USAID Responses to RFI no 72038823RFI00001 A2F.pdf

USAID Responses to RFI No.: 72038823RFI00001: "Inclusive Access to Finance"

Question 1: We respectfully request confirmation from USAID that a cover page is not included in the 10-page count.

USAID Response: Cover page is not included in the 10-page count

Question 2: We respectfully request clarification that USAID envisions the activity will coordinate with specific FTF activities, such as Climate Smart Ag.

USAID Response: We envision this activity coordinating with all FTF activities, but especially those FTF activities working within specific value chains. At the moment, these activities would include the Horticulture, Livestock, and Aquaculture activities.

Question 3: Has USAID undertaken capacity gap assessments (or implemented capacity building support) for the development of new local partners (beyond the traditional institutions in Bangladesh) that will have the institutional capability to lead the implementation of large USAID programs such as the one envisioned under this particular opportunity.

USAID Response: No. But USAID would be supportive of an approach that included capacity building for new local partners qualified to take on such work.

Question 4: What are the type of non-government FIs USAID is looking to work with? - Banks, Non-Bank FIs, MFIs, Venture Investors, Impact Investors, Angels?

USAID Response: USAID is primarily looking to stimulate debt, so commercial banks, NBFIs, and MFIs would be the primary partners. Other partners will be considered based on the approach proposed by offerors. For the rural finance component, USAID is looking to build on the village savings and loan associations (VSLAs) successfully implemented by other USAID activities.

Question 5: What are the different kind of tech stack USAID is most interested in? Digital Financial Services inter-operability? Digital Banking - credits and deposits? Digital credit underwriting? P2P/ Crowd Funding.

Networks? Or digitization of existing financial services like digital microfinance?

USAID Response: USAID prefers not to be prescriptive with respect to the technical approach. The implementer may choose various approaches to achieve the end result of increasing access to finance.

Question 6: Is there a geographical restriction for working in Bangladesh - like only Feed the Future zone? or is it open? Does the solution have to be rural or can be peri-urban / urban?

USAID Response: This activity will be funded with FTF funds, so all activities should either be within the ZOI or ZOR, or have a connection to the ZOI and ZOR (i.e. supporting a business located outside the ZOI and ZOR that sources from farmers in the ZOI or ZOR). USAID is primarily interested in supporting agribusinesses lacking access to finance. These businesses may be located in both rural and urban areas.

USAID Responses to RFI No.: 72038823RFI00001: "Inclusive Access to Finance"

Question 7: What type Ag-MSME is USAID looking to work with? Traders? Producers? Small scale manufactures/ processors? Ag-Tech? Ag Q-Commerce? Low cost Mechanization? Any particular crop focus?

USAID Response: USAID is not focused on a particular crop, but is focused on deals that (a) benefit non-traditional borrowers, such as first-time borrowers, women, youth, and Bangladesh’s ethnic minorities and indigenous populations; (b) that benefit smallholder farmers; and (c) that are “additional” (i.e. would not have occurred without USAID support).

Question 8: What kind of blended finance instruments is USAID looking at? Refinancing schemes? Direct

Impact linked funds? Impact bonds? Co-financing facilities?

USAID Response: USAID is primarily looking at a combination of grant financing combined with commercial finance.

Question 9: Can USAID share if the opportunity release date is still going to 01/31/2023?

USAID Response: USAID anticipates to release a solicitation by a date mentioned on the USAID Business

Forecast. However, the date may change, therefore, please check back USAID Business Forecast for the updated date.

Question 10: Can USAID clarify the award type for this opportunity?

USAID Response: USAID has not yet made a determination in regard to the award type. Please check back

USAID Business Forecast for the update.