances. In
conducting the audit, special attention should be paid to the objectives and procedures as set out in
the E-SAPP MGF Manual.
In accordance with International Standards on Auditing, the auditors shall pay attention to the
following:
(a) Fraud and Corruption: In accordance with ISA 240 (The Auditor’s Responsibilities Relating to
Fraud in an Audit of Financial Statements) the auditors shall identify and evaluate risks related
to fraud, obtain or provide sufficient evidence of analysis of these risks and assess properly the risks
identified or suspected;
(b) Governance: Communicate with the PCO regarding significant audit issues related to
governance of the MGF and adherence to the guidelines as prescribed in the MGF manual in
accordance with ISA 260: (Communication with those charged with Governance); and
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(d) Risks: With a view to reducing audit risks to a relatively low level, the auditors will apply
appropriate audit procedures and handle anomalies/risks identified during their evaluation. This is in
accordance with ISA 330 (The Auditor’s Responses to Assessed Risks).
AUDIT REPORT
The audit report will comprise (i) the auditors’ opinion on the integrity of the MGF processes leading to
approval of applications and (ii) a complete list of projects approved, resources allocated (both E-
SAPP and beneficiaries) and other details as may be necessary.
MANAGEMENT LETTER
In addition to the audit report, the auditors will prepare a “management letter” in which they will:
(a) Give comments and observations on the MGF records, procedures, systems and controls that
were examined during the course of the audit;
(b) Identify specific deficiencies and areas of weakness in systems and controls and make
recommendations for improvement;
(c) Report on the degree of compliance with the MGF procedures manual and guidelines, and give
comments, if any, on internal and external matters affecting such compliance;
(d) Report on the implementation status of recommendations pertaining to previous period audit
reports;
(e) Communicate matters that have come to their attention during the audit which might have a
significant impact on the implementation and sustainability of the project; and
(f) Bring to the PCO’s attention any other matters that the auditors consider pertinent.
Ideally, the management letter will include reactions/comments from PCO on the weaknesses noted
by the auditors.
GENERAL INFORMATION
The auditors should be given access to the Programme Design Document (PDR), Programme
Implementation Manual (in particular, the MGF procedures manual and guidelines) and any other
information associated with the project and deemed necessary by them.
AUDITORS EXPERIENCE AND QUALIFICATIONS
The audit firm should be registered and have a license from a national or regional professional
Accountancy Body. The firm should have relevant experience in accounting and auditing of
development projects, especially donor-funded operations.
The key audit team will comprise, at least:
(a) An audit manager with at least 10 years’ experience in auditing and with a sound knowledge of
donor-financed projects. In addition, he/she should be a member of a recognized accountancy
professional body;
(b) A team leader with at least a Master’s degree in auditing/accounting or equivalent with a
minimum of 5 years’ experience in auditing; and
(c) An assistant auditor with adequate experience and professional qualifications.

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Appendix 20: Matching Grant Agreement: Template
GRANT NO………………….
MATCHING GRANT AGREEMENT: TEMPLATE
MATCHING GRANT AGREEMENT
Between the
PROGRAMME COORDINATION OFFICE
And the
(INSERT APPLICANT NAME)
Grant agreement dated this ---------------------------- day of ------------------- 20 --------------------

Between the Ministry of Agriculture (MOA) through the Enhanced Smallholder Agribusiness
Promotion Programme (hereinafter called E-SAPP) and (insert name of grantee) (hereinafter called
grantee), each a “party” and both of them collectively the “parties”
HEREBY agree as follows:
ARTICLE 1: GENERAL PROVISIONS

