aBi Green Challenge Fund

Green Agribusiness Investments for Climate Change

Adaptation, Mitigation and Biodiversity Conservation
 Table of Contents
1.0. Introduction.........................................................................3
2.0. Background to this call for proposals........................3
3.0. Justification for the Green Challenge Fund.............4
4.0. Objectives and activities.................................................5
5.0. Eligibility criteria and application process ..............5
5.1. Eligibility criteria for applicants....................................6
5.2. Additional guidance for NGOs, Researchers/
Scientists/start-ups...........................................................6
5.3. Eligible activities for the Green Challenge Fund....7
5.4. Funding.................................................................................7
6.0. How to apply (general instructions)...........................7
7.0. Timelines..............................................................................8
8.0. Ethics clause........................................................................8
Annex I: Climate change vulnerabilities and examples
of GCF recommended interventions..........................................9
Annex II: Green Challenge Fund Proposal Evaluation
Criteria................................................................................................12

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Source: Future Pumps

1.0 Introduction We see this in forest loss (2.6% per year), which is
one of the highest rates globally and through land
degradation (41% of land) which is estimated to
These Guidelines set out the rules for the submission have cost Uganda around 17% of GDP1.
and the selection process of applications to be
financed under this GCF. Successful applicants will Climate change is mainly manifested in extremes
sign a Funding Agreement and will implement an of two attributes - rainfall and temperatures. The
agreed project in accordance with the aBi Funding Uganda Climate Change Vulnerability Assessment
Guidelines and Guidelines for aBi Implementing Report (2013) indicates that while no significant
Partners. Please find these documents here: https://
www.abi.co.ug/abi-development-ltd-welcome/ change in average annual rainfall could be detected
applying-for-an-abi-grant/ in the 60-year historical record and no significant
change in average annual rainfall is projected for
2.0 Background to this Call for the 2015 - 2045 period, there was the projection
of an annual increase in rainfall in the months of
Proposals December, January, and February, which is typically
a dry season in all locations in Uganda. This increase
could have strong impacts on agriculture, especially
The Green Challenge Fund (GCF) is developed to with respect to crop growing and post-harvest
address the increasing impacts of climate change activities such as drying and storage.
on Uganda’s agri-food system. The proposal is
developed in line with national and international In terms of temperature, an analysis of average
strategies of increasing climate change resilience annual temperatures between 1951-1980 and 1981-
and also contributing to achieving the global target 2010, shows a notable increase of approximately 0.5
of limiting global temperature rise to well below 2°C, - 1.2 °C for minimum temperatures and 0.6 - 0.9 °C
and potentially even to 1.5°C by 2050. for maximum temperatures. This warming trend is
projected to continue, with some models projecting
Uganda’s agriculture is evidently experiencing an increase of more than 2 °C by 2030. It will likely
a rapid declining growth rate mainly because of have a strong impact on agriculture and livestock,
the effects of climate change. The population’s increasing the risk of disease and pest infestations.
dependence on agriculture combined with
changing climate patterns and unsustainable land Agriculture’s exposure to pests, diseases, rains,
management contributes to Uganda’s position as floods and drought spells is projected to increase
the 12th most vulnerable to climate change globally. in incidence and severity under climate change.
This vulnerability will worsen if Uganda continues Although trends are uncertain and data remain
with its high levels of unsustainable natural resource limited, the main climate change impacts expected
utilisation. to affect agriculture in Uganda in the future include
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higher temperatures, more erratic and heavy rainfall, sustainable management of its natural capital base.
changes in the timing and distribution of rainfall,
aBi, in its quest to be the green growth champion in
and an increase in the frequency and duration
Uganda, will focus on building a greener and more
of droughts. The climate risk report for the East
resilient agri-food system. aBi will support climate
Africa region (2022) further indicates that higher
action through the GCF by incentivising climate
temperatures will increase water and heat stress
change adaptation interventions, especially on-
for crops and livestock, lowering the productivity
farm practices, climate change mitigation targeting
of pastoral livelihoods and negatively impacting
resource efficiency (water for production, waste
the production of important crops such as maize,
management, energy, etc) and reduction of GHGs
wheat, cotton, and coffee; increased temperatures
especially methane in livestock enterprises as well
and heavy precipitation will result in the growth
as environmental conservation.
of pest populations, such as desert locusts which
can devastate crops affecting both agricultural The agri-food system can be taken to include crop
livelihoods and food availability across the region; growing, livestock, forestry, energy for agriculture,
and land degradation and soil erosion will be energy integrated into agriculture, waste handling
exacerbated by more intense rainfall events, posing related to agriculture, input production or delivery
risks to the natural resource base, agricultural related to agriculture and post-harvest handling.
productivity and subsequently food security, The fund will focus on addressing these challenges
particularly in already degraded areas. in all seven (7) aBi priority value chains-coffee, diary,
poultry, cereals, pulses, horticulture and oilseeds.
This Fund is informed by the aBi Business Plan
2019-2023. The goal of the fund is to support a
green transformation of agricultural value chains in
Uganda. This Call for Proposals responds to Result
Areas 1 and 2 of the aBi Business Plan and aBi Green
Growth Strategy.

