1.0 The Africa Enterprise Challenge Fund

The AECF is a development institution which supports businesses to innovate, create jobs, leverage investments and markets to create resilience and sustainable incomes in rural and marginalized communities in Africa. Launched in 2008, the AECF has mobilized over US $356 million to date, leveraging more than US $658 million in matching capital and improving the lives of more than 19 million people in 2018 alone through jobs and increased household incomes. The AECF has so far supported 268 companies in 26 countries in sub-Saharan Africa across 40 value chains in our focal sectors of agribusiness and renewable energy.

In the 2018-2020 strategy, our goal is to “double our impact in half the time”. To achieve this, we will continue to focus on the agribusiness and renewable energy sectors, increase support to climate-smart technologies, refine our challenge model, expand regional presence, deepen the focus on gender, youth and employment by expanding our products and partnership approach to better meet our investees’ current needs; and ensure they rapidly scale and transition to external financing and sustainability thereby attaining our vision of ‘A Prosperous and Enterprising Rural Africa’.

In delivering on the strategy, AECF’s Investments Advisory Services (IAS) department is increasingly providing supplementary support to AECF investees to accelerate their business growth, sustainability and impact delivery.

2.0 AECF investing in the seed sub-sector

The promotion of seed and planting material is a core thematic focus of the AECF, with funds provided in every investment window since the inception of the Fund in 2008. AECF has invested in 33 companies that directly target the development or delivery of improved seed varieties or propagating material to smallholder farmers. This funding helps companies producing seed and planting material better reach the rural poor by financing some of the additional costs of doing business with low-income clients – including provision of advisory support, establishment of marketing structures, development of varieties used in marginal agriculture, selling in smaller packages and bundling seed with other inputs. Projects range from large scale distribution of improved cereal crop seed to the development of very specific new types of planting material. Business models include seed multiplication by out-growers, production of seed for sale to smallholders and bundling with other inputs (including financial products) for smallholder out-growers

3.0 About Agriseed Technologies – Tanzania

Agriseed Technologies is a seed company which produces and sells various seed such as maize, beans and Soya. AECF financed the company to process and market the Soya bean seed in Tanzania. The company is in Morogoro and Mbeya and works with various contracted farmers in different regions in Tanzania including Mbozi, Njombe, Ruvuma and Morogoro. The company provides its farmers with quality soya bean seed and other inputs on credit. The seeds are also sold to various Agro-dealers who work closely with Agriseed.

4.0 Purpose and Deliverables of the Assignment

In response to challenges, including the COVID-19 related disruptions, and opportunities, Agriseed needs a revised business strategy that will position the company to better anticipate and respond to change. This strategy will include a robust financial model and corresponding marketing, sales and distribution strategy and plan that will drive the sales and financial targets.

4.1 Specific Duties and Responsibilities of the Consultant

The scope of engagement will include the following:

a) Revise the existing Business strategy/plan

b) Prepare a sound financial model that presents scenarios and forecasts that challenge the company to stretch. Assumptions must also be informed by the business environment and industry trends, and aspirations of the leadership.

c) Prepare a robust Marketing, sales and distribution strategy and plan

d) Train the team in Strategic Management and marketing

e) Develop a sound performance measurement framework and tools for measuring and tracking the performance of the Leadership and the sales and marketing team

f) Provide coaching services to the leadership team for at least three months, to guide the execution of the strategy.

4.2 Outputs and Reporting Requirements

1. A short inception report submitted within 10 calendar days of the start of this assignment with methodology and approach, including timings and any initial observations or issues that will affect the implementation
2. A revised Business strategy and plan
3. A sound financial model with financial forecasts that challenge the company to stretch
4. A Marketing, sales and distribution strategy
5. Training report with a clear road map for application of the acquired skills in execution of the marketing and sales strategy
6. performance measurement framework and tools for measuring and tracking performance of the Leadership and the sales and marketing team
7. A marketing tool kit that will be used by the team to train other members of the marketing and sales team
8. Technical Assistance report that summarizes the support provided, immediate wins especially from the coaching sessions and a clear action plan for Agriseed. The action plan must include any other critical capacity growth areas required for the execution of the business strategy.

