Innovations Against Poverty is designed for companies based in, or operating in a poor country. The programme is functioning as a risk sharing mechanism for sustainable business ventures (commercial companies or market oriented organisations) which have strong potential to impact poverty.
First, the program focuses on smaller organisations that are sitting on good ideas with great potential, but need the support of their business strategy and resources to penetrate new markets. IAP also seeks to work with larger companies, to help support the development of “inclusive business” models for these markets, which expands opportunities for the poor and disadvantaged in developing countries. Such business models can engage the poor as employees, suppliers, distributors or consumers.
Companies can be active in all sectors where innovation leads to poverty reduction, from agriculture and infrastructure to health and education. Only exception are companies involved in arms, tobacco and gambling industries.
The programme is functioning as a risk sharing mechanism for sustainable business ventures (commercial companies or market oriented organisations), which have strong potential impact on poverty reduction. Companies are invited to apply for grants twice a year. Next dead-line is 25 November 2011.
There are two parallel application processes; one for small grants (under €20,000) and one for large. The expectation is that over three years, about 60 grants will be awarded to companies. The process is of a competitive nature, where grants are awarded to the best business plans that meet the criteria of the IAP. As a third option, the IAP programme can link companies and their financiers to Sida’s Guarantees programme, through which Sida offers guarantees for reducing risks for ventures with a strong developmental dimension.
For any company based in EU the sum of the grant amount requested from IAP plus any other governmental support during the latest three-year period may not exceed €200,000
Who can apply?
The eligibility criteria are listed in the brochure Applicants Guide which you can download in the list of document.
The IAP can provide a matching grant (maximum 50% of total project cost) up to €20,000 for the purpose of exploring an innovation or a new market. The grant might be used for travel and pre-feasibility studies, stake holder needs assessments, or networking with local organisations. Download the Guide for Applicants and the IAP Small Grant Application Form to apply.
Large Grants
The IAP can provide a matching grant (maximum 50%) up to €200,000 to a company for the purpose of undertaking a research and development project aimed at an innovation against poverty – a product, service, system, business model or a concept ready to be put to market test, or adaptation of existing products to be affordable and accessible by the poor.
In order to apply for a large grant you are first requested to fill in a concept description and submit to the IAP team. A review and selection will be done and successful applicants will be invited to submit a full application. More information about the proccess and important dates is available in the the Guide for Applicants that you can download, as well as the IAP Concept Note form.
Guarantees
For a company ready to invest in scale-up of a proven business model with a strong development dimension, Sida also has a flexible guarantee instrument for reducing risks for such ventures, which will be available for innovations at a stage of launching at full scale or for replicating. A financial institution ready to provide a company a commercial loan can get a guarantee from Sida covering 50% of the loan.
Applications for guarantees should be directed directly to the Loans and Guarantees Unit of Sida by the financial institution. Sida does not have a specific form for this, nor a specific deadline for applications. The IAP will assist Sida in analyzing the planned inclusive business project also in this case, assessing whether it is in line with IAP criteria. For this purpose, the form Description of inclusive business project for organisations aiming at applying for a Sida Guarantee should be completed by companies with inclusive business projects that they want to take forwards but that require a partial guarantee in order to secure finance. The information in this form will be used to better understand the planned business project and assess how to support a financial institution to apply for a partial guarantee from Sida.
Please note that only financial institutions can apply for Sida guarantees and that the maximum guarantee is 50% of the value of the loan provided by the financial institution.
Please note
In order to comply with the rules for public funding and OpenAid, all information that is submitted to the IAP may eventually be available to the public.
Email your application to the IAP team at application@innovationsagainstpoverty.org
Moreinfo: http://www.sida.se/English/Partners/Private-sector/Innovations-against-poverty/How-to-apply
