The Feed the Future Tanzania Agri-Finance Project
Scope of Work
Operational and Organizational Assessment for an Agriculture Inputs Revolving Fund in Tanzania
Program Description:
The Feed the Future Tanzania Agri Finance Project is an access to finance project working to improve access to finance for smallholders, women, youth, and micro, small, medium (including large) enterprises (MSMiLs) in Tanzania by improving the agri-finance ecosystem and strengthening the capacity of both borrowers and lenders. The Feed the Future Tanzania Agri-Finance Project will prioritize interventions that increase availability and adoption of priority technologies, including climate-smart technology, and create more inclusive agricultural finance ecosystems, enable expanded and sustained lending and investment, and increase productivity and incomes.
Project interventions will support 20 financial institutions, 15 demand-side institutions including agricultural enterprises and women and youth groups, train 300 financial institution staff, and reach 18,000 borrowers with $21 million in agricultural finance facilitated in Tanzania. The Feed the Future Tanzania Agri-Finance Project will utilize a system-driven, private sector-led approach to target agricultural market coordination failures and develop commercially oriented solutions that will sustain and scale agri-financing. The project includes two interconnected strategic objectives to achieve tangible, positive impact for smallholder farmers, women, youth, agro-enterprises, and financial institutions.
Objective 1: Improve income and bankability of smallholders, women, youth and micro, small and medium (including large) enterprises.
The Feed the Future Tanzania Agri-Finance Project will deliver targeted technical capacity strengthening and direct training and coaching to smallholders, women, youth, and MSMiLs beneficiaries in financial and money management skills and tools, business planning, finance and investment, development of business funding proposals, records keeping, loan applications, and loan repayment and/or savings strategies.
Objective 2: Strengthen financial institution operational capacity to expand agri- lending.
The Feed the Future Tanzania Agri-Finance Project will provide targeted support to supply side financial institutions to develop new agri-finance products and improve operational capabilities and efficiencies, build capacity and strengthening their motivation to expand agri-lending to smallholders, women, youth, and MSMiLs – with a focus on priority and climate-smart technologies such as irrigation, inputs, storage, and value addition. The Feed the Future Tanzania Agri Finance Project is an access to finance project working to improve access to finance for smallholders, women, youth, and micro, small, medium (including large) enterprises (MSMiLs) in Tanzania by improving the Agri finance ecosystem and strengthening the capacity of borrowers and lenders. With a particular emphasis on priority technologies, including climate- smart technologies. The Feed the Future project is working to create more inclusive agricultural finance ecosystems, enable expanded and sustained lending and investment, and increase productivity and incomes. The Recipient interventions will increase supported financial institutions from 9 to 20, train 300 financial institution staff, and reach 18,000 borrowers with $21 million in agricultural finance. The project will utilize a system-driven, private sector-led approach to target agricultural market coordination failures and develop commercially oriented solutions that will sustain and scale agri-financing.
Problem Statement:
Quality agriculture inputs are among the most important yield-enhancing technologies for crop production. Therefore, sustainable increases in agricultural productivity are largely dependent on the availability of and access to quality inputs. Increased access to inputs improves farmers’ agricultural investment, productivity, and income. The inaccessibility of financing is one of the most significant barriers preventing smallholder farmers in Tanzania from affording quality inputs and other investments. This lack of financing has led to low agricultural returns and investments. Additionally, farmers require credit to purchase agro – based equipment, agricultural technologies, and inputs that increase farm operational efficiency, productivity and income, so it is critical that farmers have access to timely, appropriate, and reasonable funding.
Until 1990 donations and grants from donors were the only reliable source of funding for agriculture inputs and equipment in Tanzania. However, as the supply and demand gap widened, the Tanzanian government established the Agricultural Inputs Trust Fund was established by an Act of the Parliament No. 9 of 1994 under the Management of Board of Trustees to provide loans to smallholder farmers for agricultural inputs. The Fund also supported the creation of a commercial production framework among smallholder farmers and other stakeholders to increase profitably and their ability to receive credit under commercial lending systems. However, many financing challenges still exist including poor loan repayment by agriculture borrowers and a high rate of non-performing loans (NPLs).
Therefore, the Feed the Future Tanzania Agri Finance Project is recruiting a volunteer expert to conduct an in-depth organizational and operational assessment in support of the agricultural inputs revolving fund. This internal and external assessment will evaluate the existing organizational and governance structure, product and service portfolio, labor and staffing capacity, financial structure, loan process and procedures. The volunteer expert will identify opportunities for growth in organizational capacity to meet strategic goals, recovery of issued loans, and the service delivery model, particularly targeting micro and small and medium sized enterprises (MSMEs), youth and women in the agricultural sector.
The volunteer expert will create a roadmap for future interventions that outlines strategies to strengthen the agricultural inputs revolving fund’s operational and organizational capacity, and ability to apply sound financial principles to funds and loans.
Objectives of the Assignment:
Conduct a thorough and in depth internal and external assessment on its existing organizational and governance structure, product and service portfolio, labor and staffing capacity, financial structure, agriculture loan process and procedures and service delivery model.
Identify areas for capacity strengthening and strategies to improve the fund’s service delivery model, operational efficiency, business growth, and progress towards financial goals.
