TERMS OF REFERENCE

CASA PROGRAMME OVERVIEW

CASA is an FCDO – International Climate Finance (ICF) funded programme driving global investment for inclusive climate-resilient agri-food systems that increase smallholder incomes. CASA makes the case to impact and return-oriented investors for increased investment in agribusinesses that work with smallholder supply chains. The programme achieves this goal by:

• Demonstrating the commercial viability and investment-readiness of small and medium-sized (SME) agribusinesses with significant smallholder supply chains
• Helping investors to increase the impact of their investments through the provision of inclusive technical assistance.
• Strengthening the socio-legal empowerment of smallholders within value chains
• Tackling the information and evidence gaps holding back investment

For demonstrating the commercial and development potential of smallholder sourcing models, CASA focuses on catalytic interventions in the agriculture sectors of Ethiopia, Malawi, Nepal, and Rwanda that support Agri-SMEs prepare for and secure investment while connecting smallholders to commercial markets.

CASA’s work on research and communications is structured around identifying constraints, opportunities and addressing evidence gaps through research; shaping the debate on smallholder agriculture to influence actions of investors, governments, and donors; and creating networking opportunities through events and stakeholder engagement.

PARTNER BRIEF BACKGROUND

AGRAH Care Company Ltd (AC), legally registered in Rwanda since 2011 and owned by Mrs. Jeanne d’Arc Nyiraruyonga, operates three Agri-inputs shops in Muhanga, Musanze, and Gatsibo districts. These shops provide seeds, fertilizers, pesticides, equipment, and extension services to 8,250 farmers and 72 Agro-dealers.

The company produces and sells seedlings and provides extension services and loans to farmers. It works with 300 smallholder farmers to produce vegetables for local markets, particularly in Kigali.

AC’s infrastructure, supported by a USAID-funded project, includes an Agri-inputs shop, veterinary shop, warehouse, fertilizer and pesticide storage, and a Farmer Service Center (FSC) in Gatsibo, where farmers receive training in good agricultural practices and agripreneurship. The company employs 24 agronomists and has recently started producing organic biomass-based fertilizers from food waste to reduce farming costs.

ASSIGNMENT BACKGROUND

The partnership between CASA and AGRAH Care aims to provide technical assistance (TA) for the expansion of AC’s business by engaging 2,500 smallholder farmers in a structured contract farming scheme through the implementation of the project entitled “Contract Farming based Vegetable Production for the Domestic Market”. The goal is to increase AC’s supply capacity and meet the growing market demand for vegetables in Kigali.

Swisscontact Rwanda through its CASA project is looking for an expert to assist in developing a comprehensive and strategic business plan for AGRAH CARE. As an agribusiness aiming to expand and work with smallholder farmers, the business plan will serve as a guiding document for decision-making, growth, and long-term sustainability. It will describe and present the vision and mission, guiding company growth, strategic decision-making, attracting investment and financing, operational efficiency, market analysis and positioning, managing relationships with smallholder farmers and other business partners, risk management and sustainability, monitoring and performance evaluation, building strong company structure, ensuring compliance, environment, social and governance, innovation and future planning.

Commented [SM1]: Isn’t this supposed to be a Farmer Service Centre? Don’t they do more than provide advice and training but also sell inputs?

Commented [FK2R1]: Corrected, it was an mistake

OBJECTIVE

In line with the AC partnership budget, the primary objective of this assignment is to develop a comprehensive and strategic business plan that will enable AC to drive effectively their business of Agri inputs, Extension services and Linking Farmers to Markets. In this respect CASA would like to hire a business development expert to perform this assignment.

Specifically, the objective of the assignment is to develop a strategic and comprehensive business plan for AC that will:

• Outline AC’s goals and strategies for growth.
• Provide a clear understanding of the market opportunities and challenges.
• Present a detailed financial plan, including projections and funding/investment requirements.
• Serve as a tool to attract potential investors and guide operational decisions.

SCOPE OF WORK

To develop a comprehensive and strategic business plan for Agrah Care, key aspects must be considered. This business plan will serve as a blueprint for the company’s future direction, operations, and growth, guiding decision-making across all levels.

