Mercy Corps is a global team of humanitarians working together on the front lines of today’s biggest crises to create a future of possibility, where everyone can prosper.

Our mission: to alleviate suffering, poverty and oppression by helping people build secure, productive and just communities.

 

 

 Bid No: PR150235_SMEs for Matching Grants Assistance

 REoI: ITB

 REoI: ITB

 City: GEDAREF

 Deadline: 12 Dec 2025

 Description:

The Sudan Enhancing Community Resilience (THABAT) – Additional Financing Project 

 

Expression of Interest for Small and Medium Enterprises Matching Grants for Food Security Improvement

 

1. Project Background and objectives 

The Sudan THABAT Enhancing Community Resilience Project, funded by the Sudan Transition and Recovery Support (STARS) Multi-Donor Trust Fund, administered by the World Bank and implemented by Mercy Corps under Additional Financing (AF-1), seeks to address the acute needs of conflict-affected populations, particularly in Gedaref, Sudan. The project targets the five localities of Gedaref state: 1) East Galabat, 2) Basundah, 3) Al Fashaga, 4) West Galabat, 5) Al Fao.

 

It aims to enhance access to basic services and improve food security through community-led processes and multi-sectoral interventions. The project's two core components focus on: (1) Community-Driven Basic Service Delivery, which includes health, WASH, education, and GBV services, and (2) Food Systems Resilience, which supports agricultural production, value chain enhancement, and the scaling of community consumer cooperatives. Gedaref's strategic location and agricultural potential make it pivotal for implementing innovative solutions like climate-smart agricultural practices, and community engagement models. Emphasizing sustainability, capacity building, and inclusivity, the initiative incorporates extensive planning, stakeholder collaboration, and targeted support mechanisms to bolster resilience and social cohesion among IDPs and vulnerable communities. The project is guided by detailed institutional arrangements, stringent monitoring, and a commitment to environmental and social safeguards.

 

2. Purpose of the Matching Grants 

The purpose of the Matching Grants is to leverage and reengage Small and Medium Enterprises (SMEs) in the Sorghum, and vegetables or horticultural agricultural supply chain, specifically in the midstream segment. These Matching Grants aim to enhance the efficiency and effectiveness of SMEs, enabling them to actively contribute to adding value and maintaining the value throughout the agricultural value chain. This will ensure the increased availability of high-quality food, facilitating its delivery from farmer cooperatives (FCs) to consumer cooperatives (CCs) and other market agents, ultimately improving food supply in key market areas. 

 

This activity will be achieved through two major ways –  

1. Direct support to SMEs through a Matching Grant; and  
2. Facilitation of sustainable linkages between the SMEs, FCs, and CCs supported by the Project.

 

The Matching Grant will inject capital to strengthen the cash flow position of SMEs, enabling them to reengage in the agricultural supply and value chains. The grants will be up to a total of 80,000 (Per SME) – 300,000 (Consortium) USD targeting 20-25 SMEs. This funding is aimed at enhancing their operational resilience, ensuring they can adapt to and maintain business continuity during periods of disruption, such as those caused by conflict-related shocks to critical value chain functions. 

 

3. Eligibility and Selection Criteria

A competitive process has been established to solicit, evaluate, and award matching grants, as detailed in the sections below. Each Request for Application (RFA) will define specific selection criteria, based on programmatic needs. The criteria will focus on projected benefits for vulnerable households, including IDP households; value for money; social accountability; potential for systemic change; innovation and new business models; the potential for widespread adoption and growth; and the potential to support resilience and social cohesion. 

