TERMS OF REFERENCE FOR SUNFLOWER
VALUE CHAIN EXPERT STUDY.
1.INTRODUCTION.
1.1.
TCCIA MANYARA.
Tanzania Chamber of Commerce Industry and Agriculture Manyara Region, known as
TCCIA-Manyara was established and started to operate in 2004 with 96 members. The
chamber started to operate from Babati District which is the headquarters of the
Region. Now TCCIA Manyara has got its branches in all regional district that is Hanang’,
Mbulu, Kiteto, Babati and Simanjiro. TCCIA Manyara Region is a semi-autonomous
organization which represents private sector interests in the Region including
Commerce, Industry, Agriculture sectors and other crosscutting sectors of the economy.
There is still a large number of untapped business communities who have potential to
become members of TCCIA-Manyara. It is estimated that the business community in
Manyara Region can reach 6,000 in total. TCCIA Manyara depend on the following
financial sources like membership fee, selling of Certificate of Origin, Business
Registration, Funding, and donor support and selling of service from business
information centre. TCCIA Manyara is managed by democratic elected leaders
constituting two committees that is Management and Executive Committee. Currently
TCCIA Manyara has got 900 members.
1.1.
Background
1.1.1. Sectoral business development strategies for business hubs
The Chamber of Commerce of Manyara in its quest to fulfill its aims and objectives of
improving business in Babati, has collaborated with TRIAS who will enable TCCIA to
implement the process of facilitating a roundtable approach in order to formulate a
strategy for enabling businesses in towns functioning as business hubs. 1 Such a
strategy will be based / focused on a specific (sub)sector, - value chain, - cluster or
then a market development approach or the more general business environment
improvement.2 It will also be focused on “real” or growth-oriented entrepreneurs.3
The formulation and implementation of this business strategy will involve five steps
which are:
1
Business hubs are towns / secondary cities that serve as interface between rural economies and the most
important markets in their area, i.e. primary cities. rural business hubs can thus be strengthened to improve
market linkages between the rural economies and the major markets. Their dynamism also means that there may
be other growing sectors, more independent of agriculture.
2
Alternatively, core clusters may be facilitated more intensively within an overall selected (sub)sector we are
working with .
3
These entrepreneurs have the potential for growing their business and for employing other people thereby giving
them a livelihood. They are contrasted by subsistence or survivalist entrepreneurs. They did not enter business
because they discovered a market opportunity or because they developed an innovative business process but did
so simply out of necessity. Most of the people owning micro enterprises would leave their business if they would
have the chance to be employed. Some criteria for identifying real / growth oriented entrepreneurs are:
• Business has been existing at least for 3 years.
• Business growth during this period
• The person acts out of opportunity instead of necessity.
• The business is registered or is willing to
• The person has a positive credit history
These criteria are however not complete. Some will move from the survivalist category into this category.
Therefore a strict dichotomy between the 2 categories is not helpful. Rather it is important to identify among the
small entreprises those that can move into the real entrepreneur category and provide them with support.
Babati up till now
Babati subsector business strategy development process has already created a number
of learnings for the further business strategy development. Consultation of the business
community ( members of TCCIA) has been carried out: The TCCIA Manyara Business
Development Services Officer undertook TCCIA member consultation and provided a
report of the findings; the TCCIA Manyara Executive Director with the support of Trias
Tanzania staff consulted the Babati district and municipality as well as Manyara region
officials regarding the priorities of Municipality, district and region for economic
development of Babati town and district as well as Manyara region. The first roundtable
was called in September 2016 and TCCIA presented the findings to the stakeholders
whom then discussed, voted and came to a consensus to prioritise and further
investigate the sunflower processing / - oil manufacturing subsector (considering the
whole sunflower value chain) which in the view of the roundtable participants has
verifiable economic potential.4 Under the methodology of the business strategy
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This was the result of a a group work of 5 groups, 2 of which prioritsed sunflower. One of these prioritised the
improvement of the production & marketing process of small (&medium?)sunflower oil manufacturers, while the
other also identified the sunflower manufacturing sector as a priority, floating an idea of having a large scale
industry that will procure and refine un- / semi refined oil from smaller producers, thereby enabling oil from Babati
to reach higher standards. There was some discussion on how small and medium producers would benefit from
this if your plan is to have a big industry?
These 2 suggestions were unified into one, with the idea that the expert study will advise on the feasibility of
either, if the sector were to be selected by the stakeholders in attendance, which it was. Ther first of the earlier
groups prioritizing sunflower gave the following reasons:
• Assurance of getting sunflower product around Babati and Manyara region
• Sunflower VC provides employment to many people who will work on different part of value chain.
development approach, after the stakeholders pick a specific (sub)sector, - value chain
or - cluster , an expert study is to be carried on the chosen issue.
