AVSI’s Skilling in Agripreneurship for increased Youth Employment Project Agribusiness Challenge Fund Call for Applications 2023

Terms Of Reference For Conducting The Youth Agribusiness Challenge Fund Competition 2023

Background

The Skilling in Agripreneurship for increased Youth Employment (SAY) Project is a four-year project funded by the Embassy of the Kingdom of the Netherlands and implemented by AVSI Foundation across four regions in Uganda. The project seeks to contribute to increased agri-skills level and gainful employment of youth in the agriculture sector in Uganda. This is intended to be achieved through four specific objectives:

  • Specific Objective 1: Employable agribusiness skills levels of 18,800 youth 18-30 years old in target areas in Uganda to be enhanced by 2024.
  • Specific Objective 2: Skilled youth (aged 18-30 years) employed in well-paying agribusiness jobs and self-run agripreneurship in target project areas of Uganda to be boosted by the end of the project (2024).
  • Specific Objective 3: Youth aged 13<18 years in target project areas of Uganda to increase their engagement in agriculture for a long-term career path or key economic venture by the end of the project (2024).
  • Specific Objective 4: Enabling environment for market-responsive agri-skilling and youth gainful engagement in agribusiness in Uganda to be strengthened by 2024.

The SAY Project targets 18,800 youth aged 18-30 years (6,000 being refugee and host community) for immediate employment in the agriculture sector; and 6,500 youth aged 13<18 years (5,500 in secondary schools and 1,000 in justice system rehabilitation centers) for increased agripreneurship knowledge and skills for long-term engagement in agriculture. The project is being implemented in 32 districts across the Northern, Eastern, Central and Western regions in Uganda

Justification

In order to achieve youth employment in self-run agripreneurships, the project recognizes the need to address access to start up financing for young agripreneurs which is a key constraint to starting a business. With young agripreneurs largely considered to be a risky category by most mainstream financing institutions, the SAY project seeks to promote mechanisms that support the youth to access affordable financing to scale up their businesses with more impact. Between 2021-2022, the SAY Project supported 37 youth agribusinesses to grow into profitable ventures. The agribusinesses have created employment opportunities for youth and impacted communities through creation of markets for goods and services. In 2023, SAY continues to scale this intervention to create additional advancements at individual and community levels. Therefore, the project has organized the Agribusiness Challenge Fund Competition which is a competitive financing mechanism through which 40 youth businesses with an annual income of at least UGX 7 million, and the potential to expand, will access funding to operate viable and scalable agribusiness startups. The Agribusiness Challenge Fund competition is intended to support existing youth businesses either to expand their business ventures or to develop innovative initiatives that provide solutions for outstanding challenges or obstacles faced by agribusinesses. The project is aware of the gender-related constraints faced by female agripreneurs to start or manage their businesses and hence this competition will pay particular attention to gender considerations throughout the process to ensure equal and fair representation of both males and females

Objectives of the Challenge Fund

The main objective of the Agribusiness Challenge Fund is to competitively select viable youth-owned agribusinesses and facilitate them with booster packages. The objectives of the Challenge Fund are:

  1. To identify and profile forty viable youth-owned agribusinesses within the SAY Project districts of operation (in Western, Eastern, Northern and Central Uganda)
  2. To identify the business needs of selected best agripreneurs for mentorship and coaching support.
  3. To support the selected youth agripreneurs/agribusiness with the required financial and mentorship/specialized business growth support to move to a higher level of business operations.

Description

The processes leading to the competition will include: call for applications, the selection process, business pitching, awards, and post-award support for selected youth agripreneurs.

a.   Call for Applications:

A call will immediately run on the AVSI Foundation website www.avsi.org. The call will also be shared on social media platforms managed by the SAY Project and youth beneficiaries. The call will as well be shared with the SAY Project partners to create awareness/increase outreaches among the youth skilled by these partners to ensure participation of as many youth as possible.