The expert will be responsible for delivering a comprehensive business plan that includes the following:

• Executive Summary: A concise overview of Agrah Care, including mission, vision, and objectives.
• Company description: Detailed information about Agrah Care’s history, mission, business model, and organizational structure.
• Mission & Vision: Clearly articulate the purpose of Agrah Care (e.g., supporting farmers with inputs, market access, and extension services) and your long-term vision (e.g., becoming a leader in commercial agricultural and agribusiness services).
• Value Proposition: Define what sets Agrah Care apart from competitors in terms of services, impact, and operational efficiency.
• Key Objectives: Outline short-term, 1 to 2 years, and long-term, 5-10 years, business goals including market penetration, revenue targets, and farmer impact.

Market Analysis

• Industry Overview: Provide an analysis of the agriculture sector, particularly Agri-inputs, extension services, and produce market linkages, identifying key trends and future opportunities.
• Target Market Segmentation: Identify AC’s target farmers, regions, and other stakeholders, explaining their needs and how AC addresses them.
• Competitive Landscape: Analyze competitors in the industry, outlining their strengths and weaknesses and where AC can gain a competitive advantage.
• Market Demand & Growth Potential: Assess the current demand for Agri-inputs, services, and market linkages, forecasting future demand based on trends like technological adoption and climate change impacts on agriculture.

Products and Services

• Products and Services Description: Detailed description of AC’s products and services.
• Methods of selling: Unique selling propositions which make easy competition with other operators.
• Product lifecycle: Clear information regarding the validity of the products proposed by AC.

Business Model 

• Revenue Streams: Clearly define how AC will generate income, e.g., selling Agri-inputs, offering extension services, buying and selling produce, or offering advisory services.
• Cost Structure: Detail the key costs in AC’s business (e.g., procurement of inputs, operational expenses, logistics, staffing) and strategies for managing them effectively.
• Partnerships & Collaborations: Identify strategic partners, such as government agencies, NGOs, financial institutions, and tech providers, that can help AC grow.

Operational Plan

• Supply Chain Management: Outline how AC will handle sourcing, procurement, storage, and distribution of inputs, as well as the logistics of buying and selling produce.
• Technology & Innovation: Describe the technologies that will be leveraged (e.g., farm management software, mobile apps for extension services, precision farming tools).
• Human Resource Plan: Include the structure for staffing, recruitment, and training, particularly for technical roles and field staff supporting farmers.
• Geographical Scope & Expansion Strategy: Define the regions where AC will operate initially and their strategy for scaling operations.

Marketing & Sales Strategy

• Marketing Approach: Detail how AC will promote its services to farmers and market participants. This could include direct outreach, partnerships with cooperatives, digital marketing, or awareness campaigns in rural areas.
• Sales Channels: Identify the channels through which AC will sell Agri-inputs and other services, whether through physical distribution, e-commerce platforms, or local agents.
• Farmer Engagement: Develop strategies for engaging with and educating farmers, ensuring they understand the value of AC’s inputs, services, and the markets you provide. Formalization of business relations, interactions and linkages with farmers, produce distributors, traders and processors.

Financial Plan

• Revenue Projections: Create a forecast for revenue growth over the next 3-5 years, considering market demand, pricing, and expected expansion.
• Profit & Loss Statement: Develop projected profit and loss statements, including revenue from inputs and produce sales, costs of goods sold, operating expenses, and net profit.
• Cash Flow Management: Include cash flow projections to ensure smooth operations, especially in managing procurement, sales, and seasonal variations.
• Investment & Capital Requirements: Outline any funding needs for growth and expansion making clearer all potential projects for investment aligned with AC’s aspirations, such as working capital, infrastructure investment, or technology adoption.

Risk Management & Contingent Plans

• Market Risks: Address risks related to price volatility, market demand changes, and competition. Create strategies for managing these risks, such as diversifying revenue streams or securing longterm supply contracts.
• Operational Risks: Consider risks related to logistics, supply chain disruptions, and farmer adoption of AC’s services. Include backup suppliers, contingency plans, or insurance options.
• Financial Risks: Address potential financial risks, such as liquidity shortages, and develop mitigation strategies, like access to short-term financing or cost-cutting measures.

Impact & Sustainability

• Social Impact: Outline how AC contributes to rural development, farmer livelihoods, and food security. Highlight the number of farmers impacted and economic benefits.
• Environmental Impact: Emphasize how AC’s practices promote sustainability, such as supporting regenerative agriculture, minimizing waste, or promoting eco-friendly inputs.
• Long-Term Sustainability: Ensure that AC’s business model is scalable and sustainable, focusing on building long-term relationships with farmers and market participants.

Implementation Plan

• Milestones & Timelines: Create a detailed timeline with milestones for rolling out different aspects of the business, from setting up operations to expanding into new markets.