 

1. Eligible SMEs¹ must be legally registered in accordance with Sudan law and operate in value-added services, such as transport, logistics (including storage and packaging), small-scale processing, Agriculture Marketing and harvesting and post-harvest activities, specifically in the sorghum, millet, or horticultural value chains. These businesses must have been active for at least 24 months (about 2 years) before applying for a Matching Grant. SMEs less than 2 years old are encouraged to partner with firms at least 3 years old to be eligible. Even those with 2 years or more can also apply as a consortium in cases where services complement each other. SMEs must have a constitution outlining the entity’s name, location, contact details, lead positions, purpose, vision, and relevant regulations, as well as an operational bank account in the registered entity’s name. 
2. The grant support requested by SMEs must demonstrate a clear impact on enhancing the food supply chain linking farm gates to market points. 
3. The Matching Grants, designed with a cycle of up to 18 months, offer funding up to $80,000 per SME and $300,000 (Consortium). These grants aim to support value-adding activities within the food production chain (excluding direct production). Mercy Corps will conduct thorough due diligence to ensure SMEs meet the eligibility requirements, can comply with the terms of the Matching Grant agreement, and have no conflicts of interest. 
4. SMEs will be screened according to Mercy Corps’ Ineligibility and Compliance policy², ensuring they are not involved with prohibited parties such as combatants, terrorist organizations’, or entities involved in money laundering or sanctions violations. Furthermore, SMEs must not be involved in partisan politics or aligned with warring parties in Sudan. Additionally, SMEs must have a clean record concerning environmental impact, employee treatment, and the management of donor or public funds. Mercy Corps will verify compliance through background checks (whether undertaken by Mercy Corps directly or a third-party subcontractors). 
5. To qualify for a matching grant, SMEs must submit an initial Expression of Interest and meet the following criteria: 

• Be classified as either a "Small" enterprise with a capital size between $10,000 and $50,000, or a "Medium" enterprise with capital between $50,000 and $1 million. 
• Be incorporated and registered as a for-profit entity under Sudanese law and operate within the agricultural produce value-adding activities in selected value chains within project areas. 
• Comply with all relevant tax, legal, and business regulations under Sudanese law, with documented proof of tax compliance and have an established track record of at least two years of uninterrupted business operations. 
• Demonstrate financial and managerial capacity to co-support project activities (though no specific financial contribution is required), and ensure no current debt diverts resources from the project and exhibit sound financial management and a viable business model within the Project’s value chains. 
• Show evidence of working with smallholder farmers through cooperatives or other SMEs in the selected value chains and demonstrate clear market demand for agribusiness products and services in Sudan, especially within project areas. 

 

4. The Matching Grant Application Process  

The Matching Grant application process which will be competitive and inclusive of all potentially qualifying SMEs, and the process will consist of the following major steps outlined below: 

 

 

 

 

 

The table below shows the process timeframe for this Request for Application

	Item	Details
1	Outreach, Initial Assessment, and Identification	Awareness creation to all stakeholders on the grant opportunity to map and encourage eligible SMEs to apply.
2	Information Meeting	All SMEs are welcome to learn about the opportunity and ask questions.
3	Applications due	Interested companies/institutions must submit a completed application, complete with all relevant documentation, not later than this date.
4	Due Diligence	Due diligence investigation, aligning them with the Mercy Corps and Donor overall risk management strategy.
5	Evaluation of applications (Assessment, Review and Final Selection)	This is the expected date for completion of the eligibility and evaluation process, which will be conducted by THABAT – AF project selection committees. The evaluation process may include an interview with the applicant. Before final selection or rejection, the THABAT – AF project team may conduct negotiations with the applicant to adjust / improve the application to more closely align with THABAT – AF project objectives. This will also include a Financial Review, which may also be subject to negotiation / revisions.
6	Notification of acceptance / non-acceptance	The THABAT – AF project team will issue notifications of acceptance or non-acceptance to all applicants.
7	Expected date for signing of Subaward agreement	Following a negotiation process, final agreements between the selected applicants and THABAT – AF project will be signed, and project implementation will begin.

 

Proposal / Statement of Work

 

1. Partner Details/profile

 

Date
Potential partner name
Physical Address
First contact person (Name, designation, telephone, email, skype).
Second contact person (Name, designation, telephone, email, skype).
Nature / type of existing business,
Business operational areas:
What is the business capital size? Less than $10,000. Between $10,000 and $50,000, Between $50,000 and $1 million.
Year of Incorporation
Business ownership
Other partners involved in this proposal (Names and contacts)
Has your organization received any financial/technical assistance from foreign governments, international organizations or NGOs? (If yes, please describe):
Due diligence assessment planned (date):

 

 

2. Partners Current Business (mission and objectives and main activities)

Background and business description (Guiding questions: When did you start the Business (year)?, Why and how did this company/entity start? Mission and Vision of the company, what products and services do you provide? Which geographical locations do you operate in?)

