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Tender Details
- Country: Rwanda
- Summary: Rwanda Fertilizer/Pesticide Value Chain and Regulatory Assessment
- RWT Ref No: 52750659
- Deadline: 17 May 2021
- Competition: ICB
- Financier:
- Purchaser Ownership: -
- Tender Value: Refer Document
- Notice Type: Tender
- Document Ref. No.: 1274311
- Purchaser's Detail :
- Description :
- Expression of Interest are invited for Rwanda Fertilizer/Pesticide Value Chain and Regulatory Assessment. REQUEST FOR EXPRESSION OF INTEREST FOR SELECTION # 1274311 This Request for Expression of Interest is for a Firm Selection. Please log in as a valid Firm User if you wish to express interest in this selection. Selection Information Assignment Title Rwanda Fertilizer/Pesticide Value Chain and Regulatory Assessment Publication Date 03-May-2021 Expression of Interest Deadline 17-May-2021 at 11:59:59 PM (Eastern Time - Washington D.C.) Language of Notice English Selection Notice Assignment Country · RW - Rwanda Funding Sources The World Bank Group intends to finance the assignment/services under: · BB - BANK BUDGET · TF0A6923 - IFC CMAW - SSA 1 Region - GFC Individual/Firm The consultant will be a firm. Assignment Description The primary objective of the study is to analyze the current regulatory environment for Agri-input firms engaged in the fertilizer & pesticide markets to understand the key impediments for attracting further private investment to this space, , improving access to quality fertilizer and pesticide inputs for Rwanda farmers and streamlining of regulatory environment for importation, registration and trade of these inputs. This assessment should also consider and highlight and country specific advantages to attracting investment to this space. There are main two components to this assignment: (1) Mapping and Assessment of the fertilizer and pesticide value chains in Rwanda with a focus on their functional performance; (2) Assessment of Rwanda Agri-Input regulatory system. Attachments · Optional TOR File Qualification Criteria · 1. The firm is expected to demonstrate proven track record of advising governments and regional or international development agencies preferably including on World Bank Group. Assignments where the firm was engaged by both private and public sector organizations to provide insight and expertise on interventions and investment opportunities across different agribusiness value chains is an advantage. * · 2. Team expertise in agribusiness and agri value chain assessments. Experience with Agri input policy and value chains a plus. Technical expertise in agri input markets, fertilizer /pesticide regulations, industry analysis and secondary research skills are valued. * · 3. Experience of working in Africa and Rwanda is highly valued. * · 4. IFC encourages a strong blend of global and local resources * Rwanda Fertilizer and Pesticide Value Chain and Regulatory Assessment Terms of Reference Background: IFC is keen to support Government of Rwanda to make promising and impactful investments in Agri Inputs sector to improve access and usage for farmers. Specifically, it seeks to pave way for creating a market for more private firms by initially focusing on macro enablers in the ecosystem. While specific constraints to growth of private sector are well known in Agribusiness, not much of literature is available to identify and address the macro level enablers for growth of Fertilizer manufacturers, importers or blenders, or, Pesticide importers and distributors in Rwanda. This assignment is being initiated by IFC to address this gap. The primary objective of this study is to scope the current enabling ecosystem for Agri input firms (specially fertilizers and pesticides) to understand the key impediments for scaling up private investment, improving access to quality inputs and streamlining of regulatory environment for importation, registration and sales of these inputs. Agri input value chains in Rwanda are still nascent with participation of about 5-10 large firms and 1500+ agro dealers. They need to become more service oriented and favorable for improving farmer-s access to Agri inputs. The combined usage of fertilizers in Rwanda probably is less than 12kg/Ha, which is 1/5th of desirable usage. Thus, there is a large opportunity to disrupt the agri input supply chain through creating an enabling environment and facilitating investments by private sector. Why scope the enabling environment & value chains? Creating an enabling environment for Agribusinesses is a prerequisite to unleash Rwandan Agri input sector-s potential. Among other factors, government policies and regulations play a key role in shaping the business environment through their impacts on costs, risks and barriers to competition for various players in Agri input value chains. While Rwanda has put progressive policies in place to encourage private sector participation, there are risks and policy gaps which get magnified in Agri input ecosystem where the end consumers are largely small holder farmers, from rural areas with low literacy and technical know-how. Addressable gaps here include a) limited performance of fertilizer value chain players in fertilizer