REQUEST FOR PROPOSALS : Deal screening effectiveness in NBFIs in Tanzania

REQUEST FOR PROPOSALS

COUNTRY:  Tanzania

CLIENT: ALLIANCE FOR A GREEN REVOLUTION IN AFRICA

TITLE OF ASSIGNMENT: Deal screening effectiveness in NBFIs in Tanzania

The Alliance for a Green Revolution in Africa (AGRA) is working with African governments, donors, non-governmental organizations, the private sector and African farmers to significantly and sustainably improve the productivity and incomes of resource-poor farmers in Africa. AGRA has its headquarters in Nairobi, Kenya.

In 2014, MasterCard Foundation awarded an USD15.5 million grant to AGRA to implement the Financial Inclusion for Smallholder Farmers in Africa Project (FISFAP) over five years with the aim of improving the productivity and incomes of 728,000 smallholder farmers in Ghana, Kenya, and Tanzania.

FISFAP recognizes the important role played by SMEs when it comes to providing financial services to farmers. It is often SMEs that provide inputs on credit, give advances based on future sales of crops or provide mechanization services as part of a service package to outgrowers. Agricultural SMEs are often getting their financial services from non-bank financial institutions (NBFI). Specialized institutions like factoring, leasing and impact funds often fill the gaps left by commercial banks and microfinance institutions.

In Tanzania, the team did not invest in Equity for Tanzania (EFTA, rent-to-own) and the SME impact Fund (SIF, loans for agricultural SMEs), as we had difficulties to understand the direct impact on smallholder farmers that could result from a partnership with those NBFIs. However, since the FISFAP program start, AGRA has now confirmed the importance of SMEs (and their funding NBFIs) in providing (financial) services to smallholder farmers; therefore AGRA would like to support these two NBFIs with technical assistance that documents the lessons learned from their models, and more specifically to understand how the deal screening process including the pre-investment TA, can become more effective.

AGRA would like to hire the services of a consulting firm to identify key success factors and pitfalls to avoid during the deal screening process and pre investment TA. EFTA and SME Impact Fund together with AGRA want to understand which activities are worth investing in to build a solid portfolio of agricultural SMEs and which indicators can be identified that are good predictors for a successful lending process.

AGRA now invites eligible consultants (firms) to indicate their interest in providing these services. Interested firms must provide information indicating that they are qualified to perform the services (Firm profiles, description of similar assignments, experience in similar conditions, general qualifications of key staff, and so forth).

A detailed Request for Proposal (RFP) can be found here : http://bit.ly/NBFI-TZ

Technical and financial proposals must be sent to: procurement@agra.org  by 16th August, 2019

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