Smallholder Agricultural Development Project (SADP II)
Matching Grant Programme
Call for Applications
Background:
The Ministry of Agriculture, Food Security and Nutrition (MAFSN) has received financial support from the Global Agriculture and Food Security Programme (GAFSP) under the supervision of Internation Fund for Agriculture Development (IFAD). The financial support will be managed by the Smallholder Agriculture Development Project II (SADP II) under Matching Grants Programme (MGP) to support investment by commodity-based producer groups and agri-businesses for agriculture-related businesses to support access to markets by formally or informally linking producers to value chain actors through vertical alliance building.
Priorities:
Grant Financing:
Two grant windows are available to applicants:
- qualifying supported commodity-based producer groups for investments up to LSL1,000,000.00
- agri-businesses in win-win partnerships with groups for investments of up to LSL1,500,000.00
Eligible Applicants:
The commodity-based producer groups and/or agri-business activities operating in all ten districts of Lesotho are eligible for grants. Eligible applicants include a) qualifying commodity-based producer groups; b) agribusiness firms willing to make investments that demonstrate win-win partnership with commodity groups. The commodity-based producer groups with women in leadership roles within the group and have a quota of at least 40% youth and at least 50% women will receive priority for grant support. Government Employees are not eligible. Commodity groups and agri-businesses should be registered with Law Office and Ministry of Trade, Industry and Business Development. The land on which the operations will be conducted should be registered in the name of the enterprise (commodity group, agri-business, etc.). Investment support should will be on production and post-harvest equipment.
Beneficiary contribution:
In all cases, successful applicants will be required to make a co-finance contribution in cash to engender ownership and demonstrate commitment. Co-finance cash contributions for the commodity-based producer groups grants for registered associations and cooperatives will be 20% of the funds requested. Agri-business grants for registered agriculture-oriented and privately-owned enterprises, associations and cooperatives will require a 30% co-finance contribution. In both cases, 100% of such contribution MUST BE available before SADP II disburses funds to beneficiaries.
The participation and contribution from different partners should be confirmed by written agreement reached between the principal applicant, the service provider (World Vision International, Lesotho) and/or other partners. In the application, the lead firm must clearly identify and mention the commodity group that it will be working with to implement the grant. The number of group members to benefit from the grant should be clearly outlined and disparaged by sex, age and other parameters
Eligible Expenditures under Grant:
Eligible expenditures shall relate to long term capital assets relevant to the activity. This include costs associated with the purchase and installation of equipment for production, harvesting, post-harvest handling, processing, preservation, storage, grading, packaging etc., the construction of necessary buildings storage, processing, marketing; the purchase and installation pumps, boreholes, tanks etc; product development; alignment with national and international food and safety standards; and marketing campaigns.
Non-Eligible Expenditures under Grant:
The following items would not be covered by the grant amount: (a) Salaries or payment for works and services provided to the project by the grant applicants or its members; b) any expenditures made prior to the date of signature of the Grant Agreement or after closure date of the project; c) land surveys; purchase, rent or leasing of land and existing buildings; d) any expenditure related to operating costs, which are expected to be the direct responsibility of the applicant; e) any expenditure with a hazardous impact on the environment. Each proposal should have an environmental social impact assessment and safeguards management plan as part of its design
Applications should be submitted in four copies (one original plus three photocopies) and delivered by hand at the office of the MGP Secretariat in the District Agricultural Office (DAO) in the 10 districts of Lesotho. Applications submitted after deadline will not be accepted.
Evaluation of the Applications:
All applications received within the deadline will be screened by the MGP Secretariat for compliance with the above rules. The successful applications will then be evaluated by specialized Technical and Financial Reviewers, submitted to the MGC for approval of financial and technical review and finally field verifications will be conducted. The list of successful applicants will be published through public posting at the MGP Secretariat’s office. Unsuccessful applicants will be informed by letter, and their original project documents could be returned to them on request.
Application Documentation:
The official application will be managed by World Vision International, Lesotho, in all the 10 districts.
Deadline and Place for Submission of Applications:
The deadline for submission of applications is on or before August 26, 2026, at 1630hrs.
Summary
- The financial support will be managed by the Smallholder Agriculture Development Project II (SADP II) under Matching Grants Programme (MGP) to support investment by commodity-based producer groups and agri-businesses for agriculture-related businesses to support access to markets by formally or informally linking producers to value chain actors through vertical alliance building.
- The commodity-based producer groups with women in leadership roles within the group and have a quota of at least 40% youth and at least 50% women will receive priority for grant support.
- Applications should be submitted in four copies (one original plus three photocopies) and delivered by hand at the office of the MGP Secretariat in the District Agricultural Office (DAO) in the 10 districts of Lesotho.
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