Enhancing Economic Transformation in Conflict- and Migration-Prone Regions and Strengthening IDP Policy and Programming

Restricted EU action grant (EuropeAid 187801 DD ACT ET) to enhance economic transformation in conflict- and migration-prone regions of Ethiopia and to strengthen IDP policy and programming, with an indicative total budget of €9,000,000. The integrated action must address two specific objectives: SO1 market-systems economic transformation in Tigray, Somali, Gambella and Benishangul Gumuz, and SO2 nationwide IDP policy and programming, with a planned duration of 36 to 40 months. Concept notes must be submitted via PROSPECT by 20 November 2026 at 15:30 Brussels time and PADOR registration is required, and the lead applicant must be a non-profit legal person with the specified operational and EU grant management experience.

Call at a glance

Essential facts

Key numbers and timing

Geographic and thematic focus

Who should lead an application

What applicants must show

Applicants must address both specific objectives (SO1 and SO2) in a coherent, integrated proposal; demonstrate MSD expertise, conflict sensitivity, gender equality and social inclusion, climate resilience, monitoring and adaptive management capacity, and arrangements for coordination with the EETE Technical Assistance (DAI/DRC).

Footnotes

1. 1Full guidelines, application forms and annexes (market studies, logical framework, budget templates and PADOR/PROSPECT guidance) are published with the call documents on the F&T Portal: Guidelines & Application Forms.

Purpose, objectives and scope

Geographic and beneficiary scope

Eligibility and applicant requirements

Funding modality, grant size and financial rules

Grant design and programme requirements

Applicants must design integrated proposals addressing both specific objectives (SO1 and SO2) with distinct budgets and results. SO1 must apply MSD principles to strengthen inclusive, climate-resilient market systems and catalyse private sector investment in Tigray, Somali, Gambella and Benishangul-Gumuz; applicants must select a minimum of four target woredas (at least one per region) from specified lists and may include additional woredas with justification. SO1 priority areas include strengthening inclusive market systems and value chains, expanding inclusive finance and enterprise development, and promoting employment systems and enabling conditions. SO2 focuses on national- and sub-national policy, legal and institutional frameworks for durable solutions, evidence generation and knowledge management, sub-national capacity, and sustainable financing and rights protection. Proposals should explicitly show linkages and mutual reinforcement between field MSD learning/evidence and policy-level durable solutions work.

FSTP (Financial Support to Third Parties) rules

FSTP is allowed and recommended under SO1 as catalytic instruments. Maximum amount per third party: €60,000 by default, but may be exceeded if essential and justified. Lead applicant must define in the full application (Annex A.2) objectives, types of eligible activities, eligible recipients, selection criteria, amount criteria and maximum amount. Recipients of FSTP cannot be designated in the lists of EU restrictive measures. The proposal must detail transparency, selection mechanisms, accompaniment measures (capacity building, mentoring), management and monitoring resources for FSTP, and include amounts in the budget. FSTP is to be used strategically rather than as stand-alone grant-making.

Application, submission and selection process

Evaluation grids, scoring breakdowns, and checklists are detailed in the Guidelines. Concept notes alone are evaluated at Step 1, so concept note must contain all essential information requested. Concept note changes allowed between stages are limited (EU contribution may vary by maximum ±20%; co-applicant changes only in justified cases; action duration adjustments in limited circumstances).

Assessment, verification and contractual controls

Award is conditional on administrative and eligibility checks. For grants above thresholds, additional documentation is required at full application (statutes/articles of association, declaration on honour, audit reports for certain thresholds, latest accounts). Successful applicants will be subject to standard grant contract conditions (Annex G). For FNLC components and where applicable, third party assessment (TPA) or agreed-upon procedures (AUP) may be required to validate reported results or expenditures (see Annex G templates and ToR). Self-evaluation questionnaire on Sexual Exploitation, Abuse and Harassment (Annex L) is required for grants exceeding €60,000 and other safeguarding obligations apply.

Compliance, ethics and safeguards

Applicants must not be in exclusion situations, must respect EU values, environmental legislation and ILO core labour standards, and apply zero tolerance for sexual exploitation, abuse and harassment. Anti-corruption and anti-bribery compliance is required. Applicants and key persons may be registered in the Early Detection and Exclusion System (EDES) if relevant. Visibility rules apply and derogations may be granted on a case-by-case basis for security-sensitive contexts.

Submission templates and annexes provided

Published annexes and documents available with the call include Guidelines 187801, Annexes A.1 (concept note), A.2 (full application), Annex B budget (Excel), Annex C logical framework (Excel), Annex D identification forms, Annex F PADOR form, Annex G standard grant contract and annexes, Annex H declaration of honour, Annex J tax information, Annex K clarifications on FNLC, Annex L self-evaluation questionnaire on SEA-H, scoping study and Market Systems Assessment (MSA) appendices, and user manuals for PROSPECT and PADOR. All are publicly accessible via the call page on the EU funding portal.

