OVERALL GUIDELINES FOR IAP APPLICANTS

FUNDING FOR UP TO
200 000
APPLY NOW

Funded by Managed by In partnership with

Introduction
Innovations Against Poverty (IAP) is a Innovations in technology and business
specialized fund with the specific man- practices are critical for creating inno-
date to identify and support innovative vative inclusive business models. IAP
Inclusive Business models that deliver aims to stimulate the development of
developmental benefits for the low inco- these type of initiatives, which otherwise
me population while being commercially would not have taken place within the
sustainable; in both rural and urban private sector due to perceived initial
areas, prioritizing women and youth. IAP commercial, technical and financial risks
is funded by Sida (Swedish International or uncertain market opportunities, and
Development Agency) and managed by to accelerate the go-to-market process.
SNV Netherlands Development Organi-
sation in partnership with BoP Innovation The program is designed for companies
Center and Inclusive Business Sweden. which are operational or plan to enter the
market (with a local partner in case of fo-
IAP challenges the private sector to reign companies) in Cambodia, Ethiopia,
develop innovative products, services and Uganda or Zambia and are active in the
business models that can solve social and following sectors: agriculture & food, ener-
environmental issues, while successfully gy, water, sanitation and hygiene (WASH),
maximizing their competitiveness and and ICT. The fund will have 2 rounds of
profitability. These are defined as innova- calls in 2017.
tive Inclusive Business ideas.
 FROM UP TO

50 000 200 000

IAP: Financial and

advisory support
IAP will provide advisory and non-reim- In addition to the financial support,
bursable funding for up to 49% of the total IAP will provide advisor y ser vices
investment to selected projects through through group workshops and indi-
competitive open calls. IAP will provide vidual coaching, focused on areas
funding within the following range: such as Inclusive Busines s deve -
From 50 000 up to 200 000 lopment and innovation support to further
develop the business ideas and practices.
This amount reflects IAPs contribution Furthermore, IAP will select and train a
only, so the total size of the project number of local consultants that will be
should be greater. IAPs investment size available to support the companies on a
will depend on the level of innovation, fee for services basis, and online through
commercial viability, and social impact www.innovationsagainstpoverty.org
potential of the selected projects.

Sectors
The scope of IAP is defined around the following sectors:

 griculture and food:

A Energy: including, but
including, but not limited to, not limited to, access
food security and improved to affordable, reliable,
nutrition; sustainable sustainable and modern
agriculture. energy for all.

 ASH: including, but not

W ICT: including, but not limited
limited to, availability and to, access to technologies
sustainable management of and services that help deliver
water, hygiene and sanitation solutions in the other three
for all. target sectors or other basic
needs.

Applications should be contributing to the realization of one or more of the Sustainable

Development Goals (SDGs),
www.un.org/sustainabledevelopment/sustainable-development-goals/
Timeline
IAP has set the following stages and timeline for the first round of call for proposals:

ACTIVITY TIMELINE REMARKS

CONCEPT Launching events and March - May 2017
NOTE application guidance
APPLICATION Concept note submission Anytime from March 24th The concept note will be
by companies until July 24th 2017 evaluated by the IAP team.
Concept note evaluation Continuously from IAP might seek additional
and selection process April to August 2017 information or conduct
fact-finding visits to some
applicants.
Short listed companies will
be invited to develop and
submit a full business plan.
Non shortlisted
applications can re-apply
within the same or next
round with an improved or
a different proposal.
FULL Training on inclusive Continuously from The IAP team will conduct
BUSINESS business plan development April to August 2017 due-diligence of those
PLAN Feedback and guidance Continuously from companies that have
APPLICATION on inclusive business plans May September 2017 submitted the full
design business plan.
The IAP investment panel
Full Inclusive Business Continuously from
will review submitted
plan submission May September 2017
proposals together with the
Due diligence, selection of Continuously from due diligence reports.
investees June October 2017
NEGOTIATION Contract negotiation and Continuously from Successful applicants are
AND SIGNING signing July November 2017 invited to sign the grant
contract.
Milestones related to
disbursements and IAP
support will be agreed upon.
IMPLEMENTA- Baseline survey and In the first 3 months from A baseline will be developed
TION analysis contract signing date to define the situation at the
start of the project.
Project execution 2 years from contract Different timelines and
signing date milestones are defined for
each IAP project.

In order to guarantee fairness and best results, all companies in the application
process will have equal access to information. The selection will be the result of a
competitive process, and will be conducted on a first come, first serve basis.
Selection criteria
Each submitted Concept Note will be reviewed to ensure that it complies with all
the eligibility criteria, then evaluated against the assessment criteria. Based on this
first stage assessment a short-list of approved applicants will be finalized. These
applications will be invited to submit a full business plan to be assessed in detail.

a. ELIGIBILITY CRITERIA

Applicants should fully meet all the following criteria to be eligible for assessment.

YES NO
My business idea will be inclusive of the Low Income People (LIP)* either as
suppliers, employees, distributors and/or consumers for mutual benefits?
My business idea is relevant to at least one of the four focus sectors of IAP
and at least to one of the four target countries**?
Does my business idea bring a clear product or business model innovation?
My company or partner(s) related to the proposed business idea are not
involved in the arms, tobacco, alcohol and gambling industries; registered
in so called tax-havens; involved in environmental or human rights abuses
or corruption; or have not been an EU beneficiary of 200 000 or more in the
last 3 years***.
My application is submitted and led by a private company, which secures a
co-investment 51%, of which part of it should directly benefit the LIP.