1.1 the following documents collectively form this agreement: This Document, the Programme
Description and Implementation Arrangements (schedule 1), Resource Allocation Table
(schedule 2), and Disbursement Plan (schedule 3).
1.2 This Grant Agreement (G A) constitutes the understanding and agreement between the parties
with respect to the subject matter. It shall not be amended except by an instrument in writing of
sub-sequent date duly executed by authorized representatives of the parties
1.3 Definitions
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The following terms and expressions have the meanings assigned to them hereunder whenever used
in this Grant Agreement, unless the context otherwise requires;
(a) “G A”- means Grant Agreement
(b) “the parties”- means both E-SAPP and the Grantee (insert the name of the grantee)
(c) “E-SAPP”- means the Enhanced Smallholder Agribusiness Promotion Programme
(d) “PCO”- means Programme Coordination Office
(e) “IRC”- means Internal Review Committee.
(f) “PSC”- means Programme Steering Committee
(g) “MAC”- means Matching Grant Facility Approval Committee
(h) “project”- means the proposed activities designed by the grantee and approved by E-SAPP
for which E-SAPP funds are made available.
ARTICLE 2: CONTRIBUTION OF THE PARTIES

2.1 Amount- E-SAPP agrees to grant the grantee an amount not exceeding ZMW ----------- [Zambia
kwacha ------------- only].
2.2 Amount- (name of grantee) agrees to contribute an amount not less than ZMW -----------------
[Zambia kwacha ------- only].
2.3 Purpose- the purpose of the grant agreement (G A) is to govern the utilization of the grant made
available by E-SAPP Matching Grant Facility
2.4. Use of Grant proceeds - The funds from the Grant shall be used exclusively for financing the
activities of the project as detailed in the schedule 2 of this Agreement.
2.5. The Grantee commits itself to expend its own funds in the amounts and for the categories
specified in schedule 2 of this agreement
2.6. The Grantee shall permit an unrestricted access to information on the results and achievements
of the project for the use of E – SAPP, and IFAD and for presentation to the general public, through
inter – alia, photos, publications, reports and via internet subject to mutual agreement and content
review at publication time, and to such an extent that the Grantee’s confidential information will not
be put in disrepute or its intellectual property at risk.
ARTICLE 3: DURATION
3.1 This present GA will be valid for a period of two (2) years starting from the date of the first
disbursement.
ARTICLE 4: OBLIGATION OF THE PARTIES
4.1. (Insert name of Grantee)
4.1.1 - The Grantee is fully responsible to E – SAPP in using the Grant funds for the objectives of the
project and shall comply strictly to the terms of the present agreement.
4.1.2 – The Grantee shall perform the activities listed here under diligently, efficiently and in
accordance with generally accepted professional practices.
(Please list here the activities to be carried-out under the project)
4.1.2.1
4.1.2.2
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4.1.2.3
4.1.3 The Grantee will deliver the following outcomes and outputs.
4.1.4.1 Outcomes
(Please list the key outcomes expected from the project)