Key operational and technical details extracted from documents

How to apply and practical tips

Register early in PADOR and the Participant Register to obtain EuropeAid ID and PIC. Read the PROSPECT user manual and watch the e‑learning videos; register for the hybrid information session on 23 October 2026 if you plan to attend (email by 30 September 2026 to reserve places). Submit a complete concept note in English via PROSPECT before the 20 November 2026 deadline. Only the concept note will be evaluated at Step 1, and it must contain all major elements; no additional annexes should be sent at concept note stage. If unable to submit online for security reasons, follow paper submission rules described in the guidelines. Keep copies of all required supporting documents for the full application stage (statutes, accounts, declarations, audit reports where applicable).

Categorisation and structured extraction (answers)

Key application templates and detailed instructions are provided as published annexes on the call page: Guidelines 187801, Application form FA and CN, Annex B Budget workbook (1a/€1B/1c and justification), Annex C logical framework, Annex G standard grant contract templates (including expenditure verification and TPA ToR), Annexes D/F for identification/PADOR, Annex H Declaration of honour, Annex K clarifications on FNLC, Annex L SEA-H questionnaire, Market Systems Assessment and Scoping Study appendices to inform sectoral choices and evidence base.

Technical and sectoral guidance from supporting studies (Scoping Study and MSA)

The published Scoping Study and Market Systems Assessment (MSA) produced under the EETE Technical Assistance contract provide the evidence base for priority regions, woredas and illustrative value chains. Key findings include the prioritisation of Somali, Gambella, Benishangul-Gumuz and Tigray as initial regions for MSD interventions; recommended priority value chains include sheep and goats, poultry, oilseeds (soybean, sesame), vegetables, honey/apiculture, fisheries (Gambella) and financial services and labour/TVET cross-cutting support. The studies emphasise climate resilience, private sector anchoring (anchor firms), smart subsidies or de-risking to crowd-in private investment, and FSTP used strategically as catalytic instruments.

Summary: What this opportunity is about and how to explain it

This call is a €9 million EU grant to one implementing partner (likely a consortium) to deliver an integrated program in Ethiopia with two complementary components: a market-systems development-driven economic transformation component in four conflict- and migration-prone regions (Somali, Tigray, Gambella, Benishangul-Gumuz) with emphasis on inclusive value chain, enterprise and finance systems for displacement-affected communities; and a nationwide policy and programming strengthening component to improve IDP durable solutions, institutional capacity, evidence systems and mainstreaming of durable solutions into planning and financing. The grant uses standard EU external action grant modalities, requires strong experience in MSD and durable solutions programming in Ethiopia, mandates PADOR and PROSPECT registration, and follows a two-stage restricted call process beginning with concept note submission by 20 November 2026. Applicants must present a coherent single strategy that integrates field MSD learning and policy-strengthening work, propose a 36–40 month action, observe cross-cutting principles (GESI, conflict sensitivity, climate resilience), and comply with PRAG and EU contractual requirements for grants, FSTP, FNLC and verification/third-party assessment processes where applicable.

The opportunity is a restricted EU action grant call for proposals in Ethiopia under reference EuropeAid 187801 DD ACT ET, titled Enhancing Economic Transformation in Conflict and Migration Prone Regions and Strengthening IDP Policy and Programming. It is part of the wider EU response supporting durable solutions for forced displacement and labour migration in Ethiopia, with the related technical assistance designed to support market system development, private sector linkages, and government capacity building47.

Key Facts

What the Funding is About

The call aims to advance sustainable durable solutions for forcibly displaced populations in Ethiopia and affected host communities by promoting socio economic inclusion and strengthening the policy, legal, institutional, and coordination environment. Applicants must address both specific objectives in one coherent intervention, with an integrated strategy rather than separate disconnected activities.

The first specific objective is to enhance economic transformation in conflict and migration prone regions through a market systems development approach. The second specific objective is to strengthen IDP policy and programming through evidence, coordination, institutional capacity, rights based interventions, and sustainable financing for durable solutions.

Specific Objective 1

SO1 covers the regions of Tigray, Somali, Gambella, and Benishangul Gumuz. Applicants must select at least four target woredas, with at least one in each of the four priority regions, and may add other target areas where evidence justifies this. The call names priority woredas including Tahitay Adiyabo, Tsimbila Endabaguna, Shire Endaslasie, Adigrat, Adihaki Sub City Mekelle, Abiyadi, Egela, Tsegede, and Gulomekeda in Tigray; Awbare, Kebribeyah, and Dollo Ado in Somali; Itang Special Woreda, Makuwey, Gambella Zuriya, and Gog in Gambella; and Ura, Bambasi, Sherkole, and Bildigilu in Benishangul Gumuz.

