Having regard to article 5.1 of the Ministry of Foreign Affairs Grant Regulations 2006;
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1 Order of the Minister for Foreign Trade and Development Cooperation of 23 July 2015, no. MINBUZA , laying down administrative rules and a ceiling for grants awarded under the Ministry of Foreign Affairs Grant Regulations 2006 (Local Employment in Africa for Development (LEAD)) The Minister for Foreign Trade and Development Cooperation, Having regard to articles 6 and 7 of the Ministry of Foreign Affairs Grants Decree; Having regard to article 5.1 of the Ministry of Foreign Affairs Grant Regulations 2006; Orders: Article 1 The administrative rules appended as an annexe to this Order apply to grants awarded under article 5.1 of the Ministry of Foreign Affairs Grant Regulations within the framework of LEAD with a view to financing activities in the area of private sector development. Article 2 An overall ceiling of 25,000,000 applies to LEAD grants awarded from the date on which this Order enters into force up to and including 31 July Article 3 Applications for a LEAD grant may be submitted from the date on which this Order enters into force until on 28 September 2015, using the application form stipulated by the Minister and accompanied by the documents stipulated in the form. 1 Article 4 The funds will be allocated in accordance with an assessment based on the criteria set out in the annexe to this Order, on the understanding that of the applications that meet the criteria, those that meet them best will be given priority for a grant, with due regard for the need for an even distribution as referred to in article 8, paragraph 3 (d) of the Ministry of Foreign Affairs Grants Decree. Article 5 This Order enters into force on the day after the date of the Government Gazette in which it appears and lapses with effect from 1 August 2016, with the proviso that it continues to apply to grants awarded prior to that date. This Order and its accompanying annexe will be published in the Government Gazette. R.M. Buijs Deputy Director-General for International Cooperation For the Minister for Foreign Trade and Development Cooperation. 1 The application form with the accompanying annexes can be found at
2 ANNEXE Contents: 0. GLOSSARY OF TERMS 1. GENERAL 1.1 Introduction and background 1.2 Policy context 1.3 Objective 1.4 Target group and territorial scope 2. ASSESSMENT CRITERIA 2.1 Threshold criteria 2.2 Criteria relating to the quality of the programme proposal (programme check) 3. PROCEDURE 3.1 Applications 3.2 Assessment procedure 3.3 Allocation of available resources 3.4 Outline and timetable of the assessment procedure 3.5 Reporting changes 3.6 Monitoring and evaluation
3 GLOSSARY OF TERMS The following definitions apply for the purposes of these administrative rules: Applicant: the civil society organisation or social enterprise that submits a proposal for a grant. In the case of a consortium, the lead party is the applicant. Target countries: countries in which LEAD activities are to be carried out. These are Algeria, Egypt, Eritrea, Libya, Mali, Nigeria, Somalia and Tunisia. Young people: young members of the working population as defined by the International Labour Organization (ILO) in ILO Conventions Nos. 138 and 182. Civil society organisation: an organisation which is a legal person under civil law and which is not run for profit and not established by a government body nor connected with a government body either de facto or under its deed of incorporation. Minister: the Minister for Foreign Trade and Development Cooperation. Dutch enterprise or organisation: an enterprise or organisation which is established in the Netherlands under Dutch law and has its registered office in the Netherlands. Enterprise: any entity, irrespective of its legal form, that carries out an economic activity. Region: the geographical region to which a target country belongs. Eritrea and Somalia are considered part of the Horn of Africa; Algeria, Egypt, Libya and Tunisia as part of the Magreb region; and Mali and Nigeria as part of West Africa. Social enterprise: an independent enterprise that delivers a product or service, primarily and explicitly pursues a social goal focused on sustainable development in low- and middle-income countries and that has set limits on the withdrawal of capital from the enterprise. 2 2 See also: Sociale ondernemingen: een verkennend advies, Sociaal Economische Raad, 2015 [Social enterprises: an exploratory report, Social and Economic Council, 2015].
