Consultancy to carry out a final study to improve the design of the value chains identified by Kader project

TOR

Consultancy to carry out a final study to improve the design of the value chains identified by Kader project for their potential replication in livelihood projects by the MSWG in Assiut.

1. Background

1.1 About Handicap International (Humanity & Inclusion)

Outraged by the injustice faced by people with disabilities and by vulnerable populations, we aspire to a world of solidarity and inclusion, enriched by our differences, where everyone can live in dignity. HI is an international, independent and impartial non-profit organization that intervenes in situations of poverty and exclusion, conflict and disaster. Working alongside people with disabilities and vulnerable populations, HI acts and takes notice, to meet their basic needs, improve their living conditions and promote respect for their dignity and fundamental rights. HI is currently implementing projects in more than 50 countries worldwide.

Handicap International is registered in Egypt since 2013 under Ministry of Social Solidarity (number 93 of 2016 renewed on March 15th, 2022).. Since then, HI has been implementing various programs to promote access to inclusive and adapted services for persons with disabilities and vulnerable groups.

1.2 “Kader” project

The project titled ‘Promoting local dialogue for disability inclusive livelihood and social cohesion in Upper Egypt’, also called Kader, is implemented in Assiut Governorate by HI and Ank Association, thanks to the generous funding of the European Union. Kader project aims to demonstrate that collaboration between civil society actors, local authorities and the private sector actors can support the adoption of an inclusive local development model, in which market-led dynamicscan produce a convergence of the interests of local entrepreneurs with those of poor households, producing a situation in which capacitated poor households can engage in innovatory productive projects with the private sector and contribute to their success, with mutual benefits.

The Kader project piloted a market-driven/resource-based model that aims to support poverty reduction of poor and vulnerable households and contribute to inclusive local economic development. This model is referred to as “Kader model” in the rest of the document.

Traditional value chain (VC) projects would invest most of the resources on the development of the value chain, for example through the removal of bottlenecks; traditional inclusive VC projects would also invest on the resource base of small producers to enable them to fill the space created by the development of the VC. However, only households already producing and with potential to scale up would be connected to the VC, leaving the most vulnerable behind. Kader model works with value chains in which there are existing gaps in the supply chain and invest most of resources in capacitating vulnerable households to enter the VC. The model adopts a market driven approach in working only on VCs that are not saturated, and it focuses only on VCs that are accessible by vulnerable households. These are indeed accessible provided that investment is made on building vulnerable households resources (knowing that these resources based can only be built up to a certain limit); by aggregating households in producer groups (collective production) or by developing social motivated collectors, it enables them to overcome the minimum production scale necessary to access VC, thus enabling micro-sourcing as supply option for the value chain. While the primary objective is to reduce vulnerable HHs poverty through access to markets, the model also fills supply gaps in the target value chain, this contributing to strengthen them, which has the potential of generating create multiplier effects in the local economy. The model also relies on the mobilization of local actors and knowledge, through a Multi-Stakeholder Working Group (MSWG), to enable vulnerable households to access market information, to network with local market actors and local technical resources and to enable them to access funding for micro/small/medium enterprises (MSMEs) development and the inclusion in local economic development programs and in general of promoting the idea that vulnerability, especially disability, does not hinder the capacity of persons and household to successfully engage in business and contribute to the local economy. This promotes models of inclusive local development and could contribute to improve social cohesion.

1.3 Implementation of the Kader model and value chains supported

A market analysis was commissioned to a consultancy company, which identified several market opportunities in Assiut, whose value chain could enable target households to participate in production and sustainably generate additional income. Seven value chains were identified and analyzed: Organic Fertilizers (Compost Manufacturing), Non-conventional Fodders (Silage and Molasse Manufacturing), Medicinal and Aromatic Plants (Planting and Processing), Dairy Products Lab/Facility, Baladi Poultry Production, Women and Children Apparel Manufacturing, Sports Footwear Manufacturing. Among these, 5 were selected by the project’s MSWG and further analyzed. Eventually HI and the MSWG decided to:

1. Pursue the implementation with the Kader project’s beneficiaries of the Baladi Poultry Production, Medicinal and Aromatic Plants and compost/sileage. The project supported the design of the business model and the establishment of collaboration agreements between the project, the target HHs (who would ensure the production) and local entrepreneurs (who would provide quality control and/or ensure the sale of production).
2. Put the Dairy Products Lab/Facility and the Women and Children Apparel Manufacturing value chains in stand-by, for further analysis aimed to assess their suitability to support social businesses that would provide training and apprenticeships to vulnerable persons, in particular youth.

