Opportunity Information: Apply for 72052222RFA00002
The USAID/Honduras Agricultural Enterprise Development Alliance Activity (Funding Opportunity Number 72052222RFA00002) is a discretionary USAID Honduras funding opportunity that plans to make a single award through a Cooperative Agreement for an agriculture-focused Global Development Alliance (GDA) lasting four years. The activity is designed to help Honduras-based agricultural small and medium-sized enterprises (agri-SMEs) grow by expanding their access to capital and strengthening the business development services they rely on. The larger aim is to build stronger, more sustainable connections between smallholder farmers and higher-value global markets, so that farmers can sell more reliably, at better prices, and through more resilient market channels.
A central target of the Alliance is to improve market linkages for at least 50,000 smallholder farmers, with the expectation that stronger buyer connections and better-performing agribusinesses will translate into meaningful income gains. USAID sets a specific household-level result: incomes should increase by an average of 50 percent for at least 10,000 households. In other words, the program is not only about expanding production or providing training; it is framed around measurable commercial outcomes, including higher revenues, deeper market participation, and income growth at the household level.
To reach those results, the Alliance is built around four main pillars. First, it will facilitate at least 80 million in loans to high-growth-potential agri-SMEs, using the Alliance structure to unlock significantly more private and local financing than USAID could provide directly. This emphasis on mobilizing lending suggests the program will work closely with financial institutions and investors, while also helping agri-SMEs become more bankable through better planning, financial management, and performance. Second, it will raise productivity and profitability by expanding agroforestry and other climate-smart agriculture practices, which typically includes practices that improve soil health, water management, and resilience to climate shocks while maintaining or increasing yields. Third, it will strengthen business management and service capacity and improve efficiency, explicitly including the use of digital tools, which can cover areas like digital recordkeeping, traceability, market information systems, extension support, logistics coordination, and financial services delivery. Fourth, it will support diversification of both on-farm and off-farm income sources, recognizing that rural households often need multiple income streams to manage risk, smooth income across seasons, and withstand price or climate volatility.
From a funding standpoint, USAID states its contribution to the four-year GDA will not exceed USD 7,000,000, and that funding is subject to availability. The opportunity lists an award ceiling of USD 7,000,000 and anticipates one award. The posting identifies the agency as USAID-Tegucigalpa (Agency for International Development, Honduras) and categorizes the activity under CFDA 98.001. Eligibility is listed broadly as "Others" with additional clarification referenced in the full opportunity materials. Key timeline details provided include a creation date of April 4, 2022 and an original closing date of May 2, 2022 at 10:00 Honduras time.Apply for 72052222RFA00002
- The Agency for International Development, Honduras USAID-Tegucigalpa in the agriculture sector is offering a public funding opportunity titled "USAID/Honduras Agricultural Enterprise Development Alliance Activity" and is now available to receive applicants.
- Interested and eligible applicants and submit their applications by referencing the CFDA number(s): 98.001.
- This funding opportunity was created on Apr 04, 2022.
- Applicants must submit their applications by May 02, 2022 May 2, 2022, 1000 Honduras time. (Agency may still review applications by suitable applicants for the remaining/unused allocated funding in 2026.)
- Each selected applicant is eligible to receive up to $7,000,000.00 in funding.
- The number of recipients for this funding is limited to 1 candidate(s).
- Eligible applicants include: Others (see text field entitled Additional Information on Eligibility for clarification).
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Frequently Asked Questions (FAQs)
1) What is the name of this funding opportunity?
The opportunity is titled the USAID/Honduras Agricultural Enterprise Development Alliance Activity.
2) What is the Funding Opportunity Number?
The Funding Opportunity Number is 72052222RFA00002.
3) Which USAID office is issuing this opportunity?
The posting identifies the issuing agency as USAID-Tegucigalpa (Agency for International Development, Honduras).
4) What type of award will USAID make?
USAID plans to make a single award through a Cooperative Agreement.
5) How many awards does USAID expect to make?
USAID anticipates one award.
6) How long is the activity period?
The activity is designed as a four-year agriculture-focused Global Development Alliance (GDA).
7) What is the maximum amount USAID will contribute?
USAID states its contribution to the four-year GDA will not exceed USD 7,000,000, and that funding is subject to availability.
