Background and Context
Agropastoral communities in Somaliland face increasing pressure fromclimate shocks, environmental degradation, and limited livelihood opportunities. Recurrent droughts, declining soil fertility, and resource scarcity continue to undermine traditional livelihoods, while economic diversification remains limited. Young people are disproportionately affected, often lacking access to meaningful employment, market-relevant skills, or viable pathways to contribute to household income and community resilience. These challenges are particularly pronounced in rural and peri-urban agropastoral areas.
At the same time, Somaliland is experiencing growing environmental pressures linked to underdeveloped market systems. Agricultural residues, organic by-products, plastic waste, and aging technical equipment are accumulating across communities, contributing to pollution, health risks, and lost economic value. These challenges coexist with unmet demand for affordable agricultural inputs, construction materials, and technical services, highlighting a persistent disconnect between available resources, skills, and functioning markets.
Despite these constraints, Somaliland presents strong entry points for circular economy and green skills innovation, particularly where waste streams intersect with livelihood needs and emerging market demand. Agropastoral livelihoods generate substantial volumes of crop residues and organic by-products that can be transformed into productive inputs such as organic fertilizer. Urban growth and changing consumption patterns have increased plastic waste, while a growing number of local enterprises are demonstrating the feasibility of recycling plastic into construction and consumer products. In parallel, the rapid expansion of solar energy—driven by high electricity costs and limited grid coverage—has created increasing demand for repair and maintenance services, opening new income opportunities for youth through applied green skills.
To ensure that the Innovation Challenge responds to real market conditions and user needs, its design was informed by structured engagement with ecosystem actors. This included a co-creation workshop using a human-centred and design-thinking approach to unpack underlying challenges, explore root causes, and frame opportunity areas from the perspective of actors working directly in agropastoral and circular economy settings. Building on these insights, an open market dialogue was conducted with solution providers, private-sector actors, cooperatives, and innovators to scan existing circular solutions, assess how they operate within value chains, and identify system-level constraints and opportunities. These engagements were exploratory and non-procurement in nature, and aimed to ground the Challenge design in practitioner experience and market realities.
Insights emerging from these engagements point to several consistent patterns across the ecosystem:
Across these engagements, emerging market signals were observed in several circular economy pathways. These include growing interest in organic soil inputs derived from crop residues, increasing acceptance of recycled plastic products in construction and consumer markets, and rising demand for repair, recovery and maintenance services for technical equipment. While these markets are still developing, they demonstrate sufficient activity to support early-stage enterprise growth and youth employment when combined with targeted skills development and market integration.
Taken together, these conditions point to the need for an innovation challenge that prioritizes market-anchored, youth-focused circular solutions, rather than isolated pilots or training programs. The emphasis is on translating existing skills and local resources into viable services and products, embedding learning within real economic activity, and enabling youth to generate income while contributing to environmental sustainability and climate resilience.
In response to these findings, theCircular Economy Innovation Challenge has been designed to support solutions that can be realistically implemented within a six-month period and that strengthen livelihoods, circular value chains, and environmental outcomes in agropastoral communities. The Challenge is implemented under the SIDA III Programme by the SomReP Consortium, with funding from the Swedish International Development Cooperation Agency (SIDA).
2. Purpose
The purpose of the Circular Economy Innovation Challenge is to identify, support, and pilot market-anchored circular solutions that strengthen green skills and income-generating opportunities for youth in agropastoral communities in Somaliland. The Challenge aims to translate existing skills, resources, and emerging market demand into viable services and products that contribute to environmental sustainability, climate resilience, and inclusive economic development.
3. Objectives
The specific objectives of the Circular Economy Innovation Challenge are to:
4. Scope of the Challenge
This section outlines the scope of the Circular Economy Innovation Challenge, including the types of solutions sought, priority thematic focus areas, target communities, timeframe expectations, and activities that fall outside the scope of the Challenge. Applicants are expected to ensure that proposed solutions align clearly with this scope.
In addition to delivering circular economy outcomes, all proposed solutions are expected to demonstrate clear potential to create, strengthen, or apply green skills among youth in agropastoral and peri-urban communities. Green skills refer to practical, work-based skills related to resource recovery, processing, repair, fabrication, maintenance, or service delivery that are directly linked to income-generating activities. Solutions should therefore be designed in a way that enables youth to acquire and apply such skills through active participation in day-to-day operations.
The Challenge seeks practical, market-facing circular economy solutions that deliver tangible products or services and create income-generating opportunities for youth, including through roles that require hands-on technical, operational, or service-related skills relevant to a green economy.
Solutions may be proposed by enterprises, cooperatives, youth groups, civil society organizations, or consortia, provided they demonstrate a clear pathway to implementation and market engagement.
Solutions in scope may include, but are not limited to:
Proposals should move beyond conceptual ideas and clearly demonstrate how activities translate into viable products or services that respond to local needs and generate economic value.