4.1.4.1.1
4.1.41.2
4.1.4.1.3
4.1.4.1.4
‘
4.1.4.2 - Outputs
( please list here the expected outputs from the project)
4.1.4.2.1
4.1.4.2.2
4.1.4.2.3
4.1.4.2.4
‘
‘
4.2 E-SAPP
4.2.1 E-SAPP is responsible for making available the proceeds of the grant funds according to the
performance-based disbursement schedule foreseen in the project.
4.2.2 Immediately after the signing of the grant agreement PCO of E-SAPP shall provide orientation
on Reporting for staff of the grantee, including data generation, analysis and report production,
indicator tracking methods, use of a standard report format, obligations, as well as consequences of
non-compliance.
4.2.3 [please insert any other responsibilities of E-SAPP]
ARTICLE 5: REPORTING
5.1 The grantee shall submit to E-SAPP quarterly and annual progress reports on the implementation
of the activities related to the project in a format approved by E-SAPP. The quarterly report shall be
submitted not later than 30days after the end of the reporting period. The PCO will provide feed
back not later than 30days of receiving the report. Failure to submit reports for three (3) consecutive
quarters may lead to termination of the grant agreement.
5.2 The grantee shall cooperate fully with E-SAPP in providing all the information including financial
data and supporting documents that PCO may seek in connection with requests for the
disbursement of the grant funds.
5.3 the grantee shall provide a Project Completion Report on a format agreed with PCO and shall
submit the report not later than 45days after the Completion Date of the project.
5.4 the grantee shall provide data and reports for a period of two (2) years after the project
completion, on outcomes of the project initiatives, products and facilities created by the grantee
using the grant resources. Grantee shall permit GRZ and IFAD access to these facilities and its
implementing offices.
ARTICLE 6: DISBURSEMENTS
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6.1 The grantee shall open a grant account in a bank acceptable to PCO on terms and conditions
satisfactory to PCO including prohibition of set-off and seizure. The bank name, address, account
number and signatories shall be made available to PCO.
6.2 The disbursements will be made only through bank transfers based on appropriate request from
the authorized representatives(s) of the grantee; such requests shall be on agreed format and
necessary documentations shall be attached.
6.3 No disbursements shall be made until the grantee has deposited its contribution in an agreed
bank account and necessary evidence of such deposits has been provided to PCO.
6.4 The disbursement of the fund will be as follows
(a) the first instalment not exceeding - percent of the first-year total budget shall be made upon
signing of the grant agreement, agreement on implementation schedule, the approval of first year
AWPB including a disbursement plan, and a disbursement request signed by authorized
representative of the Grantee and submitted to PCO.
(b) Second disbursement shall be made upon utilization of at least 70% of the first disbursement,
provision of a detailed report on utilization of the first disbursement including documentation,
verifiable documentation of the use of appropriate percentage of own contribution, up-to- date
progress report showing that agreed milestone has been reached, and request for second
disbursement supported by appropriate documentations.
(c) Subsequent disbursements shall be made upon evidence showing that not more than 30% of all
past disbursements remain in the account, and submission of reports/documentation as for second
disbursement.
6.5 PCO has the right to claim reimbursement of any disbursed amount of grant funds, not expended
in accordance with the terms and conditions of this GA.
6.6. If, at any time during the execution of the project, the PCO determines that the Grantee is not
meeting its matching responsibilities, PCO shall notify the Grantee that if corrective action is not
taking within 30 days, disbursement shall cease, if Grantee failed to remedy the situation, PCO shall
cease disbursement.
ARTICLE 7: PROCUREMENT
7.1. Procurement will be in accordance with the procurement plan approved along with the
AWPB.
7,2. Procurements under the Grant are small in most cases less than ZMK 50,000 therefore, most
procurements will be carried-out directly by the grantee in accordance with GRZ procedures
consistent with IFAD guidelines and procedures
7.3. In cases where grantee cannot undertake the procurement, the grantee can seek assistance of
PCO or the Province. In such cases, a formal request will be made by the grantee. The PCO or the
Province shall undertake the procurement following suitable procedures of GRZ consistent with IFAD
guidelines and procedures
ARTICLE 8: SUPERVISION
REPUBLIC OF ZAMBIA
8.1 - The PCO will supervise the project every six months. The Grantee shall facilitate such
supervision including arranging for inspection of project financed facilities, provision of requested
reports and arranging logistics.
8.2 A supervision report shall be produced by PCO and a copy made available to the grantee.
ARTICLE 9: TERMINATION
9.1 This Grant Agreement shall be terminated if:
(a) The grantee fails to comply with the terms and condition of the G A
(b) The grantee has delayed the start of implementation for a period of more than six months after
signing the G A, unless the Programme Coordinator approves an extension, which shall not be more
than another three (3) months
(c) There is evidence that the objective of the project cannot be met.
(d) The grantee fails to submit progress reports for 3 consecutive quarters.
9.2 The effect of a termination under this Article imposes strict liability on the grantee to repay all
funds disbursed by the PCO under the terms of this GA. Any sums unrepaid will attract interest at
the prevailing bank rate which will start to accrue from the date of termination.
(a) The grantee failed to comply with the terms and condition of the G A
(b) The grantee delayed the start-off of implementation for a period of three.
(3) Months after signing the G A, unless the Programme Coordinator approves an extension, which
shall not be more than another three ( 3) months
(c) There is evidence that the objective of the project cannot be met.
(d) The grantee failed to submit progress reports for 3 consecutive quarters.
ARTICLE 10: PROPERTY OF GOODS, WORKS AND SERVICES

