TCDP MATCHING GRANT SUPPORT (MGS)

GHANA TREE CROP DIVERSIFICATION PROJECT (TCDP)
(P180060)
TCDP MATCHING GRANT SUPPORT (MGS)

The Government of Ghana, through the Tree Crops Development Authority (TCDA) and Ghana Cocoa Board (COCOBOD), is implementing the Ghana Tree Crop Diversification Project (TCDP) funded by the World Bank (IDA) over a six-year period from 2024 to 2029. The Project Development Objective (PDO) is to improve economic, climate, and social resilience in the cocoa, coconut, cashew, and rubber value chains in Ghana.

These objectives are to be achieved through three interrelated technical components, all of which support the soft and hard solutions to promoting the tree crops sector development. The components are:

• Component 1: Institutional Strengthening and Value Chain Governance.
• Component 2: Improving Tree Crops Productivity and Climate Resilience; and
• Component 3: Support for Post-Harvest Management, Value Addition, and Market Access.

The fourth project component focuses on project management and monitoring to ensure effective oversight and evaluation.

Component 3 aims to support businesses involved in agro-processing/value addition, and post-harvest activities in the cocoa, cashew, and coconut value chains. Through this component, TCDA and COCOBOD will strengthen the capacity of beneficiary businesses in post-harvest management, value addition, and market access by offering Matching Grant Support (MGS) to co-finance:

1. Technical Assistance (TA)  for business plan development
2. Capital investments (machinery, equipment, storage, processing facilities)
3. Start-up support for new or expanded operations

The MGS is intended to support beneficiary businesses to secure investment loans from Partner Financial Institutions (PFIs) and so its process includes an additional step focused on Bank Loan and Credit Risk Guarantee (CRG). There is also a requirement for the grantee to provide matching funds (in cash and/or kind). 

TCDP MGS Funding Windows

The MGS provides two distinct funding windows, as outlined below:

Windows	Investor Type	Total Grant (US$)	TA Ceiling	Grant Ceiling (%)	Own Funds	PFI Loan
Window 1	Medium to Mid–Large Processors	200,000 – 4,000,000	50% (US$80,000 max.)	30%	≥20%	≥50%
Window 2	Small Investors	50,000 – 200,000	80% (US$30,000 max.)	50%	≥10%	≥40%
	Women/Youth-Owned			80%	≥10%	≥10%

 

TCDP MGS Requirements

Priority will be given to transformative applications that:

• foster collaboration across the selected tree crop value chain
• clearly outline how interventions will contribute to increasing youth and women’s inclusivity, capacity, and participation in Ghana’s agricultural transformation.
• propose initiatives that reduce post-harvest losses and encourage value addition
• possess the capacity to create downstream agri-food job opportunities for youth and women
• propose initiatives that promote the efficient use of resources such as water and energy, which can lead to a reduction in greenhouse gas (GHG) emissions.

Special consideration will be given to businesses that meet the following criteria: (i) youth and/or women-owned and (ii) have the potential for expansion.

Evaluation Criteria

All Concept Notes and Full Proposals shall be evaluated against set criteria. The tables below outline the evaluation criteria for each as well as their definitions respectively. The definitions will be used by the evaluators to assess your submission.

Concept Note Evaluation Criteria:

Evaluation Criteria	Definition
Eligibility	The applicant is eligible to submit a concept note in accordance with the terms and conditions of the TCDP matching grant.
Financially viable entity	The applicant has provided evidence of sufficient financial resources
Clearly defined problem statement	The specific needs and constraints of the target beneficiaries are clearly identified and articulated.
Proposed solutions to address the defined problem:	A clear description of the proposed interventions, along with specific goals and objectives, and activities, all of which align with the Project Development Objective (PDO).
Approach to Implementing the Proposed Interventions/Activities	A detailed description of the methodology or approach that clearly demonstrates creativity, innovation, efficiency, and practicality. The submission should include evidence of a summarized implementation plan.
Identification of Target Beneficiaries	The target beneficiaries are clearly identified by category and number, with data, disaggregated by gender.
Expected Results	A clear description, which may include outcomes such as increased capital investment, the number of jobs created, enhanced processing capacity, development of new products, improved export capacity, increased volume of processed raw tree crop produce, increased trade volumes, among other measurable impacts.
Sustainability	The proposed measures are both realistic and achievable, ensuring the long-term impact and continued benefits of the support provided.

