WHAT IS IT ABOUT?

The Local Competitiveness Facility (LCF) is a matched grant facility to support private business partnerships focusing on value chain integration. NGOs and Training and Vocational Centres (TVETs) can also be a partner under certain conditions.

The main outcome of LCF is to fund innovative economic partnership projects to enhance pro-poor local economic development (LED). The businesses benefitting from LCF should make an economic impact, contributing to the economic growth of the District and improved quality of life of its citizens.

Main objectives

  1. LCF will fund projects that will make a positive LED impact. LCF funded projects should have an impact on a part of a value chain in a region and should create jobs for people from that region.
    LCF will fund projects that make a real pro-poor impact, which means that jobs should be created for poor people.
  2. LCF will fund partnerships between micro, small, medium and large companies or cooperatives. Only companies or cooperatives that are in a partnership with other cooperatives can apply to LCF.
  3. LCF will fund innovative project ideas in the area of value chain development to mitigate cost and risk barriers that inhibit the development of innovative private-sector partnerships.

How does it work? 

The LCF is operated on a competitive basis to ensure that those interventions that are consistent with the objectives of LCF and the District are prioritized. 

Nine Districts were selected to benefit from LCF fund: Kirehe, Gatsibo, Gisagara, Huye, Nyamagabe, Rulindo, Burera, Karongi and Nyamasheke. Below, you can find a short description of the possibilities for funding that LCF offers. Please find more detailed information in the LCF application guidelines Kinyarwanda Version and English version

The following funding is available under LCF

  • Window one applicable to ECOREF and to SI Jobs.
Size of own contribution (in Rwf) Size of grant (in Rwf) window 1
1,000,000 – 1,875,000 (25%) 4,000,000 – 7,500,000
2,250,000 – 3,000,000 (30%) 7,500,001 – 10,000,000
3,500,000 – 4,375,000 (35%) 10,000,001 – 12,500,000
5,000,000 – 6,000,000 (40%) 12,500,001 – 15,000,000
  • Window two applicable to only SI Jobs.
Size of own contribution (in Rwf) Size of grant (in Rwf) window 2
4,000,000 – 4,875,000 (25%) 16,000,000 – 19,500,000
5,850,000 – 6,900,000 (30%) 19,500,001 – 23,000,000
8,050,000 – 9,275,000 (35%) 23,000,001 – 26,500,000
10,600,000 – 12,000,000 (40%) 26,500,001 – 30,000,000

Which economic sectors is LCF supporting?

Targeted value chains for ECOREF (WINDOW 1)

  1. Garments and leather (handcraft): Garments and leather fall under the ‘light manufacturing sector’ which is acknowledged as a catalyst for economic development and regional integration. It is labour-intensive, does not require huge capital investment and is a product that is demanded locally, regionally and internationally.
  2. Agro-processing in dairy, meat/fish, Irish potato, soybeans, sugar, milling products, fruit, coffee and high-end products like essential oils, silk, stevia, macadamia nuts, Banana, wheat, tea, potato and pineapple.
  3. Construction materials including wood, bamboo, metallic, cement, ceramics, clay and quarrying (stone) materials
  4. Beauty/Cosmetics: hairdressing, make-up, pedicure/manicure, massage including manufacturing of beauty products in Rwanda (e.g. soap, shampoo, body cream…)
  5. Tourism: Good and services that promote tourism in the areas including tour guide packages, hospitality, tourist activities etc.

Targeted value chains for SI-JOBS (WINDOW 1&2)

  1. Forestry and wood
  2. Audiovisual sector
  3. Manufacturing: textile, garments, leather, construction materials, arts and crafts, food, drinks, wood and metal furniture
  4. Transport Services: distribution of goods
  5. Beauty/Cosmetics: Manufacture of beauty products in Rwanda (e.g. soap, shampoo, body cream…) and hairdressing, make-up, pedicure/manicure, massage

What are the eligible partnerships to apply for LCF? 

Financing windows Eligible partnership
Window 1

Two possibilities:

  • A medium or large company partners with micro, small companies or cooperatives. The applicant company should be a formal company, and the other companies should be informal.
  • An NGO partners with micro, small companies or cooperativesThe NGO is the applicant organisation; the companies/cooperatives are informal.
    Note that there should be at least 2 companies/cooperatives part of the partnership. Meaning that the partnership should consist of at least the 3 members of the partnership: 1 NGO (Applicant) + partner 1 (informal company/cooperative) + partner 2 (informal company/cooperative)

Notes:

  • There must be at least two businesses (company/cooperative) per partnership
  • TVET centres (public or private) can be part of the partnership as a member (not as applicant organisation) and be located anywhere in Rwanda. They can only partner with a partnership of at least 2 businesses (company/cooperative)
  • Medium or large formal companies and NGOs cannot take part as members, but only as applicants
  • NGOs should be registered in Rwanda and have operations in the pilot districts. Proof should be provided.
  • An NGO can be part of more than one application, but not more than three applications. If an NGO applies for more than one project, its capacity to actually manage more than one project will be assessed during due diligence phase.
  • NGOs participating in the partnership are entitled to a maximum of 10% of the project costs as overhead expenses compensation if they act as project managers to support informal companies.
Window 2

Two possibilities:

  • Formal micro-companies and/or small companies and/or cooperatives establish a partnership together
  • Large/medium companies partner with small or micro-enterprises/cooperatives

Notes:

  • All companies should be formal
  • There must be at least two companies per partnership
  • TVET centres (public or private) can be part of the partnership as a member (not as applicant organisation) and be located anywhere in Rwanda. They can only partner with a partnership of at least 2 businesses (company/cooperative)
  • NGOs cannot be part of Window 2

For further information: please consult the application guidelines.

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