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Frequently Asked Questions

Four Districts were selected for implementation of the LCF, namely Nyagatare, Gisagara, Gakenke, and Rutsiro. This means that projects need to be implemented in one of these Districts and that there should be value-add creation in the Districts in the long-term (e.g. companies registered in the pilot Districts). However, an applicant can associate with a partner from other districts provided that the main project site and office is within the applicant’s district and the value addition of the project is taking place in one of the 4 LCF pilot Districts.

Yes, under funding window 1 there is a possibility for partnerships between NGO’s and informal micro, small companies or cooperatives to apply for LCF funding. In this case, the NGO should be the applicant organization; the companies/cooperatives should be informal. Please note that NGO’s cannot be part of projects applying for funding under window 2.

NGOs participating in partnership are entitled at maximum 10% of the grant value as overhead expenses compensation if they act as project managers to support informal companies.

Yes, under funding window 1 informal companies and cooperatives can be part of a partnership. However, an informal company or cooperative cannot be the applicant of the partnership, this should be a formal company/cooperative or an NGO based in one of the 4 pilot Districts. 

Individual companies alone cannot apply for LCF funding. Only partnerships between companies will be considered eligible.

Yes, this is possible. TVET centers (public or private) can be part of the partnership as a member and be located anywhere in Rwanda. They can however not be the applicant organization. A partnership with a TVET center as partner, should at least have 2 companies/cooperatives as part of the partnership.

The Local Competitiveness Fund will not fund the following:

Exclusions related to applicants

  • Project financially not viable
  • Inadequate risk identification and measures for risk management
  • Individual companies cannot be supported (only companies forming a partnership can apply)
  • Partnership groups can only apply for one project per call for proposals in only one of the funding windows
  • A company/cooperative can only be part of 1 partnership proposal.
  • Parastatals, non-governmental organizations/not-for-profit organizations and public-sector organizations are not eligible, with the exception of NGOs which can apply under funding window 1 as explained above, and TVET centres (both private and public), which can be part of a partnership both under window 1 and window 2.
  • Officials of State both office bearers and employees of institutions and entities are excluded from benefitting from projects supported and may not be part of any of the entities combining to form the partnership group
  • An individual can belong to only one entity within a partnership group
  • Companies that are not registered in Rwanda with RDB cannot be part of the partnership group that applies to LCF

 

Exclusions related to the type of economic activities

  • Projects involving the purchase and resale of goods without value-adding activity cannot be supported (i.e. LCF will not fund retail trading activities and wholesale sales)
  • Primary sector of the economy that extracts or harvests products from the earth such as agriculture, mining, forestry, farming, grazing, fishing and quarrying cannot be supported. A company active in the primary sector can be part of the partnership but the jobs to be created have to be mainly off-farm.
     

Other exclusions

  • Only projects in the 4 selected Districts will be funded. However, an applicant can associate with a partner from other districts provided that the main project site and office is within the applicant’s district and the value addition of the project is taking place in one of the 4 LCF pilot Districts
  • Projects that are already wholly or partly funded by another organ of state or donor
  • Projects that require funding for the bailout or rescue of distressed companies
  • Any project that does not lie within of the specified funding windows
  • The own-funding requirement cannot be paid with other grant/donor money and should hence be paid by the project partners involved

Only eligible costs can be taken into account for a grant. The budget is therefore both a cost estimate and a ceiling for eligible costs. Note that the eligible costs must be based on real costs based on supporting documents.

Eligible costs Ineligible costs
  • All costs have to be part of the validated project budget
  • Incurred costs can be for goods, services, staff, training, works, infrastructure and consultancy services
  • Costs for vehicles (cars, moto’s, vans, trailers, boats) cannot exceed 15% of the budget
  • All costs have to be during project implementation period
  • All costs to be recorded in project accounting system and to be backed by supporting documents
  • Debts and losses
  • Expenses out of the budget
  • Interests
  • Items financed by other means
  • Speculation
  • Land
  • Credits
  • Fund franchises
  • Currency exchange losses
  • Costs related to completing the application documents of LCF
  • Fees to obtain bank and/or insurance guarantee

Yes, this is possible.

The LCF secretariat provides different sorts of capacity building:

During the application process: each potential applicant can benefit from capacity building related to the elaboration and application to the LCF Fund.

During project implementation for selected projects: each partnership group will can to benefit from additional capacity building related to:

  • Project management
  • Business management 
  • Financial management and procurement
  • Marketing
  • Enterpreneurship
  • Partnership

Once projects are awarded, this capacity building will be on offer to winning applicants and free of charge.

In addition, if other technical skills development is required to implement a project, the applicant can request for this skills development, or capacity building, as part of the project activities and budget.

Please find the template here. During information sessions, application documents shall be explained and copies can be made at the District office. 

Yes, this is possible. In each District, information sessions and desk support will be organized to explain and assist potential applicants in their LCF application. During information sessions, a brochure explaining LCF, the application guidelines and application documents will be available in hard copy. 

All documents can also be found under the documents section of this website. 


If further information is required, after the applicant has followed the information session, you can find more information on this website and in the application guidelines.

If any further support is needed, an email can be sent to the LCF Secretariat on the following email address: info@lcf.rw

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