Business Excellence for Sustainability and Transparency (BEST) Phase II Activity | 72043825RFA00001

Opportunity Information: Apply for 72043825RFA00001

The Business Excellence for Sustainability and Transparency (BEST) Phase II Activity is a USAID-funded grant opportunity designed to strengthen Mongolia's small and medium-sized enterprise (SME) sector by building more durable local support systems and helping SMEs become more competitive and sustainable. BEST Phase II builds on the original BEST activity, but puts added emphasis on long-term sustainability by working more directly with Mongolian institutions that influence and support SMEs, while also introducing stronger, practical support for environmental performance and energy efficiency at the firm level. The overall purpose remains the same as the earlier phase: expand the capacity of Mongolian SMEs so they can play a bigger role in economic growth and diversification.

A central focus of the activity is improving the capacity of Mongolian institutions, particularly government entities and civil society organizations (CSOs), so they can provide higher-quality guidance and advisory support to SMEs. Rather than relying primarily on external expertise, BEST Phase II aims to strengthen local systems by delivering training and capacity building to these institutions, enabling them to advise SMEs more effectively over time. This approach is meant to create a more sustainable ecosystem where SMEs can access ongoing support through local organizations even after USAID funding ends.

Alongside institution-building, BEST Phase II targets improved corporate governance within SMEs. In practice, this typically means helping SMEs adopt stronger internal management practices, clearer decision-making and oversight structures, and more transparent operations. Better corporate governance can improve a company's resilience, access to financing, compliance, and credibility with partners and customers. By raising governance standards across the SME sector, the activity seeks to make Mongolian businesses more investment-ready and better positioned to scale.

BEST Phase II also introduces a direct component focused on energy efficiency and environmental sustainability, working with SMEs to reduce energy use, improve operational efficiency, and strengthen environmental practices. The intent is not only to reduce environmental impacts, but also to improve competitiveness, since energy savings and more efficient processes can lower costs and strengthen a firm's market position. This sustainability emphasis is framed as a business performance issue as much as an environmental one, aligning greener operations with profitability and long-term viability.

From a funding and administrative perspective, this is a discretionary USAID opportunity offered through a Cooperative Agreement, meaning the awardee should expect substantial involvement from USAID during implementation compared with a standard grant. The funding opportunity number is 72043825RFA00001, and it is listed under CFDA 98.001. Eligibility is described as unrestricted, and USAID anticipates making a single award with an award ceiling of $10,000,000. The opportunity was created on 2024-11-22, and the original closing date for applications is 2025-02-12. The listing identifies the agency as USAID (USAID-Manila), while the program description and activities are centered on Mongolia and its SME sector.

In short, BEST Phase II is structured around three main outcomes: (1) improved capacity of Mongolian institutions that support and advise SMEs, (2) improved corporate governance among SMEs, and (3) improved energy efficiency and environmental sustainability within SMEs to boost overall competitiveness. The activity is positioned as a continuation and expansion of earlier work, with a stronger emphasis on building lasting local advisory capacity and embedding sustainability into SME performance improvements.

• The Philippines USAID-Manila in the other sector is offering a public funding opportunity titled "Business Excellence for Sustainability and Transparency (BEST) Phase II 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 2024-11-22.
• Applicants must submit their applications by 2025-02-12. (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 $10,000,000.00 in funding.
• The number of recipients for this funding is limited to 1 candidate(s).
• Eligible applicants include: Unrestricted.

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