TERMS OF REFERENCE CONSULTANCY – BUSINESS CASE DEVELOPMENT FOR FAIRTRADE AFRICA

ABOUT US

Established in 2005, Fairtrade Africa (FTA) is a member of Fairtrade International and the umbrella network organization representing Fairtrade-certified Producer Organizations in Africa and the Middle East. It has four (4) regional networks – Eastern & Central Africa; Southern Africa; West Africa; and the Middle East & North Africa. FTA currently represents 1,354,294 farmers and workers in 660 producer organizations spread across 28 countries in Africa and the Middle East by providing services to them that contribute to the improvement of their livelihoods.

INTRODUCTION

Fairtrade Africa has embarked on operationalizing its 2021-2025 strategic plan. One strategic pillar of this strategy is product and market development. This pillar’s purpose is to develop and implement a commercial model to grow demand for Fairtrade products in the South and existing North markets while improving producers’ ability to access new markets with a diverse base of quality and value-added products and services. Interventions in products and market development will not only grow the volumes of products sold on Fairtrade terms but will also ensure a better value proposition to various actors along the supply chain.

Fairtrade certified products can be identified through Fairtrade Marks. Fairtrade Mark(s) are all individual trademarks and certifications marks worldwide that protect the original design of the black core logo which is owned by Fairtrade International. The Fairtrade Mark(s) may be used under a respective license agreement on consumer-ready products, including Packaging and Promotional Material, for the following use scenarios, namely

1. Single-ingredient and composite (multiple ingredients) food products where every ingredient is certified under the Fairtrade Standards (e.g., a coffee pack);
2. Composite food products containing both certified and non-certified ingredients (e.g., a chocolate bar);
3. Non-food composite products containing both certified and non-certified components (e.g., cosmetics, cotton, gold, etc);
4. Non-food products processed or manufactured under specific supply chains supervised by the Assurance Providers (e.g., shoes, sports balls, and textile products, which are certified according to the textile standard, etc).

An overview of the Fairtrade Marks, including its various use scenarios and corresponding designs as well as a list of all registered and pending Fairtrade Marks worldwide, is available at: www.fairtrade.net/about/fairtrade-marks

PURPOSE OF THE ASSIGNMENT

Fairtrade Africa has identified income diversification opportunities that need to be well structured to support funding and implementation; this document is referred to as a ‘project’. FTA is seeking Expressions of Interest from a suitably qualified person(s) / organizations to develop a five-year business plan that ensures the project’s sustainability within the first three years. The project seeks to establish new revenue streams for Fairtrade farmers in addition to those from the parent organization within five years.

ASSIGNMENT DESCRIPTION

1. Familiarization with FTA’s vision, mission, strategy, and operations.
2. Identify project key stakeholders and conduct an in-depth consultation to develop the project’s case and value proposition.
3. Carry out a comprehensive market analysis for the project to develop forecasts, commercial models, and financial projections. The market analysis should be aligned to the current product value chains as well as proposed new value chains that can address the problem statement.
4. Scan the environment, document, and identify similar collaborative projects whilst drawing out the differences and addressing market gaps.
5. Suggest a top-line marketing strategy with branding and communication options.
6. Identify risks and mitigation strategies.

DELIVERABLES

The expected end product of this assignment will be a complete 5-year Business Plan that comprises of the following:

A Business Case that contains the following specific sections:

1. Description of the proposed project model(s).
2. Financial model; A sustainable commercial model(s) with a projection of investments required and income from the various streams over a 5-year period. 3-year sustainability plan for the project and full cost recovery in the remaining two years. Legal and governance structures for the project should be included.
3. A top-line marketing strategy that covers the analysis of similar projects and gap analysis, a strong value proposition, opportunities, potential openings, branding, and communication plan.
4. List of potential funders for the project.
5. Detailed risk matrix.
6. A proposed rollout plan.

EXPERIENCE & QUALIFICATIONS

• Knowledge and expertise in business plan development especially in the agricultural sector.
• Good understanding of global agricultural supply chains and the Fast-Moving Consumer Goods (FMCG) industry.
• Experience in financial analysis, marketing strategy formulation and market research and analysis techniques (both qualitative and quantitative).
• Knowledgeable in legal and corporate governance.
• At least 5 years of experience in the area of business development / project development. Should have carried out similar assignments in the last four years.
• Excellent data analytical skills and interpretation.
• Strong command of written and spoken English, with demonstrated ability to produce well written documents, in clear, concise and correct language.
• Knowledge and experience in distribution, marketing and product development of ethical and sustainably produced products / services will be an added advantage.
• Public-private project experience and a wide funder’s network will be an added advantage.

To achieve this output, the consultant(s) is(are) encouraged to leverage their experiences, networks, and insights through extensive consultation and desk reviews of relevant documentation. This will ensure the delivery of robust information and data that will be instrumental in decision-making and business case development.

PROPOSAL FORMAT

• A technical proposal that will comprehensively detail:
  • Understanding of the assignment.
  • Proposed approach and methodology to deliver the assignment.
  • Execution plan with specific days per task.
  • CVs of all members of the consultancy team, including a description of foreseen roles and responsibilities for each consultant.
  • Evidence of relevant/ similar assignments delivered over the past 4 years [this will be treated as confidential and only used for purposes of quality assurance].
• A detailed financial proposal in Euros, inclusive of all applicable taxes. This proposal should be milestone based.
• For organizational applicants, a tax compliance certificate must accompany the application

EVALUATION CRITERIA

• Technical Evaluation – 70%
• Financial Proposal – 30%