 

Highlights of past performance / Experiences in the industry (Guiding questions: Which related products and services has this company/entity provided, to which clients (NGOs, government, communities and other entities), what was the scale and duration?)

 

3. Partnership Proposition

Timeframe
3. a Description of proposed partnership activities and specific targets Value proposition and description of offering (How do you plan to support the targeted value chain and contribute to food security resilience? Why should the project choose you over other businesses?) Guiding questions: What does this company/entity propose to do under this partnership in detail? Describe the activities that will be undertaken to market the company/entity’s products and services to farmers, agents, franchisees, dealers, consumers, etc What will the company/entity do to target more women either as retailers, agents and customers? Do you foresee any activity that the company/entity can do to improve the environment?

 

Specific deliverables

 

3.b Management structure how will the above be managed (key staff who will be implementing this partnership and their specific responsibilities)
3.c Anticipated risks	Management/Mitigation measure

Note: Include Environmental and social risks and management measures, which are assessed as appropriate and effective, and are costed within the proposal. These should be documented in an Environmental and Social Management Plan (ESMP).

 

4a. Value proposal

What is the budget/business case for this proposal?

Timeframe: 1 year

 

Description	Unit of measure	Quantity	Unit cost	Frequency	Total
a.    Expenses
Subtotal
b.    Income
Subtotal income
Profit (b-a)

(Complete in excel and import)

 

4b. Franchisee / Agent /value proposal/cost benefit analysis

What is the value for the farmer/ entrepreneur linked to the action?

Timeframe:

Description	Units of measure	Quantity	Unit cost	Frequency	Total (Yr 1)	Year 2
a.    Expenses
Subtotal
b.    Income

 

Assumptions: (what is the basis for the above estimations-specify for each)

 

4c. Joint Partnership Plan

How will the business, others and Mercy Corps jointly support this initiative?

Please specify who each actor is and add more if necessary.

Timeframe:

Partner 1
Partner 2
Partner 3

Description	Qty	Unit cost	Frequency	Total	1 Mercy Corps	2. SME Contribution	3.
Grand Total

NB One of the activities must relate to customer satisfaction and customer knowledge of products and services. (Complete in excel and import and embed excel budget)

 

 

4. Implementation Plan

One of the activities must relate to customer satisfaction and customer knowledge of products and services.

Activity

Month/Week

Signing the agreement

Recruitment and logistics for field personnel and introductory meetings

Recruitment/selection of agents

(Complete in excel and import)

 

6. Marketing Plan

Marketing plan how will the above business offering be marketed

Promotional activities (advertisements) undertaken on local FM radios, Newsprint and TV etc

One of the activities must relate to customer satisfaction and customer knowledge of products and services.

 

7. Business Development Services (BDS) requirements

BDS: are there likely to be any BDS services that would strengthen this initiative? (e.g. Business modelling, Distribution models, Financial management, Sales and marketing, Human resources management, Customer experience and retention, Human resources management, Influencing and negotiation skills, Financial planning).

Signed by potential partner 

Name:	Designation:
Date:	Signature:

Signed by THABAT AF team member engaged in the co-design:

Name:	Designation:
Date:	Signature:

 

For THABAT AF use only

 

Date
Does the business case make sense?
Is this support more[1] or less[2] facilitative?
If more facilitative, what is the rationale for the support? (Explain)
Has the partner demonstrated (by action), a strong commitment to this initiative? Yes / No (Explain)
Is the cost share intended to:
Help target businesses overcome uncertainty or risk
Create role models / franchisees / agents
Build capacity (Technical / Business / Financial)
(i.e. any direct funding is lower than the business has previously managed)
What is the role of the Mercy Corps facilitator?[3]
Coach	Assess needs of coachee Give and receive feedback Help client reach conclusions and act on them
Communicator	Good listeners Making market actors feel heard Clear and concise
Innovator	Trying new things with partners Recognizing creative ideas Working with others in complex and ambiguous situations
Systems analyst	Observing and analyzing a system of interconnected and interdependent actors Identifying leverage points and creating mutually beneficial opportunities for actors.
Relationship builder	Working with a range of people, understanding their needs and positions. Helping different parties to have mutually beneficial relationships.