10.1 The Grantee shall ensure that all goods, services and infrastructure financed by the grant fund
are used exclusively for the purposes of the project.
10.2 The Grantee shall ensure that all facilities and civil works used in connection with the project
are properly operated and maintained, and that all necessary repairs of such facilities are promptly
carried out.
10.3 The Grantee shall ensure all goods, buildings, machinery and other facilities used in the project
are insured against such risks and in such amounts as shall be consistent with sound commercial
practice.
ARTICLE 11: CONFIDENTIALITY

11.1 The Parties agree that they will not disclose any recognizably confidential operational and
business information that the respective parties have become aware of during the term of this
Agreement to any third party.
122
REPUBLIC OF ZAMBIA
11.2 This obligation shall not apply to information that is common knowledge through publications,
become common knowledge through no fault of the receiving Party or was demonstrably known to
the receiving Party before the date on which it was provided.
ARTICLE 12: SEVERABILITY AND RENEGOTIATION

12.1 If any term or other provision of this Agreement is determined to be invalid, illegal or incapable
of being enforced by any rule or law, or public policy, all other conditions and provisions of this
Agreement shall nevertheless remain in full force and effect so long as the economic or legal
substance of the transactions contemplated hereby is not affected in any manner materially adverse
to any party. Upon such determination that any term or other provision is invalid, illegal or incapable
of being enforced, the parties hereto shall negotiate in good faith to modify this Agreement so as to
effect the original intent of the parties as closely as possible in an acceptable manner to the end that
transactions contemplated hereby are fulfilled to the extent possible.
ARTICLE 13: NON- WAIVER

13.1 A party’s failure or neglect to enforce any of its rights under this Agreement will not be deemed
to be a waiver of that party’s rights.
ARTICLE 14: ENVIRONMENT

14.1 The grantee and the project implementing agents shall take all reasonable measures to ensure
that the project is carried-out with due diligence regarding environmental factors and in conformity
with national environmental laws and international treaties to which Zambia may be a party.
ARTICLE 15: FORCE MAJEUR

15.1 The parties will settle amicably any conflicts that may arise during the implementation of this G
A. any conflict which cannot be settled by mutual agreement between the parties shall be settled by
arbitration in accordance with the Zambia Arbitration Act No 19 of 2000
ARTICLE 16: SURVIVAL

162.1 Article-2 (use of information) section 2.6
(provision of data and reports);Article 5 section 5.4, and Article 6 section 6.5
(right of claim) shall survive the termination of this G A or expiration of E-SAPP.
ARTICLE 17: GOVERNING LAW

17.1 This G A is made under and shall be governed by and construed in all respect in accordance
with the laws of Zambia.
ARTICLE 18: NOTICES

18.1 Notices and other communication under this Agreement shall be in writing and shall be either
hand delivered or sent by express mail and signed for at the below addresses, or sent by e-mail to e-
mail addresses specified below and confirmed by recipient.
FOR PROJECT COORDINATION OFFICE
(Address to be Inserted)
REPUBLIC OF ZAMBIA
FOR GRANTEE (Please insert the name of the Grantee)

Schedule 1: Project Description and Implementation Arrangements
124
REPUBLIC OF ZAMBIA
Schedule 2: Budget Resource Allocation (ZMK)

Grantee Allocation (ZMK)
Componen Activities Items of Total Budget E-SAPP MGF Cash In-Kind
t Expenditure Allocation Allocation ZMK
ZMK
REPUBLIC OF ZAMBIA
Schedule 3: Disbursement Schedule

