CAPACITY BUILDING AND SUPPORTING AGRICULTURAL FINANCE INITIATIVES FOR CORDAID PARTNER FINANCIAL INSTITUTIONS

INTRODUCTION

Cordaid Rwanda has over 50 years of in-country expertise, implementing programs in healthcare and sustainable livelihoods. Cordaid has been a pioneer in fostering pro-poor economic growth through market system development, agribusiness support, and financial inclusion initiatives. With a strong legacy inherited from ICCO Terrafina and ICCO, Cordaid Rwanda continues to drive systemic and sustainable changes in market dynamics by enhancing access to finance for smallholder farmers, cooperatives, and SMEs.

Cordaid’s integrated approach ensures financial sustainability through collaboration with local service providers, private sector actors, cooperatives, and producer groups. The organization focuses on cross-cutting themes such as youth and women’s inclusion, digitalization, and climate resilience. By strengthening financial institutions and empowering rural communities, Cordaid aims to create sustainable livelihood opportunities that promote economic resilience and inclusive development.

Access to finance has been a cornerstone of Cordaid’s work for decades. Partnering with financial institutions, Cordaid has developed various innovative approaches to increase investments in the agricultural sector. These include capacity strengthening of financial institutions, Agri-loan product development, risk mitigation strategies, savings group mobilization, and refinancing solutions to enhance capital mobilization.

In line with this commitment, Cordaid Rwanda is implementing initiatives to support the capacity building of Partner Financial Institutions (PFIs). This initiative aims to strengthen the ability of PFIs to serve the agricultural sector effectively, ensuring smallholder farmers and cooperatives have access to the financial services they need for growth and sustainability.

BACKGROUND

Agricultural finance remains a critical yet underdeveloped sector in Rwanda due to inherent risks such as unpredictable weather conditions, limited collateral among smallholder farmers, and market volatility. These challenges often discourage financial institutions from extending credit to the agricultural sector, thereby limiting farmers' access to essential funding for production and expansion.

To address this gap, Cordaid Rwanda collaborates with financial institutions, including MFIs, SACCOs, fintechs and commercial banks, to enhance their ability to provide tailored financial services to smallholder farmers and cooperatives. Through targeted interventions, Cordaid helps financial institutions strengthen their agricultural lending portfolios, develop customized Agri-finance products, and implement risk-management strategies to encourage investment in the sector.

Cordaid’s approach integrates both demand-side and supply-side interventions. On the demand side, the organization empowers farmers and cooperatives by improving financial literacy, strengthening business management skills, and promoting savings group mobilization as a gateway to formal financial access. On the supply side, Cordaid works closely with PFIs to enhance their liquidity management, develop innovative loan products, and establish financing mechanisms that meet the specific needs of agricultural stakeholders.

Additionally, Cordaid promotes digital financial literacy, equipping farming communities with knowledge of modern financial tools to enhance access to finance. By bridging the gap between farmers and financial institutions, Cordaid fosters a more inclusive and resilient agricultural finance ecosystem, ensuring sustainable investments in Rwanda’s agricultural sector.

Through the activities outlined in this Terms of Reference (ToR), Cordaid aims to drive long-term improvements in financial service delivery for smallholder farmers and cooperatives in Rwanda.

OBJECTIVE OF THE ASSIGNMENT

2.1. General Objective

The primary objective is to strengthen the capacity of Partner Financial Institutions (PFIs) to deliver tailored agricultural finance solutions by equipping their staff with essential skills, supporting the development and refinement of financial products that meet the needs of farmers and cooperatives, and identifying suitable credit lines. This will enhance access to finance, promote the adoption of innovative financial products, and foster sustainable partnerships between PFIs and funding sources.

2.2. Specific Objectives

• Strengthen the capacity of PFI staff by providing targeted training in agricultural finance and risk mitigation strategies, improving their ability to assess and manage agricultural credit portfolios, and enhancing their knowledge of matching grants and innovative financing mechanisms.
• Assess existing financial products and support the development and refinement of products that cater to the specific needs of farmers and cooperatives, while designing strategies for effective adoption and marketing.
• Identify suitable credit lines for agricultural financing, develop a strategy to connect farmers and cooperatives with the right financial institutions, and facilitate partnerships between PFIs and funding sources to ensure sustainable and scalable financial support.

SCOPE OF WORK AND DELIVERABLES

Cordaid invites proposals from qualified consulting firms with extensive expertise in agri-value chain financing and financial product development. The assignment will be conducted in Rwanda, targeting value chain actors supported by Cordaid, while considering the operational constraints of PFIs.

The scope is informed by the findings of the Microscore assessment, which evaluated the current capacities and gaps of these financial institutions across multiple dimensions.

The consulting firm will carry out the following activities: 

METHODOLOGY

The selected consulting firm must propose a tailored approach and methodology for each task, ensuring alignment with the project’s objectives and expected outcomes. The proposed methodology will be assessed based on the feasibility, potential impact and alignment with the projects’ strategic goals.

CONSULTANT QUALIFICATIONS AND EXPERIENCE

The ideal consulting firm should possess the following qualifications:

1. Proven experience 5+ years in providing capacity-building support to financial institutions, particularly in the agricultural finance sector.
2. Expertise in developing and refining agricultural finance products.
3. Strong understanding of the agricultural and financial sectors in Rwanda and East Africa.
4. Experience in conducting liquidity assessments and mapping financing opportunities for PFIs.
5. Ability to facilitate partnerships by connecting Farmers cooperatives, MSMEs with Partner Financial Institutions (PFIs).

TEAM COMPOSITION

The consulting firm should propose a team with the following key roles:

EVALUATION CRITERIA

Application will be evaluated based on:

• Proposed Technical proposal with clear methodology (30%)
• Team relevant experience and qualifications (30%)
• Cost-effectiveness (30%)
• Innovation and value-added features (10%)

PAYMENT MODALITIES

Payments will be made in installments based on deliverables, as follows:

1. 20% upon submission and approval of the Inception Report.
2. 30% upon completion of the training sessions and report.
3. 30% upon completion of the Agri-finance product development and mapping report.
4. 20% upon submission and approval of the Final Report

CONFIDENTIALITY AND PROPRIETARY RIGHTS

All deliverables, including reports, developed financial products and materials developed during the assignment, will remain the property of Cordaid and its partners. The consulting firm must maintain strict confidentiality regarding any proprietary or sensitive information obtained during the assignment.

RIGHT TO CEASE ADVERTISEMENT

Cordaid reserves the right to withdraw or cease the advertisement for this consultancy at any time prior to signing of a contract. This decision may be made at Cordaid’s discretion and without obligation to provide reasons for such withdrawal. All interested parties will be promptly notified if the advertisement is ceased.

DURATION OF THE ASSIGNMENT

The assignment will commence upon contract signing and is expected to be completed within two months, with all activities fully implemented by the end of May 2025.

SUBMISSION GUIDELINES

Interested firms must submit the following:

1. Technical Proposal: Outlining their approach and methodology for achieving the assignment objectives.
2. Financial Proposal: Detailing the costs associated with the assignment.
3. Portfolio: Examples of similar work completed in the past.
4. CVs: Of key personnel who will work on the assignment.
5. Legal Documents: Tax clearance, RDB certificate, and data processor certificate.

Applications should be submitted via email to apollinaire.nshimiyimana@cordaid.org and private.dukundimana@cordaid.org by 06/04/2025

CONTACT INFORMATION

For further information or queries regarding the terms of reference please contact DUKUNDIMANA Private at the email address private.dukundimana@cordaid.org

Patrick BIRASA

Country Manager

Cordaid Rwanda