The United Nations Capital Development Fund (UNCDF) makes public and private finance work for the poor in the world’s 46 least developed countries. With its capital mandate and instruments, UNCDF offers “last mile” finance models that unlock public and private resources, especially at the domestic level, to reduce poverty and support local economic development.

To expand financial services through innovative distribution models, UNCDF welcomes institutions operating in Ethiopia who are engaged in digital financial services. The partner that will be selected can be operating as a financial institution (FI), MNOs, electronic money issuers, payment service providers, agent banking aggregator, super/Master agent, technology provider, and/or fintech companies. Institutions other than FIs, as defined by the National Bank of Ethiopia (NBE), should apply in consortium with FIs to be considered in this RFA, as a lead or supporting applicant, provided that the consortium has a pre-established partnership before the issuance of this RFA.

The project will have three areas of intervention:

• Access: Access to financial services through innovative distribution model to expand agent network.
• Use of Digital Financial Services: Usage of Innovative services that are beyond payment creating resilience for clients and agents with new use cases.
• Digital and financial literacy: Increase financial and digital literacy within the population to create awareness, trust, and transaction on digital services through innovative channels.

UNCDF has availed from 100,000 to a maximum of 300,000 US dollars in grant depending on the investment readiness, level, and outreach potential of the solution proposed. Out of the total cost, the selected applicant is expected to cover a minimum of 30% (thirty percent) of the project costs. When submitting the proposal, applications need to indicate the areas of intervention clearly and the expected result of the project. Innovative digital solutions to expand agent networks at a larger scale and proposals with additional interventions/objectives are encouraged while keeping them within the framework of this RFA.

The selected applicant(s) will sign a Performance-Based Agreement (PBA)1 with UNCDF. Please refer to the PBA samples available on this RFA website.

Inquiries to this request for applications may be submitted by email to endashaw.tesfaye@uncdf.org cc uncdf.rfa@uncdf.org