Description

Challenge Fund for a Just Transition (CFJT) is a program Funded by Hivos and implemented in Egypt by Nahdet el Mahrousa and Chemonics.

CFJT aims to contribute to climate change adaptation and mitigation efforts by creating sustainable, decent jobs for more than 10,000 young women and men through the green transition process in countries across North Africa, particularly in Egypt, Tunisia, Algeria, and Morocco.

To this end, the outcomes of the programme are:

1. Enable 25 Small and Growing Businesses (SGBs) contributing to the green transition and their micro clusters to scale their businesses

2. Increase the technical capabilities and financial resources of SGBs and local intermediaries to leverage more commercial and non-commercial financing, and

3. Incentivize systemic change towards decent and inclusive employment by providing evidence-based, proven, business cases highlighting the commercial opportunities of a just and green transition.

CFJT aims to deliver a growth management program for 25 green firms. The program’s main objective is to assist those firms in adapting their strategy, business model and operations to achieve scalability and a sustained rapid growth.

 For the 2024 round, four Small and Growing Businesses (SGBs) will be selected for this year’s incubation.

Benefits and Services

The program provides business and technical support through Nahdet El Mahrousa and Chemonics Egypt, respectively. This support encompasses capacity-building workshops, consultations, and technical assistance from top sector experts in both technical and business domains. The assistance offered will include:

1. Developing the strategic growth plans for the business.

2. Non-equity Impact investment funding* of up to 350,000 EGP, structured on an asset- and milestone-based approach.

3. Diagnosis of business operations for development

4. Enhancing performance, quality control, and assurance.

5. Re-designing or developing the SGBs’ business models and operations to facilitate sustained growth and scalability.

6. Networking with key market players, including potential clients, suppliers, NGOs, universities, and other essential stakeholders.

7. Collaborative opportunities with the four countries of program operation (Egypt, Tunisia, Algeria & Morocco)

8. Providing support on environmental impact reporting.

9. Project development and account management support provided by the NM incubator team.

10. Access to financial, legal, HR, and digital marketing consultations at discounted rates through Nahdet El Mahrousa BSU Service

*non-equity Impact Investment Funding: the ticket size is up to 350k. EGP SGBs commit to designate the maximum percentage allowed by law in CSR contribution to Nahdet el Mahrousa.

SGBs Eligibility Criteria

SGBs: Small and Growing Businesses

1. SGBs with a demonstrated revenue track record of selling products or services that  contribute to reducing carbon emissions, enhancing climate resilience, or addressing climate adaptation, such as sustainable agriculture and food production, recycling and waste management, sustainable water management (efficient irrigation, desalination, waste-water reuse), renewable energy, sustainable transportation, eco-tourism, and resource efficiency.

2. Demonstrated year-on-year revenue growth potential.

3. Employment of 10 – 50+ direct and indirect labor, with a clear plan to increase employment (aiming for at least 30% additional direct and indirect labor within 2 years). (Preference will be given to applications with the highest numbers.)

4. Integrated micro-businesses in the supply chain, including micro suppliers and distributors, small enterprise customers, and service providers.

5. SGBs registered in Egypt for at least 3 years.

6. Commitment towards improving the current jobs within the firm (i.e., offering training to current employees, job promotions, etc.)

7. Commitment toward inclusion of women and youth (particularly in recruitment of staff, senior managers, and board members)

8. Commitment of the Managers and the Founders towards the growth management program: attending all sessions, actively engaging in all sessions, and responding to emails/ phone calls in a timely way.

Timeline

20th of January 2024 Online application period opens

11th of February 2024 Online application Deadline

Early March 2024 One-on-one in-depth meetings with semifinalists.

Mid March 2024 Panel and startups Pitching

End March 2024 Selection of 4 startups

April 2024 Program kick-off, beginning with inductions and followed by needs assessments for each startup.

Find application from here