Sudan SME Catalyser Programme - Phase II

The Sudan SME Catalyser Phase II programme seeks to support established enterprises that have the potential to localise production of goods and services procured by multilateral donors in Sudan, but who need investment support to be able to do so. 

The programme will focus four major objectives: 

• Improve access to finance for enterprises that produce goods and services in Sudan for humanitarian and development partners. 
• Provide targeted business development technical assistance and capacity building to strengthen SMEs’ internal operations. 
• Improve the availability of Goods & Services produced locally & required by the humanitarian organisations 
• Create jobs and income opportunities for local communities. 

Applicants are expected to submit a short funding application with their concept, justifying their requirements for the business and/or idea to be funded, the funding amount and the project duration. Shortlisted applicants will be supported to develop a more comprehensive full proposal and business plan. 

The support package includes:  

• Provision of non-repayable grants from EUR 250,000 to EUR 1,500,000 per SME.  

• Provision of targeted technical assistance on business development services as required by the grantee.  

The match funding requirements:  

• Matching contribution: 25% of the requested amount (At least 20% in cash and 80% in-kind) are required from the Applicants/SMEs. 

Eligible businesses must show they currently engage or plan to engage with humanitarian and development partners through procurement process. Products must be locally produced in Sudan; imported goods are not eligible.  

Proposed initiatives can include, but are not limited to, one or more of the following focus areas to be eligible for funding: 

• Manufacturers of essential goods and services prioritized by humanitarian and development partners in Sudan, including food, hygiene, water, transport, storage, education supplies, and quality assurance.  
• Processors and manufacturers must show they create economic opportunities through job creation and by supplying goods or services within their value chain. 
• Production and distribution models that support local entrepreneurship and growth of SMEs. 
• Any SME/company that buys produce from the farmers/fisheries and supplies to humanitarian organizations/, or is willing to supply to IDP camps 

Desired socio-economic impact 

Business models must demonstrate how they deliver and sustain social impact through working with humanitarian and development partners, specifically, this means: 

• Number of households served by the product and services
• Improvements in people’s income
• Inclusivity of women and youth
• Stimulation of market growth
• Development of respective value chains across states
• Employment and increasing the livelihoods of people and communities 

• Committed founders to the operations of the business 
• Demonstrable benefits to the local community in terms of increased access to products and services, and increased income 
• Demonstrated economic development and potential improvement of the livelihoods of people and communities 
• Projects must be environmentally friendly. Where necessary, environmental impact assessments and mitigation measures approved by pertinent regulatory authorities must be obtained 

The progress will be measured through: 

• Number of beneficiaries who could access goods and services with the investment made 
• Number of jobs created and created after the investment. 
• Improvement in income for end beneficiaries selling to or buying from grantees. 
• Where applicable, the environmental benefits of reduced CO emissions and MWh of renewable energy installed. 
• Improvement of business operations- revenue and profitability 

• Private sector demand-driven: SCF is demand-driven and harnesses private sector initiative and implementation capacity to achieve economic and social outcomes. 
• Systemic Change: the funded projects must illustrate the potential for economic and social impact beyond their immediate Project impact, which will change the way the market works. 
• Address Market Failure or otherwise demonstrate additionality: The SCF funds projects constrained by market failure for access to finance within the context of the specific markets within which they are to be implemented 
• Risk Sharing: The SCF shares risk with private firms, requiring recipients to contribute financially to their projects. Companies are expected to have more at stake than the Programme itself, with contributions such as equity, loans, or grants from other sources to strengthen commitment and ensure successful implementation. 
• Competition: the SCF application process and term sheets are available in the public domain to ensure that all eligible SMEs have equal opportunity to compete for the available funds and ensure transparency. 
• Portfolio approach: The SCF seeks to build a portfolio of investments that is diversified in terms of risk, sector distribution, and economic, social, and market impact. 
• Additionality: the funded projects seek to create social and economic benefits that would not have been attained without this support. Therefore, funded projects should clearly outline the additionality of the funding required 

• Up to 15 SMEs funded and capacitated
• 30,000 households and smallholder farmers directly supported and benefiting from the programme
• 180,000 household members benefiting from the programme
• 500 direct jobs created by supported SMEs
• EUR 1.5 million in private-sector funding leveraged 

The Sudan SME Catalyser Phase II will use a competitive and transparent selection process to identify qualified SMEs that locally produce goods and services procured by humanitarian organisations in Sudan and support smallholder farmers. 

Contribution to SDGs 

The Sudan Catalayser Programme contributes to 2030 Agenda, with a primary focus on SDG 1, 2,3,4,5,6,7,8,10,13 and 17 on poverty eradication, ending hunger, providing quality education, promoting gender equality, provide clean water for all, access to energy for all, promoting inclusive economic growth, promoting equality, combating climate change and partnerships for the goals, respectively.