SO1 is intended to support inclusive and resilient market systems, expand inclusive finance and enterprise development, and strengthen employment systems and enabling conditions. The call encourages commercially viable, climate resilient, and inclusive interventions that generate sustainable employment and investment for displacement affected communities, including refugees, internally displaced persons, returnees, host communities, and where justified migrant returnees or prospective migrants.

Specific Objective 2

SO2 is designed to strengthen the policy and institutional framework for durable solutions to internal displacement. It supports coordination and policy frameworks, evidence generation and data systems, sub national and community level capacity, sustainable financing, rights protection, and mainstreaming durable solutions into planning and investment processes.

SO2 may be implemented nationally and at sub national or local level, especially in areas hosting significant internally displaced populations, areas affected by return or local integration, and regions where durable solutions strategies are already being implemented. Applicants are encouraged to create operational links with SO1 where relevant.

Who Can Apply

The lead applicant must be a legal person, non profit making, and belong to an eligible organisation type such as a civil society organisation, a public sector operator, or an international intergovernmental organisation. It must be effectively established in an EU Member State, Ethiopia, or another country eligible under Article 28 of Regulation 2021 947. International organisations are exempt from the establishment requirement.

Consortia are strongly encouraged. Co applicants and affiliated entities must meet the same eligibility criteria as the lead applicant. The lead applicant cannot submit more than one application under this call and cannot appear as a co applicant or affiliated entity in another application.

Funding and Financial Conditions

The total indicative budget is €9,000,000. The call states that any grant requested must be exactly €9,000,000, with EU financing between 50 percent and 95 percent of the total eligible costs. The balance must come from non EU sources. Full financing up to 100 percent of eligible costs may be accepted only if justified as essential in the full application.

The action duration must be between 36 and 40 months. An inception phase of up to three months is expected and should be used to validate the intervention design, refine targeting, establish baselines, and confirm implementation arrangements.

The grant may include financial support to third parties. The standard maximum amount per third party is €60,000, although a higher ceiling may be allowed if achieving the action objectives would otherwise be impossible or excessively difficult. If financial support is used, the application must define the objectives, eligible activities, eligible recipients, selection criteria, calculation method, and maximum amount.

Indirect costs may be funded at a flat rate of up to 7 percent of total eligible direct costs, excluding volunteer costs and project office costs. A contingency reserve of up to 5 percent of estimated direct eligible costs may be budgeted, subject to prior written authorisation.

Relevant Implementation Conditions

The call requires a conflict sensitive, gender responsive, climate aware, and evidence based approach. Under SO1, applicants should apply market systems development principles and avoid parallel structures. Under SO2, applicants should strengthen existing government led systems rather than create new parallel mechanisms.

Applicants should coordinate closely with the EU funded technical assistance linked to the wider programme, but the grant beneficiary remains fully responsible for implementation and results. The call also emphasises sustainability, scalability, private sector engagement, local ownership, and operational use of evidence and lessons learned.

Eligible activities under SO1 may include baseline and market analysis, job creation, entrepreneurship and enterprise development, value chain support, access to finance, skills development, business development services, climate resilient market solutions, digital tools, and, where justified, financial support to third parties. Eligible activities under SO2 may include policy and legal strengthening, coordination mechanisms, data systems, capacity development, community participation, rights based interventions, mainstreaming into planning and finance, and innovative partnerships.

Application Process

This is a two stage restricted call. First, only a concept note is submitted and evaluated. Pre selected lead applicants are then invited to submit a full application. Online submission through PROSPECT is mandatory, and PADOR registration is required for lead applicants at concept note stage and for co applicants and affiliated entities at full application stage.

The concept note deadline is 20 November 2026 at 15:30 Brussels time. The full application deadline will be communicated only to pre selected applicants in the invitation letter generated in PROSPECT. Questions on the concept note may be submitted by email no later than 21 days before the concept note deadline, and replies will be issued no later than 11 days before the deadline.

An information session is scheduled for 23 October 2026 at 9:00 Brussels time, with participation requests to be sent by 30 September 2026. The organisers state that no costs for attending the session are reimbursable.

Evaluation Overview

Concept notes are scored out of 50, and a minimum score of 30 is required for pre selection. Full applications are then scored out of 100, with section 1 financial and operational capacity carrying a pass fail threshold of at least 12 points and no subsection score of 1. The evaluation also places strong weight on coherence, feasibility, sustainability, relevance, and cost effectiveness.

Applicant Priorities

Applicants are expected to present one coherent strategy linking economic transformation and durable solutions. Strong proposals will show evidence based market selection, credible private sector engagement, clear gender and social inclusion measures, conflict sensitive design, strong coordination with relevant authorities and partners, and realistic arrangements for monitoring, learning, and adaptive management.

Because this is a high value, strategically designed grant, applicants should pay close attention to consortium design, proof of EU grant management capacity, evidence of work in the target regions, and a convincing rationale for any financial support to third parties. The call is especially suited to organisations that combine field implementation experience, policy engagement, market systems expertise, and durable solutions programming.