Terms of Reference Developing financial products targeting farmers in small livestock (poultry, pig, goat and sheep) Value chain at Cordaid, Kigali, Rwanda – CLOSE: 14/10/2022
TERMS OF REFERENCE
Developing financial products targeting farmers in small livestock (poultry, pig, goat and sheep) Value chain
Project background – Partnership for resilient and Inclusive Small Livestock Markets (PRISM)
Partnership for Resilient and Inclusive Small Livestock Market (PRISM) is a project of the Ministry of Agriculture and Animal Resources (MINAGRI) implemented under the Rwanda Agriculture and Animal Resources Development Board (RAB) through the Single Project Implementation Unit of IFAD1 Funded Projects (SPIU-IFAD) and jointly funded by IFAD and ENABEL, with Heifer International and VSF Belgium as key implementing partners.
At production level, IFAD-supported interventions will target primarily smallholder livestock holdings and vulnerable households, while ENABEL will engage and support larger scale commercial and industrial actors. In terms of value chains, IFAD-supported interventions will target mainly the small ruminants, backyard pig and backyard chicken value chains, that correspond to its priority target groups, when ENABEL will concentrate on pig and poultry commercial value chains.
RAB through SPIU-IFAD/PRISM project and CORDAID, has entered into a framework implementation partnership to support technical assistance to financial institutions and access to finance to small holder Livestock farmers.
While several banks and certain MFIs are already receiving support to develop Agri finance portfolio, there is a need to support MFIs and SACCOs in this area, considering their high penetration rate in the country and their geographical coverage (at least one Umurenge SACCO per sector and one MFI with a wide branch network in Rwanda). Cordaid will enable this support by providing capacity building for selected MFIs and SACCOs with an aim to raise their appetite for financing small livestock value chains and supporting them to design or refine affordable, appropriate products.
CORDAID is a global, non-governmental development organization, whose mission is to end poverty and injustice. Cordaid works in the fields of climate resilience, food and income, private sector development. Our projects aim to strengthen households to generate more income from farming. Farmers are supported to increase the production of quality food to meet subsistence needs. The Rwanda office used to be run by Dutch INGO ICCO. In January 2021, ICCO and Cordaid became one organisation, continuing the activities under the name of Cordaid. By joining forces, ICCO brought 50 years of experience in food security, private sector development and resilience-building to the new organization.
Scope of work
Through this ToR, CORAID is looking to hire a consulting firm with extensive experience in financial products development for the small livestock sector and developing training materials.
Through this assignment, CORDAID seeks to create a synergy of MFIs, SACCOs, and small livestock actors to develop an integrated solution for addressing the financing needs, especially for cooperatives and farmers. Interventions areas include Northern: (Musanze, Burera, Gakenke, Rulindo, Gicumbi); Southern (Ruhango, Huye, Gisagara, Nyaruguru, Nyamagabe) and Western (Rutsiro, Ngororero, Nyabihu, Karongi, Nyamasheke).
The overall objectives is to raise appetite of the MFIs and SACCOs for value chain financing and enable them to develop and deliver adapted financial products (saving, loans, payments) targeting small livestock farmers and small enterprises operating along poultry, pig, goat and sheep, and small ruminants (SR) processors and off-takers value chain.
The service provider will support PRISM/CORDAID -A2F- Project in designing and developing training modules on Value Chain Finance (AVCF) for financial institutions (FIs).
- Conduct a value chain mapping and analysis with focus on financial needs risks, and risk mitigation strategies, and recommend appropriate financial products features and delivery channels along value chain actors. Value chain actors include small farmers, inputs and financial services providers, primary and secondary processors, traders, wholesalers, distributers, exporters and retailers of identified four value chains namely piggery, poultry, goat and sheep.
- Develop financial product(s) and services adapted to the needs of small livestock value chain actors. The product(s) development will heavily rely on the value chain mapping and analysis findings, as well as inputs from the Cordaid and MINAGRI subject matter experts.
- Develop a business case for the new product(s) and obtain the Cordaid approval before actual product(s) development and launch.
- Recommend on a framework for new product(s)s performance evaluation, as well as a structure for continuous knowledge flowing and product(s) evolution.
- Conduct a quick training assessment needs and develop a tailored training package on small livestock finance to build the capacity of the MFIs and SACCOs’ staff on best practices in implementing a value chain approach to financing and effectively managing the small livestock portfolio. The training package include training modules, the TOT manual with Standard Operating Procedures and training Power Point Presentation for organizing training programs.
The firm is encouraged to develop its own envisaged product(s) development methodology for this assignment, with a clear product(s) development roadmap based on the scope described above and share it with Cordaid for comments before commencement. However, the firm will be expected to:
- Employ mixed-methods approach combining qualitative and quantitative information, as well as a participatory approach involving and empowering stakeholders to provide information that is relevant to them.
- Ensure flexibility and real-world testing throughout the product(s) development process. This can be done by using innovative approaches such as Human Centered Design (HCD) and Agile product(s) development, separately or jointly whenever appropriate;
- Set up weekly product(s) development update meetings with Cordaid team to keep track of the progress and raise potential issues that might hamper the project execution.
DELIVERABLES AND TIMELINE
The ultimate deliverable of this project is the development of a new financial product(s) adapted to the needs of small livestock value chain actors.
The assignment includes the submission of a series of deliverables:
Deliverable 1: A technical and financial proposal to be approved by Cordaid.
Deliverable 2: An inception report with detailed description of how the firm intend to comply with each of the specific objectives in terms of data collection, data analysis, interpretation and planning, to be approved by Cordaid.
Deliverable 3: A value chain mapping and analysis report – clearly highlighting the value chain actors’ financial needs, risks and existing risks mitigation strategies, gaps that the new product(s) will seek to solve and recommendations for the appropriate financial products features.
Deliverable 4: New financial product(s) developed for small livestock (poultry, pig, goat and sheep).
Deliverable 5: New product(s) concept and business case developed including a framework for new product(s) performance evaluation. To be approved by Cordaid.
Deliverable 6: Tailored training package on small livestock finance to build the capacity of the MFI and Sacco’s staff on best practices in implementing a value chain approach to financing and effectively managing the small livestock portfolio.
Training package covering agriculture Value Chain Financing (AVCF) which should include the following elements:
- Training manual with PowerPoint presentation (In English and in Kinyarwanda)
- Training program details with requirements
- Trainer/Trainer of trainer Kit
- Trainee kit
- Post training assessment toolkit
The selected firm will provide reporting to Cordaid through weekly calls/meetings to provide progress update. The firm will report to Cordaid team in English.
Firms applying for this assignment should demonstrate:
Education and experience of team members:
Two team members (one international and one national): Team Leader: International Consultant
Team Member: National Consultant
Expertise of the Service Provider/ Consulting firm:
The submitted proposal should contain 2 components:
- The technical proposal should describe in detail the understanding of the company regarding the objective described in these Terms of Reference. The firm should also describe the strategy and the methodology that will be used to deliver the project. CVs and responsibilities of each member of the project team should be attached to the proposal. The technical proposal should also present similar experience conducted by the firm in Sub-Saharan Africa.
- The financial proposal shall describe costs for each deliverable for each phase. Costs related to the delivery of the project and costs of service should be presented separately. This project is a lump sum contract (excluding VAT). Technical and financial proposals should be written in English.
- Category : Tenders