2. Objective and expected results of the consultancy

The objective of the consultancy is to carry out a study that would collect information to improve the design of the value chains identified by Kader project for their potential replication in livelihood projects by the MSWG in Assiut.

The consultancy is expected to produce the following expected results:

1. Baladi and White chicken:

   1. The minimum technical requirements and resources (equipment, etc.) and the minimum and the optimal size (minimum and maximum number of chicks during one cycle) for an individual (one household) baladi chicken farm for a safe (minimize disease risk) and viable business (min quantity of chicken production that is necessary to provide a profit and to connected to markets) are determined and a business plan for such individual chicken farm is designed;
   2. The same is expected for white chicken farm;

2. Medicinal and Aromatic Plants

   1. The optimal seasonal calendar / optimal selection of plants for the production of medicinal and aromatic plants is developed; the plan will take into account of the market demand, of the beneficiaries’ preferences (sample from Kader project), of the time necessary for the preparation (ex. seedling), production and harvesting of each plant and select the plants and the ideal sequence of plant production, taking into account of the plants seasonality, of the market’s demand and minimizing the idle time (time in which the land in not used productively);
   2. The minimum land size for a sustainable business (min land size that enables the min quantity of plants production that is necessary to be connected to the market) is determined and a business plan is designed; the consultant will also advise on the optimal number of persons who can participate collectively to that business (# person/feddan).

3. For dairy products:

4. A market analysis to confirm if and to what extent there are opportunities for small businesses producing and selling dairy products (employing between 5 to 20 people) is carried out;

5. A full business plan for a social business to provide technical training and support entrepreneurship of vulnerable persons is developed; the business plan will include:

   1. Recommended marketing mix (most demanded products, price range, quality range, customer segments, potential competitors), sales channels and potential customers, sales strategy;
   2. Thorough description of the operations of the business (supply, production, storage, sales);
   3. Description of the production process of each product (raw materials, tools and equipment, human resources), with required quality standards;
   4. The economic and financial start-up plan (start-up fixed assets capital and working capital; income and expenditure per cycle until break-even is reached; cash flow);
   5. The economic and financial annual plan (income and expenditure per cycle; cash flow);

The business plan will reflect the social mission of the business.

1. The legal requirements to start and operate a social business and produce and sell the products (dairy or children apparel), including necessary permits and how to obtain them, are documented.
2. Positions, roles and responsibilities for the management and operations of the social business are defined and these reflect the social mission of the business (# and role of trainees and apprentices);
3. An experienced and willing business mentor is identified;
4. Technical trainers for the start-up phase are identified;
5. A willing technical mentor to advise on production quality is identified.
6. For women and children apparel market:
7. A market analysis to identify business opportunities for clusters of micro-businesses is carried out (by cluster we mean a group of individual and independent micro businesses that are located near each other and that produce the same products for the same market; HI wants to explore how cluster of micro businesses that produce in a coordinated manner can reach a sufficient production quantity and quality to become suppliers to the women and children apparel value chain);
8. For the identified business opportunities, potential buyers are identified and economically viable clusters are designed: products’ technical specifications and quality standards, the min/max cluster size (min/max # of micro-businesses; minimum volume per cluster and per individual business), production cycle timeline, transaction costs, etc.);
9. A reference business plan for a micro business that participate to the cluster is developed (marketing mix, operations, economic and financial start-up plan, economic and financial annual plan).
10. Methodology required

The consultant will propose a draft methodology in her/his technical offer and develop a detailed one, including action plans, potential stake-holders lists and tools in its inception report.

