RFI for Enhancing Trade and Finance.pdf

Issuance Date: September 11, 2024

Response Due Date and Time: October 10, 2024, 1700 hours, Accra time

Response email address: zkusi@usaid.gov and vhollosy@usaid.gov

Dear Prospective Partners:

Pursuant to FAR 52.215-3 “Request for Information (RFI),” the United States Government through the Ghana Mission (USAID/Ghana) is seeking information for a potential activity (The Enhancing Trade and Finance Activity-ETF) in Ghana.

The issuance of this RFI is an opportunity for USAID/Ghana to obtain responses from industry to the below listed questions in attachment A. USAID intends to use the information received from this RFI for planning purposes and to help make strategic decisions. Please do not include company brochures and general information not relevant or applicable to this Activity.

This is not a Request for Applications or Proposals (RFA/P) and is not a commitment by the U.S.

Government. Issuance of this notice does not constitute an award commitment on the part of the Government, nor does it commit the Government to pay for any costs incurred in the preparation of responses to this RFI.

Responders are solely responsible for all expenses associated with responding to this RFI.

Submissions will not be acknowledged, nor will responses be returned. Information provided in response to this RFI must be received in writing via email; telephone calls will not be accepted.

The RFI is released on www.sam.gov and www.grants.gov.

USAID reserves the right in its sole discretion, without liability to utilize any, all, or none of the RFI response(s) in its planning efforts. USAID appreciates any questions and comments on the RFI and welcomes feedback on any or all the following questions in English.

Please include the following subject line for email responses: “Enhancing Trade and Finance Request for Information No. RFI-001-2024.

List of attachments:

Attachment 1 - Program Information and Questions for Interested Parties mailto:zkusi@usaid.gov mailto:vhollosy@usaid.gov http://www.sam.gov/ http://www.grants.gov/

ATTACHMENT 1

Program Information and Questions for Interested Parties

A. Program Information

1. Purpose of Activities:

The purpose of the Enhancing Trade and Finance activity (ETF) is to mobilize finance and investment in targeted sectors of the Ghanaian economy (including, but not limited to, agriculture, climate mitigation and adaptation, trade, apparel, Water, Sanitation and Hygiene

(WASH), renewable energy sectors, etc.) and create jobs. The activity will ensure the development of a broad and diverse finance market which is able to meet financing needs of different business types through increased private sector investment. In addition, the activity will enhance trade by creating linkages to improved markets and empowering Small Medium

Enterprises (SME) with growth potential to seize trade and investment opportunities and meet foreign market standards.

2. Background and Context:

Ghana is gradually recovering from a severe macroeconomic crisis that peaked in 2022. The economy, already fragile, struggled with external shocks from COVID-19, Russia’s invasion of Ukraine, and global inflation, leading to declining reserves, currency depreciation, and rising inflation. In July 2022, Ghana sought IMF support.

Despite USAID’s FINGAP and MFA programs increasing commercial financing for agribusinesses, financing remains limited, especially for smallholder farmers and individuals from marginalized backgrounds, including women and youth. The financial market lacks diverse investment tools suitable for different business stages, and recent fiscal constraints, including the 2023 Domestic Debt Exchange Program (DDEP), have further strained banks. This has led to reduced credit availability and capital investments, particularly affecting SMEs. In addition, women in Ghana do not have equitable access to banking and credit due primarily to cultural norms that prefer men as guarantors and preventative collateral requirements.

Limited access to affordable finance hampers SMEs’ ability to grow, produce for export, and compete internationally. The lack of investment also impacts their capacity to meet global standards, scale operations, and manage risks, hindering their export potential.

Ghana’s financial regulatory environment, focused on protecting consumer deposits, may unintentionally constrain lending to sectors like agriculture, which faces unique challenges. The country also needs to strengthen the enabling environment in emerging areas such as carbon markets and WASH, which face a significant funding gap.

To drive economic growth, private investment is crucial. There is a need to expand beyond traditional banks and engage specialist lenders, particularly those utilizing emerging digital technologies, to improve SME finance. Innovative approaches, like alternative data for credit risk assessment, are key.

In summary, mobilizing private sector investments in agriculture, trade, and high-growth sectors through regulatory improvements and targeted interventions is essential for sustaining growth and creating jobs.

3. Mechanism type(s):

USAID is considering awarding this as a contract. Award type and number are still under discussion within USAID.

