Terms of Reference (ToR) for Assessing the Needs of Cooperatives in Coffee, Tea, and Horticulture Value Chains

Introduction

In reference to the previously issued Terms of Reference (ToRs) for the fiscal year 2023-2024—specifically the "Capacity Needs Assessment of Cooperatives," "Coffee, Tea, and Horticulture Value Chain Analysis," and "Value Chain Financing Assessment"—Cordaid hereby cancels these ToRs due to significant, unforeseen changes in the scope of the assessments.

To align with the updated objectives of the PSAC (Promoting smallholder Agro-Export competitiveness) project, and in accordance with the approved 2024-2025 annual work plan and budget, Cordaid issues new, revised Terms of Reference that accurately reflect the current requirements and conditions. This adjustment ensures that the project continues to meet its goals and deliverables effectively.

Background and Context

Cooperatives are essential to agricultural value chains, particularly in coffee, tea, and horticulture, supporting the livelihoods of smallholder farmers in rural areas by providing access to resources, markets, and finance. However, these cooperatives face significant challenges, including poor governance, limited financial literacy, inadequate leadership, market access, and difficulty adopting climate-resilient practices. Furthermore, the financial services ecosystem often fails to address the specific needs of cooperatives, particularly those with high participation from women, youth, and people with disabilities, leaving them without suitable products and services to support their growth.

This assessment aims to identify the needs and capacity gaps within cooperatives in these value chains, focusing on improving their sustainability, competitiveness, and inclusivity. It is part of the Promoting Smallholder Agro-Export Competitiveness Project (PSAC), a six-year initiative funded by the International Fund for Agricultural Development (IFAD), the Governments of Rwanda and Spain, Cordaid, and Heifer International. The project, implemented by the Ministry of Agriculture and Animal Resources (MINAGRI) and led by the National Agriculture Export Board (NAEB), aims to increase rural incomes by supporting inclusive and sustainable agro-export value chains. It seeks to enhance climate-resilient productivity and improve market access for smallholder farmers, while strengthening the institutional and policy environment of these value chains. Cordaid, as a key partner, is responsible for value chain development, capacity building of cooperatives, promoting inclusivity for women and youth, advancing climate-resilient financial products, and strengthening financial institutions' capacity to support targeted value chains. Additionally, Cordaid will help promote digital solutions for agriculture to support the broader objectives of the PSAC project.

Purpose of the Assessment

This assessment builds on the Cordaid’s cooperative assessment matrix (CAM) report, which evaluates the current status of the cooperatives targeted by the PSAC Project. By utilizing the status report of the current agro-export targeted cooperatives and other targeted farmer groups, a representative sample from each cooperative category will be assessed to identify specific needs and capacity gaps across various thematic areas within their respective value chains.

Based on the results of this capacity needs gap assessment, the consultant will develop a comprehensive capacity development plan, drawing on Cordaid’s established models and approaches. This plan will include the creation or customization of a tailored curriculum and training modules for cooperatives, youth, farmers, and financial institutions leveraging from existing Cordaid’s tools and modules. The consultant will also propose a business development delivery model while ensuring alignment with local needs and market conditions. Furthermore, a financial services demand and supply study will be conducted for each value chain, generating detailed reports to identify service gaps and ensure available resources meet the actual needs of stakeholders.

Main Objective

The consultant will prepare a detailed assessment report that includes capacity gaps of cooperatives, and a focused capacity development plan. This plan will outline customized training programs for cooperatives, farmers, youth, and financial institutions, using existing training modules from Cordaid. Additionally, the consultant will propose a business development model and perform a financial analysis of the value chain to identify and address financial service gaps. The goal is to ensure that the recommendations align with the specific needs of the value chain cooperatives involved in the PSAC Project.

Specific objectives

Develop capacity needs assessment report: By doing this, the consultant will Identify Gaps in Knowledge and Skills in the areas of farming as business, entrepreneurship, leadership, financial literacy, climate resilience, and the use of digital solutions. S(he) will also analyze the needs of women, youth, and people with disabilities by understanding the unique barriers and opportunities for these groups within cooperatives, with a focus on leadership, resource access, and value chain participation. The consultant will also analyze the strengths and weaknesses of cooperatives in business management, financial operations, market access, and climate-resilience practices.

Design capacity building plan for identified cooperatives: The objective is to create or customize tailored tools and modules leveraging on the already existing tools and modules within Cordaid and address the specific needs and gaps in the cooperatives' operations, management, and technical capabilities. Drawing from the findings of the assessment, the plan will focus on key areas such as governance, financial management, marketing, and value chain development, particularly for coffee, tea, and horticulture sectors. It will include targeted training programs for cooperative members and leadership, strategies for improving access to market, access to finance, and a monitoring framework to track progress and ensure effectiveness. The plan will also emphasize sustainability, ensuring that improvements continue beyond the project’s support. Ultimately, this capacity-building plan aims to enhance the cooperatives' productivity, competitiveness, and market access, empowering them for long-term growth and success.

