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Primary Duties and Responsibilities:
Name of project/programme: Propcom Mai-karfi
Terms of reference for: Agricultural Mechanisation Business Development Consultant(Firm or Individual)
Propcom Mai-karfi is seeking the services of a consultant (firm or individual) with expertise in market studies and business development advisory to undertake a market study on the status of the mechanisation industry in Nigeria and the business opportunities therein to attract domestic and foreign investment.
Palladium International Development Nigeria Limited – Propcom Mai-karfi (PM)
Propcom Mai-karfi is a DFID-sponsored programme aimed at increasing incomes for the poor in Northern Nigeria through improved productivity and opportunities for employment in selected agricultural market systems across the nineteen states of Northern Nigeria. The initial phase of the Propcom Mai-karfi programme ran from 5th December 2011 to 31st December 2017. PM now has a three-year extension (2018-2021) to support the Government of Nigeria’s integrated security, political and economic response in stabilising and rebuilding the North-East. The extension delivers interventions to facilitate systems development, stimulate market recovery, and rebuild livelihoods across the nine North East states of Nigeria.
PM’s Agricultural Mechanisation Focus and Plans for Scale Up
Since December 2011, PM has partnered with private sector actors to develop and implement successful models for enhancing the availability and supply of agricultural mechanisation services in Nigeria. As a result, over one hundred and fifty thousand (150,000) smallholder farmers have benefitted from improved access to mechanised services and recorded improvements in productivity, incomes and livelihoods. However, millions of smallholder farmers remain who are yet to access tractor services due to limited investment in the agricultural mechanisation sector and resulting in a dearth in the number of tractors available for service provision. To this end, Propcom Mai-karfi is supporting the Nigeria Investment Promotion Commission (NIPC) to identify and map the opportunities for investment in agricultural mechanisation, expected to result in credible, bankable and investible propositions that attract investments from domestic and foreign sources into various points within the mechanisation value chain.
Scope of Work
The scope of work to be covered by the consultant include:
1. Farm mechanisation sector study.
· Synthesise all existing information from available sources such as Sahel Consulting Agriculture and Nutrition Limited, PricewaterhouseCoopers (PwC), International Food Policy Research Institute (IFPRI) and Propcom Mai-karfi.
· Fill in any gaps within the existing literature covering but not limited to the following areas:
– Mapping and description of the market including composition, characteristics, key players (primary, secondary, and tertiary stakeholders), rules (formal and informal) distribution and sales channels, sustainable market potential, potential points of opportunity for business/investment, SWOT or similar analysis of identified market opportunities, barriers to entry and growth, risk assessment, opportunities for value addition, supply chain and distribution synergies and gender-specific development opportunities
– Description and analysis of current market positioning including product gaps, supply and demand considerations (i.e. values and volumes, quality standards), expected size, trends and values for each (including derivatives)
– Demand analysis including (i) volume of service requested for showing the peak period per month, per location/ geo-political or vegetation region, and perhaps the associated crop for investor- farmer association targeting (ii) pairing farmers’ needs to equipment type required—this will inform on the type of mechanized services, machinery, equipment and implements to prioritize for investment
– Quantification of the current demand/supply gap on tractor services in Nigeria.
– Cost/benefit analysis per hectare for manual labour, draught animals and mechanised services
– Any relevant success stories and case studies to highlight approaches from other region/countries
– Key partnership opportunities
– Policy issues (e.g. levies) and supporting information requirements
– Discussion of financial and credit access considerations
· Any other elements considered appropriate by the consultant
2. Business case for investing in agricultural mechanisation / mechanised services
· Profitability analysis of tractor services in Nigeria (current and potential, with detailed financial projections)
· Any other elements considered appropriate by the consultant
3. Profiling enterprises operating in the sector with emphasis on private for-hire mechanisation service providers (MSPs)
· Comprehensive investment profiles of enterprises already playing within the agricultural mechanisation services space including but not limited to mechanisation service providers, domestic tractor manufacturers (light and heavy mechanisation), tractor engineering and servicing centres, ICT etc.
The consultant is expected to work closely with NIPC and PM to design and execute this assignment.
Based on the above the following deliverables are expected:
1. Brief inception report outlining approach and plans for the consultancy
2. Sector study with description of key markets, including market composition maps and key players, SWOT Analysis for key markets (as above), and investible opportunities in the mechanization value chain (Investment recommendation guide)
3. Comprehensive business case for investing in the agricultural mechanisation sector, whether commercial service provision or local manufacturing of machinery and equipment
4. Investment profiles of at least ten (10) viable enterprises currently operating within the space
Qualification and required competency
· Relevant academic qualification in economics, business management, or related discipline
· Extensive experience in investment consultancy or business development
· Proof of critical involvement process in successful, large-scale investment proposals or concepts
· Knowledge of the Nigerian agricultural sector is a plus
· Excellent verbal and written communication skills
· Ability to pull a team together to work effectively and to work within the specified time frame.
· Proven understanding regarding dynamics in investment and start-ups of business in Nigeria
Duration and Location of Assignment
The consultant or firm will work from their own business premises with frequent teleconferencing with the PM Ag Mech Team. This engagement is expected to be completed over a maximum of 25 days spread over a period of 2 months.
Method of Application
Interested parties (individual consultants or firms) should submit a CV or company profile, technical proposal and financial proposal to on or before 12th August 2020 using the subject line “Agricultural Mechanisation Business Development Consultant”.
Criteria for selection
The following weighting and points will be assigned to the proposal for evaluation purposes
|Technical proposal||50 %|
|CV/company profile with professional references and Evidence of previous work done||30%|
|Financial proposal with evidence of Tax Identification Number||20%|
Method of assessment
There will be an evaluation event, and individuals will be assessed based on their ability to provide the plan of how they intend to carryout task as stated above under deliverables.
Important Note: This service will be subject to Nigeria Tax law with remittance to the Federal Government of Nigeria
The service to be delivered is detailed in the schedule-Terms of Reference .
The service will be delivered over a period of time,effective from August 2020
Email as one attachement with subject line “Agricultural Mechanisation Business Development Consultant”.
1. Detailed description of technical proposal
2. Evidence of previous work done
3. CV/Company profile with professional references
4. Tax Remittance Number and financial proposal(sent separately on attached excel sheet)
All documents should be sent in Microsoft Word or PDF formats to email@example.com