Section 1: Introduction, Technical Background and Scope of Work

1.1 Introduction: The Inclusive Poultry Value Chain (IPVC) activity is a European Union program implemented by a consortium led by the Cooperation for the Development in Emerging Countries (COSPE). Consortium partners include CNFA, Livestock and Meat Advisory Council (LMAC), Welthungerhilfe (WHH), and Sustainable Agriculture Technology (SAT). in Zimbabwe. The goal of the IPVC project is to promote an efficient poultry value chain (VC) that contributes to inclusive green economic growth in Zimbabwe. The intervention will support activities to improve economic, social and environmental performance and the enabling environment for sustainable and inclusive poultry value chains. The activity works with small scale and medium producers (SMPs) of broilers and table eggs, retailers, financing institutions, private sector integrators, and public and civil society bodies to:

1. Improve profitability (net profit) of small and medium producers (SMPs);
2. Increase the adaption of Decent Rural Employment (DRE) enhancing practices;
3. Increase the adoption of quality management system (QMS) for improved biosecurity and natural resource management;
4. Develop replicable models to lower feed production/distribution costs for SMPs;
5. Provide business development services to SMPs for inclusive VC development; and
6. Collaborate with relevant government ministries for improved, responsive and efficient sub-sector specific regulatory, agricultural and livestock policies.

IPVC is soliciting proposals from qualified Financial Services Consultant to develop the capacities of its financial institution partners in a robust way that will sustainably improve access to finance for the small  to medium poultry producers in the face of the current economic, trade and technological changes at both local and global levels. CNFA will consider proposals in response to this RFP from Independent Consultant and Firms.

Offerors are responsible for ensuring that their offers are received by CNFA in accordance with the instructions, terms, and conditions described in this RFP. Failure to adhere with instructions described in this RFP may lead to disqualification of an offer from consideration.

1.2: Scope of Work:

IPVC works to enhance the capacities of financial institutions to support SMPs in the poultry value chain (VC) to access finance, thereby improving their production systems and profitability. In addition, the project gives technical support to poultry SMPs (independent SMPs and outgrower SMPs) and in order to reach scale IPVC is also facilitating the formation of five poultry business units/hubs run by SMPs, one in each of its five geographical clusters (Harare, Mutare, Masvingo, Gweru and Bulawayo). IPVC facilitates value chain financing at two levels, firstly in developing innovative partnerships in the value chain including with selected Financial Institutions(FIs) (Banks and MFIs); and secondly in collaborating to develop financial products and VC financing models which address the financing needs of the Poultry VC actors capacitated by the action.

In Zimbabwe poultry SMPs like most smallholder farmers are considered high-risk by the formal financial sector and as such are continually constrained from adapting to appropriate technology & production systems to enable them to expand or improve their poultry operations and acquire appropriate productive assets. Preliminary studies have highlighted some of the key barriers to accessing finance as the absence of customized financial products and sustainable financing models for small scale poultry producers. Further studies site the need for a more comprehensive and innovative approach to the viability analysis of small scale poultry enterprises which may not fit the conventional analysis of large scale enterprises. The transformation of the agricultural sector from largely commercial to smallholder also requires a change management approach on the part of the financial services sector, that recognizes the need to upgrade conventional methods of investment analysis to align to the changes. The poultry value chain, which has seen more and more women participation over the years, is no exception to the changes as studies have shown that at least 70% of the domestic chicken meat supply is contributed by small to medium poultry producers.

Therefore, IPVC seeks to contract the services of a Financial Services Consultant to develop the capacities of its financial institution partners in a robust way that will sustainably improve access to finance for the small  to medium poultry producers in the face of the current economic, trade and technological changes at both local and global levels.

This consultancy is expected to build the capacities of financial institutions to enable them to become more innovative and increase financing opportunities for the poultry SMPs while taking charge of building more sustainable financing relationships.

1.3: Anticipated Period of Performance: This assignment is expected to be carried out between May and July 2020.

1.4: Tasks: The resulting intervention will be at two levels: (a) short term technical assistance to design or enhance poultry VC financing products adapted to SMPs, in response to major bottlenecks identified during the initial VC analysis study. This will be supported by training of banks / MFIs on poultry business investments and financing models that are financially viable and the VC financing products adapted to each business investment.

(b) Secondly, the consultancy will support longer term technical assistance to develop supply and demand for VC financing products developed by the process above. To support the supply side of financial services, the action will develop banks / MFIs teams’ capacity to assess the financial viability of business plans submitted by poultry SMPs.

This consultancy activity will contribute to IPVC outcome 5: “10,000 SMP receive improved business services from target groups assisted by the action”. The consultancy will work with selected financial institutions to define and develop innovative financial products that will address the needs of the relevant Poultry VC actors capacitated by the action. It will also develop banks / MFIs teams’ capacity to; understand the dynamics of financially viable poultry business investments and associated financing models; and assess the financial viability of business plans submitted by poultry VC actors. This consultancy will contribute to the financial inclusion of poultry SMPs which will lead to the expansion of their production systems and acquisition of appropriate productive assets such as innovative QMS and green technology.

The Offeror will provide technical assistance to selected Financial Institutions (FIs) in designing customized poultry VC financing products adapted to each value chain actor. The Offeror will also provide relevant training to selected FIs in poultry business investments and financing models that are financially viable and the appropriate VC financing products relevant to the business investment models. Furthermore, the Offeror will enhance the capacity of selected financial institutions to assess the financial viability of business plans submitted by poultry SMPs.

The Offeror is also expected to propose solutions for banks/MFI to increase their lending capital and/or reduce the risks of financing the poultry VC. Such solutions are expected to promote the ability of FIs to stand shocks and adapt to change to promote innovation and sustainable financing relationships.

Specifically, the expert will:

• Identify and contextualize key capacity development needs for FIs which, if addressed will support an increase in access to finance by small to medium poultry producers
• Provide technical assistance to financial institutions to design innovative poultry VC financing products
• Train FIs on poultry business investments and financing models that are financially viable and the potential VC financing products that can be customized and aligned to the different business investment models
• Develop the capacity of FIs to assess the financial viability of business plans submitted by SMPs
• Provide advisory services that promote the ability of FIs to stand shocks and adapt to change to promote innovation and sustainable financing relationships in the PVC.
• Recommend clear solutions to support sustainable financing relationships and increase inclusive financing opportunities for the poultry value chain
• The final report will clearly articulate how each developed capacity contributes to financial inclusion and the performance of the poultry value chain, to meet project objectives.

1.5: Deliverables: The Offeror is expected to deliver the following listed deliverables:

• Inception report: Work plan and methodology
• Draft report and presentation. The report must be detailed enough to cover the full purpose of the study as highlighted above in this document.
• Final report incorporating the comments (digital and hard copies)

1.6: Deliverables Schedule

This assignment is expected to be carried out between May and July 2020. Deliverables dates will be agreed upon with the selected candidate. The assignment will be carried out through a combination of relevant Stakeholder engagements in Zimbabwe and remote desk work.

For more details on this job, please visit: https://cnfa.hua.hrsmart(dot)com/hr/ats/Posting/view/77