Invitation to submit applications for Matching Grant Funds for investments in the dairy value chain in Zimbabwe

Posted on Monday, June 21, 2021

We Effect, together with its partners; Zimbabwe Association of Dairy Farmers (ZADF), Zimbabwe Farmers Union (ZFU), Zimbabwe Dairy Industry Trust (ZDIT) invites farmers, processors and other dairy value chain (DVC) players to submit applications for matching funds for investments in productive assets that enables improved performance of the DVC in Zimbabwe. The Matching Grant Facility (MGF) operates within the framework of the Transforming Zimbabwe’s Dairy Value Chain for the Future (TranZDVC) project under the European Union (EU) funded Zimbabwe Agricultural Growth Programme (ZAGP). The purpose is to support investments that enable increased; 

  • milk production and milk sales, 
  • participation by small-scale farmers in the DVC, 
  • greening of manufacturing and production processes,
  • decent job creation and local production of affordable feed.
All applications will be assessed against the above purposes. The MGF is limited to capital investments in productive assets such as machinery, equipment and buildings and does NOT include finance for working capital and services. Interested parties are welcome to submit applications within the framework of the following Windows:

MGF Window 1:   50:50 match
Window 1 seeks to co-finance investments with private sector actors, including large-scale processors and large-scale farmers (milking over 500 litres of milk per day) serving as integrators. This window aims at securing the long-term commitment of integrators to act as value chain promoters. In this way, the MGF will be used as a mechanism for sharing of cost and risk and, in so doing, leveraging investment from a commercial partner to promote small-scale farmer entry into markets. We call for investment to resuscitate closed Milk Collection Centres (MCCs) or setting up new milk bulking centres in milk producing areas. The bulking centre to start with a daily milk collection of 300 litres and have an out-grower scheme of at least 10 small scale farmers especially women and young farmers. Examples of investment would be towards purchase of cooling facilities, milk pasteurizers, MCC building among others. The MGF will cover a maximum of 50% of a capital investment cost not exceeding Euro 80,000 or USD equivalent per scheme. These investments should be considered as mandatory for the active development and expansion of the value chain operations.  

MGF Window 2:   70:30 match
Window 2 is responding to the investment needs by farmer owned MCCs/dairy hubs and medium/small-scale processors. This window will support investments in establishment/ upgrading of bulking centres, procurement of cooling tanks and related cooling systems and small-scale processing equipment. Solar and energy saving technology and technology protecting the environment will be promoted. The MGF will cover a maximum of 70% of a capital investment cost not exceeding Euro14,285 or USD equivalent.

Application Process
All applicants are expected to use TranzDVC application forms to submit their full proposals and business plans which include a list of the productive assets required and estimated cost for those investments, the number of beneficiaries (including age and gender), increased milk production, green technology to be used, expected job creation, and the expected improved business performance because of the investment. 

Application forms can be downloaded on the Google Drive link below:

Windows 1 and 2 should explain how the out growers will benefit from the assets applied. Applicants are expected to explain why co-finance from the MGF is necessary in order to carry out the investment and why the finance cannot be accessed from banks and/or other Financial Institutions. All applications will be competitively assessed by the Grant Management Committee based on the following main criteria:
  • Relevance of the proposal to the objectives of the action, 
  • Financial and Operational capacity of the applicant, 
  • Cost effectiveness of the investment and 
  • Feasibility and sustainability of the action. 
For more information and application forms please contact:
  • We Effect on +263(242)707494/795865 or email and 
  • ZADF on +263 (242) 251848 or email
  • Any Zimbabwe Farmers’ Union (ZFU) offices
  • Dairy Services provincial offices.
All applications for Window 1 to be submitted electronically to addressed to the Matching Grant Manager. 

Window 2 applications to be submitted to ZFU or ZADF  or Dairy Services offices or electronically to  addressed to the CEO. 
  • Closing date for Window 1 applications is 31st July 2021
  • Closing date for Window 2 applications is 31st August 2021
Find out more about the TranZDVC project.