1. The minimum required score for concept notes is 70 points.

Full Proposal Evaluation Criteria:

Evaluation Criteria	Definition
Strategic Alignment	The subproject is aligned to the PDO and national priorities; and makes a clear justification for grant resources versus other funding sources (commercial loans, private equity, etc.).
Technical Soundness	Problem Statement presents a clear description and analysis of the key issue(s) being addressed, as well as the current status versus the ideal status, and is well linked to the proposed solutions, objectives, and outcome.
	Proposed Solution(s) are logical, feasible/realistic, and technically viable. This includes the impact on targeted beneficiaries/processing capacity/export volumes, etc.
Value for Money	Does the subproject achieve Value for Money through its effectiveness, efficiency, and sustainability?
Market Access Potential	Does the subproject improve access to domestic/export markets?
Innovation & Value Addition	·       Do the proposed intervention(s) introduce innovation or improve existing practices significantly? ·       Do the proposed intervention(s) create opportunities for jobs for vulnerable households, particularly among women and youth?
Subproject Risk Assessment & Mitigation	Are the identified risks and its associated mitigation strategies adequate?
Scaling	Are the interventions catalytic? Can they be taken to scale and replicated in other areas?
Sustainability	Is there a clear plan for sustainability of the subproject beyond the TCDP funding period?
Environmental and Social Safeguards (E&S) Compliance	Gender & Social Inclusion – Does the proposal promote inclusion of women, youth, and marginalized groups? Climate & Environmental Benefits – Are there clear strategies for climate resilience or environmental protection?
Organizational Capacity	The organization has demonstrated technical and institutional capacity to implement the subproject
Budget & Cost Effectiveness	·       Does the budget adequately capture all cost drivers related to the subproject activities (realistic)? ·       Is the budget reasonable, transparent, and well justified?

 

Eligible Activities for Funding:

1. Capital Expenditure (CAPEX):

• Support equipment, machinery and technology upgrades including renewable energy systems.
• Infrastructure upgrades to support postharvest management including storage facilities and packhouses, and extension of electricity and water supply.

2. Operational Expenditure (OPEX):
   • Business Development Services including training, business plan development and operational software acquisition
   • Support direct inventory and raw material supply.

• Support product packaging and labelling.
  • Support sanitary and phytosanitary (SPS) standards including certifications related to food safety.
    
    

Eligibility Criteria for Grant Applications
Businesses interested in submitting applications must ensure they meet the following eligibility to qualify for TCDP financial assistance:

• Must have formal registration (Business Registration & Incorporation certificates)
• Must have (or be willing to have) a TCDA Certificate of License
• Priority will be given to Ghanaian-owned businesses or joint ventures between Ghanaians and Non-Ghanaian investors.
• Must have private (or collective e.g. Cooperatives, FBOs) ownership
• Must have been in operation for not less than 3 years
• Must be involved in the provision of post-harvest management services, and/or value addition/processing of produce and/or by-products
• Must have adequate Financial Records and Operational Profitability (Momo and/or Bank statements for the past 1 year, Management Accounts, Annual Financial Reports/Audit Reports for the last 3 years, Tax Clearance Certificates, List of all current debt obligations, Offtake agreements/Payment Orders)
• Must be willing to contribute towards the proposed investment
• Must have the potential to create employment (especially for women, youth, persons with disabilities) and ensure a safe and inclusive working environment
• Must have the potential to expand the company’s operations
• The proposed sub-project must be in line with the Project Development Objective (PDO) of TCDP (see above)
• Must have no previous public (government/donor) assistance for the same interventions or funding or activities
• Must have (or be willing to have) a bank account with a financial institution
• Must have evidence of rights to their land (e.g. land title, tenure agreement, joint venture, ownership deed, etc.)
• Must have (or be willing to have) an Environmental Protection Agency (EPA) permit, if necessary
• Must have (or be willing to have) any other relevant statutory requirements related to their operations
• Must have (or be willing to have) an Environmental and Social Management Plan (ESMP)
• Must have (or be willing to have) a Gender equality policy or a gender equality statement (indicating non-discrimination hiring processes, involvement of women in decision-making, etc.)
• Must have (or be willing to have) a child labour free policy guiding the business and its associated entities.

Application Process

The application process consists of three stages:

Stage 1: Submission of Concept Note.

The concept note provides a general outline of the proposed subproject. Submitted concept notes will be evaluated against the defined criteria to create a shortlist. Concept notes are to be submitted using the TCDP Concept Note – Application Form provided below.

Stage 2: Development of Full Proposal.

Shortlisted applicants will be invited to submit detailed full proposals based on their concept notes. Proposals are to be submitted in a specified format. The standard TCDP Proposal form will be provided to applicants.

Stage 3: Evaluation

Submitted full proposals will undergo evaluation and due diligence by an External Reviewer and the TCDP Participating Financial Institutions (PFIs).

Submission Deadline:

Concept Notes must be submitted no later than