3.0 Justification for the Green

Challenge Fund
Transforming Uganda’s economy largely depends on
agriculture; and agriculture therefore cannot deliver
this transformative change unless it is managed to
adapt to the changing climate and to protect the
local environment on which it depends. Moreover,
agriculture presents an opportunity for improving
productivity and processing efficiency in agriculture
and agribusiness is the most promising prospect
of inclusive and equitable economic growth and
expansion in job opportunities.
Without adaptation, the cost of climate change
will make a difficult economic transformation
near impossible. Climate risk is estimated to cost
agriculture in the range of USD 2.3 to 4.2 billion Key focus areas include:
by 2025, due to crop damage, loss of export i. supporting SMEs and farmers to increase
crop revenue, loss of livestock, and unmet water their resilience to climate change and
demand for plant and livestock production. The climate variability
impact is being accelerated by rapid landscape
degradation driven by deforestation and soil ii. supporting climate mitigation actions to
erosion. Between 1990 and 2015, forest cover loss reduce or limit GHG emissions or to enhance
amounted to US$1.2 billion worth of economic GHG sequestration.
loss. Uganda’s prospects for economic growth and iii. supporting a stronger local environment,
poverty reduction are therefore closely hinged on including soils, ecosystems and bio-diversity.

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Interventions under this GCF must target to
contribute to the achievement of Uganda’s Nationally
5.0 Eligibility criteria and
Determined Contributions (NDCs), Uganda Green application process
Growth Development Strategy (2017), Third National
Development Plan (NDPIII) 2020/21 – 2024/25, aBi
Green Growth Strategy (2020/21-2025) and SDGs The Green Challenge Fund is open to private sector
which outline clear commitments to environmentally agribusinesses, NGOs, scientists, researchers and
sustainable and socially inclusive growth that start-ups. Applicant proposals should directly or
prioritises green job creation, low carbon emissions indirectly lead to increased economic activity and
and climate adaptation. productivity in the aBi seven (7) priority value chains
(Coffee, cereals, poultry, dairy, horticulture, pulses
4.0 Objectives and activities and oilseeds through the increase of SMEs and
farmer resilience to climate change or reduce GHGs/
enhance carbon sinks and reservoirs or contribution
Successful applicants will sign a project funding to environmental conservation. The fund is open to
agreement with aBi Development Ltd, which green innovations from all parts of the country.
consists of a contract, a detailed description of the
objectives, activities and outputs of the project and Applicants should submit their proposals or business
a series of key-performance indicators that measure ideas under any one of the three categories, namely
the success of the project. i) Growth stage, ii) acceleration/start-ups and iii)
Funding agreements are awarded on a competitive Ideation stage; guided by the separate eligibility
basis. The best eligible proposals, in terms of criteria below.
innovation, relevance, quality and ability to scale up
will be awarded a funding agreement until the total
available funding from aBi for this GCF runs out.

