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Terms of Reference

Catalysing elimination of food contaminants through capacity building

ToR/7/2021: Request for proposal in provision of training on Finance Models and Fund Raising for SMEs in Agro-processing

1. Background:
The agro-processing industry plays a vital role in the Kenyan manufacturing sector as agricultural commodities are transformed into value added consumables that meet both local needs and export requirements. As increased agricultural production is envisaged, there is need to have
proportionate improvement in the agro-processing industry. In 2019, the Kenyan agro-processing sector contributed to 43% of the entire manufacturing output, 2.4% of national employment and 3.2% of Kenya’s gross domestic product, while accounting for 8.5% of exports,
signifying its importance in the country’s economy. Agro- processing has a great potential in addressing the unemployment challenge that have been made worse by the COVID 19 pandemic.

The sector has faced perennial challenges in conforming to safety of their products and their suitability for consumption. The Kenya Dairy Board has dealt with numerous cases of milk containing peroxide which they have confiscated. The Kenya Bureau of Standards on the other hand has
stopped the sale of various contaminated items to the public including sugar, cooking oil, rice and peanut butter. In addition, the issue of aflatoxins in maize, maize and animal feeds has kept on recurring,

In joining other ongoing initiatives to address the challenges outlined, the Agricultural Industry Network (AIN) with the support of the German Federal Ministry for Economic Cooperation and Development (BMZ) is undertaking a capacity building programme for SMEs in agro-processing aimed at addressing the food contaminants within the agro processing supply chain. The programme will involve both training and firm level coaching. The interventions are targeted towards formally registered SMEs in agro processing with fully operational processing plants
deserving assistance on food safety.

2. The Assignment:

AIN is seeking for qualified consultants to undertake the training that will be undertaken in two locations in Kenya based on the number of applications received from the eligible SMEs.

3. Duration and Timelines:
AIN intends to undertake the training for the period January to November 2022. Each session is expected to last 3 days.

4. Deliverables:
The Consultant shall undertake training sessions in the two regions to an approximate number of 20
participants per session on diverse dates as per the programme to be determined. Two (2) trainings
to twenty (20) participants, each training taking three days (3).

The coverage of the training program on finance models and fund raising:
• Traditional debt finance model
• Credit risk mitigation in traditional lending
• Alternative financing models
• Approaches to non-conventional financing for SMEs
• Options of raising capital for SMEs in agro processing

• Guidelines for fundraising for SMEs

The Consultant will be expected to deliver the following for this training module:
• Well elaborated training manual
• Training schedule with timings
• Articulate delivery of training content

5. Expected Outcome:
• Participants are equipped with knowledge and practical skills on finance models and fund raising
• Participants able to identify on appropriate finance models and fund raising for their SMEs
• Participants are able develop proposals on accessing finance using different models

6. Required Skills & Qualifications:
• Bachelor’s degree in Trade Finance or related disciplines
• Over ten (10) years of experience in a food processing environment
• Demonstrated experience in transaction advisory
• Experience with practical training in the agro processing and manufacturing sectors
• Demonstrated experience in dealing with technical personnel at the firm level
• Contextual knowledge of and experience of the food processing situation in the Country
• Strong analytical and information presentation skills
• Excellent interpersonal and communication skills, including the ability to communicate and work with a wide range of stakeholders in a participatory, respectful, collaborative manner, and to enhance effective work relationships.
• Knowledge of context of developing countries. Experience from Kenya is desirable.
• Fluency in English is mandatory.

7. Application Requirement:
• Technical proposal detailing understanding of the task
• Proposal on other crucial aspects on quality controls mechanisms that may be beneficial to SMEs in agro processing
• Financial proposal in terms of daily professional fee rate, AIN will facilitate travel and accommodation for assignment.
• Detailed CVs of the professional(s) who will work on the consultancy assignment.
• If applying as a firm, the consultant must provide certificate of incorporation/business registration, as well as valid tax compliance certificate.
• Professional references from your three previous clients and full contact details of the referees.

8. COVID-19 Mitigation Measures:
The Consultant should propose steps to be taken during the training to ensure the adherence to the COVID-19 mitigation measures outlined by the Ministry of Health in Kenya.

The Agricultural Industry Network (AIN):

The Agricultural Industry Network (AIN) is an association that brings together Business Member Organizations (BMOs) that represents 5 million farmers, actors and players in the agricultural sector countrywide. It was formed by Agricultural Sector Member Organizations primarily to promote public private dialogue and advocacy on sector policies and regulations affecting the agricultural business investment environment.
The Network represents key players along the entire agriculture value chain including producers, processors, traders, employees, co-operatives and consumers. These members are spread across major agro-processing value chains including coffee, tea, cereals, cotton, sugar, meat, dairy and fish. It is with this membership representation that this project has been designed to strengthen the capacity and quality of processed products from AIN membership and other stakeholders in uplifting the agro processing activities and in so doing boosting economic growth.