  • The Selection Process:

This competition strictly targets youth agripreneurs who were between 18-30 years by the time of their enrolment into the SAY Project of AVSI Foundation and whose businesses are located within the districts of the project implementation. The agripreneurs should be operating innovative, scalable, climate smart and impactful businesses in the agricultural sector. Eligible beneficiary agripreneurs will be required to complete and submit a pre-designed application form, provide proof of business operation and location plus a copy of their National ID to the emails provided in the call for applications. A select team of AVSI Foundation staff with expertise in agribusiness will evaluate the received applications following a set criterion. Selection will be conducted with the highest level of fairness, professionalism and integrity. Twenty-five youth agribusinesses from each region will be shortlisted. A verification process will follow through which the team from AVSI Foundation will visit the business premises of each of the shortlisted agribusinesses.

  • Business Pitching:

A final shortlist will be generated after the verification exercise and candidates will be invited to a pre-pitching training session through which experts and the challenge fund winners of 2021 and 2022 will facilitate the candidates to polish their presentation skills. Candidates will be invited to individually pitch their business ideas to a panel of three independent judges at a competitive business pitching event that will be organized at regional level. Business pitching will be a physical event organized in each region (East, West, North and Central). Each candidate will have five uninterrupted minutes to make their presentation and pitch their business; and the panel of judges will have five minutes for Q&A with each presenter, making a total of ten minutes for each presentation. This is a competitive process and candidates are encouraged to prepare adequately and to demonstrate complete knowledge of their business idea. Ten winners per region will be selected for financial support through the Agribusiness Challenge Fund 2023.

  • The Boot Camp:

A five-day boot camp will be organized in a central location for all the forty winners. An alumni networking event will be organized on day one of the boot camp where 2021 and 2022 winners will interact and share their experiences and stories of success with the 2023 top winners. The SAY Project will also use the same opportunity to document progress of the agribusinesses supported in the past.

On days two to four of the boot camp, the 2023 Challenge Fund winners will receive mentorship support to polish their business ideas, build solid business plans and to refine their business models in preparation for the support to enhance their capacities and skills so that they can launch their businesses to the next level. The boot camp will be facilitated by AVSI Foundation staff together with an external team of business development experts. And on day five, AVSI Foundation staff will support youth to consolidate key learnings and finalize how best they can utilize their awards.

During the agribusiness boot camp, winners will attend sessions on:

  • Value chain mapping and analysis.
  • Financial analysis.
  • Business/investment planning.
  • Understanding the market - Market Needs Assessment and market positioning.
  • Understanding the customer - Customer Relations Management.
  • Costing and pricing.
  • Records management.
  • Business organization - operations and management.
  • Product development, Certification and Quality Assurance.
  • Business registration.
  • Proposal writing and business pitching.
  • Dynamics of group investments/investment clubs.

The boot camp will also include inspiration and mindset change sessions as well as the opportunity for the youth from the different regions to network and share their experiences.

  • The Challenge Fund Awards

 The financial awards for the ten winners in each region is stipulated as follows

Eligibility criteria

Two level criteria will be used to select applicants for pitching. Applications will be received from youth either as individuals or as joint ventures (investment clubs or youth groups).

Criteria for individual applicants (youth agripreneurs)

  • Business must operate within the legal frameworks of Uganda.
  • Should have been skilled under the SAY Project of AVSI Foundation. Note that all SAY Project beneficiaries have been enrolled into an online data base and your application will be subjected to verification.
  • Should have been 18-30 years of age by the time of enrolment for skilling under the project. Youth shall be required to present a valid National ID or any identification document as proof of age and nationality.
  • Must be the rightful owner or co-founder of the business presented and should be involved fulltime in the management of the day-to-day operations and leadership of the agribusiness enterprise.
  • Must have been in the business for (at least) the past six months as at September 30, 2023.
  • The businesses should have an annual/projected income of at least UGX 7 million, with potential to expand.
  • Must demonstrate own investment (cash and in-kind) in the growth of the business so far, and willingness to commit own resources in the business growth.
  • Must be willing to stay clear of partisan political activities during the course of engagement.
  • Be engaged in any of the following: horticulture, banana, dairy, coffee, food processing, piggery, poultry, apiary, fish, mushroom, rabbits and support services along the value chains such as input services, extension services, waste management or recycling, marketing, food retail, ICT solutions for agribusiness, distribution or logistics and climate smart agriculture.
  • Demonstrate clear business records and/or business model canvas.
  • The business should have potential to grow and the individual should be willing to work with other youth.
  • Must showcase eco-efficiency and climate smart agriculture practices.
  • The business must be located in the following districts:
    • Western Region: Mbarara, Kiruhura, Isingiro, Ibanda, Kabale, Bushenyi, Rubanda, Kazo and Ntugamo.
    • Northern Region: Lira, Gulu, Agago, Lamwo, Otuke, Yumbe, Kitgum, Pader and Kole.
    • Central Region: Kampala, Wakiso, Mityana, Mukono, Buikwe, Luwero.
    • Eastern Region: Kamuli, Iganga, Mbale, Kapchorwa, Soroti, Jinja, Tororo and Busia.