5.0 Duration of Service and Location

The assignment should be undertaken within six calendar months, including two weeks for commenting on the draft and submitting the final version of the deliverables, and at least three months of coaching support to the team as they execute the strategy and operational plan. The consultancy is expected to commence in September 2018.

6.0 Proposal Submission

Qualified consultants (individual or institutional consultants) are invited to submit the proposal that includes the following:

a) Qualification and experience of the individual/institution.

b) Approach and methodology to undertake this assignment.

c) Previous experience in similar assignment(s).

d) Detailed financial budget (in USD) and work plan.

e) Technical and Financial proposals will need to be submitted as separate documents.

7.0 Qualifications and experience

The tenderer can propose an individual or a team of consultants as they see fit to offer the most appropriate solution. Different experts can provide different skills but the minimum competencies to be provided by the team together must include:

a) Master’s degree in Business Administration

b) Professional certification in Marketing preferred

c) Professional certification in Finance preferred

d) More than 7 years of Strategy development experience

e) Experience in training and coaching of Senior and Middle Management teams

f) Demonstrate understanding of the Tanzania business environment

g) Experience in supporting companies in the seed subsector is preferred

8.0 Reporting

The consultant will be accountable to the AECF’s Advisory Manager.

9.0 Pricing

The AECF is obliged by the Kenyan tax authorities to withhold taxes on service contract fees as well as ensure that VAT, is charged where applicable. Applicants are advised to ensure that they have a clear understanding of their tax position with regards to provisions of Kenya tax legislation when developing their proposals.

10.0 Evaluation Criteria

An evaluation committee will be formed by the AECF and shall include employees. All members will be bound by the same standards of confidentiality. The Vendor should ensure that they fully respond to all criteria to be comprehensively evaluated.

The AECF may request and receive clarification from any Vendor when evaluating a proposal. The evaluation committee may invite some or all of the Vendors to appear before the committee to clarify their proposals. In such event, the evaluation committee may consider such clarifications in evaluating proposals.

In deciding the final selection of qualified bidder, the technical quality of the proposal will be given a weighting of 80% based on the evaluation criteria. Only the financial proposal of those bidders who qualify technically will be opened. The financial proposal will be allocated a weighting of 20% and the proposals will be ranked in terms of total points scored.

The mandatory and desirable criteria against which proposals will be evaluated are identified in the table below.

Key Areas for Evaluation/ Assessment

Weighted Award

a) Technical Proposal -80

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i) An understanding of the consultancy requirements;

· Demonstrate understanding of the assignment -5

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· An in-depth understanding of Strategy and Strategic Management, Marketing and Financial Management-10

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ii) Methodology and work-plan that will deliver the best value on the assignment: Demonstrate the capacity to deliver the task(s) within a realistic timeline, based on the consultancy days designated per task. -20

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iii) Strategy and demonstrated capability to deliver a large part of this assignment virtually. Preference will also be given to consultants who have a presence in Tanzania.-10

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iv) Relevant services undertaken by the bidder in the past engagements: Demonstrate relevant experience and recent engagements with companies in strategy development and financial management, preferably in the agribusiness sector in sub-Saharan Africa. Experience with seed companies will be an added advantage.-20

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v) Detailed reference list indicating the scope and magnitude of similar assignments:

· Letters of reference from past customers or associates to the lead consultant or the consulting organization. -10

· Registration and other relevant statutory documents (applies to institutional consultants who can provide I.D/Tax Documents etc). -5

b) Financial Proposal: Clarity, relevance, reality to market value/ value for money of cost for the assignment (inclusive of any applicable tax).-20

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11.0 Disclaimer

AECF reserves the right to determine the structure of the process, number of short-listed participants, the right to withdraw from the proposal process, the right to change this timetable at any time without notice and reserves the right to withdraw this tender at any time, without prior notice and without liability to compensate and/or reimburse any party.