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5.1 Eligibility criteria for applicants • Applications must address one or more of
the following: climate change adaptation,
mitigation or protection of environment
i. Growth stage - aBi existing and Past and biodiversity in one or more aBi seven
Implementing Partners as well as new (7) priority value chains above; or with
entities seeking to green their investments green innovations that can add value to
(Budget allocation of UGX 5Bn; average the said value chains.
project size up to UGX500m)
• Applications must directly or indirectly
• Applications must address one or more of
the following: climate change adaptation, lead to increased economic benefits and
mitigation or protection of environment productivity
and biodiversity in one or more aBi seven • Applications should demonstrate the
(7) priority value chains above; or with ability to be scaled up for adoption on
green innovations that can add value to a large scale to benefit the agribusiness
the said value chains.
sector
• Applications must directly or indirectly
lead to increased economic benefits and iii. Projects at ideation stage that require
productivity nurturing and piloting (Budget allocation of
UGX 1Bn – project size 5m- 30m)
• Applications should demonstrate the
ability to be scaled up for adoption on • Criteria as in ii above for
acceleration/start-ups
a large scale to benefit the agribusiness
sector 5.2 Additional guidance for NGOs,
• Applicants must be legally registered researchers/scientists/start-ups
institutions
• Period in existence: At least 3 years, • Organisations that are not in themselves
supported with audited financials aspiring to become commercially viable
• Applicant should be a reputable must demonstrate how their intervention
organization with no previous record of contributes to commercial viability
funds mismanagement elsewhere in the sector
• Applicant should be fully tax and NSSF
compliant
ii. Acceleration/Start-ups - projects at pilot
stage with green innovations in aBi priority
value chains (Budget allocation of UGX
1.5Bn – project size UGX50m-200m)
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 Applicants are required to submit a brief concept
note about the project/business idea which will be
reviewed by aBi evaluation team. Applicants whose
concepts meet the pass mark will be sent a link (on
their emails registered in the aBi GMS) to the main
application template to submit a full application.
Applicants will be required to fill in the application
template applicable to the category under which
the application is being submitted as per these
categories; Growth stage, Acceleration stage and
Ideation stage.
The entire process from registration to submission
• NGOs can apply separately or jointly with of the application documents is completed online.
scientists/researchers/start-ups/SMEs The application must be submitted in English. This
application takes place on an open competitive
• Only action research with ability to be basis. Applicants will be selected for this Fund
scaled up for adoption on a large scale
until the available budget is depleted. Successful
to benefit the agri-food system will be
applicants must fulfil the eligibility requirements
accepted from scientists and researchers
as listed above. In addition, the implementation
5.3 Eligible interventions for the Green strategy, budget and accompanying documents
of the winning applicants must clearly show the
Challenge Fund relevance of the project in relation to the objectives
of the challenge fund, a detailed activity plan and
The green challenge fund targets to enhance SME/ timeline, its value for money and the capacity of the
Farmer resilience to climate change and to promote applicant to execute the project.
a green agri-food system. Eligible activities include:
i) Interventions that support SMEs and farmers
to increase their resilience to climate change Where and how to send proposals
and climate variability
Proposal applications will be done on-line as
ii) Interventions that support climate follows:
mitigation actions to reduce or limit GHG
i. Go to the aBi GMS URL web link.
emissions or to enhance GHG sequestration.
ii. Open an aBi on-line project account;
iii) Interventions that support a stronger local
set and remember your username and
environment, including soils, ecosystems
password for the project account;
and bio-diversity.
iii. Open the Portal for this Call: Funding
Refer to Annex I for examples of eligible interventions
Window VCD/GCF/2022/01, and enter
5.4 Funding the username and password for your aBi
account;
iv. Fill in the appropriate application template
Initial funding available for the GCF is UGX 7.5 billion. and submit your proposal
Additional funding may be availed for the scale-
v. Upload the required documents;
up phase based on successful implementation of
projects during this pilot phase. vi. Once the submission is complete, you will
receive a confirmation email.
6.0 How to apply
(general instructions) Applications sent by any other means (e.g. by e-mail)
or delivered to other addresses will be rejected.
To apply, an applicant needs to register in the aBi Any questions regarding this call may be sent
Grants Management System (GMS). Use this link: by e-mail no later than 1st August, 2022 to the
addresses below, clearly indicating the reference of
https://www.abi.co.ug/abi-development-ltd- this CfP (VCD/GCF/2022/01): E-mail address: richard.
welcome/applying-for-an-abi-grant/ [email protected]

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7.0 Timelines
Activity Date and Time
Launch of Green Challenge Fund and call for proposals 19 July 2022
th

Application Period 20th July – 31st August 2022

Evaluations and selection of the best proposals for support 1st Sept -17th October 2022
Feedback to all applicants Not later than 1st October 2022
Awards for winning proposals 2nd November 2022
Implementation of awarded projects Nov 2022 - Mar 2024

8.0 Ethics clause

Any attempt by an applicant to obtain confidential information, enter into unlawful agreements with or
influence aBi staff during the process of examining, clarifying, appraising and comparing applications will
lead to the immediate elimination of the application.
For any complaints on fraudulent practices by aBi staff, call the aBi toll-free number 0800 203 026 or send an
email to: [email protected].

