Call for Consultancies - Implementation of Exemplary Business Models in the GCF Knuckles project area

The overall objective of the assignment is to develop and operationalize location-specific, commercially viable, and climate-resilient exemplary Business Models at enterprise level in value chains of coffee, spices (including pepper), herbs, rice, tourism, and processed foods within the GCF Knuckles Project area, thereby strengthening the livelihoods and climate resilience of subsistence farmers and agricultural plantation communities, while contributing to the conservation of the Knuckles Mountain Range catchment.

Geographic coverage The assignment shall cover the GCF Knuckles Project area in its entirety. Scope The scope of work shall specifically encompass: Implementation of the exemplary coffee and pepper Business Models at enterprise-level in the Hulu Ganga sub-watershed and other priority areas of the project to be combined with Payment for Ecosystem Services (PES) mechanisms, Sustainable Land Management (SLM) and Green Value-Chain (GVC) development, where appropriate and feasible; and Incubation of twelve (12) Business Models at enterprise-level in value chains of tourism, specialty rice, processed foods, spices and herbs, within the priority areas previously identified within the Project boundaries.

Role of ICRAF ICRAF, as the Executing Entity, shall provide the Consultant with the following: Share knowledge gained through previous studies conducted under sub-contractors of ICRAF, including Farmer-specific constraints and issues affecting efficient cultivation and productivity, market information in relation to supply and demand trends, aggregation, processing, quality, and market access requirements, details of existing farmer/producer groups, community-based organizations (CBOs), and other relevant value chain actors and resources; climate risk analysis and technical information on value-chain level business models developed under the Project.

Necessary technical and finance assistance for required infrastructure as agreed upon . Summary of responsibilities 1. 2. The Consultant shall undertake, but shall not be limited to, the following tasks: Development of Location-Specific Business Models Facilitate existing business models to scale up benefiting the local communities, streamlining business activities, making them more inclusive, and catering to the project objectives. Based on the value chain-level Business Models identified previously, support enterprise-level business model incubation among cooperatives and other SMEs. It involves smallholders transforming early-stage, innovative ideas into independent, scalable ventures which respond to the market opportunities identified and are adapted to local conditions and opportunities. Map and connect existing resources, capacities, infrastructure, services, knowledge, finance, and market opportunities optimizing the operations in the value chain developments liaising with enterprise forums and other relevant governance structures in operation (including what to be established). Facilitate beneficiaries to develop their own bankable business plans, co-designing each Business Model’s value proposition, target beneficiaries, products/services, revenue streams, and cost structure. Identify gaps between the resources/capacities and market requirements to be met and develop a capacity building program to address these gaps. Implement the capacity building program through delivery of technical assistance and training and, where appropriate and feasible, connecting to governmental and non-governmental organizations offering complementary capacity building. Identify opportunities and needs for mobilizing responsible finance for the start-up and maturation phases, including private-sector investment and Payments for Ecosystem Services or other forms of co-financing. Identify the conditions required for each incubated Business Model to achieve economic, social and environmental sustainability beyond the period of Project support. Identify the specific gaps that must be addressed to operationalize the Business Models. Identification of Key Players and Beneficiaries Identify and map all key actors, including but not limited to farmers/producer groups, CBOs, input suppliers, service providers (technical, business, financial), aggregators/processors, traders/buyers, financial institutions, responsible investors, government agencies, and intermediaries. Define the roles, responsibilities, incentives, and expected benefits of each actor. Identify the direct and indirect beneficiaries of each Business Model. Capacity Building, Intermediary Mechanism and Institutional Arrangements Develop road maps for the incubation for each selected cooperative or other SME for the project lifetime and beyond. This may include both the technical and financial training modules including financial literacy improving the financial acumen of the beneficiaries. Determine which identified Capacity Development (Cap. Dev) needs can be addressed through own delivery of technical assistance and training, and which require the involvement of complementary intermediary/facilitating entities (governmental or non-governmental service providers). Establish linkages between farmers/CBOs and relevant value chain actors through the intermediary entities. Define the roles, responsibilities, incentives, and accountability, and modalities of the intermediary entities. Facilitate the operationalization of, and coordination among, participating actors. Develop appropriate governance, decision-making and monitoring mechanisms. Resource-Gap Assessment and Costing Identify gaps in infrastructure, equipment, working capital, market information, technical services, and institutional arrangements. Develop detailed costing for the establishment and operation of the incubated Business Models. Clearly distinguish between existing resources/contributions; contributions expected from actors; initial Project investment; recurring operational costs; and potential future financing. Prepare the proposed Project support package for ICRAF’s review and approval. Monitoring, Evaluation and Learning (MEL) Framework Develop and implement a Monitoring, Evaluation and Learning (MEL) framework to assess, inter alia : Business Model performance and financial viability. Farmer participation and benefits. Number of households benefiting. Number of people with additional full-time and partial employment. Production and productivity improvements. Market access and sales (volumes and values). Income/value captured by different actors. Performance of the intermediary entities. Resource utilization. Environmental and watershed-related outcomes, where relevant. Lessons learned and adaptations required during implementation. Risk Assessment, Mitigation and Adaptive Management Identify technical, climatic, market, financial, institutional, and social risks. Develop a risk matrix comprising risk description; likelihood and impact; early-warning indicators; mitigation measures; and responsible party. Establish an adaptive management mechanism to modify Business Models based on incubation experience and climate vulnerabilities. Include contingency measures for major disruptions. Implementation Ensure the expansion of existing business models and establishment and up-running of the incubated Business Models successfully over a period of eighteen (18) months with. Co-create bankable business plans, theory of change, activity plan, and business mentoring plan Facilitation to establish required infrastructure as agreed. Establishing intermediary mechanisms and institutional linkages. Provision of capacity-development support as required. Expected outcomes of the assignment Providing scaling up support for at least ten (10) lead firms in each business category—spices and herbs, tourism, and food processing—and support at least three (3) lead firms under the rice business model. Provide incubation support for at least fifteen (15) start-ups in each business category and at least three (3) start-ups under the rice business model. Create at least twenty (20) employment opportunities in each business, with a satisfactory level of women’s participation. Engage at least eight (8) households in each business category. Documentation, Learning and Knowledge Management Document the implementation process, challenges, innovations, and lessons learned. Training modules, curriculars, handbooks, trainer guides in local languages. Business cases, capturing evidence of what works and what does not work under different local conditions. Promotional materials developed for beneficiary enterprises. Maintain records of costs, revenues, partnerships, and outcomes. Scale-Up and Exit Strategy Define criteria for continuation, modification, replication, scaling-up, or discontinuation of each incubated Business Model. Develop a scale-up pathway for successful Business Models. Define how ownership and responsibility will transition to local/private-sector actors following the conclusion of Project support. Ensure that each Business Model has a clear pathway toward financial and institutional sustainability. Key coordination/interactions Internally with ICRAF project team. Externally with the staff of Project Management Unit of MoALLI, other partner ministries, consultants and stakeholders.