PreSolicitation USAID Southern Africas Mobilizing Investment.pdf

U.S. AGENCY FOR INTERNATIONAL DEVELOPMENT

100 Totius Street

Groenkloof

Pretoria, South Africa pretoriainfo@usaid.gov

USAID.gov/southern-africa-regional

REGIONAL OFFICE OF ACQUISITION & ASSISTANCE

DESCRIPTION

Pre-Solicitation Notice for USAID Southern Africa’s Mobilizing Investment

This pre-solicitation notice/synopsis is published in accordance with Federal Acquisition

Regulation (FAR) 5.2 – Synopses of Proposed Contract Actions. The information contained herein has been included in USAID’s Mission Business Forecast and is released for wide dissemination to all parties.

The United States Agency for International Development in Southern Africa (USAID/Southern

Africa) intends to release a solicitation for a new investment activity.

USAID/Southern Africa anticipates awarding one five-year Cost-Plus-Fixed-Fee (CPFF)

Completion-type Contract. The total estimated cost of the Contract is estimated to fall within the range of $28 million to $32 million.

USAID/Southern Africa’s Regional Development Cooperation Strategy (RDCS) hypothesizes that an increase in investment, coupled with the expansion of the private sector, will act as a catalyst for inclusive economic growth, which is a prerequisite for the development of countries in the region. Southern African countries are challenged by high levels of poverty, unemployment (specifically youth unemployment), and inequality.

The Offeror will partner with businesses and capital providers (e.g. banks, development finance institutions, institutional investors, private equity funds, and venture capital funds), and other non-bank financial intermediaries, to support the ability of investors and funds to catalyze and mobilize greater volumes of private capital into sectors that can increase employment, decrease poverty, and reduce inequality within the Southern Africa region.

USAID Southern Africa Mobilizing Investment will be focused on the following two

Intermediate Results (IRs) from the USAID Southern Africa RDCS:

● IR 1.2: Increased Investment

● IR 1.3: Expanded Private Sector

To achieve these IRs, USAID Southern Africa Mobilizing Investment will:

1. Mobilize catalytic capital to establish sustainable investment flows into sectors that were previously underserved by investors;

2. Develop the capacity of fund managers that would traditionally have difficulty accessing capital;

3. Work with financial and non-financial intermediaries to identify and perform the due diligence necessary for bankable investment opportunities;

4. Facilitate connections between U.S. and Southern African capital providers.

The Offeror will also incorporate the following principles into USAID Southern Africa

Mobilizing Investment.

● Build on previous work: USAID Southern Africa has been working to increase investment in the region for many years. The Offeror must build on the achievements, existing relationships, and lessons learned from previous activities1.

● Private sector driven: Businesses and investors are best placed to identify private sector investment opportunities and the support they require to execute them. The offeror must prioritize tailored solutions designed to meet the needs of specific transactions or market opportunities the private sector identifies and in which they are willing to invest their own resources to advance.

● Leverage the Catalytic Role of South Africa: South Africa has the most robust and complex financial systems in Africa and is the primary location for most of the investment capital and expertise in the region. The offeror will connect with capital providers in South Africa as a linkage between the United States and Southern Africa.

● Focus on gender: USAID has an explicit commitment to gender equality in all of its development activities. The offeror will ensure that gender issues2 are suitably addressed and identify opportunities to bring more women into structures that control capital.

● Use a Market Systems Approach: A market systems3 approach focuses on building the capacity and resilience of local systems, leveraging the incentives and resources of the private sector, ensuring the beneficial inclusion of the very poor, and stimulating change and innovation that continues to grow beyond the life of the project. The offeror will use the least intrusive interventions to bring about desired changes and facilitate4 change in the market without becoming a direct service provider in the market.

This procurement will be conducted under full and open competition procedures. Interested parties are advised to periodically monitor www.sam.gov for updates concerning this procurement.

Example of USAID Southern Africa investment activity: www.marketlinks.org/blogs/usaid-southern-africa-piloting-new-approaches-deepen-capital-markets-southern-africa 2 USAID Gender Policy:

https://www.usaid.gov/sites/default/files/documents/USAID_GenderEquality_Policy_MT_WEB_single_508.pdf 3 USAID, “A Framework for Inclusive Market Systems Development Approach”, www.marketlinks.org/sites/default/files/resource/files/Market_Systems_Framework.pdf 4 USAID Briefing Paper, “Understanding Facilitation”, www.marketlinks.org/sites/default/files/resource/files/Facilitation_Brief.pdf http://www.sam.gov/

Offerors are advised that this is NOT a formal Request for Proposals and in no way obligates the

U.S. government to issue a solicitation or award a contract. Issuance of the RFP and award of a contract are subject to availability of funds and other internal USAID approvals.

No questions will be accepted by USAID/Southern Africa concerning this notice. The pre-solicitation notice is being issued for informational purposes only.

Point of Contact: Mahesh Kanjee, A&A Specialist, mkanjee@usaid.gov mailto:mkanjee@usaid.gov