Criteria for agribusiness joint venture applicants:

  • Venture must be at least 75% owned by youth who were aged 18-30 years at the time of enrollment into the project. Owners are required to present valid National ID or any identification document as proof of age and nationality.
  • Venture must have been in existence for (at least) the past six months as at September 30, 2023.
  • The businesses should have an annual/projected income of at least UGX 7 million, with potential to expand.
  • Must be designed and operating as a for-profit business earning revenue from its operations. Youth initiatives designed as non-governmental organizations, community-based organizations or other forms of organizations are non-eligible to apply.
  • Registered or possess a registered/reserved business name or owners willing to formally register the business. Business should have a dedicated bank account or show willingness to open one.
  • Have a clear physical address with business plan or business model canvas and keep records.
  • Operating in targeted value chains of horticulture, banana, dairy, coffee, food processing, piggery, poultry, apiary, fish, mushroom, rabbits and support services along the value chains such as input services, extension services, agro‐processing, postharvest handling, value addition waste management or recycling, marketing, food retail, ICT solutions for agribusiness, distribution or logistics and climate smart agriculture.
  • Businesses that demonstrate commercial viability (potential to scale), innovation and great market potential will be highly prioritized.
  • Demonstrate social inclusion (engage other youth including female) and environmental impact (environmentally sustainable).

Must be based in the following districts:

  • Western Region: Mbarara, Kiruhura, Isingiro, Ibanda, Kabale, Bushenyi, Rubanda, Kazo and Ntugamo.
  • Northern Region: Lira, Gulu, Agago, Lamwo, Otuke, Yumbe, Kitgum, Pader and Kole.
  • Central Region: Kampala, Wakiso, Mityana, Mukono, Buikwe, Luwero.
  • Eastern Region: Kamuli, Iganga, Mbale, Kapchorwa, Soroti, Jinja, Tororo and Busia.

Note: Previous Agribusiness Challenge Fund winners are not eligible to apply.

How to Apply

  1. You should meet the eligibility criteria.
  2. Download the application form and duly complete the form with all the required information.
  3. Submission of application:
  1. Applicants from Western Uganda region submit to helen.mbabazi@avsi.org and copy  enock.ampumuza@avsi.org and Anold.Ananura@avsi.org
  2. Applicants from Northern Uganda region submit to Christine.Akech@avsi.org and copy Christine.Adong@avsi.org  and Amony.Agnes@avsi.org
  3. Applicants from Eastern Uganda region submit to Kenneth.Bahati@avsi.org and copy proscovia.ayubu@avsi.org and ronald.natyete@avsi.org   
  4. Applicants from Central Uganda region submit to fiona.ibudi@avsi.org and copy Phoebe.Logose@avsi.org and rachael.kemigisha@avsi.org

Applications should reach us not later than 23:59 hours (Ugandan time), Thursday 19th October, 2023.

  1. Note that applications submitted after the deadline shall not be considered.
  2. Female agripreneurs or female-led ventures who meet the eligibility criteria are highly encouraged to apply.
  3. Shortlisted applicants will be contacted through the same email used for submission of application.

For inquires: Golden.Tayebwa@avsi.org  

This competition is open and fair to both females and males. This Challenge Fund process is free of charge. No monetary or any form of consideration should be made by an applicant at any stage of the Challenge Fund process. AVSI Foundation upholds transparency. For cases of fraud, report to 0800 20 30 30.