quality assurance- quality risk mitigation measures needed at all levels of value chains; b) effectiveness of fertilizer and pesticide regulatory system in promoting private sector investments and higher adoption rates by farmers; c) ensuring robust mechanisms to strengthen fertilizer subsidy program - for both farmers as well as importers, dealers and other value chain players and d) Lack of coordinated institutional efforts to support private participation. Efforts may be directed towards encouraging greater role of private sector in Agricultural extension system in conjunction with public agencies By setting the right regulatory framework, government can help increase the competitiveness of farmers and Agri input firms (manufacturers, blenders, importers and dealers), enabling them to penetrate Rwandan input markets. Governments need to strike the right balance between correcting market failures through regulations and minimizing the costs that those regulations impose on stakeholders. This balance is essential but also particularly challenging for Agri input firms. It is not unusual for governments to implement too- stringent agricultural regulations especially around registration, inspection and quality control. These impose excessive compliance costs for Agri input firms and make them more prone to remaining (or becoming) uninterested in market expansion or scale up. Scope of Work: The primary objective of this assessment is to conduct a scan of Agri Input value chains in Rwanda with a focus on Fertilizers and Pesticides to evaluate the country-s advantages to attract private investments. While evaluating the value chains, it is also important to examine the regulatory ecosystem that facilitates the overall objectives. There are two components to this assignment - (1). Mapping and Assessment of the Fertilizer and Pesticide value chains in Rwanda with a focus on their functional performance; (2). Rwanda Agri Input regulatory system assessment with a focus on benchmarking the existing system vis-a vis international best practices for market-oriented fertilizers and pesticides. The study should identify key areas of interventions for enhancing investments in Agri Input value chains in Rwanda. Both these components may be taken up simultaneously. The first component will seek to assess the value chain characteristics including mapping of players in the Agri input market, overall market size and potential trade volumes, production and import trends, demand supply scenario, price build up along various stages of value chain plus itemized cost details, marketing and distribution channels, status of infrastructure, product storage, handling, labelling and other aspects. The second component of the assignment is aimed at identifying the deficiencies in existing laws, related provisions and implementation aspects and reviewing the same with public and private sector stakeholders. This component will include thorough assessment of protocols and procedures for a) new product registration/licensing; b) inspections and sampling; and c) fertilizer subsidy programs. While the former two will focus on fertilizers and pesticides the assessment on subsidies can be limited to fertilizers covered under CIP program. In addition to these, training and capacity needs assessment of relevant public agencies under MINAGRI will help in identifying and designing institutional capacity strengthening efforts. This will include assessing existing inspection capability and analytical capability. These aspects are critical given the overall context of poor uptake of Agri inputs in Rwanda. Less than 20% of Rwandan farmers use improved seeds and fertilizers. Fertilizer usage in Rwanda is reported to be 12 kg/ha as against recommended 50kg/ha. On the other hand, fertilizer consumption must increase three-fold to meet targets set under Rwanda-s Plan Strategic for Agriculture Transformation, PSTA IV. The current demand is barely managed as the vast majority of Rwanda-s fertilizer is imported by handful private importers and blenders. Also, the ongoing subsidy program in Rwanda envisages increased role of private sector for sustainability. However, with the entry of Agro Processing Trust Corporation (APTC) as the main agency mandated with coordination of fertilizer distribution, the supply chain has been rendered inefficient. This has been validated by private sector on two grounds. Firstly, APTC is not just a coordinator/ sole distributor of fertilizers. It has recently entered into partnership with Moroccan firm to import fertilizers. This dual role of APTC as coordinator as well as market player might lead to conflict of interest and lack of level playing field. Secondly, it was reported that average time taken to clear invoices of importers towards payment of fertilizer subsidy is six months. Payment delays often affect cash flows and impact import volumes of ensuing seasons. Thi
- Documents :
Purchaser : INTERNATIONAL FINANCE CORPORATION
Attn: Dan Kasirye
Resident Representative
32 Blvd, de la Revolution
KN 71 Street SORAS Building, 4th floor
P. O. Box 609
Kigali
Tel: +250 591-353
URL :https://www.ifc.org/
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