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Policy on Currency and Inflation

1.0 Purpose

The purpose of this policy is to provide guidelines on how applications can be costed and how foreign currency (where applicable) and inflation issues managed. As the Science for Africa (SFA) Foundation operates partnerships with different funding organisations, allowances for currency selection and inflation will be influenced by the policies of the funding partner and/or principles of the funding partnership agreed at the outset. This policy in its entirety is an internal document. Excerpts, where relevant and appropriate, may be shared on the SFA Foundation website.

2.0 Policy Statement

2.1 Currency Selection

  1. The preferred currency in applications and for payment of SFA Foundation grants to recipients is the US Dollar, due to its wide use internationally, unless stated otherwise;
  2. The grantee institution bears all risk associated with foreign currency fluctuations (exchange losses) between the award currency and the local currency and also between the local currency/award currency and the currency or currencies of project expenditure. Any foreign currency gain shall be disclosed to SFA Foundation;
  3. Applications can only be costed in any other currency if this has been stated in the funding call of the scheme. SFA Foundation will agree at the outset of each funding partnership, whether non-USD currencies can be accepted in application budgets for that particular scheme. This decision will depend on the availability of resources to manage foreign exchange risks. In this case the following would apply:
  • Applicant(s) must clearly state the rationale for selecting the chosen currency;
  • Where an application is successful, the award will be made in the currency specified, provided SFA Foundation is able to purchase the required currency. If SFA Foundation is unable to purchase the requested currency, discussions will be held with the administering organisation to decide on alternative arrangements;
    1. Once an award has been made, the currency in which the grant is administered may not be changed by the grant holder or administering organisation;
    2. If, during the application process, there are concerns that the preferred currency may not be readily available for purchase, organisations should contact SFA Foundation.

4.2 Inflation

  1. Unless stated otherwise in the funding call, applicants should include inflation in all costs. If an inflation estimate is used, applicants must describe the assumptions in developing the estimated inflation rate.
  2. Where stated that inflation costs should not be included, applicants must provide figures based on current known costs and not factor in an allowance for inflation into the costings.

For any queries on this policy, please contact [email protected]