LEAD PROJECT INVESTMENT FUND GUIDANCE NOTES

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2 LEAD PROJECT INVESRMENT FUND, 2 nd ROUND GUIDANCE NOTES Page 1 of 11 CONTENTS 1. LEAD Project Investment Fund 2 2. LEAD Project Investment Fund Application Process Four Stages: Review, Assessment, Selection, and Award Accessing the Form and Submitting your Application and Supporting Documents 3 3. LEAD Project Investment Fund Eligibility Criteria 5 4. The Application Form SECTION A: Your Company SECTION B: Your Business Project SECTION C: Financial Details SECTION D: Supporting Documents 11

3 LEAD PROJECT INVESRMENT FUND, 2 nd ROUND GUIDANCE NOTES Page 2 of LEAD Project Investment Fund The BRAC Maendeleo Tanzania Livelihoods Enhancement through Agriculture Development (LEAD) Project Investment Fund is a special fund of the BRAC Maendeleo Tanzania LEAD Project that is open to agribusiness investment in the poultry and maize value chains in Tanzania. The fund is a combination of a grant (40% is given as a grant to the awardee) and loan (60% is provided as a loan to the awardee). Businesses can apply for capital injections of between 5,000 USD (8,000,000 Tsh) to 30,000 USD (50,000,000 Tsh). It should be noted that the amount requested should not be more than 50 percent of the value of the current investment of the business (including assets and the business value). 2. LEAD Project Investment Fund Application Process 2.1 Four Stages: Review, Assessment, Selection, and Award The LEAD Project Investment Fund is a mechanism for allocating and disbursing funds efficiently and fairly. Organizations are invited to submit an application that highlights their concept and plan for achieving it. Rules are set and publicized, covering eligibility, the selection process, and the way that submissions will be evaluated. A joint diverse body called the Technical Advisory Committee which includes 1) one BRAC Maendeleo Tanzania employee, 2) independent enterprise practitioners and investment experts from across the area of operation, and 3) an external observer administer the process and decide in a transparent manner who gets funding, to avoid possible conflict of interest. The intention is to get funds to the organizations that truly need them and can use them effectively to realize the broader aim of poverty alleviation and empowerment of the poor; and to do this transparently. In the case of the LEAD Project Investment Fund the overall policy aim is to promote new ideas that will lead to growth in the rural economy of Tanzania, improving household incomes and creating new opportunities for systemic change in the markets that serve them. The LEAD Project Investment Fund is open only to for- profit private companies that have reached a certain stage of growth, but who may not have the ability to access commercial financing. The funding is targeted solely to the maize and poultry value chains.

LEAD PROJECT INVESRMENT FUND, 2 nd ROUND GUIDANCE NOTES Page 3 of 11 The Fund Process is in four (4) stages, as follows: Initial screening of applications to ensure that they are compliant with the

evaluation are visited by BRAC Maendeleo Tanzania field staff, who undertake a site visit of the businesses and carry-out an Assessment organizational and financial assessment Selection Best

4 LEAD PROJECT INVESRMENT FUND, 2 nd ROUND GUIDANCE NOTES Page 3 of 11 The Fund Process is in four (4) stages, as follows: Initial screening of applications to ensure that they are compliant with the eligibility criteria Competitive evaluation of remaining eligible applications by country level Application Application Review Verification Committee Top scoring applications after the competitive evaluation are visited by BRAC Maendeleo Tanzania field staff, who undertake a site visit of the businesses and carry-out an Assessment organizational and financial assessment Selection Best applications from both thecountry level and field level AVCs review/assessment are forwarded to the Technical Advisory Committee for final selection of Awardees Award Grant and loan processing Disbursement of funds to awardees NB. Unsuccessful applicants will abe notified, with a brief summary of the main reason(s) for rejection. 2.2 Accessing the Form and Submitting your Application and Supporting Documents Accessing the form You can access the application form from the BRAC website at tanzania.brac.net (electronic submissions are encouraged) or from one of BRAC Maendeleo Tanzania s branch offices where paper based applications will be available and should be submitted after completion. Your application and all supporting documents must be submitted before the deadline. Filling out the form Fill in the application form, referring to these guidance notes. These guidance notes contain essential tips about the type of information that we are looking for in order to assess your application. If you have any questions or concerns while filling out the form, please feel free to LEADtzf@gmail.com or to visit your nearest BRAC office. Please note, that stuff can not and will not fill the application on your behalf but can provide general guidance and answers to your questions. Submitting your application and all supporting documents For electronic submissions, please send the application and supporting documents to LEADtzf@gmail.com. Please enter LEAD Project Investment Fund Application in the SUBJECT line of the .

