FAQ

What Type Of Projects Do TRAC Fund?

Projects that will benefit a large / huge number of men and women while also promoting resilience and environmental sustainability will be given preference. The project must be innovative and hold potential to increase access / reduce cost of services needed for cross-border trade.

How Do I Apply For Funding From TRAC?

A simple, online registration process results in an application form and guidance notes being available to applicants who are then given 4 weeks to submit a brief concept note of their project.

ELIGIBILITY REQUIREMENTS OF APPLICANTS

Who can apply?

All applications must be submitted by a registered entity (e.g., registered companies, non-governmental organisations (NGOs), business associations, academic institutions, media organisations etc.).

All applicants will need to demonstrate their capacity to implement their proposed project, and must also be able to contribute a minimum of 50% of project costs in cash or in kind (for private sector entities) or a minimum of 30% of project costs in cash or in kind (for NGOs and other member of civil society).

Yes, but only in instances where such an SOE is collaborating with an eligible institution.

All applicants must prove their legal status, including office address, telephone number, email address, company registration number and tax code (if applicable).

If you are unsure of your eligibility to apply, please contact us, by email, phone or post, for clarification and guidance.

ELIGIBILITY REQUIREMENTS OF PROPOSED PROJECTS

What type of project is TRAC looking for?

We are looking for projects that:
  • Develop new, unproven models for researching and communicating the benefits of regional integration, with the potential to be sustainable and replicable.

  • Are innovative (meaning they involve new products, services, marketing approaches, business models, etc.)

  • Deliver sizeable benefits to a significant number of the poor in the EAC.

  • Have the potential for impact beyond the project, through replication or changing the way the research, advocacy and communication occurs related to regional integration.

  • Identify how the evidence-based research transport and logistics will influence a) policy formulation  b) open the space for policy dialogue  c) build capacity of policy makers to address key issues  d) broaden public understanding of the roles of PSOs and CSOs to fully engage in debates about reform in EAC

  • Demonstrate appropriateness and matching with expected results.

I have an idea for a project that would have a positive impact on regional integration in the EAC, but it is outside the area defined by the challenge fund. What should I do?

At this stage, TRAC only wishes to consider project proposals that fit within the area set by the specific challenge. However, please submit your details on our website’s subscriber list, so that we can keep you up-dated on future Challenges.

What if the project is quite risky?

We are interested in potentially risky projects that can demonstrate the potential for being replicated and are sustainable in the long run, and the ability to have significant impact on the poor. We are not interested in supporting a low level of business risk and therefore could easily attract more conventional financing, such as bank loans.

What is the time duration of each applying project?

All projects approved as part of the first round of challenges should have a maximum duration of 18 months to reach completion.

I am still not sure if my projects fit the eligibiility criteria.

If you are unsure whether your proposed Project meets our eligibility criteria, please contact us, by email, fax or post (no telephone calls please), for written clarification and guidance.

I have failed in previous applications to other challenge funds. Can I submit my proposal to TRAC?

Yes. If you believe your idea meets the Challenge set by TRAC, we would be happy to receive your proposal.

WHAT TRAC PROVIDES TO GRANT RECEPIENTS

Support for funded projects

Does the fund provide up-front payments to the projects?

No. Payments will be made according to an agreed schedule with the Project’s implementer(s). These payments will be tranched and released when the Project meets each pre-agreed milestone. Payments will in most cases be reimbursements for funds spent by the grantees, according to the contract.

What is the usual size of the financial support?

The value will typically have a maximum of US$350,000 per Project. Applicants must keep in mind that at least 50% (for- profit) and 30% (for non-profit) of the Project’s costs must be provided by them.

In what currency will the money be released?

The grant will be denominated in US Dollars only.

Will TRAC be involved directly in the management of the projects it supports?

No. The Fund will not be involved in direct management of any Project.

How will the implementation of funded projects be monitored?

Grant recipients will be expected to comply with various reporting requirements, to be mutually agreed during contract negotiations.

Will TRAC provide any technical assistance in support implementation?

No. TRAC does not provide technical assistance to grant recipients.

What will grant recipients be expected to do?

Recipients of grant funding by TRAC will be expected to comply with the following requirements:

  • Achievements of agreed Milestones to trigger payments

  • Quarterly progress report

  • Financial statement of expenditures

THE APPLICATION PROCESS

Applying for a grant

The concept note is the first part of the application process. Applicants wanting to participate in the Challenge Fund must initially complete a concept note. All concept note submissions will be reviewed, and the most promising ideas will go through to the next stage. The concept note allows applicants to briefly present how their ideas respond to the Challenge.

TRAC will not provide any assistance to applicants in preparing concept notes. However, those applicants that are subsequently invited to submit more detailed proposals will be provided with some guidance if requested.

Yes, applicants may submit more than one concept note if they have multiple Projects they wish to propose.

Yes, if a project does not reach proposal stage, or is ultimately not funded, the applicant company may submit a concept note for another (or revised) project in the next round of Challenges.

The milestones set by TRAC and the grant recipients will be mutually agreed upon, and will be set out in a formal contract, before the first grant disbursement is made.

Yes. All applications will be treated in the strictest confidence during the application process. All the people involved in running the Fund, including the Investment Committee members, have signed a binding Code of Conduct that prohibits them from divulging details of the applications to others, and also prohibits them from using the information for personal gain.

English (or French for applications from Burundi).

Yes. The terms of the contract will be kept confidential.

We will acknowledge the receipt of your Concept Note or Proposal by email.

You can submit Concept Notes and Proposals through email.

TRAC will send an email to each applicant, advising them of the decision.

IMPLEMENTATION PROCESS FOR SUCCESSFUL APPLICANTS

What happens if the project is unable to meet one or more of the agreed milestones?

If a Project fails to meet an agreed milestone, according to the contract agreed, then any subsequent grant releases by the Fund will be halted until a mutually satisfactory solution is found. If a solution cannot be found, the Fund may regrettably have to halt its grant funding of the Project at that stage.

Will I be expected to pay back some or all of the grant money if the project is ultimately unsuccessful, or fails to meet its initial goals?

No, you will not. But if fraudulent activities within the grantee organisation are identified as the cause of the failure, then the Fund will demand and enforce a full refund of the funds advanced.

How is TRAC different from other funds and finance providers in East Africa?

TRAC provides grants for projects rather than individual companies. TRAC does not seek to obtain any financial return. The Fund is not an equity or venture capital investor, and will not buy shares in a company or a project. Nor will it wish to share in the profits of successful Projects. Our goal is to create a significant impact on the markets that matter to the poor through regional integration. TRAC is not a bank, and does not provide loans or other kinds of debt financing. The funding provided is grant money, and there is no interest or other charges attached to the money provided by the Fund.