ACi launches Cashew Matching Fund

by Ann-Christin Berger, African Cashew Initiative

The African Cashew Initiative has launched a Cashew Matching Fund Grant designed to help accelerate the development of the cashew industry in its five project countries; Ghana, Benin, Burkina Faso, Cote d’Ivoire and Mozambique. As it begins its second phase and builds on lessons learned in its 1st Phase, the Cashew Matching Fund Grant was designed to allow more private sector partners such as retailers, buyers, processors, farmer groups and public research organizations, to design and implement projects regarding farmer linkages and improved planting material.

The main objective of the fund is to facilitate the achievement of improved quality and quantity of cashew produced, enhanced knowledge transfer to cashew farmers, strong linkages and ties between processors/buyers and farmers, improved access to price and production information as well as improved cashew value/supply chain (sustainable supply chain). Hence, Matching Fund supported projects must ultimately benefit farm productivity and farmers income.

The minimum amount of cashew matching fund grant per project financed is $50,000; the maximum amount per project financed by the grant will be $250,000. For projects targeting two or more countries, the amount allocated may be bigger. The grants provided by the cashew matching fund will be matched as follows:

• Minimum matching ratio of $1.5 private funding for project supporting farmer organization and processor-farmer linkages to $1 public funds from Matching Fund. (i.e. 60% of the cost of a given project shall be borne by private sector).
• Minimum matching ratio of $1 private or public funds for project investing in improved planting material to $1 public funds from Matching Grant Fund.

The time for implementation of funded activities will be between 12 - 24 months and not to be extended beyond August 2015. Co-funding of other donors for individual project is in principle, intended, however not obligatory. Where such co-funding has already been obtained by the partner, it could be considered as a replacement for parts of the Cashew Matching Grant contribution.                    

In September 2012 and during the first call for concepts, 30 applicants submitted their papers to ACi. At this point 25 applicants were approved and subsequently sent a more detailed project proposal in a second stage by the end of November. In the first two weeks of December, the ACi technical team met for an evaluative session of all proposals after which they sent their recommendation to the Matching Fund Board composed of representatives from GIZ, ACA and the Bill & Melinda Gates Foundation. The Board is currently in the process of assessing these proposals. The final decision of who will be granted the Matching Fund is expected before Christmas. Successful applicants will be notified afterwards.