Frequently Asked Questions
Where does the funding for GAFSP come from?
Who is eligible for the public sector window?
Who is eligible under the private sector window?
What is the role of the World Bank in GAFSP?
Who decides which countries are funded under the public sector window?
Who decides which countries are funded under the private sector window?
When have Calls for Proposals been issued?
When is the next Call for Proposals?
Can CSOs/research organizations access funds directly from GAFSP?
When will GAFSP complete its activities?
GAFSP provides readily available financing to scale-up agricultural and food security assistance on a coordinated basis in response to demonstrated commitment to results by countries. Existing bilateral and multilateral funding cycles typically require several years of advance programming by countries and are not amenable to restructuring already allocated resources and coordinating donor replenishment cycles is difficult. Channeling multiple sources of donor financing through a common mechanism can reduce fragmentation and recipient country transaction costs for aid and improve alignment of country programs.
Where does the funding for GAFSP come from?
Financial contributions to the GAFSP to date have been provided by or pledged by (in alphabetical order) Australia, the Bill & Melinda Gates Foundation, Canada, Ireland, South Korea, Spain and the United States. Total commitments to date equal about US$ 971.5 million, pledged over three years, valued on the basis of exchange rates of April 22, 2010, the GAFSP official launch date. More funds may become available in 2012.
Depending on the country and regional requests and consistent with the GAFSP Framework Document, GAFSP financing provides for:
1. Raising agricultural activity by supporting:
- Adoption of high-yielding technologies
- Technology generation
- Water management
- Land rights and land use
2. Linking farmers to markets by supporting:
- Reduction in transaction costs
- Value addition
- Mobilization of rural finance
3. Reducing risk and vulnerability by supporting:
- Price and weather risk management
- Strengthening food-related social protection for people
- Improvement of nutrition of vulnerable groups
4. Improving Non-Farm Rural Livelihoods by supporting:
- Improvement in the investment climate
- Promotion of non-farm rural entrepreneurship
5. Technical assistance, institution building, and capacity building by supporting:
- Sector strategy development, investments, and implementation
- Enhancing design, monitoring, and evaluation
- Knowledge development and dissemination
Who is eligible for the public sector window?
Certain countries are eligible for investment projects and/or technical assistance projects. Any legally recognized regional organization such as ECOWAS and COMESA in Africa is eligible for technical assistance projects only.
Country requirements: Eligible countries are limited to those that are eligible to receive financing from the International Development Association (IDA), and not IBRD (“IDA-only countries”), that are not in non-accrual. Currently there are 60 such countries.
Who is eligible under the private sector window?
Private firms and financial institutions doing business in eligible countries can apply for loans, credit guarantees or equity investments. Firms outside of IDA-only countries with a compelling case may be considered for funding in consultation with donors. The criteria include, but are not limited to:
- Private firms and financial institutions operating in eligible countries
- Business activities are broadly consistent with the Government’s agriculture strategy and investment plan
- Profitability over the last 3 years demonstrated in audited financial statements
- Quality management and track record in operational capacity
- Debt service capacity to service existing and new debt
- Ability to comply with IFC’s Environmental & Social Performance Standards
What is the role of the World Bank in GAFSP?
The World Bank plays three roles: (1) Trustee (to carry out fiduciary responsibilities as set out in the Trust Fund Administration Agreement), (2) Coordination Unit (a small team to support the GAFSP Steering Committee and Technical Advisory Committee and facilitate communications between the Steering Committee and the other partners of GAFSP), and (3) potential Supervising Entity of GAFSP funded projects, if selected by the Steering Committee. IFC, the World Bank’s private sector arm, manages the private sector window of GAFSP. Additionally, the World Bank's Development Impact Evaluation Initiative (DIME) has been selected by the Steering Committee to implement in-depth impact evaluations for selected GAFSP Public Sector Window projects.
Who decides which countries are funded under the public sector window?
The GAFSP Steering Committee decides on funding allocations. The decision of the Steering Committee is based on the recommendations of the Technical Advisory Committee (TAC). The TAC of GAFSP is an independent panel of experts with a high level of global and regional experience and expertise in agriculture and food security issues. The TAC provides the due diligence screening of submitted proposals and formulates funding recommendations. Based on the recommendations, the GAFSP Steering Committee decides on funding.
Who decides which countries are funded under the private sector window?
Once donor funding is made available and the private sector window is operational, a public call for proposals will be issued on the websites of the GAFSP and IFC. IFC will shortlist projects for financing through the private sector window based on a set of eligibility criteria and present the shortlist to the Project Investment Committee (PIC). The PIC will review and select projects based on publicly available information for private sector window participation alongside IFC.
When have calls for proposals been issued?
The GAFSP Steering Committee launched the first Call for Proposals for the public sector window on May 21, 2010 with two submission deadlines to all IDA countries that are not in non-accrual status. The deadline for submission under the first deadline closed June 14, 2010, and the second deadline closed on October 1, 2010. For the private sector window, the first call for proposals was open from July 18, 2011 to August 17, 2011.
When is the next Call for Proposals?
The next call for proposals for the private sector window the second call for prosals will take place between October 29, 2012, and December 14, 2012. The next call for the public sector window is tentatively scheduled to open in Spring 2013.
Can CSOs/research organizations access funds directly from GAFSP?
Eligible entities for GAFSP public sector funds are limited to IDA countries for investment and/or Technical Assistance projects, and legally established regional organizations (such as ECOWAS and COMESA in Africa) for technical Assistance projects only. Other entities are ineligible for direct GAFSP financing. However, the GAFSP Steering Committee recognizes the importance of participation by relevant stakeholders in the preparation and implementation of projects, and takes this into consideration when making financing decisions and final funding approval. CSOs and private sector actors may have a role as third party implementers or service providers depending on program scope and design of programs in accordance with the internal policies, guidelines, and procedures of the selected Supervising Entity. For the GAFSP private sector window, eligibility is limited to private firms and financial institutions doing business in eligible countries.
When will GAFSP complete its activities?
While new commitments are expected through 2013, with implementations expected through 2019, the Steering Committee makes the final decision on completion of activities. Completion will likely be a function of funding availability and performance.
For more information please contact: info@gafspfund.org