Updated May 30, 2019CLOSED

Challenge Fund for Developing an Agricultural Risk Financing Tool for Southern Africa

Offered by Department for International Development and World Bank

A new Challenge Fund to support Southern African countries to develop innovative agriculture risk financing tools to help inform and support public sector policy and program decision making regarding allocation of public resources to reduce economic losses, poverty and food insecurity.
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CLOSEDJun 17, 2019Deadline
$100,000 - $300,000Amount

Mandatory Requirements

StageStage 2: Research & Development, Stage 3: Proof of Concept and Stage 4: Transition to Scale
Implemented in:
CountryComoros, Congo, Democratic Republic of the, Botswana, Angola, Mauritius, Malawi, Namibia, Mozambique, Lesotho, Seychelles, Zimbabwe, Zambia, Tanzania, Swaziland, South Africa and Madagascar
Focus AreasAgriculture
Three key principles should inform all grant proposals:

All proposals need to demonstrate a new or different approach which requires funding from the challenge fund to be developed, and the proposal should demonstrate why this could not be supported from more traditional funding sources;
All products and outputs should show a clear path to ultimately be operationalized on-the-ground by Southern African Governments (individually at the national level or as a block at the regional level);
All approaches should be scalable to other regions or countries in Sub Saharan Africa.


Present a clear strategy for developing a tool for the public sector financing of agriculture risks (following the technical specifications described above) that assess the economic impact in agriculture, poverty and food insecurity, in the Core Thematic Area described above. Priority will be given to proposal that also add second order effects on risks from Thematic Areas 1 and/or 2 described above.
Articulation of proposed tool (solution and approach)
Identify existing data gaps in any of the model components (hazard, vulnerability, exposure) that pose difficulties to the development process and propose solutions to overcome them
Geographical focus on Southern African countries (defined by those countries members of the Southern Africa Development Community – SADC)
Establish a clear path towards operationalizing the product on-the-ground, by choosing countries where the tool would be implemented first (at least 2 countries within the geographical focus)
Demonstrate the capacity of the proposed solution to scaleup to more countries/regions
Meet World Bank eligibility requirements

Other Requirements

The agricultural financial tool will need to explain the linkage between three main elements below in order to create a tool that will allow the development of probability estimates for financial losses.
Hazards – the categorization and modeling of the weather risk being considered (rainfall, temperature, wind, etc.) plus any additional risk (food price, shocks, animal/plant health risks)
Vulnerability – an estimation of what the impact of the realized risk would be, given the assets affected by the event and considering the current ability to manage the. The vulnerability is heavily influenced by many local variables, such as soil, crop varieties, cultural practices, household income/poverty levels, and access/availability of irrigation, drainage, grain storage, weather info/advisory, and other infrastructure services. It should also be noted that the agricultural risk assessment is particularly dependent on the relationship between the timing of the loss event and the agricultural calendar.
Exposure – assessment of assets and communities “at risk”, from various perspectives, such as:
o Type of crops by location
o Livestock population and composition, by location
o Farm holdings/producers that may be directly impacted by hazard
o Agro-climatic zones
o Topography, vegetative cover, soil types, watersheds
o Crop yield levels
o Land use maps, irrigated zones
o Weather stations, other infrastructure

Application And Awards Process

For more information and to submit proposals, please send via email to Diego Arias (darias@worldbank.org) ; Martin Gurria (mgurria@worldbank.org); and Chidozie Anyiro (canyiro@worldbank.org).


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