* Low income people (LIP): those living in urban or rural areas on PPP (Purchasing Power Parity) USD 8
or less per day per capita; equivalent to USD2920 per capita per year.
** Sectors: Agri-food, renewable energy, WASH or ICT. Countries: Cambodia, Ethiopia,
Uganda, Zambia.
*** According to EU regulations, a company in the EU may receive a maximum of 200 000 in public
funding from European authorities during a three year period. Sida as the donor of IAP also applies
the same rule also to companies which are not based in the EU.
b. ASSESSMENT CRITERIA

Addit
A set of assessment criteria will evaluate b i l i ty ion
al i
key elements of the Concept Note (CN) V ia ty

and full IB plan, including:

Su
an oten

sta ale-up
ion

dS
p
Project viability: market, commercial,

in a
v at

c
b i li ty
I n no
financial and technical;

t ia l
ASSESSMENT
Social impact: The scale, type and risk
CRITERIA

a ct
of social impact for low income bene-

Appr

Res
Bus nsibl
Im p
ficiaries and the approach towards the

p
oa
in
o
inclusion and economic empowerment

es
l

ch
c ia

s
So
of women and young individuals;

e
Ef
ks f ec
The innovation in the project. Inclusive
ri s r t iv
Ot h e Co n e s s
Business models must have innovation
st-

as a key factor to deliver the expected

commercial, social and environmental
impact. Innovation can be:

- Product Innovation: features, functio-

and potential for improvement, on the
nalities and performances of products/
following dimensions of responsible
service offerings
business practices: labour, environmen-
- Process Innovation: the way the pro- tal, tax, ethical and anti-corruption, and
ducts are made or delivered, e.g. manu- other relevant legal frameworks;
facturing, distribution, and support of
products and services; A dditionalit y: IAP funding should
not replace other existing commercial
Sustainability and scale-up potential: funding alternatives for implementing the
The Inclusive Business initiatives must proposed Inclusive Business idea;
prove they will become sustainable
post IAP funding, and their potential to The cost effectiveness of the invest-
scale up and benefit others in the wider ment; co-investments of more than 51%
community; will be positively evaluated;

Responsible business approach: to O ther risk factors: political, security,

measure the current level of compliance, partnerships, amongst others.

Each concept note will be reviewed to ensure that it complies with the minimum eligibility
criteria and will then be evaluated against the basic assessment criteria, including:
project viability, social impact, innovation, the responsible business approach, and
sustainability and scale-up potential. Shortlisted candidates will subsequently be invited
to submit a full business plan, which will be evaluated against the full list of assessment
criteria, which includes in addition to the basic assessment criteria: additionality, cost
effectiveness and other risk factors.

c. DUE DILIGENCE PROCESS

Due diligence studies will be conducted on all companies that have submitted the full
inclusive business plans. The IAP team will request additional information and conduct
a field visit, as needed, to the applicants headquarters and project site. Furthermore,
the IAP team will evaluate the companies responsible business approach and its
technical, financial and legal compliance with all IAP requirements.
Financial requirements
For the financing of the Inclusive Business idea, it is expected that the financing will be
secured by both parties, as described in the scheme below:

FINANCING
Private Company IAP
51%* 49%

* The company is expected to contribute as much cash and in-kind as possible as part of its co-investment.
Higher cash contributions will be positively evaluated.

The following requirements apply to the applicants in-kind contributions:

The in-kind contribution must be specif- more than 18 months previous to the
ically and directly related to the imple- signing of the IAP funding contract.
mentation of the project
The IAP team will determine if the con-
T he value of the in-kind contribution tribution is acceptable and critical for
must be tangible and verifiable, based the implementation of the project.
on specific supporting evidence such
as contracts, invoices and others. Not sourced from other development ini-
tiatives/facilities/programs (including EU).
The in-kind contribution could have been
procured, built in previous years, but not

Finally, the following items are non-eligible for the IAP financial support:

P
 urchasing and rent of land or existing Value of existing inventory used for the
buildings; production of the project goods and/ or
services;
Leasing of equipment, land and facilities;
C osts of proposal development and
Bank charges, cost of guarantees and feasibility study;
similar charges;
Value and registration costs of intellec-
tual property rights.
Concept note
If, after reading above information, you think your business concept fits the Innovations
Against Poverty program and you are interested, we encourage you to submit your
innovative Inclusive Business idea!

To apply, follow the steps below:

STEP 1 STEP 2 STEP 3

Fill in the online concept You have the option to Upload other relevant
note application form upload your Pitch Video documents such as
business license and
financial statements.

The application process runs through www.innovationsagainstpoverty.org. By

registering yourself at this online platform for inclusive business practitioners, your draft
application will be automatically saved in order to finalize your application at a time that
suits you best.

Transparency
IAP secures a transparent evaluation and selection process by working with a multi-
player independent appraisal process, so that no single person can influence the
process and/or the final outcome in any way. Applicants can contact directly the IAP
Executive Manager at jayala@snv.org or Sida at investigation@sida.se to denounce any
corruption practice or case.

For more information and application, please visit

Funded by Managed by In partnership with
www.innovationsagainstpoverty.org
or contact us at
support@innovationsagainstpoverty.org
@InnovationsIAP /innovationsIAP