4 1. GENERAL 1.1 Introduction and background In recent years thousands of refugees and migrants have risked their lives by embarking on hazardous crossings of the Mediterranean to Europe. In 2014, about 170,600 irregular migrants crossed the sea from Libya to Malta and Italy, four times the number in the previous year. The flow from countries like Tunisia, Algeria, Turkey, Greece and Spain has sharply increased in recent years and this trend is expected to continue in the years ahead. Irregular migrants leave their homes and families for a variety of reasons. However, three factors are usually identified as the basic causes of irregular migration: economic factors (opportunity for work, income level, inequality), political factors (lack of safety, repression, human rights abuses) and environmental factors (climate change, environmental degradation and natural disasters). For a growing group of irregular migrants from Africa, the lack of economic prospects at home plays an important part in their decision to migrate. A range of studies, including research by the United Nations (UN) and the International Labour Organization (ILO), shows that unemployment and the lack of prospects of a better future are significant reasons for young Africans to migrate to Europe illegally. Youth unemployment is a growing problem in many African countries. Half of the population of Africa is under 25 and this percentage will continue to grow until Despite the growing economies in Africa, the market cannot provide employment for the growing number of, mostly young, workers. Between 2005 and 2013 the working population of sub-saharan Africa grew by over 101 million people, but the number of jobs only increased by 71 million. 3 Unemployment among young people is between twice and four times as high as among adults. There are twice as many young people living in fragile states as in non-fragile states, yet fragile states are where the greatest poverty is generally found. 4 Unless there is a strong increase in the number of jobs, the situation will become untenable. 1.2 Policy context The Dutch policy document A World to Gain 5 presented a new agenda for aid, trade and investment. It pursues three important aims. First, to eradicate extreme poverty ( getting to zero ) in a single generation; second, sustainable, inclusive growth all over the world; and third, success for Dutch companies abroad. Although poverty is declining at global level, by no means everyone is benefiting. Some 900 million people still live below the poverty line. Women's rights and labour rights are still under severe pressure. Low- and middle-income countries have few prospects for finding their own way to growth. To ensure that everyone benefits, it is necessary to remove the obstacles to inclusive growth in low- and middle-income countries. In particular, support is necessary for the full economic and social participation of young women and men. The Netherlands is investing in the development of a private sector where everyone has an equal opportunity to conduct economic activities. By strengthening the basic conditions for enterprise, we help countries to build a solid economic foundation, making them more attractive for doing business. A special focus on creating opportunities for vulnerable groups promotes inclusive and sustainable economic growth. This helps countries to transition from aid to trade. Promoting entrepreneurship is a core feature of this agenda. A growing private sector creates employment, which in turn helps to reduce poverty. Businesses drive the economy and are key sources of employment. So promoting entrepreneurship helps people to develop their talents and also creates new jobs. A job is an individual's main source of income, and the best route out of poverty. 3 World Bank DataBank. 4 OECD, Fragile States 2014: Domestic Revenue Mobilisation in Fragile States, Paris: OECD, See letter to parliament of 5 April 2013 (Parliamentary Papers, number 33625).
