|February 13, 2024
Call for Proposals - Scoping Study of Tier-4 Microfinance Institutions in Busoga Sub-Regions, Kampala, Uganda
Office: SNV Netherlands Development Organisation Kampala, Uganda
SNV Netherlands Development Organisation operates in 25 countries in Asia, Africa, and Latin America. It applies practical know-how to make a lasting difference in the lives of people living in poverty. It uses its extensive and long-term in-country presence to apply and adapt its top-notch expertise in agriculture, energy, and water to local contexts. Its over 1,600 staff are spread in more than 20 countries in Asia, Africa, and Latin America. It is proud to be a not-for-profit organization that uses project financing to implement its mission.
In its new Strategic Plan period (2022-2030), it will aim to deepen partnerships with financial institutions, governments, and private sector to expand its impact driven finance portfolio. It will continue to position itself as a premium organization and invest in making knowledge flow to and from the frontline and catalyze partnerships that transform the agri-food, energy and water systems which enable sustainable and more equitable lives for all.
For more information on SNV, visit our website: https://snv.org/.
Integrated Smallholder Dairy Program (ISDAP)
SNV has implemented ISDAP in Southwest Uganda, since December 2021 and is funded by the Embassy of the Kingdom of the Netherlands in Kampala. The project is currently in its first phase (2021 - 2024) and covers five districts in the Kigezi sub-region (Kisoro, Kabale, Rubanda, Rukiga and Rukungiri), three districts in the central Ankole sub-region (Rubirizi, Buhwejju and Bushenyi) and four in Rwenzori sub-region (Kabarole, Kyenjojo, Bunyangabu, and Fort Portal City).
ISDAP aims to improve livelihoods not by extension of the dairy component that outcompete other crops, but by strengthening complementarity of dairy production within the integrated farm enterprises framework by leveraging mutual benefits among the enterprises and/or their by-products. ISDAP thus looks creatively at how to integrate components such as improved forages for better animal nutrition, manure handling for enhanced fertilization of crops and rainwater harvesting.
SNV and the Royal Netherlands Embassy (EKN), Kampala, are currently discussing a five-year Project named Inclusive Livestock Development for Smallholder Farms (INCLUDE). The project is expected to begin in April 2024. ISDAP will close in March 2024 and all its activities shall be incorporated under the INCLUDE after the formal grant award is signed EKN.
Inclusive Livestock Development for Smallholders (INCLUDE) Project
The INCLUDE project will aim to increase smallholder farmers’ resilient livestock-based livelihoods in 22 districts and two (2) city councils in four regions of Uganda, including: Rwenzori sub-region focusing on five (5) districts and one (1) city council, Greater Ankole in four (4) districts, Kigezi region in six (6) districts, Busoga in five (5) districts and Kampala metropolitan (2 districts and KCCA). The project will target 75,000 Small-Holder Farmers (SHFs) in these four sub-regions. It will adopt a farming systems approach integrating livestock and crops with livestock as an intervention entry point.
INCLUDE will be SHF-led and market-oriented by strengthening linkages between SHF and market actors for input and output markets and (financial) services. This pathway shall also include amplifying the voice of SHF in development, review of SHF livestock policies and establishment/strengthening existing cooperatives and SACCO’s. It is envisaged that ISDAP program will be integrated in the new INCLUDE project.
BACKGROUND TO THE ASSIGNMENT
The Embassy of the Kingdom of the Netherlands (EKN) has established a dairy sector fund with the support of a Euro 3 million grant. The Euro 3M fund is targeted at improving access to finance especially credit to dairy smallholder farmers in Uganda, with a specific focus on smallholder farmers in western Uganda. Pearl Capital Partners was contracted as a fund manager of the Euro 3M Credit Facility. The credit finance is to be accompanied by pre- & post-investment Technical Assistance (TA) to SACCOs and smallholder dairy farmers. The TA shall be provided by SNV staff under the INCLUDE Project.
SNV will play a key role in the interface between smallholder dairy farmers and Tier 4 Microfinance Institutions especially SACCOs to promote access to credit for the smallholder dairy sector in Rwenzori, Greater Ankole, Kigezi and Busoga Regions. Furthermore, the INCLUDE team will be responsible for formulating/refining investment packages and stimulating smallholder farmers’ demand for credit through financial literacy awareness events well as providing market intelligence to the fund manager.
DESCRIPTION OF THE SCOPING ASSIGNMENT
SNV Netherlands Development Organization is seeking qualified service providers to undertake Tier IV Microfinance Institutions (especially SACCOs, VSLAs, and community-based microfinance institutions) scoping study to inform the scale-up of roll-out of the credit facility scheme in the Busoga sub-region. The scoping exercise should focus on the financial institutions in the districts of Jinja, Luuka, Kamuli, Kaliro and Buyende.
SNV/INCLUDE will use the findings and recommendations in the Scoping report to improve and operationalize the strategy for sustainable and inclusive access to finance by smallholder farmers in the project area.
Scope of Work
General concepts and context
What are the current and key general smallholder agriculture lending trends in Uganda? The consultant should provide specific insights about the trends in Busoga subregions specifically, around farmers’ access to finance through Tier-4 Microfinance Institutions including government policies, private sector initiatives, complimentary non-bank issues, donor priorities and legal considerations.
Who are the key government, private sector, and non-profit actors?