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Annex I: Climate change vulnerabilities and examples of GCF recommended interventions
Value Chain Potential Impact Adaptation Mitigation Environment
Coffee • 50% reduction in Arabica and Robusta • Promotion of crop • Resource efficiency technologies • Promoting sustainable
coffee production by 2050 due to loss varieties that are farming practices
of suitable land and decreasing yields, resistant to variability • clean cooking that is less aimed at protecting
leading to estimated losses of around and increase in dependent on biomass biodiversity in
US$1,235 million1 temperature and • Use of energy saving machineries, agricultural ecosystems
rainfall (drought, design of eco-efficient, carbon
• Increased occurrence and damage from disease, pests, etc.) • Promoting good
leaf miners, mealy bugs, Coffee Leaf Rust, neutral systems, etc. agronomic practices
Coffee Berry Borer and Coffee Bacterial Wilt • Promoting climate • Fuel switching from one fuel to a (GAPs)
(Van Estan, 2015). smart agricultural different, less GHG-intensive fuel
practices type
• At lower altitudes (≤1,300m), abortion
of flowers and poor filling of cherries is • Soil management, • Reduce, recycle, recover or re-use
expected and consequently low yields e.g., through mulch, waste,
(UCDA, 2014) mounds and manure
• Development, preparation and
• Per capita water availability • Water conservation, implementation of low-carbon
supply and storage strategies
• for Uganda is projected to decline by 80 %
by 2080 relative to the year 2000 • etc. • Reuse - utilize by-products and
establish cascading material flows
Cereals – maize, • Erratic rain could increase post-harvest • Prevention of PHH • clean cooking that is less • Promoting sustainable
sorghum storage losses of crops typically dried in losses, using clean dependent on biomass farming practices
the sun due to increased pests and rotting technologies aimed at protecting
• Fuel switching from one fuel to a biodiversity in
• Aflatoxin contamination that coincides • Aflatoxin management different, less GHG-intensive fuel agricultural ecosystems
with off-season rains type
• Use of early warning • Protection and
• Cereal yields loss due to water stress communications • Reduce, recover or re-use waste enhancement of sinks
systems and reservoirs of GHGs
• Promoting climate through sustainable
smart agricultural forest management,
practices afforestation and
reforestation
• Water conservation,
supply and storage

1 Climate and Development Knowledge Network (CDKN) 2015. Economic assessment of the impacts of climate change in Uganda. Funded jointly by CDKN and the UK Department
for International Development (DFID), Uganda office

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 Pulses • 24% reduction in production of beans by • Prevention of PHH • Reduce, recover or re-use waste • Protection of
2050 losses, using clean watersheds, wetlands
technologies and other fragile
• Increase in fungal and viral diseases due to ecosystems / reservoirs
excessive rain • Use of early warning
communications
• The Northern region to experience 23% systems
reduction in annual production
• etc.
• The Western, Central and Eastern regions
to experience moderate decreases in
Production
Dairy and • Difficulties coping with extreme heat and • Water conservation, • Livestock projects that reduce
temperatures leading to increased disease supply and storage methane or other GHG emissions
Poultry incidences (manure management with bio-
• Dry feeding – hay and digestors)
• Heat stress reduces poultry productivity in silage
terms of weight gain and laying capacity2 • Recover - Biogas production and
• etc reuse of energy produced by
• Drying water sources due to prolonged
drought - leading to poor feeding and wastewater facilities
nutrition, poor breeding and livestock • Fuel switching from one fuel to a
health different, less GHG-intensive fuel
• Forage production (and access to water) type
disruption by interannual variations in
precipitation affecting pastoralism
• Increase in the frequency, number,
duration and average temperature of the
heat waves affect poultry production
• Reduction in crops critical for making feeds
such as maize and soybean will reduce in
production as a result of climate change
(MAAIF, 2018)
Horticulture • Horticultural crops are highly perishable • Prevention of PHH • Energy-efficient water pumping • Protection of
and very sensitive to unpredictable climate losses, using clean systems, and/or pumping systems watersheds, wetlands
change - temperature, drought, flooding - technologies powered by renewable energies and other fragile
causing sun burn, rotting, reduction in fruit ecosystems / reservoirs
quality, etc. • Use of early warning • Fuel switching from one fuel to a
communications different, less GHG-intensive fuel
systems type

