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(applications open 10 August 2023)

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.

Despite having 14 commercial banks, 17 community banks, 50 microfinance institutions (MFIs), five of them deposit taking, three Mobile Money Operators, and 59 Financial Services Associations (FSA), the total financial inclusion rate in Sierra Leone is only 29 percent, and for women, it is even lower at 25 percent, according to the 2021 edition of the Global Findex report. Most financial institutions are concentrated in the capital, Freetown and secondary urban areas like Kenema and Bo, leaving most people in other parts of the country cut off from the financial system. Reasons include the high operating cost for institutions going into the rural and under-served areas of the country. Institutions have also not yet established a business case and sustainability plan for going into remote locations. Agency Banking has been identified as one of the interventions that holds promise to overcome this challenge.

UNCDF received funding from the European Union under the “Salone Access to Finance” programme to promote financial inclusion, access to finance and risk management for agri-businesses in Sierra Leone. UNCDF understands the Agency banking experience in different markets over the years. UNCDF also understands the challenges associated with Agency banking: managing liquidity to serve customers, trust issues with agents, and poor telecommunications infrastructure in remote communities. The intervention will focus on developing financially profitable and sustainable agent networks that are prioritized, precise and customized to increase efficiency and reduce costs. The agency banking models will also be tailored to the local and country context.

Under this RFA, UNCDF is looking for partners to implement projects in the following areas of intervention:

• Conduct market research within the target group to better understand the financial behavior of the people
• Deployment of innovative agency banking model to increase access points and facilitate the ease of performing basic banking transactions including deposit, withdrawals, transfers and payments.
• Design and development of tailor-made products and services based on a human-centered design approach.
• Conduct financial and digital literacy training tailored to the needs of the target group.

Candidates must apply for all the areas mentioned above.

The project will cover agricultural districts/communities in Sierra Leone.

Selected applicants will be signing a Performance-Based Agreement (PBA ) with UNCDF. Please review the PBA template available on the RFA website.

UNCDF’s contributions can range from USD 160,000 to USD 186,000 for 24 months and UNCDF will award up to two applications depending on the investment readiness level and outreach potential of the solution proposed.

Selected applicants will be expected to fund at least 30 percent (30%) of the total project cost (for costs such technical resources, staff, and operational expenses). Applicants may apply independently or in a consortium, provided that the consortium has a pre-established partnership prior to when this request for applications was issued.

Inquiries to this request for applications may be submitted by email to uncdf.rfa@uncdf.org cc eric.sena.morttey@uncdf.org

All applications must be submitted by 23:59 (EDT) on 10 Sep 2023 through UNCDF e-investment platform.

However, please visit UNCDF’s Apply platform to check if the deadline has not been extended.