 

 

1. Who is the THABAT – AF facilitator for this initiative^[4]

Name	Title	Location

 

2. What is the THABAT - AF monitoring plan for this initiative

Activity

Responsible

Months/Weeks

Facilitation

Reporting

Monitoring

Customer / agent feedback mechanism[5]

Joint customer satisfaction survey with agents and customers

How does the SME provide information on their products & services

Client service charter

 

 

3. What are the specific deliverables and milestones for this initiative^[6] One of these deliverables must relate to customer satisfaction and customer knowledge of products and services.

 

Milestone	Description of Milestone	Required Deliverable	Completion Date (if applicable)	Amount

 

 

11. Are there any obvious Business Development Services (BDS) requirements that will strengthen and support this initiative? Will the donor support BDS? Think about customer satisfaction and customer knowledge of products and services.

 

 

Reviewed and recommended[7] by MSD/Private Sector lead:
Name:	Designation:
Notes / recommendations
Date:	Signature:

 

Approved and recommended Yes / No, by Project Lead
Name:	Designation:
Notes / recommendations
Date:	Signature:

 

Has a due diligence assessment been planned?

 

When and what is the estimated completion date?

 

 

 

5. Evaluation Criteria

Upon submission, the THABAT – AF project team will evaluate all applications using the following criteria:

 

Category	Allocated Points
A. Feasibility of design & Technical Approach Viability of the proposed technical approach (i.e., the proposed technical approach can reasonably be expected to produce the intended outcomes). Contribution of the proposed approach to THABAT – AF project’s objectives and expected results.	20
B. Impact on Target Group Does the approach correspond to the needs of the targeted communities; Farmer cooperatives, and Consumer cooperatives. IDPs households and directly benefit them? Ability to enable targeted actors to earn reasonable and sustainable returns based on a clearly articulated business case.	20
C. Management & Programmatic Capacity Capability to undertake and accomplish the proposed activities and business models	15
D. Sustainability/Commercial viability  Ability to build and strengthen the capacity of small-scale traders and farmers through their farmer cooperatives. Can the activity be sustained by the organization beyond the grant? Ability of the applicant to jointly invest in the proposed activity/business model	15
E. Inclusivity Does the proposed activity incorporate a gender component or represents a strong commitment to including women, youth, disabled and other vulnerable groups as beneficiaries?	10
F. Past Performance Evidence of previous or ongoing business or activity related to the above?	10
G. Environmental safety and social safeguards considerations Attach proof from the relevant Ministry certifying that the SME is an existing entity, Commitment to non-discrimination (gender / tribe / status) in recruitment of members. Confirmation of no previous record of child labour or forced labour Commitment to environmental and social safeguards (ESS) training/compliance immediately after grant disbursement.	10
H. Cost Efficiency	n/a
Overall Rating (out of 100 points)	100

 

DFREQUENTLY ASKED QUESTIONS FOR THE THABAT AF1 SMEs MATCHING GRANTS

 

1. What is the Sudan THABAT AF1 Project?

The Sudan THABAT AF1 - Enhancing Community Resilience Project, funded by the Sudan Transition and Recovery Support (STARS) Multi-Donor Trust Fund, administered by the World Bank and implemented by Mercy Corps under Additional Financing (AF-1), seeks to address the acute needs of conflict-affected populations, particularly in Gedaref State, Sudan. The project targets the five localities: 1) Al Galabat Al Gharbyah – Kassab, 2) Basundah, 3) Al Fashaga, 4) Galabat Ash-Shargiah, 5) Al Fao,

It aims to enhance access to basic services and improve food security through community-led processes and multi-sectoral interventions. The project's two core components focus on: (1) Community-Driven Basic Service Delivery, which includes health, WASH, education, and GBV services, and (2) Food Systems Resilience, which supports agricultural production, value chain enhancement, and the scaling of community consumer cooperatives.

