Study on access to finance by farmers

TERMS OF REFERENCE FOR HIRING A REGIONAL EXPERT AND A LOCAL CONSULTANT OR A CONSULTANCY FIRM TO CONDUCT A STUDY ON ACCESS TO FINANCE BY FARMERS

1. Background

Private Sector Federation is a professional organisation dedicated to promote and respect the interests of the Rwandan business community. Established in 1999, Private Sector Federation is made up of ten chambers each representing a different sector and has also registered major successes. Private Sector Federation has pioneered in Business development services (BDS) advocacy and played a strong national and regional role: However the business sector still needs to mature into Rwanda economic engine.

Rwandas vision 2020 and EDPRS call for a Private Sector led economy, the Business sector realises that a strong Private Sector Federation must also achieve financial self- reliance. Its in that sense that the chamber of Agriculture and livestock aim to promote, defend andsensitize itsmembers, training and educating farmers, building an organisational frame work and increasing capacity of the Rwandas Agro –industry interests both locally and internationally.

The Chamber of Rwanda Farmers is made up of 16 associations, 68 unions, 63 companies and 497 cooperatives. With a vision to encourage a prosperous and cohesive market oriented agricultural sector that is both efficient and competitive, the Private Sector Federation (PSF) and the Chamber of Rwanda farmers (CRF) in partnership with Embassy of Netherlands have jointly launched aproject, linking farmers to markets (LIFAM).

The aim of this project is to build capacity of the chamber of Rwandan farmers and to allow its members to develop knowledge and skills allowing them to become more competitive and to access profitable markets.
In regard to the component of the aim of the project, it has emerged from various consultations that one of the key challenges faced by the Chamber of Rwanda farmers is access to finance, and the outcome of the study will be used by PSF/LIFAM as a proof based advocacy with banks and other financial institutions geared towards easing conditions for accessing finance by farmers and agribusinesses.

2. Overall Objective

The overall objective of the consultancy assignment is to carry out a study for mapping up farmers access to finances and loans whose main responsibilities will be:
To identify internal and external constraints that farmers or other investors in agriculture are facing in accessing finances and loans

3. Scope of Work- Specific Tasks of the Consultancy

- Identify the constraints farmers are facing in assessing finance and loans.
- Work closely with the financial institutions, non-financial and other sources to find out what the determinants of how farmers can access agricultural grants and loans
- Propose possible local, regional and international sources of agricultural finance and suggest how practical mechanisms of accessing those resources.

4. Qualifications and experience

An ideal team/firm should have the following set of skills:
- A Masters degree in Business Administration or Entrepreneurship
- Familiarity with current developments in agriculture financing in Rwanda or the region.
- Experience in agricultural financing.
- Adequate financial and entrepreneurial skills (at least 5 years)
- Have good knowledge in Rwandan agricultural sector

In particular,
- International/Regional Expert: Must at least have a Master of Business Administration (Finance), Masters in Economics, Agricultural Economics or Entrepreneurship, with at least 3 years consulting experience in similar assignment.
- Local Consultant: Must at least have a Bachelors degree in Business Administration and at least five years experience in banking and or agriculture financing in Rwanda.

5. Deliverable

- A comprehensive study for mapping up farmers loans (quality that can be published in national or international journals).

6. Submission of Applications

Interested candidates will submit well bound and sealed separate technical and financial expressions of interest in English presented in 4 copies and the original before 8th July 2013 at 5:00 p.m local time. The file including a CV, a motivation letter, certified copies of academic degrees and/or certificates, a copy of identity card or passport will be sent in hard copy to;

The Head of Procurement,
Private Sector Federation
P.O. Box 319 Kigali, located at Gikondo Expo Grounds
Tel. 0788463080