8) What is the award ceiling?
The opportunity lists an award ceiling of USD 7,000,000.
9) Is this a mandatory or discretionary opportunity?
This is described as a discretionary USAID Honduras funding opportunity.
10) What is the overall purpose of the activity?
The activity is designed to help Honduras-based agricultural small and medium-sized enterprises (agri-SMEs) grow by expanding their access to capital and strengthening the business development services they rely on.
11) What larger development goal is USAID trying to achieve with this activity?
The larger aim is to build stronger, more sustainable connections between smallholder farmers and higher-value global markets so farmers can sell more reliably, at better prices, and through more resilient market channels.
12) Who are the primary intended beneficiaries?
Based on the description, the primary intended beneficiaries include Honduras-based agri-SMEs and smallholder farmers who connect to higher-value markets through improved market linkages and stronger agribusiness performance.
13) What does USAID mean by focusing on measurable commercial outcomes?
The opportunity is framed around measurable commercial outcomes such as higher revenues, deeper market participation, and income growth at the household level, rather than focusing only on production increases or training delivery.
14) What is the specific target for improving market linkages?
A central target is to improve market linkages for at least 50,000 smallholder farmers.
15) What income results does USAID expect at the household level?
USAID sets a household-level result that incomes should increase by an average of 50 percent for at least 10,000 households.
16) What are the main program pillars described in the opportunity?
The Alliance is built around four main pillars: (1) facilitating loans to high-growth-potential agri-SMEs, (2) raising productivity and profitability by expanding agroforestry and other climate-smart agriculture practices, (3) strengthening business management and service capacity and improving efficiency including digital tools, and (4) supporting diversification of on-farm and off-farm income sources.
17) What is the loan mobilization target?
The Alliance will facilitate at least 80 million in loans to high-growth-potential agri-SMEs.
18) Does USAID plan to provide the full 80 million in loans directly?
No. The description indicates the Alliance structure is intended to unlock significantly more private and local financing than USAID could provide directly.
19) What kinds of institutions might be involved to reach the lending target?
The emphasis on mobilizing lending suggests the program will work closely with financial institutions and investors.
20) How does the opportunity describe making agri-SMEs more able to access financing?
It indicates the activity will help agri-SMEs become more bankable through better planning, financial management, and performance.
21) What climate-smart approaches are mentioned?
The opportunity mentions expanding agroforestry and other climate-smart agriculture practices.
22) What outcomes are associated with climate-smart agriculture in this activity?
The description notes these practices typically improve soil health, water management, and resilience to climate shocks while maintaining or increasing yields, with the broader goal of raising productivity and profitability.
23) What does the activity say about business development services?
It states the activity will strengthen the business development services that agri-SMEs rely on, and it also highlights strengthening business management and service capacity.
24) What role do digital tools play in the program design?
Digital tools are explicitly included under the pillar to strengthen business management and service capacity and improve efficiency.
25) What are examples of digital tool use cases mentioned or implied?
The opportunity notes digital tools can cover areas such as digital recordkeeping, traceability, market information systems, extension support, logistics coordination, and financial services delivery.
26) Why does the activity include income diversification?
The opportunity recognizes rural households often need multiple income streams to manage risk, smooth income across seasons, and withstand price or climate volatility.
27) What kind of market focus does the activity emphasize?
It emphasizes stronger connections to higher-value global markets, with more reliable sales, better prices, and more resilient market channels for farmers.
28) What is the CFDA number listed for this opportunity?
The opportunity is categorized under CFDA 98.001.
29) What is the eligibility category shown in the posting?
Eligibility is listed broadly as "Others," with additional clarification referenced in the full opportunity materials.
30) When was the opportunity created and when was it originally due?
Key timeline details provided include a creation date of April 4, 2022 and an original closing date of May 2, 2022 at 10:00 Honduras time.
31) Does the posting indicate whether funding is guaranteed?
No. It states USAID funding is subject to availability.
32) What makes this activity a Global Development Alliance (GDA) in practical terms?
Based on the description, the GDA structure is used to mobilize resources beyond USAID funding, particularly by unlocking private and local financing (for example, facilitating large-scale lending to agri-SMEs).
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