Tender: Capacity Development for Farmer Business Organization and Cooperatives In Njombe, Iringa, Mbeya and Katavi Regions

Background

Rikolto supports actors in the food systems to unlock the potential to feed the world while taking care of the environment. We seek to strengthen the capacities of our partners to harness the dynamics of various food chains with a focus on both formal and informal markets. Our target final beneficiaries are farmers, traders and consumers, youth, female, and male. Smallholder farmers' organizations, private sector businesses, and Cities are the key actors we work with to achieve the desired changes in the food system.

Among the strategies Rikolto uses to unlock potential is strengthening the capacity of farmer business organizations and cooperatives into strong and viable business organizations/partners to actively engage as key players in the value chain. Before undertaking any capacity development plan, Rikolto uses the Scope Insight tool to assess the level, capacity, and Gaps in farmer business organizations and cooperatives to better design for capacity development plan based on the results from Scope Insight. This is an important assessment tool that helps the professionalization of farmer business organizations and cooperatives.

Rikolto in East Africa secured funding from the EU under AGRI-CONNECT Programme for a 4-year horticultural programme in Tanzania, which aims to improve and increase market competitiveness in the sector supplying both domestic and international markets. This will run from 2020 to 2024 covering the southern highlands and the five regions of Tanzania specifically Iringa, Katavi, Njombe, Mbeya, and Songwe. Among other things, Rikolto wants to professionalize farmer business organizations for them to become active and reliable business partners.

Professionalization of Farmer business organization in Southern Highland

Rikolto is currently working with a number of Farmer Business Organ numbers (FBOs) in the five regions mentioned above. The Professionalization of FBOs is aimed at ensuring that these organizations are becoming strong business partners, and they can support members' businesses to be more profitable, sustainable, and better linked to markets. As for this assignment, the focus is to continue professionalizing the groups and cooperatives started in the first phase in 2020/2021 followed by a scope assessment in 2022/2023 of which the results suggested some capacity-building Gaps and require to be filled. Through this call consultants among others will be required to understand the gaps in the listed groups below and develop the plan accordingly.

As for a better understanding of the challenges of these farmer organizations, we have attached the scope insight assessment report as an Annex which you can use while writing your proposal.

Business development consultant assignment and assignment Methodology

Rikolto requires Business Development Consultants to undertake capacity Building, Mentorship, and Coaching to farmer business organizations and cooperatives based on weaknesses and Gaps identified through 2022/2023 scope insight assessment results. Capacity building will be carried out through a developed capacity development plan jointly with farmer business organizations. The consultants are advised and recommended to use more coaching, mentorship, and less classroom training /sessions. The consultant is expected to prepare work plans for the delivery of training sessions and the subsequent coaching sessions based on the TOR and the detailed capacity development plan. The training and coaching should be specifically looked at through the lens of the association’s business objectives as stated in the value propositions, business plan, and constitutions. The training plan should consider Seasonality as it is important to ensure that the training program does not disrupt farming activities. Coaching sessions will be designed to have the desired impact and therefore expected participants in the sessions will vary according to their responsibilities in the day-to-day operations of the association. Rikolto believes that on-the-job coaching can be very effective and deepen the impact. Some sessions can therefore be delivered within business planning or membership meetings.

Scope of work

The detailed assessment of the assignment is contained in the capacity development plan. The scope of work includes and is not limited to the following.

1. Internal Management /Governance

As identified in the scope insight assessment. The associations/cooperative Governance system seems to be weak with a lack of qualified personnel to run the organization. Currently, most of these organizations don’t have a manager to handle organization functions. Usually depends on group leaders to volunteer to perform organization functions. As for this capacity development assignment, A Consultant is required to do the following

• Support the organization to recruit and train competent Managers (if possible, use young graduate Volunteers) to undertake organization management functions. This can also be through building capacity for existing staff to undertake these tough managerial functions in the group
• Support the management committees to implement of developed business plan and business model by setting clear objectives, key performance indicators, and its means for evaluation to reflect current situation
• Conduct Leadership and Management training to cooperative/association leaders for their understanding of their roles and performing leadership responsibilities accordingly
• Coaching and Mentorship to management in implementation of developed personnel manual /Guideline
• Training and Mentorship organization Management committee to actively perform their functions effectively and efficiently
• Training and coaching to Board of directors/members to understand and actively perform their duties as stipulated in the constitution
• Develop a strong, good relationship between primary group management teams with Apex organization/AMCOS management
• Support organization management to establish a strong management system
• Support organizations as to how they can attract more members to be strong farmer organizations or cooperatives through workable incentives
• Support the development of an organization membership database with clear details of members

