Call for Business Plans / Ideas Horticulture Value Chain Project (HVC) in Rwanda
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Call for business plans / ideas

Horticulture Value Chain Project (HVC) in Rwanda

Overview

Oxfam, in consortium with three other local organisations namely COCOF, DUHAMIC – ADRI, DUTERIMBERE ONG, secured since January 2020 from the Ministry of Finance and Economic Planning, with the support of the European Union, funds to implement a four-year project titled “Horticulture Value Chains Project (HVC)” in four districts of Rwanda namely: Nyagatare, Kamonyi, Rulindo, and Nyamagabe. The project aims to unlock the potential of Rwanda’s horticultural value chains, ensuring a sustainable supply of safe and high-quality products to local, regional and international markets. For more information on the HVC project, see the following video: https://www.youtube.com/watch?v=z38uFJm2h2o

The key outcomes of the project include 1. Increased investments to raise productivity, responsive to climate change & market demand; 2. Increased returns for small-holder horticultural farmers; 3. Increased access & capacity to respond to demand/supply of local/regional/international markets; 4. Strengthened horticulture policy & regulatory frameworks to support smallholder farmers’ productivity, income & marketing improvements.

One of the main components of HVC is to ease access to finance in the horticulture value chains. In that framework, the project will promote a competitive sub-granting process to support selected business plans of viable enterprises in the horticulture value chains to enhance their growth and competitiveness. These sub-granting mechanisms, also known as financial support to third parties (FSTP), will contribute to outcome 3 “increase access and capacity to respond to demand/supply of local, regional and international markets”.

B – What are we looking for?

The financial support to third parties will support existing and active horticulture enterprises and cooperatives in the four project districts. These enterprises and cooperatives must be legally registered and doing business within the following horticulture crops: pineapples, tomatoes, chili, French beans, passion fruits, onions/garlic, avocados, eggplants, and flowers. The crops are distributed per districts as follows:

District

Selected horticulture crop

Kamonyi

Avocado, French beans, Onions/garlic, Chili

Nyamagabe

Passion fruits, Pineapples, Onions/garlic, Avocado

Nyagatare

Tomatoes, Pineapples, Chili, French beans

Rulindo

Flowers, Chili, Avocado, Egg plants

This is a competitive call for business plans to grant selected business plans of viable enterprises in the horticulture value chains. The main aim of this process is to contribute to the growth of enterprises in horticulture value chains so they could have a significant impact on the lives of horticulture smallholder farmers and their livelihoods.

C – Criteria of selection

The best business plan/idea will have to meet the following key criteria:

Business plans/ideas will have to emanate from legally registered and recognized enterprises and cooperatives active in the earlier mentioned districts of the project’s implementation.

Present activities from enterprises/cooperatives that have been operational in the horticulture sector in the project’s locations (Kamonyi, Nyamagabe, Nyagatare, and Rulindo) for more than two years.

Demonstrate the social impact of the proposed business plan/idea on the livelihoods of horticulture farmers and actors in a clear and realistic manner.

Present activities aiming to expand or grow existing activities of the enterprises/cooperatives (starting up new ideas or businesses will not be considered).

Business plans/ideas will have to prove the ownership of the proposed activities by showing a co-financing contribution of at least 10% of the total requested amount.

Business plans/ideas will have to show that the enterprises/cooperatives have a solid knowledge of the challenges and gaps within the horticulture value chains.

Business plans will have to show how they will contribute to improving and increasing demand of horticulture produces, as well as increase the capacity to respond to markets’ demands for horticulture produces.

Business plans/ideas will have to show how they intend to remain sustainable and profitable without additional grants.

Enterprises/cooperatives owned, or with majority shareholding, by women or youth (between 16-30 years old) will be given priority.

The administration and managerial capacity of the enterprises/cooperatives will have to be clearly laid out showing accountability mechanisms in place.

Details on the methodology used to measure the progress of the activities and results over time will have to be described.

Details of the financial management of the grant which is being applied for will have to be presented clearly in the business plan/idea.

Activities of the business plan will have to be implemented until the end of 2023 without the possibility of extension of the implementation period.

D – Size of financial support

The maximum amount made available under this call for business plan will be the equivalent of 12,500 Euros in Rwandan francs for each winning plan/idea. Between 2 and 3 grants will be provided per district.

Grants will be awarded according to the criteria specified in point C above. Business plans/ideas will have to prove the ownership of the proposed activities by showing a contribution of at least 10% of the total requested amount in their proposed budget.

If the allocation indicated per grant cannot be used due to insufficient quality or the number of plans/ideas received, the project reserves the right to reallocate the remaining funds to other activities as needed.

E – who can apply

Participants eligible and targeted in this call for business plans/ideas include co-operatives, horticulture processors, SMEs active in horticulture, aggregators, and other enterprises involved in horticulture value chains.