Based on ecosystem engagement and market analysis, the Circular Economy Innovation Challenge will focus on two priority thematic areas where there is strong relevance to agropastoral livelihoods, emerging market demand, and realistic opportunities for youth engagement within a six-month pilot period.
The Challenge prioritizes solutions that transform crop residues and livestock manure into productive, market-relevant inputs for agropastoral systems. Solutions under this thematic area are expected to contribute to improved soil fertility, resource efficiency, and climate resilience, while creating opportunities for youth to participate in activities such as collection, processing, quality control, application support, and distribution.
Examples of solutions under this thematic area may include, but are not limited to:
Proposals should demonstrate how currently underutilized biological materials can be converted into products or services valued by farmers, cooperatives, or agricultural enterprises, and how youth are engaged in operational roles that build practical capabilities in organic input production, handling, and application.
The Challenge also prioritizes solutions addressing plastic waste and electronic waste, which are increasing rapidly in urban and peri-urban areas and pose environmental and health risks if unmanaged. Solutions in this thematic area should focus on improving the recovery, reuse, repair, or transformation of technical waste into viable products or services that respond to local market needs.
Examples of solutions under this thematic area may include, but are not limited to:
Solutions should demonstrate how resulting products or services are appropriate for agropastoral and peri-urban contexts, and how youth participate in technical and service roles—such as sorting, processing, repair, refurbishment, or fabrication—that enable the development of transferable green skills alongside income generation.
The Challenge targets agropastoral and peri-urban communities in Somaliland. Proposed pilots must be implemented within Somaliland and demonstrate relevance to local livelihood systems, resource availability, and market conditions.
Applicants should clearly indicate:
The Challenge is designed to support short-term pilots that demonstrate early results and learning.
Within the scope of the Challenge:
5. Funding Modality and Contract Size
The Circular Economy Innovation Challenge will support up to two (2) innovations, with individual budgets up to USD 15,000.
Funding is intended to support practical, market-oriented pilot implementation, including costs directly related to delivering the proposed circular solution. Eligible costs may include operational expenses, materials and inputs, modest equipment, personnel costs, and other implementation-related expenses necessary to test and refine the solution during the pilot period.
Funding will be provided on a milestone-based basis, linked to agreed deliverables and learning objectives. The final amount, milestone structure, and disbursement schedule will be confirmed during the contracting phase.
Funding is not intended to support large-scale infrastructure investments, long-term operational costs beyond the pilot period, or activities outside the scope of this challenge.
6. Guiding Principles
All proposed solutions must align with the following guiding principles throughout design and implementation:
7. Performance Specifications
Selected solutions are expected to meet the following performance specifications during the six-month pilot period:
8. Evaluation Criteria
Proposals will be assessed against the following criteria, focusing on relevance, feasibility, and potential within the Somaliland context and the six-month pilot timeframe.
Alignment with one of the priority thematic areas and clear relevance to agropastoral contexts, with a strong link between circular economy outcomes and youth livelihoods.
Feasibility and Operational Readiness
Realism of the proposed approach within six months, including use of locally available skills and resources and a clear understanding of operational risks.
Innovation in Practice
The extent to which the solution offers a meaningful, context-appropriate improvement over existing practices through adapted approaches or business models.
Market Engagement and Demand
Clarity of the target market and credibility of demand, with a realistic pathway to early market uptake during the pilot period.
Youth Engagement and Green Skills
Degree to which youth are meaningfully engaged in hands-on roles that build and apply practical green skills linked to income generation.
Impact and Early Outcomes
Potential to generate early, tangible livelihood and circular economy outcomes appropriate to the pilot scale and timeframe.
Environmental Responsibility and Do No Harm
Attention to safe, responsible practices and alignment with humanitarian principles, including Do No Harm and inclusivity.
Sustainability and Future Potential
Credibility of the pathway for continuation or growth beyond the pilot, including potential for replication or expansion.
Team Capacity and Delivery Capability
Demonstrated capacity of the team to deliver the proposed solution effectively, including relevant experience, roles, and partnerships.
9. Eligibility Criteria
The following eligibility criteria define who may apply to the Circular Economy Innovation Challenge and the minimum conditions proposals must meet to be considered. These criteria are intended to ensure that selected applicants have the legal standing, local presence, and operational capacity required to implement pilot solutions effectively. Proposals that do not meet this eligibility requirements will not be considered for further evaluation.
10. What Will Not Be Considered for Funding
The following types of proposals will not be considered under this Innovation Challenge:
11. Call Timeline
The Circular Economy Innovation Challenge will follow the indicative call timeline outlined below. Dates are subject to adjustment based on implementation needs.
More Details to be provided in full ToR upon Expression of Interest.
We hereby invite Expression of Interest from registered, approved and reputable consultants to provide above-named services to World Vision Somalia.
IMPORTANT NOTES
“World Vision reserves the right to accept or reject any Bid and is not bound to give reasons for its decision”