MICRO ENTERPRISES SUPPORT PROGRAMME TRUST

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Green Financing

                                                       GREEN TECHNOLOGY LOAN FUND & CAPACITY BUILDING MARCHING GRANT GUIDELINES

Introduction

MESPT through the experience of mainstreaming resource efficiency and green technologies in value chain has formed a Green Technology Facility as enshrined in the DANIDA engagement document in order to scale up the uptake of the green technologies. The facility is aimed towards providing appropriate technical support and financing to the various players in the value chains including producers/farmers, processors, service providers, and businesses in accessing green growth technologies. MESPT will use the Green Technology Facility as well as the current existing Value Chain Fund for financial products development, capacity building, and bulk lending to capacitate the MESPT partner organizations in BDS and Financial Services to provide appropriate financial services (tailor-made loan products) to farmers and other clients.


The Green Technology Facility will be utilized to scale up some of the ongoing initiatives on renewable energy; climate smart technologies and MESPT NRM financing initiatives including but not limited to: Irrigation kits; solar energy (pumps; lighting, and heating); Biogas; Energy Savings Stoves.

MESPT has been supporting awareness and adoption of a number of GreenTechnologies such as;
•    Solar Water pumps (SWP)
•    Sustainable Biomass utilization Technology- Biogas, Briquette & Organic manure
•    Water management & efficiency; Drip Irrigation, community based water systems, water pans & water dams, piping
•    Post-harvest management e.g. support SME to adopt sustainable production and  processing
•    Energy scooping audit & recommendation implementation
•    Global Gap, Organic and Fair Trade Certifications

Green Technology Capacity Building Matching Grant 
Green Technology capacity building matching grant component targets Financial Intermediaries (FIs) lending or willing to lend for green technologies promoted by MESPT and other partners in the Green Growth and Employment in Kenya Programme. The capacity building grant will be available on a competitive basis and will support financial intermediaries to structure appropriate and innovative financial products to deepen and broaden the uptake of green technologies and innovations at small holder farmer level; and training and skills upgrading in all areas of green energy sustainable energy financing and other financial products.


Capacity Building Matching Grant Objectives
MESPT will support financial intermediaries in enhancing green financing by considering to provide support but not limited to the following capacity constraints;
•    To assist the microfinance organizations to diversify into new loan products for growth oriented enterprises.
•    To provide support to private sector development in Kenya in order to facilitate economic growth, improve competitiveness and ensure long-term employment creation as a means to sustainable poverty reduction.
•    To build the capacity of MFOs so that they can address the plight of the GOEs

Uses of the Capacity Building Fund
The capacity building matching grant is available for any capacity building activity for intermediaries lending or well positioned and willing to lend to various value chain enterprises that the demonstrate ability to pay and willing to use/adopt  green technologies priority being in the MESPT targeted area and value chains. The interventions include but are not limited to the following:-


•    Research, product development and innovation, e.g., development of innovative savings product, development of new products to meet emerging needs of enterprises in specified value chains
•    Risk management (credit, liquidity and other financial risks)
•    Training and skills upgrading in all areas of microfinance operations related to individual lending to MSEs
•    Business and strategic planning

Any capacity building requirements not listed above are considered on a case by case basis.

GTF Eligibility Criteria for financial institutions
•    Must be locally owned and incorporated in Kenya, and be in complete compliance with the licensing and legal requirements of statute under which it is incorporated.
•    Must be willing and able to cost-share at least 30% of the requested grant for the proposed interventions
•    Provide evidence that it is reaching or is well positioned and willing to give greater access to finance enterprises in the targeted value chains.
•    Must have at least 3 years of uninterrupted business in the financial services sector.
•    Must have a minimum of 1000 active clients
•    Have an operating management and leadership structure that guarantees accountability and gives protection against potential conflict of interest.
•    Must have audited accounts/ authenticated annual compliance returns for 2 years.
•    Must demonstrate strong demand for products and services in its areas of operation and gender balance in outreach.
•    Must provide evidence of organizational vision and direction through any verifiable means such as business or strategic plan or current actions.
•    Must provide evidence or guarantee that they will use the funds for the intended purposes.
•    Must demonstrate potential to borrow from MESPT for onward lending

How to apply
Interested applicants are invited to send an “Expression of interest “only for the capacity building to MESPT with the following information:-
•    Name, physical address and Postal address of the intermediaries including telephone number and email contacts.
•    Name and title of the contact person
•    Geographical spread of the services offered by the organization
•    Describe financial services and products offered by the organization
•    Gaps to be addressed by the capacity building support requested from MESPT and specific amounts requested for each capacity building activity including the proposed applicant’s contribution.
•    Number of active members, borrowers, clients or customers the organization works with.
•    Duration of current Strategic/ business plan
•    Any other information that can assist MESPT in deciding whether to fund the organization expressing interest in the Matching Grant Fund.