With this call for Expression of Interest (EOI), UNCDF is inviting applications from technology-driven enterprises registered in Tanzania that can demonstrate the catalytic impact of concessional debt for their working capital or growth needs.

Summary

A key objective of UNCDF’s current strategy, “Leaving No One Behind in the Digital Era” is to provide catalytic financing to fintech start-ups, small- and medium-sized enterprises (SMEs), and other private sector entities that are leveraging the power of digital technology to improve lives. Building on over a decade of experience in digital finance, UNCDF aims to accelerate the development of inclusive digital economies that empower women, youth, and MSMEs to enhance their market participation, reduce poverty, and contribute to economic growth. UNCDF takes a country-level market development approach, seeking to continuously understand and intervene in select market systems to address underlying dysfunctions, with a view towards supporting governments to achieve their development objectives and contribute to the UN Sustainable Development Goals (SDGs).

UNCDF has experience supporting enterprises at various growth-stages including start-up, early-stage, and growth, customizing support through a mix of technical assistance (TA), grants, and, increasingly, catalytic loans and guarantees from its BRIDGE facility. In addition to loans and guarantees, UNCDF offers debt and equity investments through third-party managed funds, e.g. the BUILD fund.

Investments from both the BRIDGE facility and BUILD fund fill financing gaps for entities in the missing middle—enterprises that are considered too big for microfinance but too small and/or too risky for commercial or impact investment offered by traditional financial service providers and investors. By helping these companies to grow, achieve commercial sustainability, strengthen their balance sheets, and build credit history, UNCDF aims to unlock further private capital, scale-up what works, and foster local economic development.

With this call for Expression of Interest (EOI), UNCDF is inviting applications from technology-driven enterprises registered in Tanzania that can demonstrate the catalytic impact of concessional debt for their working capital or growth needs.

UNCDF will assess the potential for investment in two categories:

• BRIDGE Facility: Concessional loans or guarantees in the range of USD 50,000 to USD 250,000. Debt will be offered on concessional terms including interest rate, tenor, and collateral requirements. This category is the primary focus for this EOI.
• BUILD Fund: Semi-commercial lending and equity investments in the range of USD 250,000 and USD 2,500,000: UNCDF will refer applicants eligible for this type of investment to the BUILD fund.

UNCDF will assess which type of investment, if any, is suitable based on applicants’ financial needs and risk/return profile. The quantity and size of investment(s) offered will depend on applicant profiles and available funding. Financing will preferably be issued in local currency, with hard currency considered on a case-by-case basis. Loans will be mixed with tailored TA as needed.

Important Information

• Submit your Application online through the UNCDF Plug and Play Platform before 18 December 2022 at 23:59 GMT+0.
• Watch the online info session held on May 25, 2022 to answer Q&A of interested candidates.

This is an open-ended call for expression of interest, with re-occurring quarterly deadlines.

The third quarterly deadline for this EOI will be 11:59 PM EDT on 18 December 2022.

Please note that by submitting information in response to this call for Expression of Interest the UNCDF does not guarantee to offer funding. This Expression of Interest does not entail any commitment on the part of UNCDF, either financial or otherwise.

By registering your interest now, you will be included in our list of prospects to be assessed for potential funding.

For more information, contact eoi.tanzania@uncdf.org