Applicants must be registered and active in one of the 4 target districts of the project for at least two years. Priority will be given to women/Youth participation; farmers who have successfully adopted new farming techniques or completed training on financial literacy, business/marketing skills etc.; and enterprises which will have developed a high-quality business plans evaluated by the local evaluation committee.

F – Location

The targeted locations under this call for proposals are the 4 districts where the HVC project is being implemented, namely Nyagatare, Kamonyi, Rulindo, and Nyamagabe. Proposed business plans and activities must be carried out in one of these districts of Rwanda for crops mentioned above in each district. Applicants that do not operate in one of these areas will be automatically rejected.

G – dates and duration

The planned duration of the grant will be 24 months starting from the date of grant signature and not going beyond December 31, 2023.

H – payment arrangements

Payments to the awardees will be made as follows:

Initial pre-financing payment of 80% of the total amount of the grant. The first disbursement will be done at the time of the signature of the contract between Oxfam partners, and the awarded enterprise or cooperative.
Final payment of 20% of the total amount of the grant. The final balance will be transferred to the awardees after the receipt and approval of the final report by Oxfam and its partners.

Oxfam and its partners reserve the right to withhold any amount from the final payment and if applicable ask for a reimbursement of the amount received under this grant, in the case that beneficiaries do not comply with their contractual obligations and/or Oxfam’s partner ethic clauses and code of conduct (Annex I).

I –Evaluation procedure

Interested applicants must submit a full application. The application file shall be comprised of the following:

Enterprise legal registration.
Detailed business plan meeting key criteria mentioned under point C above (see annex II for the template to be used)
Detail budget (see annex III for the template)
Annual turnover for 2019, staffing, production capacity. Final audit of 2019 would be added advantage.
Signed declaration of honor (see annex V)
Application forms must be sent to Oxfam on e-mail kigali@oxfam.org.uk and kigaliprocuremnt@oxfam.org.uk not later than the 7th December 2021 at 5 pm. Applications must be written in English.
Requests for clarification or questions can be sent to the following email addresses ggakwandi@oxfam.org.uk before the 25th November 2021 at 5 pm.

J – Evaluation procedure

An evaluation committee will be established in each district by HVC consortium members to evaluate and examine the business plans and decide on the winning plans. The evaluation committee will be composed of a district representative, a representative of horticulture cooperatives in the district, representatives of HVC consortium members, and a representative of a non-applicant enterprise from a different district for an independent perspective in the evaluation process. The selection committee will seat for three days to evaluate proposals based on the criteria mentioned under point C above.

The evaluation committee will agree on the evaluation grid in their first evaluation meeting. At the end of the evaluation, the evaluation committee will announce publicly the awarded applicants and will provide feedback to those who would have been rejected providing them with the reasons why they were not selected.

The following costs are not eligible:

Debts and debt service charges (interest).

Provisions for losses or potential future liabilities.

Costs declared by the beneficiary(ies) and financed by another action or work programme receiving a

European Union (including through EDF) grant.

Purchases of land or enterprises’ buildings.

Currency exchange losses.

Credit to third parties.

K – Eligible costs [call for business plans]

A detailed budget including a breakdown of costs must be submitted in the application form. Applicants must provide a realistic and cost-effective budget. Only “eligible costs” can be covered under this grant and included in the budget. Eligible costs are actual costs incurred that meet all the following criteria:

Costs are related to proposed activities for the implementation period. Costs need to be incurred during the implementation period and within the limits established in section C. Costs incurred should be paid before the submission of the final report.

Costs are indicated in the estimated budget.

Costs are necessary for the implementation of the activities and fulfillment of the proposal’s objectives

Costs need to be identifiable and verifiable, in particular being recorded in the accounting records of the selected enterprises/cooperatives.

Costs need to comply with the requirements of applicable tax and social legislation.

Costs are reasonable, justified by supporting documents, and comply with the requirements of sound financial management, especially regarding economy and efficiency.

The following costs are not eligible:

Debts and debt service charges (interest).

Provisions for losses or potential future liabilities.

Costs declared by the beneficiary(ies) and financed by another action or work programme receiving a

European Union (including through EDF) grant.

Purchases of land or enterprises’ buildings.

Currency exchange losses.

Credit to third parties.

K – reporting [call for proposals only, only if applicable

Selected enterprises must provide to HVC consortium members mid-year and annual reports, completed with all required information on the implementation of activities. The report shall describe the activities taken place, difficulties encountered, and measures taken to overcome problems, eventual change introduced, as well as the degree of achievement of the results. It should include a financial report with the costs incurred up to date and a forecast for the next implementation period.

The formats to be used on the reports will be provided to selected enterprises/cooperatives.

L – OTHER

The grant awardee is subject to observe safeguarding policy of Oxfam and partners and other statutory requirements, mainly audit, procurement, and visibility requirements (these documents will be shared with the awardees). The candidates are also subject to declare/confirm that information provided is correct and accurate.