5 LEAD PROJECT INVESRMENT FUND, 2 nd ROUND GUIDANCE NOTES Page 4 of 11 The deadline for receipt of your application and all supporting documents is no later than 8 May, 2015 at 3pm East African time. Any applications received after this date will not be accepted. For paper based submissions, submit your application and all supporting documents to your nearest BRAC branch office no later than 8 May, 2015 at 3pm East African time. Any applications received after this date will not be accepted. Below are the locations of the BRAC branch offices. Region/District Branch Offices Arusha Ngaramtoni and Kimandolu Dar es Salaam Gongo la mboto and Tegeta Dodoma Ipagala, Miyuji, Kikuyu na Kondoa Kilimanjaro Pasua, Himo, Mwika, Mkuu, Tarakea, Machame, Masama, and Sanyajuu Iringa Kihesa, Ruaha, and Mafinga Manyara Babati, Galapo, and Katesh Mara Bunda, Tarime, and Kamunyonge Mbeya Mbalizi and Nzovwe Morogoro Msamvu and Kilosa Mwanza Nyegezi and Kirumba Shinyanga Kahama Singida Manyoni Tabora Ipuli and Kanyenye Tanga Korogwe, Pongwe, and Nguvumali Zanzibar Darajabovu and Bububu The LEAD Project Investment Fund will acknowledge receipt to the address from which the application was sent or by telephone to the number provided in the application. You may be contacted by the LEAD Project Investment Fund to provide further information so please ensure that the address and/or telephone number provided are correct and best for us to reach you on. 3. LEAD Project Investment Fund Eligibility Criteria The widest possible ranges of private agribusinesses working on maize and poultry sectors are eligible to apply. This includes, input production and supply, transport, processing, and mechanization. Especially encouraged are companies looking to establish or expand hatcheries for supply of day old chicks or feed operations; producers, manufacturers and distributors of agricultural inputs - seeds, fertilisers, pesticides, tools and equipment, agroprocessors, traders, merchants, and other private sector service providers including agrovets, egg and meat processors, storage facilities operators, and

6 LEAD PROJECT INVESRMENT FUND, 2 nd ROUND GUIDANCE NOTES Page 5 of 11 transport service providers. We also strongly encourage any other innovative suitable business project idea in the maize and poultry value-chains. To qualify for funding, your business idea should have a positive impact on the rural poor in Tanzania through increased quality and access to services and inputs, paying a higher price for their produce, or providing access to markets. You must also meet all of the following criteria for your application to be considered: Only for-profit private sector companies are eligible (private for-profit company, partnership or sole trader). NGOs are not eligible. Companies from anywhere in Tanzania can apply, but the business project must be implemented in at least the one of the following 15 regions: Dar es Salaam, Zanzibar, Kilimanjaro, Arusha, Dodoma, Manyara, Morogoro, Tanga, Iringa, Mbeya, Mwanza, Shinyanga, Tabora, Mara, and/or Singida All applicants must prove their business registrations and licenses. All applicants must show financial maturity (business bank account, clear accounting systems, and two years minimum of financial accounts). All applicants projects must fall within the poultry or maize value chains. The following point is also important to note for your application: The LEAD Project Investment Fund aims to achieve leverage on its funds. Applications where companies provide a higher portion of total project funding from their own resources (including third source investments) will, all other things being equal, be treated more favorably. 4. The Application Form 4.1 Section A: Your Company This section has multiple functions, giving us information to process your application, ensuring that your company fits within the LEAD Project Investment Fund s eligibility criteria, and showing the capability of your company. (A1-A21) - Provide basic information about your company, how we get in touch with you, who the contact person and/or business manager is. Please provide information on the number of employees, annual turnover, and business registration details. (A22) - Provide information about your company s current core activities, what products you currently sell and what services you offer. (A23) - Below is an example of the type of information and detail to be highlighted.

LEAD PROJECT INVESRMENT FUND, 2 nd ROUND GUIDANCE NOTES Page 6 of 11 Example: Products and services offered (A24) - List your distribution networks Specific city/cities and

(A25) - Describe your company s challenges as it relates to its operations and management.

7 LEAD PROJECT INVESRMENT FUND, 2 nd ROUND GUIDANCE NOTES Page 6 of 11 Example: Products and services offered (A24) - List your distribution networks Specific city/cities and region/regions where you sell your products or provide your services? Name of the distributor or agent who sells your products? (A25) - Describe your company s challenges as it relates to its operations and management. (A26) - List 1) your company s expenses for the last completed month and for the completed month before last AND 2) your company s total sales for the last completed month and for the completed month before last. Below is a sample of the type of information and detail to be highlighted for A26. Example: Monthly sales

LEAD PROJECT INVESRMENT FUND, 2 nd ROUND GUIDANCE NOTES Page 7 of 11 Example: Monthly expenses (A27) - Detail all of your current company and personal assets, including, but not limited to, land,