Produce Business Development delivery model and planfor structured value chains: The consultant will identify an existing and working Business Development Service (BDS) model and customize it to suit our current beneficiaries' needs or develop a new one if need be. This comprehensive approach ensures that targeted clients receive a full suite of services. The support is meant to extend from advisory services that help transition from the ideation stage to business planning, engagement with financial institutions, and continues through post financing, ensuring a seamless journey for entrepreneurs at every stage of their business development.

Propose tailored curriculum and training modulesfor cooperatives, youth, farmers, and financial institutions, building on Cordaid's existing training materials and approaches, while also adapting them to the specific context and needs of the cooperatives. The proposed curriculum will be designed either concurrently with, or after receiving approval of, the tools and modules from both Cordaid and the Donor.

Conduct a financial analysisof each targeted agro-export value chain (Value chain financial analysis) to assess the demand and supply of financial services, with a focus on gender and youth inclusion. The consultant will identify challenges and opportunities for cooperatives in accessing finance, evaluating the adequacy of financial products and services offered by financial institutions. The analysis will also evaluate the capacity of financial institutions to provide products and services tailored to the needs of cooperatives in the coffee, tea, and horticulture value chains.

Access to Market analysis:The consultant will conduct a comprehensive market analysis to identify and address the challenges cooperatives face in accessing markets. This will include assessing their ability to meet quality standards and certifications, improving supply chain management to reduce costs and enhance efficiency, and identifying new market linkages, both locally and internationally. The consultant will also evaluate the cooperative’s market visibility, branding, and pricing strategies to ensure competitiveness. Additionally, an analysis of market trends, demand forecasting, and potential policy or regulatory barriers will help cooperatives better align their products with market demands and expand their market reach. The goal is to provide actionable recommendations that improve market access, efficiency, and profitability.

Scope of Work

The assessment will focus on the following thematic areas:

Farming as Business: Assess the knowledge and skills of cooperative members regarding managing agriculture as a business, including cost management, profitability, production optimization, and market-oriented farming practices.

Entrepreneurship and Business Plan Development: Evaluate the capacity of cooperatives to identify business opportunities, develop business plans, and implement strategies for growth and sustainability in the coffee, tea, and horticulture sectors.

Leadership Skills: Assess the governance structures within cooperatives, including leadership, decision-making processes, and accountability; And evaluate the involvement of women, youth, and PWD in leadership roles and decision-making processes within cooperatives.

Financial Literacy: Assess the understanding of financial concepts, such as budgeting, financial reporting, cash flow management, and strategic financial planning within cooperatives, and identify the financial training needs to enhance the cooperative’s ability to manage finances effectively.

Access to Finance: Analyze the challenges cooperatives face in accessing financial resources, including loans, grants, and subsidies, and assess the capacity of cooperatives to engage with financial institutions and the financial management capacity needed to handle such funds effectively.

Access to Market: Assess cooperatives’ market access capabilities, including their ability to connect with local and international buyers, meet market demand, and ensure product quality, and Identify challenges related to market information, supply chain constraints, and negotiations with buyers.

Access and Usage of Digital Solutions: Evaluate the use of digital tools and technologies, including mobile platforms, digital payment systems, e-commerce platforms, and mobile agricultural applications, to enhance productivity, market access, and financial management, and Identify barriers to adopting digital solutions and opportunities for digital skill-building.

Climate Resilient Practices: Assess the level of knowledge and implementation of climate-smart agricultural practices, such as water management, soil fertility, pest management, and the adoption of drought-resistant crops, and evaluate the support needed to adopt climate-resilient practices and improve productivity under changing climate conditions.

Financial Institutions’ Capacity: Analyze the capacity of financial institutions to provide financial services to cooperatives in the coffee, tea, and horticulture value chains, including loans, insurance, and financial advisory services, Assess whether financial products offered by institutions meet the specific needs of smallholder farmers and cooperatives, such as flexible repayment terms, insurance, and small loans, and identify the barriers that financial institutions face in supporting cooperatives, including risk perceptions, collateral requirements, and understanding the cooperatives' business models.

Specific Needs of Women, Youth, and People with Disabilities:

• Evaluate how cooperatives address the participation and leadership of women, youth, and PWD in cooperative activities, assess whether cooperatives provide equal access to training, resources, and opportunities for these groups and identify barriers to their active participation, and identify tailored financial products, services, and market opportunities that cater to the specific needs of women, youth, and PWD.