4. Planned performance period:

2025 – 2030

5. Describe the expected results (at the output, outcome and impact levels) to be achieved.

The overall ETF activity will focus on three Development Objectives (DOs) contributing to USAID Ghana’s County Development Cooperation Strategy (CDCS) Results Framework:

DO1: Mobilize private sector investment for agriculture, trade, apparel and other high impact sectors (including climate finance for adaptation/ mitigation and WASH)

A. Increased availability of custom products by financial institutions to address financing needs of SMES and rural farming communities.

B. Improved performance of carbon markets and increased mobilization of climate finance.

C. Increased trade through private partnerships and availability of innovative finance mechanisms.

D. Mobilize finance for WASH and renewable energy sectors.

DO2: Create sustainable jobs by offering technical support to SMEs with growth potential, equipping them to capitalize on available trade and investment opportunities, and assisting smaller SMEs in becoming more productive and resilient.

A. SMEs create sustainable employment opportunities B. Increased number of local firms working directly with USAID C. Availability of targeted interventions that empower youth and women to pursue entrepreneurship D. Increased trade sales by SMEs

DO3: Facilitate a regulatory environment that encourages alternative financing methods, such as crowdfunding and venture capital, while promoting private sector investment and inclusive finance

A. Strengthened and enabling, regulatory and policy environment that stimulates private sector investment and access to finance.

B. Established frameworks that ensure consistent interaction between financial service stakeholders and regulators.

C. Improved financial inclusion through fintech solutions to improve welfare and build resilience of smallholder farmers.

D. Strengthened regulations for carbon market operations and increased number of successful carbon projects in Ghana.

6. Illustrative result areas and indicators include, but are not limited to, the following:

A. Finance/investments mobilized in targeted sectors

a. Value of private financing raised for SMEs

b. Value of agriculture-related financing accessed

c. Value of annual sales of producers and firms

d. Number of innovative financing products developed

e. Value of trade sales facilitated.

f. Value of finance/investment mobilized for WASH

g. Gender parity to financing

B. Climate adaptation, mitigation and financing

a. Enhanced climate change adaptation and mitigation

b. Strengthened resilience among people and systems from climate and its effects

c. Value of climate finance accessed

d. Number of carbon projects supported

e. Improved adaptation to and recovery from shocks and stressors

C. Crosscutting results areas

a. Number of youth/women/ PWDs reached

b. Value and number of women supported to access finance

c. Number of new jobs created

d. Improved performance of supported SMEs

e. Supported SMES with increased productivity/profitability

f. Adoption of innovative regulatory technologies

7. Questions for Interested Parties

USAID/Ghana is requesting the following from interested parties:

A. Background Information (not to exceed one (1) page)

a. Company Name

b. Company address

c. Company Point of Contact (phone and email address)

d. Company Business Size (i.e. Small Business or Large Business), if small business, what socioeconomic status, if applicable

e. Unique Entity Identifier (UEI)

f. SAM registration status

B. Experience and capabilities of the respondent in the below technical areas (not to exceed one (1) page per technical area)

a. Trade Facilitation: Improved trade facilitation (e.g., reduce time and cost of goods crossing borders, increasing trade sales etc.)

b. Access to Finance: Stimulating private sector investments, increasing access to commercial financing, increasing financial inclusion and providing alternative financial products outside of the traditional banking sector, improving equitable access to financial investments for marginalized populations, including women and youth.

c. Financial Regulatory Bodies: Working with financial regulators and stakeholders towards enabling regulatory and policy environments that stimulates private sector investment and access to finance.

d. Climate finance: Mobilizing climate finance and working on carbon market transactions in Africa.

e. WASH and Renewable Energy: Mobilizing finance for WASH and renewable energy sectors in Africa.

C. Relevant challenges, lessons learned and/or best practices based on the respondent’s experience (not to exceed one (1) page)

D. Technical Questions (not to exceed 4 pages)

a. Considering the overall purpose of the activity in section 1, are there critical objectives missing from the stated objectives in section 5 that should be addressed to achieve these goals? Kindly identify these objectives if any.

b. Are there other expected outcomes under each of these objectives that you think have not been included under any of the development objectives in section 6?

c. Considering the purpose of the activity and the context is there anything else you would like to share, or think USAID/Ghana should consider in designing and developing interventions to achieve the development objectives above?

d. In alignment with USAID's localization priorities, USAID/Ghana is considering awarding a portion of this activity to local entities. If you are a Ghanaian organization or company with the capability to work directly with USAID, or have collaborated with Ghanaian organizations in relevant fields, we invite you to share information about your capabilities, experience, challenges, and best practices.