5 Due to the growing number of refugees and migrants worldwide and the recent shipwrecks in the Mediterranean, migration and its fundamental causes have become priority items on the international agenda. Although the Netherlands already does a great deal, notably at European level, to find sustainable solutions to the migration issue in cooperation with transit countries and countries of origin, 6 more needs to be done. LEAD is the result of the third initiative to tackle the economic factors at the root of migration, as announced in the letter to parliament about stepping up support to young African entrepreneurs and employees. 7 This initiative is giving an extra boost to youth employment in Africa and improving the prospects of young African men and women at local level. 1.3 Objective The aim of LEAD is to create employment for young men and women in eight African countries. By supporting young Africans' efforts to earn a sustainable income, for example by helping them start up their own company or by enabling existing companies to grow, which creates new jobs, we promote the local economy and increase opportunities for young people locally. This is expected to reduce the pressure of migration, as well as the risk of radicalisation and conflict. The activities eligible for grants should aim to provide a sustainable income for young people through entrepreneurship (self-employment) or through other ways of creating new jobs. The aim is to provide young women the same opportunities as men. The intervention may include technical assistance (TA), such as the provision of training, but independent TA activities are not eligible for LEAD funding. 1.4 Target group and territorial scope LEAD is open to applications from Dutch civil society organisations, Dutch social entrepreneurs and consortia of civil society organisations and/or social enterprises with a Dutch lead party. Consortium partners do not need to be Dutch. Applicants must have access, either independently or through one or more partners, to a local network and the necessary infrastructure (such as a local branch) in the country or countries targeted by the proposal. A consortium may consist of a maximum of five partners. Programme proposals must focus on young people in one or more of the following countries: Algeria, Egypt, Eritrea, Libya, Mali, Nigeria, Somalia and Tunisia. Proposals should preferably focus wholly or partly on the following fragile states: Eritrea, Libya, Mali and Somalia. 6 Parliamentary Papers, House of Representatives , 22112, no Parliamentary Papers, House of Representatives , 33625, no
6 2. ASSESSMENT CRITERIA 2.1 Threshold criteria To be eligible for a grant under these administrative rules, applicants must, first, satisfy all of the following threshold criteria: D.1 The applicant is a Dutch civil society organisation or social enterprise, as defined in the Glossary of Terms in these administrative rules. For applications made by a consortium, the lead party must be a Dutch organisation. All consortium partners must have legal personality. A consortium may have up to five partners, including the lead party. Consortium partners do not need to be Dutch. Applications by a consortium must include a partnership agreement signed by all the organisations in the consortium, which at a minimum specifies (i) how each of the parties will contribute to the consortium's activities, (ii) how decisions are made within it, (iii) how costs and risks are shared among the parties, and (iv) how the fulfilment of obligations towards the Minister in respect of the grant is ensured. If a grant is awarded, the lead party bears responsibility towards the Minister for Foreign Trade and Development Cooperation for the programme's implementation. D.2 Applicants may submit no more than one grant application and consortium partners (including the lead party) may participate in only one consortium. D.3 The applicant must have at least three years' experience, either independently or through one or more of the consortium partners, in the target country or region, as defined in the Glossary of Terms, for which grant funding is sought. D.4 The applicant must have access, either independently or through one or more consortium partners, to a local network and the necessary infrastructure (such as a local branch) in the country or countries for which grant funding is sought. D.5 The applicant is capable of proper financial management. The applicant can ensure effective and efficient implementation of the activities due to its expertise regarding the activities for which grant funding is sought. D.6 The applicant must demonstrate that at least 25% of its annual income is derived from sources other than Ministry of Foreign Affairs grants. Grants may not exceed 75% of its total annual income. The applicant must demonstrate this plausibly on the basis of financial reports over the period. If the applicant is the lead party of a consortium, this criterion applies to the consortium as a whole. Consequently, if one organisation derives less than 25% of its annual income from sources other than Ministry of Foreign Affairs grants, this may be offset by another party in the consortium. Funds which derive directly or indirectly from the budget of the Ministry of Foreign Affairs (e.g. a grant or contribution from a Dutch embassy) do not count when determining the extent of the applicant's own income, but do count towards its total annual income. D.7 The maximum remuneration of individual management and board members of the applicant/lead party and any consortium partners does not exceed 163,000 per calendar year for a 36-hour working week. This amount includes not only the total of periodically paid salary, profit sharing and bonuses, but also taxable fixed and variable expense allowances and other payments made at set times of year, such as holiday pay, 13th month's salary, the employer's share of pension contributions, etc.