Methodology

A mixed-methods approach will be used to collect both quantitative and qualitative data, including:

• Desk Research: Review of available studies, reports, and documentation on cooperatives in the coffee, tea, and horticulture sectors, as well as financial inclusion and climate-resilient agriculture.
• Surveys and Questionnaires: Structured surveys for cooperative members, leaders, financial institutions, and key stakeholders to assess skills, challenges, financial access, market access, and the adoption of digital solutions.
• Focus Group Discussions (FGDs): Facilitate discussions with cooperative members, with separate sessions for women, youth, and PWD to better understand their specific challenges and opportunities.
• Key Informant Interviews: Conduct interviews with cooperative leaders, market actors, exporters, , Regulators (RSB RCA and others), financial institutions, government representatives (Local and central where necessary), and development partners in agriculture sector relevant to the targeted VCs to gain insights into the needs and challenges faced by targeted agro-export cooperatives.
• Case Studies: Identify and document successful cooperatives to draw lessons on best practices and innovations in managing farming as business, financial access, and climate resilience.
• Financial Product and Service Review: Review the available financial products and services for smallholder farmers and cooperatives and analyze whether these products meet their specific needs.
• Sampling: A sample will be done from a population of 108 cooperatives categorized in three performance categories (High, medium and low).

Expected Deliverables

Inception Report: This will include the methodology, tools, work plan, and timeline for the assessment.

Survey Instruments: A set of structured surveys, interview guides, and focus group templates.

Interim Report: A progress report that presents initial findings from the fieldwork.

Final Reports: The consultant will submit four separate reports as part of the final deliverables. These reports will comprehensively address the various thematic areas identified in the assessment process and will provide clear recommendations and action plans for each of the identified needs with agender- and disability-sensitive analysis lens of specific barriers and opportunities for women, youth, and PWD. The following reports expected are :

• Capacity needs assessment report and capacity building plan (based on the identified capacity gaps) for cooperatives (An analysis of the key findings related to the specific needs in the thematic areas and recommendations for capacity-building interventions and plan in business management, finance, market access, and climate resilience leveraging on available tools and modules from Cordaid and others as necessary).
• Business Development delivery model and plan for structured value chains
• Curriculum and Training plan/modules for cooperatives, youth, farmers and financial institutions
• Financial services demand study and supply report for each of the targeted value chains (Insights on how financial institutions can better tailor products and services to meet the needs of cooperatives, and what projects participants needs for readiness to access financial services).

Team Composition

The assessment team will consist of:

• Lead Consultant: Overall management, analysis, and reporting.
• Sector Experts: Specialists in coffee, tea, horticulture, climate-smart agriculture, value chain financing, Curriculum development, and Business development services in agriculture sector precisely within the targeted Agro export Value chains.
• Crosscutting experts: Digital Solutions Expert to assess digital tools and technology adoption in cooperatives, Gender and disability Expert to ensure inclusive analysis and recommendations for women, youth, and PWD.

Duration and reporting of the Work

Proposal submission: 

Consultant firms interested in doing this assignment are asked to submit a technical and financial proposal no later than 31^st December 2024. Each consultant team will be required to present the relevant experience and educational background of each consultant in the team.

 The submitted proposal should contain 2 components:

• The technical proposal shall describe in detail the understanding of the consultant regarding the objective described in these Terms of Reference. The consultant should also describe the strategy and methodology used to deliver the project. CVs and responsibilities of each consulting team member should be attached to the proposal. The technical proposal should also present evidence of a similar experience conducted.
• The financial proposal shall describe costs related to the project delivery and costs of service should be presented separately. This project is a lump sum contract (including VAT). Technical and financial proposals should be written in English.

Full Proposals including a financial proposal should be submitted electronically only to the following email addresses: info.rwanda@cordaid.org; Or apollinaire.nshimiyimana@cordaid.org 

Annex

Proposed structure of the technical proposal

• Brief Description of the assessor: A brief overview of the consultancy firm, highlighting qualifications, expertise, and experience relevant to the evaluation task. This section aims to establish the applicant's credibility and suitability for the project. 1 page maximum, and Declaration of potential conflicts of interest.
• Background of the assessment: Demonstrate the understanding of the assessment: Description of the context, background, and relevance of the assessment.
• Objectives and Scope; Clear statement of the assessment’s goals and specific objectives, Scope of work, including boundaries and deliverables.
• Methodology/Approach; Detailed explanation of the methods, techniques, and processes to be used in carrying out the assessment, this section should explain how the consultant firm intends to respond to the key assessment questions and provide justification for the chosen approach.
• Work Plan/Timeline: Outline of the key activities, milestones, and deliverables; A timeline showing the phases of the project and the estimated time for completion.
• Team Composition: Description of the team members, their roles, expertise, and relevant experience.
• Budget and Resources: A breakdown of the assessment costs, including personnel, materials, travel, and any other relevant expenses, Indicate Proposed payment installments and deliverables.
• Appendices: Additional information such as references, CVs, certification, registration certificate from RDB, proof of taxes payment and other relevant technical specifications.