2 Perception and adaptation to higher temperatures among poultry farmers in Nigeria | SpringerLink, available at https://link.springer.com/article/10.1007/s10668-021-02017-4

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Other examples of interventions and related measures and technologies for future water
justification consumption as well as protection of watersheds
and reservoirs is needed. “Improvements should
be made concerning water capture and storage
• Establish learning/network platforms, e.g. training as well as investmen the country.”
in and pilot projects on experimentation and
M&E. Strengthen social and human capital: This • Investments in “soil moisture management
aims to Support NGOs and other organizations in order to offset expected increases in
such as Ministry of Agriculture, Animal Industry evapotranspiration” is a key adaptation measure
and Fisheries, etc to facilitate communication to avoid unusable land and thus secure crop
and planning within the platforms, and facilitate yield. Soil management measures can also
a process in which districts develop plans for contribute to reduction in emission of GHG, by
climate change adaptation in agriculture increasing carbon sequestration.
that support farmer/researcher collaborations in
developing and testing options. • Heat-resilient measures regarding production
sites and activities, both technical and practical
• Development of national climate datasets and solutions, including use of shade trees. With the
information to enhance adaptation capabilities- exposure of the GDP to heatwaves projected to
to improve the production, distribution, and increase from 0.2 % in 2000 to 2.8 % (RCP2.6)
use of climate information that responds to the and 9.6 % (RCP6.0) by the end of the century it is
needs of decision-makers, as well as farmers and recommended” to look into e.g. “solar-powered
other stakeholders. cooling systems, cool roof isolation materials
or switching of hours of operation from day
• Support water saving measures / Water to night. “Investments in shading and other
management, e.g. through establishment of temperature-reducing management techniques
contour planting and terraces and drainage are a top priority for coffee
canals:-climate change is likely to impact
Uganda’s water resources through variability in • Investments in renewable energy: Furthering
precipitation, rising temperatures and drought. the use of renewable energy sources such as
Per capita water availability for Uganda is hydropower and solar-power (for generators)
projected to decline by 80% by 2080 relative to related to farming and production
the year 2000. Since crops are predominantly
rainfed, they depend on water availability • Gender and social inclusion is key and must be
from precipitation and are prone to drought. integrated in all proposed actions to ensure
Dry spells may increase in frequency and duration, equitable, inclusive and sustainable investments.
and the projected increase in temperature Interventions to include support of vulnerable
may also increase evapotranspiration and people including women, youth, children and
hence crop water demand, stressing the need displaced populations in areas vulnerable to the
for an adaptation measure such as water effects of climate change through promotion of
management. Urgency to invest in water saving climate resilient agriculture and food security.

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Annex II: Green Challenge Fund Proposal Evaluation Criteria
# Project Aspect Scale 1 2 3 4
  Key Poor Fair Good Excellent

A Project objective          
  To which degree is the project objective          
climate change adaptation or mitigation
or environment conservation?
B Business Idea  

1 How well developed is the proposed          

project, i.e., value proposition,
knowledge of the value chain, market
and customers, and competitors?
2 What is the potential for the proposed          
project to become commercially viable
and scaled up beyond the project
period?
3 How innovative is the proposed project          
(has it been done before)
C The Development Impact
4 What is the potential for the proposed          
project to create jobs?
5 What is the potential for the proposed          
project to generate income?
6 To which degree is the project expected          
to contribute to marginalised groups
i.e., to include women, youth, refugees
and/or other underserved parts of the
population in the target area?
D Implementation and Feasibility
7 How well described, sound and realistic        
is the implementation plan to achieve  
the project outputs and outcomes?
8 What is the capacity and commitment of        
the key commercial partner in relation to  
the project?
9 Have key risks been identified and        
measures proposed to mitigate major  
risks?
10 Is the budget well specified and does it        
 
represent a cost-effective use of funds?
E Coherences and Synergies
11          
How well aligned is the project with aBi
priorities?
12 Is the national project context and the          
coherence with national and sector
objectives well described?

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 #aBiGreenFund
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