Payment Schedule Documentation Required Milestones Amount
(ZMK)
1st Disbursement - Disbursement request appropriately signed - Agreement signed.
by Authorized Signatory. - Approved AWPB Plus
- Evidence of payment of own contribution in Procurement Plan.
agreed bank account. - Opening of grant Account and
information on details including
Authorized signatory provided to
PCO.
-Deposit of own contribution in
agreed account.
2nd Disbursement - Disbursement request signed by Authorised

signatory.
- Financial progress report to which is
attached expenditure documentation
(receipts, invoices etc).
- Implementation progress report clearly
showing that agreed milestones have been
reached.
- Expenditure statements for utilization of own
contribution.
- Bank statement plus reconciliation report.
3rd Disbursement - Disbursement Request signed by Authorized

Signatory.
- Other documents as in 2 above.
Last Disbursement - Final Financial Report - Project Completion Report 5% of the
126
REPUBLIC OF ZAMBIA
- Final Accounts Certified by Authorized - Final Financial Report total grant

Representatives. - Final Accounts Amounts
- Disbursement Request. - Disbursement Request

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REPUBLIC OF ZAMBIA

Draft E-SAPP MGF Manual

OPERATIONAL PROCEDURES AND ADMINISTRATIVE

II. ENHANCED SMALLHOLDER AGRIBUSINESS PROMOTION

Programme Costs and Financing

III. MATCHING GRANT FACILITY FRAMEWORK AND GOVERNANCE

Matching Grant Facility; Objective and Framework.

Window 2: Agro-Micro-Small- Medium Enterprises (MSME) Development

Window 3: Pro-Smallholder Market-Pull Agribusiness Partnership

Table- 1: MGF-Summary of Base Cost

Table 2 - MGF Resource Allocation, Estimated No of projects to be supported, and expected

Resource/outputs Window 1 Window 2 Window 3

Total MGF support estimate

Average resource allocation/ beneficiary

Matching Grant Facility Administration and Governance

Figure 1: Administration and Governance of the Matching Grants Facility

Programme Coordination Office (PCO)

Subsistence Economically Active Commercially Oriented

Figure 2: Matching Grants Facility Operational Framework

IV. MATCHING GRANT FACILITY (MGF) PRIORITIES, ELIGIBILITY

Activities not to be Supported

- Maize, and crops with known health hazards, e.g. tobacco.

B. Special Considerations for Project Support

1) Seasonality of Agriculture and Agribusiness

2) Project Duration and Financing Period

3) Project Cost Estimate in Relation to Grant Ceiling and Grantee Contribution

4) Financing Uncompleted but Promising Projects

C. Eligibility Criteria and Conditions for Participation

Conditions for Participation

General Conditions for Participating in Window 3

1) Commercial viability and appropriate Governance.

V. THE MGF DEVELOPMENT PROCESSES

23. These processes are described in detail below.

(c) Grant Approval Process

Total number of working days 111

x. District Agriculture Committee Representative (DAC) Member

Quality Control and Consolidation at Provincial Level

Vetting of Applications and Project Concept Notes

i. Ministry of Agriculture – PPD Focal Point Chairperson

iii. E-SAPP – Grants Management Officer Secretary

Notification of Applicants of the Results

Field Verification/Due Diligence

External Review Arrangements

Summary Analysis and Appraisal of Project Proposals

Composition and Operation of MGF – Approval Committee (MAC)

(iii) Pre-Disbursement Phase

Fig - 3 MGF: Window 1 & 2 – Administration – Concept Note Phase

Screened application report

MGF District Review

Screened application Review report

PCO – IRC – Vetting

Rejection For Successful

Provincial Quality Control

Fig - 4 MGF: Window 1 & 2 – Administration – Full Proposal Phase

-Submit Full Project Proposal

-Submit Document to PACO

IRC Extension reviewers