2. Financial management: These will include but though not limited to the following areas.

Results from scope insight have revealed weakness in financial management with poor financial management systems in place. The following are what needs to be done but not limited to

• Support and coach organization managers and Finance officers/committees in identifying and utilization of different sources of Finance
• Coach and mentor, the organization manager and management in preparing an organizational budget based on organization resources.
• Support organization Managers and Finance committee in better use of developed financial tools such as cash handling, cash inflow, book of accounts, and financial manual to help with the management of funds and book reconciliation.
• Coach and mentor organization management on how to search and negotiate with financial institutions for access to agro-input loans.
• Ensure the organizations are self-sustained with internal funds to run the organization and avoid dependency on development partners such as Rikolto.
• Support the organizations to undertake internal and external financial Audits as stipulated in their constitution and by-law.

3. Marketing: Access to the market has been identified as a critical area in most of these farm organizations. The requested support should focus on but not be limited to:

• Support the organization to enter contract agreements with Local Buyers/companies supplying fresh fruits and vegetables to local markets with focus on supplying quality, safe food to local markets.
• Support organizations to develop new export market channels by identifying new exporters and buyers and develop new contracts supplying fresh fruits and vegetables.
• Support farmer organization in development of implementable marketing strategy.

4. Production and operations

Scope insight has revealed challenges in production and operations. With this assignment, the following tasks are suggested but not limited to

• Work with organizations to develop a strong production base/ improve production capacity and much focus increasing production per unit area. Make better use of input companies through deployed technical personnel’s and agronomists in training farmers
• Support organizations as to how they can attract more membership to be strong farmer organization or cooperatives through workable incentives
• Support the development of organization membership data base with clear details of members
• Coach and mentor, these organizations to enter agreements with input companies for the collective purchase of inputs by farmers and possibly play an important role in buying and distribution of agro-inputs to primary groups depending on the needs of the members
• Support and coach the management committees on issues related to management supplies of produce from members relations with members who are their suppliers, sourcing, and management of quality of supply.
• Subject the FBO to attract more fund/ access to finance to support their operations from formal and informal financial systems.

Deliverables

• A progress report to be produced every three months after the implementation of the assignment.
• Recruited or capacitated organization managers to take Leadership and management functions of the association/cooperatives.
• Improved organization management and Governance system/leadership management
• Developed or established a good financial system for better management of organization financial resources. E.g., simple financial guideline or manual
• Improved production base and number of members supplying through cooperative or association.
• Number of contracts/agreements with at least 2 new buying companies working with the organization
• Internal and external financial audit conducted for effectively and efficiency financial management of the associations/cooperatives
• The Organization ability to access finance to serve its members by working with at least one financial institution by end of April 2024
• Increased scores through Scope insight assessment tool as compared to baseline information scores
• Marketing strategy and Business Plan development for each of the cooperative/association based on the need of each of the organization
• Developed and strengthened relationship between organization and partners
• Effectively and efficiently functioning of the cooperative or association

List of farmer organizations and cooperatives

Duration of the assignment

This assignment has been allocated for 36 man working days and redistributed 6 days per month from each of the farmer organization based to developed and agreed workplan. Final submission of report is due by May 20, 2024.

Requirements and Procedure to Apply

Qualified firms/candidates are invited to submit their Technical and Financial proposal, Methodology/ approach, and CVs via email at eastafrica.procurement [at] rikolto.org by November 14, 2023 and should indicate the title and the source of this advertisement. Also, in your application indicate the region (Njombe and Iringa-One consultant), (Mbeya and Songwe-One consultant), (Katavi Region-One consultant) and share the list of farmer organizations to be coached and mentored as per the attached annex list of scope assessment reports. You can only apply in one region and a maximum of seven groups will be located per consultant/firm.

See scope reports here: https://rikoltoorg.sharepoint.com/:f:/s/EastAfrica/ElUIbLXf-dJKnsVIZsHX8MEBcAwkKckbSD_jGjvyCwXJoA?e=YvggWt