8 LEAD PROJECT INVESRMENT FUND, 2 nd ROUND GUIDANCE NOTES Page 7 of 11 Example: Monthly expenses (A27) - Detail all of your current company and personal assets, including, but not limited to, land, vehicles, buildings, and machines. 4.2 Section B: Your Business Project (B1-B3) - In this section, provide basic information about the business project. Describe your business project in three words or less (example: hatchery expansion, fortified maize flour milling, poultry feed production, or chicken processing) Specify where in Tanzania the business project will be implemented and operated Specify the sector of your business idea either maize or poultry (B4) - Provide a concise description of the business idea you want to introduce to your current business, it can be an expansion/scale-up of what you are doing now or a new idea that is related to your current sector of activity and your business. Please do not repeat information in the different subsections on the form. What does the business model look like? How will your product/service be delivered? Why do you think the business idea will work? How will the product/service reach the market? How will you make money from the new business idea? (B5) - Detail the steps that you will take to execute your business project, including all important activities you will carry (ex: investments, renovations, installations, purchases, hiring of new full-time and/or part-time staff, and licenses to acquire)

LEAD PROJECT INVESRMENT FUND, 2 nd ROUND GUIDANCE NOTES Page 8 of 11 (B6) - Explain who your target customers for the business project will be (including the cities and regions where they are

9 LEAD PROJECT INVESRMENT FUND, 2 nd ROUND GUIDANCE NOTES Page 8 of 11 (B6) - Explain who your target customers for the business project will be (including the cities and regions where they are located). Provide information also on how you can plan on growing your customer base and attracting customers, including promoting and marketing the product and/or service. (B7) - The LEAD project aims to increase the income of over 100,000 smallholder farmers in maize and poultry. By supporting businesses through the LEAD Project Investment Fund, LEAD expects for farmers to benefit from the improved and increased goods and services provided by businesses. Describe how your business project will take into consideration smallholder farmers in poultry and maize and how your business will work with them. (B8) - With the table provided, describe the experience your business has to implement your business project, its current capacity and the resources available. How long has the company been carrying out the activity and/or the company s plan to increase its knowledge in the planned activity? How much staff do you currently have available to work on the business project? What is the experience of the management and staff? What equipment, machines, infrastructure, raw material, and/or land is available? (B9) - Detail the challenges and risks you foresee in implementing your business project AND how you plan on addressing/mitigating the specified challenges and risks. (B10) - For the business project you plan on executing, detail your major competitors and their prices. Example: Competitors for a company with a business project for producing poultry feed AND please explain how you intend to differentiate your product or service from your competitors. How is your business model better than those of your competitors? Will your model deliver the product at a lower cost/price, and if so, how? Will you make the product/service better suited to the target market in other ways (example: packaging or distribution)?

LEAD PROJECT INVESRMENT FUND, 2 nd ROUND GUIDANCE NOTES Page 9 of 11 4.3 Section C: Financials (C1) - Please draw up a detailed estimated budget for your business project for a full 12 months.

10 LEAD PROJECT INVESRMENT FUND, 2 nd ROUND GUIDANCE NOTES Page 9 of Section C: Financials (C1) - Please draw up a detailed estimated budget for your business project for a full 12 months. Salaries Equipment to purchase Raw materials Operational costs (rent, electricity, water, communication) Transportation Advertisement Fees, etc... Example: Budget of a company with a business project of starting poultry feed production

LEAD PROJECT INVESRMENT FUND, 2 nd ROUND GUIDANCE NOTES Page 10 of 11 (C2) - The total financing requirements to implement your business project (i.e. your projected budget total) (C3) - The total financing for the business project that you can provide from your own resources.

11 LEAD PROJECT INVESRMENT FUND, 2 nd ROUND GUIDANCE NOTES Page 10 of 11 (C2) - The total financing requirements to implement your business project (i.e. your projected budget total) (C3) - The total financing for the business project that you can provide from your own resources. Example: In C2 your total business project idea will cost 60,060,000 to execute. You can provide 33,160,000 from your own cash resources. The LEAD Investment Fund expects you to contribute funds in cash from your own resources to finance the business project

12 LEAD PROJECT INVESRMENT FUND, 2 nd ROUND GUIDANCE NOTES Page 11 of 11 (C4) - The total financing for the business project that will be provided from a third source (your partners, banks, other financial institutions, or an NGO) (C5) - The total financing for the business project that you are requesting from BRAC. Example: In C2 your total business project idea will cost 60,060,000 to execute. In C3 you entered that you can provide 33,160,000 from your own cash resources. In C4 you did not identify any third source of funding. So the amount requested from BRAC should be (60,060,000 33,160,000) = 26,900,000 Tsh The total funds requested must be at least 8,000,000 Tsh and no more than 50,000,000 Tsh The amount requested should not be more than 50 percent of the value of your current investment (including assets and your business value) (C6) - In the table provided, fill in information about any loan your company has received in the past. (C7) - Explain how the accounting for your business is managed and who is responsible for it. Please sign and date your application to acknowledge that all of the information provided in the application is true and correct to the best of your knowledge. 4.4 Section D: Supporting Documents Finally, use the provided checklist to ensure that you attach the scans or photocopies of the requested supporting documents from the list. Any application without an attached 1) business registration and 2) bank and/or mobile banking statements for the past 3 months WILL NOT be considered. END OF GUIDANCE NOTES

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Public Disclosure Authorized Public Disclosure Authorized The World Bank Implementation Status & Results Tanzania Sustainable Management of Mineral Resources (P096302) Operation Name: Sustainable Management