Engage the institution leadership to develop an institution capacity strengthening action plan based on the assessment findings, growth areas, and recommendations to achieve goal and objectives.
Deliverables:
Assessment Findings
Host capacity strengthen plan.
Power point Presentation describing the assignment findings, key areas for capacity strengthening, recommendations, and proposed activities to be carried out and expected impacts of the proposed activities.
Final trip report
Tasks to be Performed:
Pre-Assignment
Hold a call with the Feed the Future Tanzania Agri Finance Project team and the institution to discuss needs of assignment and strategy.
Conduct desktop research to understand Tanzania agriculture sector, funding, and restrictions as needed to inform assignment.
Review the host organization’s current business plan and loan portfolio.
Develop tools and questions for data collection, validation, and analysis for assessment.
On Assignment:
Attend orientation hosted by Feed the Future Tanzania Agri-Finance Project team to review assignment objectives and plan.
Meet with representatives from the revolving fund to understand the institution’s current business, strategic objectives and goals, organizational structure, and process, products and procedures for products and services.
Present tools and questions developed for data collection, validation, and analysis for assessment and obtain feedback from the institution.
Finalize tools and questions for data collection, validation, and analysis.
Conduct a thorough and in depth internal and external assessment on its existing organizational and governance structure, product and service portfolio, labor and staffing capacity, financial structure, agriculture loan process and procedures and service delivery model.
Analyze assessment findings and present study findings to the organization management to obtain feedback.
Identify areas for capacity strengthening and the means to improve upon its service delivery model and recommend activities that the institution can take to improve its operational efficiency, assist its business growth, and achieve its financial goals and objectives.
Engage the institution leadership to develop an institution capacity strengthening action plan based on the assessment findings, areas identified for capacity building, and recommendations to achieve its goal and objectives.
Hold debriefing session with the institutions management and board share findings, capacity strengthen plan and recommendations.
Develop final report for assignment.
Hold briefing session with USAID/Tanzania
Hold debriefing with the Feed the Future Agri-Finance Project Staff.
Anticipated In-Country Schedule for Assignment:
Day
Activity
Location
Estimated days
Pre-departure
Hold a call with the Feed the Future Tanzania Agri Finance Project team and the institution to discuss needs of assignment and strategy.
Conduct desktop research to understand Tanzania agriculture sector, funding, and restrictions as needed to inform assignment.
Review the host organization’s current business and its loan portfolio and plans.
Develop tools and questions for data collection, validation, and analysis for assessment.
Day 1
Depart to Tanzania from the US
U.S.A
1
Day 2-3
Arrival Dar es Salaam
Attend orientation hosted by Feed the Future Tanzania Agri-Finance Project team to review assignment objectives and plan.
Travel to Dodoma
Dar es Salaam
2
Day 4
Meet with representatives from the revolving fund to understand the institution’s current business, strategic objectives and goals, organizational structure, processes, products and procedures.
Present tools and questions developed for data collection, validation, and analysis for assessment and obtain feedback from the institution.
Finalize tools and questions for data collection, validation, and analysis.
Dodoma
1
Day 5-8
Conduct an in depth internal and external assessment on the existing organizational and governance structure, product and service portfolio, labor and staffing capacity, financial structure, agriculture loan process and procedures, and service delivery model.
Dodoma
4
Day 9
Rest
Dodoma
1
Day 10-11
Finish data Analysis and present findings to the organization management to obtain feedback.
Identify areas for capacity strengthening improve upon service delivery model and recommend activities to improve operational efficiency, assist business growth, and achieve financial goals and objectives.
Dodoma
2
Day 12-13
Engage the institution’s leadership to develop a strategic development plan based on the assessment findings, areas identified for capacity building, and recommendations to achieve its goal and objectives.
Hold debriefing session with the institution’s management and board to share findings, capacity building plan and recommendations.
Develop final report for assignment.
Travel to Dar es Salaam.
Dodoma
2
Day 14
Hold briefing session with USAID/Tanzania
Hold debriefing with the Feed the Future Agri-Finance Project Staff.
Dar
1
Day 15
Departure to the U.S
Dar
1
Day 16
Arrival in the U. S
Dar
1
Total number of days
16
Expertise of Volunteer Expert Requested:
Higher university degree in business administration, economic development, agriculture, agriculture economics, or another related field of study
10 years of relevant experience in organizational development, enterprise development, business management, agriculture, and agri-business.
At least 8 years of professional experience in leadership or executive role with lending institutions or large/medium sized business in agriculture, agricultural finance, access to finance and/or agricultural economics
Independence and strong interpersonal skills
Highly experiences in organizational governance, financial management, agriculture financing and lending and service delivery.
Creativity, critical thinking, and problem-solving skills.
Goal-oriented mindset and hands-on approach.
Good written and verbal communication skills.
Experience of working in sub-Sahara African countries would be added advantage.
Good writing and analytical skills, interpersonal communication, and presentation
This is a United States government funded program. Therefore, for the purpose of achieving desired results in accordance with the work plan and submitting requisite reports requires deliberation and sensitivity to cultural issues in communication, written and spoken is essential.
