The USAID Climate Finance for Development Accelerator (CFDA) is soliciting concepts from qualified organizations seeking grant funding to launch or scale investment vehicles or funds that will deliver significant outcomes for climate adaptation in Zambia. Relevant concepts may include (but not be limited to): launching a new fund/financial instrument in Zambia focused on investing in climate adaptation solutions; scaling an existing regional investment fund focused on climate adaptation to enter Zambia; or broadening the scope of an existing fund or financial instrument in Zambia to include an adaptation component.
Applications in response to this APS Addendum will be accepted through January 15, 2025 at 11:59pm EST. Questions regarding this announcement will be accepted through the Solicitation Question Submission Form through December 5, 2024 at 11:59pm EST.
Interested offerors are encouraged to join the Climate Finance Investment Network (CFIN). Managed by CFDA, the CFIN brings together climate finance stakeholders across a diverse set of sectors and emerging and frontier markets to partner with USAID. The objective of the network is to crowd in private sector climate financing through learning, partnership facilitation, and catalytic grants. CFDA will share all full and open solicitations, amendments, answers to questions, and other updates with contacts registered with the CFIN. There is no cost to join the CFIN and membership does not involve any commitment or obligation.
- Relevance & Feasibility: Presents a well-defined concept to launch or scale a climate investment fund or other innovative financial instrument that will mobilize significant private and public finance and deliver significant and clear climate adaptation impacts in Zambia (as defined in the program objectives above). Applicants are encouraged to provide detail on how capital will be deployed, including potential pipeline, as well as fundraising traction with potential investors. Early-stage concepts are welcome as long as there is a demonstrated path for rapid deployment and thesis for additionality. 20 Points
- Climate & Development Impact: The extent to which the investments to be made by the fund or investment vehicle would reduce climate vulnerability and/or strengthen climate resilience. Concepts should clearly state what percent of a fund or financial instrument’s portfolio will be allocated to climate adaptation and preference will be given to concepts where 50% or more of investment capital will be deployed for climate adaptation investments. Applicants must demonstrate development impact co-benefits of the investments made. Applicants must propose clear adaptation-related indicators and a thoughtful impact measurement approach integrated into fund management. 20 Points
- Additionality: Demonstrates a clear need for concessional catalytic financing and articulates how grant funding would help achieve the launch or scale of the fund or investment vehicle. Provides a clear articulation of the gaps in the funding concept, with a clear demonstration of how USAID grant funding will be instrumental in filling or helping to fill these gaps. 15 Points
- Capital Mobilization and Deployment: Demonstrates a strong probability of raising private or public (non-USG Development Finance Institution capital) financing. Demonstrates a plausible approach to deploying capital quickly. Preference will be given to those concepts that can demonstrate a viable path to mobilizing and rapidly deploying the most additional private sector financing (with anticipated fund size of $10M or larger). 15 Points
- Gender Equity and Social Inclusion: Demonstrates an approach that is gender-responsive and applies Do-No-Harm principles. Preference will be given to concepts that applies a gender lens investing (GLI) approach that considers gender-based factors across the investment process to advance gender equality and better inform investment decisions. Recognizes and addresses issues faced by local communities, and/or other marginalized and underrepresented groups. Demonstrates a diverse team composition. The approach should be aligned with the principles for locally led adaptation. 10 Points
- Past Performance and Team Composition: Demonstrable track record of raising and deploying capital, as well as successfully exiting investments. This should include successful experience launching at least one investment fund (or comparable instrument), preferably with private sector participation. First-time fund managers with principals and key staff that have experience raising and deploying emerging markets funds must demonstrate that they have the ability to carry out core fund administration tasks either directly or through a third party. Applicants should demonstrate their prior experience working in and knowledge of the Zambian investment landscape, or how that experience will be reflected in individual team members. 20 Points