CONSULTANCY – HORTICULTURE BUSINESS IDENTIFICATION ASSESSMENT


Terms of Reference
Consultancy Horticulture Business Identification Assessment
1. Background
The agricultural sector in Zambia is a large contributor to GDP (22%) in Zambia and an entry point for enhancement of trade and investment conditions. In particular there is great opportunity for Dutch investors and for Dutch expertise and skills in the horticulture sector to get it to a higher more professional level.
The demand for horticulture commodities and products has increased drastically due to increase in population in the cities such as Lusaka, Ndola, Kitwe and Chingola. Statistics indicate that from the year 2010 to 2014, the value of imports or qualities imported have been increasing. In the year 2014 alone Zambia imported vegetables worth US412.6m. On the other hand, Zambia exported vegetables worth USD$ 11.5m to DR Congo and other COMESA member states. This shows that the sub sector can create wealth and income for agribusinesses if these imports were substituted by local production and exports increased.
In the study conducted by AgriProFocus on investment opportunities in the horticulture sector identified key challenges in the sector that are opportunities for investment:
  • Smallholder cluster development which includes improving aggregation of smallholder farmers and their operations
  • Investment in soil testing equipment
  • Set up and strengthening of processing facilities for value addition
  • Strengthening wholesale market infrastructure with cold chain facilities
  • Market information system and trading platforms skills.
2. Problem Statement
In collaboration with AgriProFocus Zambia, the Dutch Embassy has commissioned an assessment to identify Zambian horticulture businesses that can benefit from Dutch investment. Currently the information on the areas of potential investment opportunities is very scant and also very little is documented on the interest there is in international partnership in the horticulture industry. Hence there is need to undertake this assessment to specifically filter out potential areas of international business partnership. This assessment is input to select 10 Zambian companies that will be matched with Dutch businesses during an AgriProFocus Business Event.
3. Goal
The assessment has three main goals:
  • To identify Zambian horticulture businesses interested in acquiring investment partners.
  • Identify Zambian companies in need of horticulture expertise and equipment
  • Identify agro input requirements of Zambian horticulture businesses and current sources of supply where possible.
This can include the full spectrum i.e. plant media, seeds, chemicals etc.
4. Methodology and Activities
The consultant will on identifying investment opportunities in the Zambian horticulture sector (focussing on fruit and vegetables) and relate this to the value chain in the Netherlands and identify opportunities for national, regional and international horticulture businesses.
The consultant will identify opportunities within Zambia’s value chain that can be tapped by Dutch businesses, providing specific examples of investment opportunities and the specific businesses that are recommended to target. In addition, the consultant will need to identify Zambian companies in need of Dutch agro inputs.
The assessment will be done in these phases:
1. Identify segments within the horticulture value chain where the best investment opportunities exist in Zambia. Attractive segments should be identified on the basis of current and projected demand, competitive intensity among other variables.
2. Identify specific Zambian businesses that offer investment potential. Provide relevant data on current market size, demand projected, current sources of supply, competitor analysis to justify selection of Zambian companies.
The consultant will meet with the technical review team to discuss the assignment. The consultant will present the specific methodology, selected field areas, and timeframe. This first draft will be delivered to the technical committee for review. The technical review team will provide feedback within 5 days. After the feedback is incorporated in the assessment the assignment can be finalised.
Number of days allocated to activities: 16 days
(10 days field work, 6 days preparation and report writing)
Location of the activity: The proposed areas are Lusaka, Copperbelt (Kitwe, Ndola), and Southern Province (Livingstone) as key areas of operation of horticulture businesses. The consultant is at liberty to counter propose with valid reason.
Expected result of activity: A final assessment with analysis of requested content as described above.
Time period: 14 days between July 11th and August 4th 2016.
4. Deliverables
  • Present itinerary of meetings with relevant stakeholders to APF by July 13th 2016
  • First draft of the market study latest by July 28th 2016
  • Final draft by August 4th 2016
5. Qualifications and Submission requirements for consultant
  • A degree in economics or business administration or other relevant degree pertaining to agribusiness, finance and business strategy.
  • Experience in market, value chain and/or impact investment analysis;
  • Strong networks within the horticulture sector in Zambia and the investment landscape;
  • Fluent in speaking, reading, and writing English;
  • Good communication, relational and computer literacy skills.
  • Familiarity with the Dutch business environment will be an added advantage
A cover letter, a proposal with clear methodology and timeline, and at least one example of work previously undertaken that is similar to the proposed assignment.
The deadline for submission is June 30th 2016. All proposals must be submitted to rmambali@snvworld.org and cc: cvanderkleij@agriprofocus.com.
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