• KPIs (Key Performance Indicators): Define measurable goals that will track AC’s progress, such as farmer engagement rates, input sales, market penetration, and profitability.

• Monitoring & Evaluation: Establish a system for regularly monitoring performance, adjusting strategies, and ensuring that the company stays on track toward its objectives.

Appendix 

Supplementary information, including resumes of key team members, market research data, legal documents, and partnership agreements.

Cross-Cutting Considerations

• Sustainability: Make sustainability a core part of the business plan, ensuring climate change and environmental conservation issues and promoting regenerative agricultural practices.
• Market Responsiveness: Develop a business plan that is agile and responsive to changing market conditions, allowing AC to adapt quickly to new challenges and opportunities.
• Risk Management: Develop a business plan that includes risk assessment and mitigation strategies, especially considering external factors like weather, market prices, and supply chain disruptions.
• Stakeholder Engagement: Include farmers, customers, and partners in the business plan development, ensuring their needs and feedback are considered.
• Gender Equality and Social Inclusion: Develop a business plan that integrates fully the issues of gender equality especially empowering women. In addition, make sure that vulnerable and marginalised groups of people are offered opportunities in the business such as youth and others.

Think twice about Corporate Social Responsibility (CSR) integration in AC’s values and practices.

By addressing these key areas, Agrah Care’s comprehensive and strategic business plan will provide a clear roadmap for achieving growth, profitability, and a leading position in the commercial agricultural and agribusiness services sector.

To facilitate this initiative, CASA Rwanda intends to engage the services of an expert in business plan development to support AC to acquire a genuine guiding tool for company’s profits making based business performances, growth, business expansion and sustainability. This effort of having a comprehensive and strategic business plan will enable AC to systemically acquire the capacity, competences, strategies, policies, plans, tools and materials for the effective business planning and management of 2,500 smallholder farmers to be involved in fresh vegetables farming to formally and professionally supply to market particularly the City of Kigali.

 DUTIES AND RESPONSIBILITIES

In collaboration with the CASA Rwanda Market Manager and Agrah Care Ltd, the expert will manage and coordinate the whole process of business plan development, provision of advisory services for its initial implementation stage. Additionally, the expert will deliver induction sessions to company’s staff and leaders for the introduction and presentation of the developed and adopted business plan.

The specific duties of the Expert include: 

• Conduct thorough SWOT and SCOPE Assessment tools, identifying gaps and status of AC in strategic and operational and planning and align its aspirations and the realities of the intervention zone.
• Develop company’s comprehensive and strategic business plan.
• Present the developed business plan for validation and adoption.
• Induct and train the company’s staff and leaders about the developed business plan
• Provide coaching sessions and advisory services during the initial stage of business plan implementation.

DELIVERABLES

All the deliverables that relate to the implementing partner’s comprehensive and strategic business plan must be vetted and approved by CASA and the partner to be deemed as having been satisfactorily completed. The required deliverables Include:

• SWOT and SCOPE Assessments reports showing the gaps, and the status of AC related to strategic and operational planning to serve as references of company in terms of handicaps, expansion and growth.
• Developed Comprehensive and Strategic Business Plan of Agrah Care Ltd containing all mentioned key components in Section 5 (Scope of Work).
• Training report for staff and leaders of AC and induction about the developed and adopted company’s comprehensive and strategic business plan.
• Report of advisory services and coaching sessions provision for the business plan initial implementation phase.
• Services provision report (10 – 15 pages maximum)

ASSIGNMENT MANAGEMENT and DURATION

1.1 Duration

Expected Start Date: September 23, 2024

Expected End Date: October 30, 2024

1.2 Assignment Days

Up to 20 working days

1.3 Reporting Lines

The consultant will report to the CASA Vegetable Market Manager.

REQUIREMENTS and EXPERTISE

• Master’s degree in business administration, economics, development studies, agribusiness, or any other related field.
• Minimum of 10 years of experience in business planning, preferably within the agricultural sector and private sector.
• Proven competencies and experience in financial/investment modelling and market analysis.
• Strong understanding of business strategy and development especially agribusiness, market systems development, value chain concepts, entrepreneurship and theory of change.

As per Swisscontact norms and mutually agreed during the signing of the contract.

Note: This term of reference can be amended by the Country Manager as necessary.

Offers/ proposals for this tender should only be submitted on the mentioned email: [email protected] No later than 25th september 2024