Matching Grants target Small and Medium Enterprises (SMEs) in Gadaref State - Sudan to enhance value addition in agricultural value chains supported by the project, including Sorghum, Millet, and vegetables or horticultural crops. SMEs form a dynamic and independent part of the economy in Sudan, yet many have suffered losses of capital, markets, and sources of supplies. They offer the potential to address the current crisis of food insecurity by improving the availability of much-needed products, services and providing income and employment to low-income households.

 

2. What is the program's focus?

The Matching Grants are designed to strengthen the efficiency and effectiveness of small and medium enterprises (SMEs) operating within the mid-stream segment of the agricultural value chain. By enhancing their capacity, these SMEs will be better positioned to add and retain value throughout the chain—ensuring a consistent supply of high-quality food. This, in turn, will facilitate the seamless movement of agricultural products from farmer cooperatives (FCs) to consumer cooperatives (CCs) and other market actors, ultimately contributing to improved food availability in key market areas.

Targeted Sectors and Business Categories:

• Agro-processing and Manufacturing Enterprises: Including those focused on packaging and renewable resources (solar powered systems), these businesses contribute to job creation and stimulate demand for a wide range of products and services along the value chain.
• Storage and Market Aggregation Services: Enhancing post-harvest handling, reducing losses, and improving quality and consistency of agricultural products for markets.
• Transport, Logistics, and Distribution Services: Supporting local entrepreneurship and SME development by improving market connectivity and reducing transactional inefficiencies.
• Innovative Digital Technology Solutions: Offering technological tools and platforms that support agro-processing and related enterprises in improving productivity, traceability, and market access.

 

3. What are the program eligibility criteria and opportunities for other companies?
   • Legal registration, ensure evidence
   • SME active for last 24 months, ensure evidence
   • Bank account in name of registered Business, ensure evidence
   • Screening of SME as per MC ICC, attached RPS report
   • Conflict of Interest, ensure evidence
   • Evidence of tax compliant for the last 2 years, ensure evidence
   • Evidence of past experience in the proposed business and working with small farmers,
   • Environmental & Social Compliance ensures evidence

 

4. What is the form of support provided by the program?

The support provided includes a package of:

• Incentive funding: Non-repayable incentive funding based on the level of business and its prepared plans. The funding ranges from $80,000 (Single enterprise) to $300,000 (Consortium).
• Targeted technical assistance: Provision of targeted technical assistance on business development services as required by the Matching Grant Recipients/participants.
• Linkages to other system actors: MFI, Banks, Farmer Cooperatives, and Consumer Cooperatives, to create a systemic market linkage supplies and output markets. Also access to further financing through investment advisory services and investment facilitation support in later stages from financial institutions, individual investors, and venture capitalists.

 

5. How will the program handle the lack or damage of required documentation due to the war?

The program is flexible in dealing with applications submitted, based on an assessment of the information provided by companies and business owners through the due-diligence processes carried out by the program's field teams. Therefore, the evaluation process differs from company to company. Legal proof may be proof of a business name, a company registration document, or an official commercial license, among others.

 

6. Is the funding refundable?

The THABAT AF 1 Matching Grant is non-refundable incentive, and funding is milestone-based, tied to the approved proposal, expected outputs, and terms outlined in the Matching Grant Agreement.

 

7. Can my grant be suspended or canceled?
   Yes, if:

• You misuse funds
• Fail to report or provide access to your site
• Violate environmental, legal, or ethical standards
• Support or are linked to warring parties or sanctioned groups

 

8. Is co-funding required from the SME?

SMEs are required to contribute 20% of the project cost in the form of cash or assets.

 

9. How are Matching Grants disbursed?
   Funds are disbursed in tranches based on milestone completion. Each disbursement is approved only after Mercy Corps verifies that agreed activities were achieved.

 

10. How long is the Matching Grant cycle?
    Up to 18 months, but all activities must be completed by 30 September 2026.

 

11. Can women-owned businesses apply?
    Absolutely. Women-led SMEs are strongly encouraged to apply and will receive affirmative evaluation weight.

