INVESTMENT ANALYST – Emerging Farmers Partnership (EFP) GDA

INVESTMENT ANALYST

USAID EMERGING FARMERS PARTNERSHIP GDA PROGRAM IN ZAMBIA

1. Background and Context

The Emerging Farmers Partnership GDA

The Emerging Farmers Partnership (EFP) GDA is funded by the United States Agency for International Development (USAID) for three years, starting in October 2020 and ending in October 2023. The EFP GDA is an innovative partnership with private sector companies which uses a market-based approach to catalyze agriculture transformation by supporting the commercialization of emerging farmers in selected districts. The EFP GDA includes two private sector partners, John Deere and Corteva Agriscience. John Deere supports business advisors working with emerging farmers to develop business plans to fully utilize tractors’ potential. The partnership allows emerging farmers to participate in field demonstrations and training, and access credit for purchasing tractors and other implements to drive the commercialization of the agriculture sector. For Corteva Agriscience, its market best-in-class agricultural technologies, including hybrid (drought resistant) seed and crop protection products, are used to show the benefits of the technologies. The partnership supports activities to improve agronomic practices through extension services and access to input/supplier credit in the form of seed and inputs to qualified emerging farmers.

The EFP GDA project is currently being implemented in a total of 15 districts in 5 provinces of Zambia, namely, Central province (Mumbwa, Chibombo, Kapiri, and Luano), Southern province (Chikankata, Mazabuka, Monze, Kalomo, and Choma), Copperbelt province (Mpongwe, Lufwanyama, and Masaiti), Eastern province (Petauke) and North-Western province (Kasempa and Solwezi).

The overall objective of the EFP GDA project is to catalyze the transformation of Zambia’s agriculture sector through improving the sustainable farming practices and commercialization of emerging farmers in the selected 15 districts. The EFP GDA project’s overall objective is expected to be achieved through three intermediate objectives:

1. Increased capacity of emerging farmers to plan and manage risks in the targeted districts

2. Increased emerging farmers’ adoption of improved inputs and technologies; and

3. Increased emerging farmers’ ownership and use of productive assets in the targeted districts.

Emerging farmers participating under the EFP GDA project in the selected 15 districts of Zambia are facing challenges in accessing commercial finance, both short- and long-term, to enable them to invest/purchase and utilize irrigation equipment and mechanization such as tractors. Commercial banks have established financial products for these operations which often require an off-take agreement, assignment of proceeds, viable business plan/case, cash flow forecast, and crop insurance. However, these products are not available to emerging farmers as they often lack the appropriate documentation.

Scope of Work for Investment Analysis

The purpose of the investment analysis is to provide information to emerging farmers and other value chain actors on the various investment opportunities among/and or with the private sector, i.e., agro entrepreneurs and emerging farmers in providing agricultural services[1] where demand exists.  The analysis will also generate recommendations for improving the enabling conditions for commercialization, increased investment, and high-value production for emerging farmers in Zambia so as to inform policy and practice change. The activity is aimed at strengthening the commercial orientation of emerging farmers to operate as agro entrepreneurs i.e. small-medium enterprises (SMEs).

Specifically, the consultant(s) will be expected to perform the following tasks.

1. To explore the current practices among emerging farmers for production, marketing, and value addition and leverage opportunities created by the USAID EDGE activity [2]on innovative approaches to increasing access to finance by rural and agricultural enterprises.

2. To propose a business case for the EFP aimed at facilitating support and crowding – in the private sector for strengthening the commercial orientation of emerging farmers to operate as agro entrepreneurs i.e. small-medium enterprises (SMEs). This includes:

a. Assess strategic fit

b. Define the service needs and potential demand

c. Analyze options on how to achieve the need (including procurement options)

The formalized business case will need to be validated with stakeholders to confirm assumptions and must present a detailed evaluation of costs, payback, benefits, risks, and opportunities for both short and long-term interventions.

3. Economic Valuation: Conduct an economic and social cost-benefit analysis, clearly illustrating

a. The identified economic benefits and costs;

b. The identified social benefits and costs; and

c. Economic evaluation and sensitivity analysis.

Methodology

The consultant(s) will have to obtain disaggregated data, review relevant literature (including previous studies, reports, and surveys), interview relevant stakeholders, and undertake field visits to some selected 15 project districts of Zambia.

The proposed analysis will take a three-pronged approach:

• Desk review and synthesis of existing literature on the performance of the maize subsector and the existing regulatory framework.
• Conduct direct consultations with key stakeholders including emerging farmers, distributors, processors, and traders to understand existing opportunities and challenges in production, value addition, and marketing of agricultural commodities, especially maize, at all levels.
• Facilitation of a validation meeting to share findings generated from the analysis including recommendations for policy and practice change.

Deliverables

The consultant shall deliver the following expected outputs:

1. Concise situational analysis report

2. Policy brief and recommendations for improving the enabling conditions for commercialization for emerging farmers in Zambia

3. Summary of findings from literature/desk review

4. Provide an annex containing a full copy of notes taken during data collection.

DESIRED QUALIFICATIONS

• A Master’s degree and at least five (5) years of experience in economics, agricultural economics, agri-business, rural finance, or investment analysis.
• Experience in evaluating agricultural value chains and investment opportunities.
• Experience in programs/projects aimed at increasing access to finance and investment for agricultural value chains in Zambia.
• Experience in private sector Agri-business management will be an added advantage.