7 At the time the grant application is submitted, the maximum gross salaries of management and board members of local consortium partners must be in reasonable proportion to the seniority of their position and to the organisation's geographical location, size and complexity. D.8 The applicant satisfies the guidelines for responsible business conduct as set out in the OECD Guidelines for Multinational Enterprises and the IFC Performance Standards. If the applicant is the lead party of a consortium, this criterion applies to the consortium as a whole. D.9 The activities for which grant funding is sought must be implemented in one or more of the target countries: Algeria, Egypt, Eritrea, Libya, Mali, Nigeria, Somalia and Tunisia. D.10 The minimum grant amount is 2,000,000 and the maximum 7,500,000. D.11 The activities for which grant funding is sought must focus primarily (at least 65%) on young people, as defined in the Glossary of Terms in these administrative rules. D.12 The programme has a maximum duration of three years and will start no later than three months after publication of the grant award. D.13 The applicant must demonstrate that the activities are not commercially viable for the duration of the programme. D.14 The activities for which grant funding is sought must be aimed at creating sustainable income for young people through entrepreneurship (self-employment) or new jobs created in other ways. The intervention may include technical assistance (TA), such as the provision of training, but independent TA activities are not eligible for LEAD funding. D.15 The programme must not involve initiatives aimed wholly or partly at proselytisation; activities which already receive grant funding or a contribution directly from the Ministry of Foreign Affairs budget; activities of a local civil society organisation which already receive a contribution from the Ministry of Foreign Affairs budget; activities of organisations already receiving core funding from the Ministry of Foreign Affairs budget during the period to which the LEAD application relates.
8 2.2 Criteria relating to the quality of the programme proposal (programme check) The programme check assesses the quality of the programme proposal in terms of the extent to which it contributes to the LEAD objective. The programme is assessed separately on the basis of each of the following criteria, and as a whole. P.1 Results of activities: the extent to which the activities provide sustainable income for young people in the target countries through entrepreneurship (self-employment) or new jobs created in sectors with potential for strengthening the national economy, and the expected contribution of the intended activities to preventing irregular migration. P.2 Target countries: the extent to which the activities are concentrated in fragile states. Priority will be given to proposals aimed wholly or partly at the following fragile states: Eritrea, Libya, Mali and Somalia. P.3 Contextual and target-group analyses: the extent to which the proposal, especially the defined problem and objective, reflects the findings of the contextual and gender-specific target-group analyses. The contextual analysis must examine the link between the intended intervention and the problem of irregular economic migration. In the case of countries affected by conflict, the contextual analysis must include a conflict analysis focusing on the implications for the proposed activities. P.4 Integrated focus on young women: the extent to which the programme activities promote equal access by young women to the projected sustainable income provision through entrepreneurship and/or employment. This must be apparent from the gender-specific contextual and target-group analyses, and from an approach based on these findings, which mitigates the specific obstacles faced by young women. P.5 Outcomes, outputs, outcomes, activities and resources: the extent to which the strategic short- and medium-term objectives and interventions flow logically from the contextual and target-group analyses, and the extent to which envisaged outcomes, outputs, activities and resources are formulated in a way that is specific, measurable, acceptable, realistic and time-related (SMART). P.6 Effective indicators: the extent to which outputs, outcomes and impact are monitored using a satisfactory system based on the indicators of the Donor Committee for Enterprise Development (DCED) for monitoring job creation results. 8 P. 7 Risks, monitoring and corrective action: the extent to which satisfactory risk management is in place, consisting of a satisfactory risk analysis and a satisfactory system for monitoring and corrective action, and the funding necessary to implement the programme, in addition to the requested grant, is guaranteed. The system for monitoring and corrective action must embody fundamental principles essential to the success of the programme, such as human safety, competent governance and conflict prevention. P.8 Efficiency: the extent to which financial resources are spent efficiently with a view to achieving the objectives, taking best practices (based on lessons learned in the past) into account. P.9 Sustainability, consisting of two strands: the extent to which the programme produces a lasting effect for the ultimate target group, and the extent to which the programme can be continued after three years without support (additional or otherwise) from the Dutch government. 8 DCED, Measuring Job Creation in Private Sector Development, June 2014,
9 P.10 Track record: the applicant and the consortium partners have a proven track record in promoting and creating jobs in Africa (especially for young people). Demonstrable experience in private-sector development and in promoting employment for women, as well as the ability to work with the private sector are important. P.11 Locally embedded: the extent to which applicants have access, either independently or through one or more partners, to a local network and the necessary infrastructure (such as a local branch) in the country or countries targeted by the programme. P.12 Added value of the consortium: In the case of a consortium, the extent to which working with the consortium partners adds value, and the lead party's and partners' experience of cooperating in a consortium. P.13 Complementarity: the extent to which the activities tie in with initiatives by local public and/or private parties and with activities run in the country concerned by Dutch or other donors (organisations or countries). P.14 Additionality: the extent to which the activities add value to what is offered by the market. Additionality refers to results that would not otherwise be achieved on the market without the programme.