 

12. What is the program application process?

In order for private sector companies to be eligible for financing and later technical support, they must meet the following criteria:

• Respond to a public Request for Applications (RFA), by submitting an Expression of Interest (EOI)
• If shortlisted, submit a Sub-Project proposal, for a matching grant within the specified scope (operating in the mid-stream of the Millet, Sorghum and Vegetable value chains.

• Be legally registered and physically located in Sudan or intend to return to Sudan to continue the project.
• Its operating period is not less than two years, with the ability to provide the necessary business documentation.
• Pass due diligence (financial, legal, environmental, conflict risk checks) based on the information provided as part of the application.
• Be compliant with the basic laws and regulations of the country, including tax compliance laws.
• Commit to international human rights, labor standards, and environmental management laws.
• Applicants must not be involved in activities prohibited by the Government of Sudan, including terrorism, money laundering, or dealings with entities on restricted trade lists, such as those of the International Finance Corporation. All applicants and related parties will undergo screening against the EU sanctions list and other relevant watchlists.
• Applicants must not represent any government or quasi-governmental agency. This includes institutions or companies wholly or partly owned by such entities, or those with significant ownership or commercial ties to them. Discovery of such links at any stage will lead to immediate termination of the grant agreement.
• Enter a milestone-based agreement with Mercy Corps

 

13. What kind of support does THABAT AF1 program provide during the grant process?

The program offers advisory solutions starting from assistance in the application process and consultations in the form of opportunities that can be worked within and targeted, in addition to specialized technical support from specialized experts in the different financing stages. Technical assistance is in two stages:

• Phase 1: Application assistance and technical support after the initial selection from the longlist, where technical support is provided to project owners in reviewing the business plan, identifying self-financing methods, disbursement directions, and co-designing the application submitted to the selection committee, which makes a decision on whether or not to provide financial and technical support to the participants. The financing application may also be rejected in order to provide other technical support in order to better prepare the participants, then they can submit in the next cycle in a better way.

 

• Phase 2: Capacity building in grant management, financial systems, conflict sensitivity, and environmental compliance. Continuous technical support is provided throughout the financing period. Technical support provides follow-up on the agreed milestones accomplishment, reporting, growth of companies and helps in consultations and services in the various aspects of the project, from marketing, to financing, to accounting, human resources, strategies, sales and legal aspects.

 

14. Will my business operations be monitored?
    Yes. Mercy Corps will regularly track grant usage, milestone progress, and compliance with reporting, environmental, and social standards.

 

15. Where can I find more information or apply?
    Look out for official Request for Applications (RFAs) published via:

• Community offices
• Mercy Corps social media
• WhatsApp groups
• Radio announcements

 

Areas not eligible for funding: Financial support for the purchase of the items deemed as restricted items by donor.

 

Conditions

Issuance of this solicitation in no way constitutes a commitment by THABAT – AF project to execute any agreement or to pay any costs incurred by any applicant in submitting an application.

Please note that THABAT – AF project will fully respect the confidentiality of all companies involved in the program. If selected, THABAT – AF project will establish an agreement with the company/institution that describes the objective of collaboration and that clearly defines each party’s respective responsibilities, roles, and obligations. Successful applicants must be willing to share information with THABAT – AF project regarding their performance, and THABAT – AF project will conduct interviews with clients / customers to gather information on impact and to monitor progress.

 

SCHEDULE OF ACTIVITIES

 

	Activity Description	Comment
1	Activity Reference #	PR150235_REoI_SMEs for Matching Grants Assistance
2	Advertisement Opening Date	September 23rd 2025
3	Advert Closing Date	December 12th 2025
4	Contact for clarification	moabdalla@mercycorps.org gmugume@mercycorps.org
5	Submission Email	SD-TENDERS@MERCYCORPS.ORG
6	Annex	Milestone Budget Template_V3 1 2-1
7	Evaluation Modality	Rolling Basis

 

 Documents:

   -  PR150235_Expresion of Interest_SMEs for Matching Grants_Assistance_AMENDED.docx
   -  Milestone Budget Template_V3 1 2-1.xlsx