The methodology will include:

-Initial meetings with Kader project staff, partner, Multi-Stakeholder Working Group and actors that supported the chicken and aromatic plants value chain in order to get information about the project;

-Meeting with the consultant who is carrying out a lessons learning exercise for Kader project, in order to be informed on the preliminary findings and avoid duplications;

-Mapping and identification of relevant actors operating in the markets and along the value chain who are covered by the study (Baladi and White chicken, Medicinal and Aromatic Plants, Dairy Products, women and children apparel);

-Extensive consultations with these actors

-Ad-hoc research when needed to get exact information about technical production processes, equipment and tools specifications, expected revenue and costs, etc.

-When needed, focus group discussions with sample of Kader project beneficiaries (avoiding the duplications with those carried out by the lessons learning).

The methodology proposed will be assessed and validated by HI before implementation can start.

Draft deliverables will be first produced English and presented to HI and, if necessary, improved.

Upon finalization, the deliverables will be translated in Arabic.

1. Deliverables

All deliverables will be produced in English and Arabic:

1. An inception report with the methodology of the study;

2. A document meeting the expected result A1 for the baladi chicken farm (design of the farm and business plan, etc.);

3. A document meeting the expected result A2 for the white chicken farm (design of the farm and business plan, etc.);

4. A document meeting the expected result B for the Medicinal and Aromatic Plants;

5. A document with the findings of the market analysis on dairy products and women and children apparel and the estimation of the start-up costs (expected result C and D);

6. A document with:

   • The findings of the market analysis on dairy products (C1)
   • A full business plan for a social business either on dairy products or women and children apparel (expected result C2)
   • The legal requirements to start and operate this business (see expected result C3)
   • Positions, roles and responsibilities in this business (see expected result C4)
   • Contacts and capacity assessments of the persons identified to support/mentor the business (see expected results C5, 6, 7);

7. Draft collaboration agreements between the MSWG and the trainer/mentors, outlining obligations and responsibilities of both parties.

8. A document with:

   • The findings of the market analysis on women and children apparel, with concrete business opportunities, meaning potential buyers and products (D1);
   • Detailed description of a reference cluster of micro-businesses;
   • A reference business plan for a micro business

9. A brief final report summarizing the steps and deliverables of the study (max 5 pages).

10. Expertise required

• Advanced University degree (Master Level minimum) in Development studies, Development economics, Business Administration, or other related field.
• Minimum of 10 years of relevant professional experience, with at least 3 years demonstrated experience in consulting
• Minimum of 5 years of relevant practical experience in livelihood sector within one or more of the following areas: poverty reduction, rural economic development, support to value chains development, etc.
• Demonstrated experience in carrying out market and value chains analysis.
• Demonstrated experience in supporting lessons learning and knowledge management exercises.
• Demonstrated excellent analytical and reporting skills.
• Excellent level of written English; fluency in English
• The selected consultant and/or consultancy company must have all the required authorization(s) to perform the mission.

1. Indicative schedule

The work will be conducted in Assiut between February and 15th April 2023 for up to maximum of 35 days of work.

The consultant will propose an action plan and timeline in her/his technical proposal. HI wish the consultant to distribute the time across the expected results as follow (reflecting the weight given to the expected results):

• A: 10%
• B: 25%
• C: 40%
• D: 25%

The final number of days of the consultancies will be discussed and agreed between the Consultant and HI during selection and contracting.

The detailed action plan and timeline will be discussed at the inception stage and validated by HI.

All deliverables will have to be finalized and validated by 15th April, 2023

1. Applications procedures

The consultant should submit:

1. A technical offer. The technical offer should:
   • Confirm the understanding of the ToR, the deliverables;
   • Propose a draft methodology, action plan and time schedule.
   • Describe former experience in livelihood sector and value chains.
   • Describe experience in similar assignments. Consultancy team description: composition, leadership and curriculum of all members
   • An example of similar works produced by the consultancy team or consultancy lead
   • Work references – contact details (e-mail addresses) of referees (clients for whom you’ve produced similar assignments)
2. A financial offer with breakdown for the consultancy cost including fees, travel, accommodation etc.

Complete applications should be sent by mail to:[email protected] with the subject of “value chain study ”

Deadline for submission of applications: 27 February 2023

“Handicap International is committed to protect the rights of the children and opposes to all forms of child exploitation and child abuse. HI contractors must commit to protect children against exploitation and abuse”.