10 3. PROCEDURE 3.1 Applications Applications for grants must be submitted to the Ministry of Foreign Affairs, using the model application form as stipulated and made available by the Minister, 9 by Central European Time (CET) on 28 September Applications may be sent by to DDE-LEAD@minbuza.nl or by post to DDE, Ministry of Foreign Affairs, Postbus 20061, 2500 EB The Hague, the Netherlands. Applications should be complete and without reservations, signed by an officially authorised signatory. It is not possible to submit a provisional application. Applications must be submitted in Dutch. Only one proposal may be submitted by each organisation (as applicant or consortium partner). With regard to the application procedure, particular attention is drawn to article 7, paragraph 3 of the Ministry of Foreign Affairs Grants Decree. If an incomplete application is submitted, the Minister may request a supplement. In this case, the date of receipt of the application will be the date on which the application was supplemented. If the application is submitted less than two weeks before the deadline of CET on 28 September 2015, the applicant runs the risk that, if it is incomplete, the Minister will not use his discretionary powers to request a supplement, because it cannot be submitted before the deadline. In that case, the application will have to be assessed as it stands. Any queries about these administrative rules should be submitted before on 24 August 2015, after which they can be anonymised and published. Questions must be submitted by to DDE-LEAD@minbuza.nl. 3.2 Assessment procedure The assessment of applications for LEAD grants will take place in stages. Stage 1 consists of an assessment of the admissibility requirements as referred to in part of the General Administrative Law Act and of the threshold criteria specified in these administrative rules. Only proposals that satisfy the admissibility requirements and the threshold criteria go on to the second stage of assessment. Threshold criteria are criteria that all applications for LEAD grants must meet. No points are awarded; applications that fail to meet all of the threshold criteria are rejected and not processed further. Stage 2 consists of an assessment of the quality of the programme proposal. If the quality of the programme proposal is judged to be deficient, the application does not qualify for a LEAD grant and the applicant will receive a letter of rejection. 3.3 Allocation of available resources Allocation of the available resources to applicants that have already satisfied the threshold criteria takes place at the end of stage 2 on the basis of the results of the qualitative assessment (i.e. the programme check). In order to qualify for a grant, applications must have scored adequately on the criteria of the programme check. If insufficient resources are available to fully honour all the applications that score adequately on the programme check, funds will be allocated to these applications according to their ranking on the basis of the criteria specified in section 2.2 (the programme check) of these administrative rules. 9 The model application form can be downloaded from
11 In the final allocation of resources, the applications that best meet the criteria under the ranking mentioned above will be first to qualify for a grant, until the available resources are exhausted. As far as possible, grant funds will be allocated in such a way that the activities are distributed evenly over the target countries. It is therefore possible for a project to attain a satisfactory score, but still be rejected because the available budget is insufficient to award grants to all satisfactory applicants. 3.4 Outline and timetable of the assessment procedure The assessment of applications is carried out at civil service level by an assessment committee consisting of members of staff of the Ministry of Foreign Affairs and external experts. The procedure is based on the legislation governing the award of grants by the Minister, the Standard Framework for Development Cooperation and this grant policy framework. The Minister will decide on grant applications no later than 25 November Reporting changes If at any time following submission of the application or during the implementation of the programme, events should occur with ramifications for the circumstances or content of the programme, the applicant must report this immediately and submit any proposed changes to the Ministry in advance for approval. 3.6 Monitoring and evaluation The Ministry of Foreign Affairs will request all data necessary for monitoring and evaluating the programme results and objectives from the applicants concerned. These must be published as part of the Netherlands' reporting to the International Aid Transparency Initiative (IATI). An obligation to this effect may be laid down in the grant decision or implementation contract.
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