Babati what needs to be done
Thus, TCCIA Manyara intends to contract a consultant / consultants to guide through
the next stage in the formulation of the Babati subsector business strategy. A Terms of
Reference (TOR) will be issued for the chosen sector. The consultant will be conducting
an expert study on the chosen sector. The consultant is expected to achieve the
objectives and outputs in the manner and time explained in the TOR.
1.1.2. possible interventions
1.1.1.1.
Tentative list of types possible within the partnership of TCCIA Manyara
and Trias Tanzania
Some possible interventions that can be facilitated by TCCIA within a process facilitation
or even subsector / cluster / value chain development role are:
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Financial services:
o Facilitation of linkages to financial service providers
o Micro credits to individual businesses through a credit facility
Capacity building interventions:
o Facilitating special topic trainings for (sub)sectoral –or clustered
businesses or businesses up- or downstream to them
o Business development services (BDS cycle, tax and legal advices, etc)
offered by TCCIA Manyara to potential entrepreneurs that can be focused
on entreprises in the identified (sub)sectors or clusters.
Coordination of businesses stakeholders
o Roundtable consultations
o Potentially identification & facilitation of (sub)sectoral / cluster facilitators
o Intensive coordination and partnerships with other stakeholders having a
stake in the (sub)sector, cluster, value chain
Sunflower has two by- products. It includes, sunflower oil, sunflower oil cake for livestock feeds and other
products
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Assurance of local and international market for sunflower products
The second group gave the following reasons:
• Sunflower is a friendly product -leads to soil fertility
• Employment opportunity to people working in production, harvest-ing, among others
• It contribute to the national revenue collection , taxes etc
• It is used in food (home consumption)
• Sunflower oil cake used as food for live-stock
• Sunflower stem is a source of energy
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TCCIA will have a limited budget for interventions as the above within the subsector /
cluster / value chain. This also implies that there are limits to the intervention and it will
be important to clarify the role TCCIA is to and can take within the subsector / cluster /
value chain
2. OBJECTIVES.
2.1. General Objective
The purpose of this study is to have strategies for enabling the chosen subsector.
Alternatively a value chain perspective on the chosen subsector can be taken.
Depending on how much up to date secondary information is available, the study may
have a larger weight on literature review in addition to the obligatory consultation with
government and stakeholders; or otherwise more weight on a primary level economic
study in addition to the government and stakeholder consultation. The suggested
strategies should represent the needs of the stakeholders in Babati. This is achievable
by assessing possibilities of growth in the studied subsector, value chain and /or
geographical cluster. The study should be able to come up with up to date statistics,
areas and ways in which the sector /sub-sectors / value chains / clusters can be
improved. This should enable stakeholders in the next roundtable to verify, adapt and
adopt the presented report and action plan. Stakeholders will have to consider here
how far they want TCCIA to move towards the facilitating business cooperation end of
the “(sub)sector / cluster / value chain development <–> process facilitation” scale.
2.2. Specific Objectives
1) To conduct intensive bibliographical research and literature review on the identified
subsector, in order to identify the available information for the following within the
sunflower processing / sunflower oil manufacturing subsector within Babati:
a) Potential for qualitative expansion of subsector in terms of
• Accessible domestic, regional and / or international demand in short, middle and long
term as well as further market side opportunities and strengths
• competitiveness in comparison to other sunflower oil manufacturing regions having the
same target markets
• Infrastructural, supply side, production, cooperation amongst businesses, and other
potentials for taking advantage of demand
b) Obstacles preventing “real entrepreneurs” from exploiting identified potential and
achieving growth of the subsector (infrastructural vs. supply side vs. production vs.
market side vs. coordination amongst businesses amongst others). This also includes
business - and other risks.
2) To undertake to the degree necessary further primary level economic research to be able to
sufficiently assess the sectors growth potential and obstacles.
3) To complement the literature review and primary level economic study with intensive
consultations with Babati Municipality -, district – and Manyara regional government on
their perspective on opportunities for growth within the cash crop and manufacturing
sectors and the role of government with regard to facilitating these.
4) To complement the literature review and primary level economic study with intensive
consultations with the relevant membership of TCCIA Manyara and the wider business
community active in the prioritized sectors.
5) To make a well reasoned statement on whether the growth potential and obstacles validate
interventions by TCCIA within the sector or not.
6) If validated, develop maximum 2 alternative strategies for each prioritised sector describing
how to enable it as a whole, specific subsectors or clusters within it or value chains linking
to it.
7) To draw up draft implementation plans for each of the prioritized sectors including
tentative time frames and responsible actors
8) To provide further recommendations for the sectors that have been prioritized
2.3.Scope
The consultant will cover the relevant areas of Babati municipality and Babati district.
During primary research and consultation, officials at the TCCIA Manyara office will
provide administrative support in linking with public offices, the business community
and other civil society organisations. The consultant may also seek guidance and input
from TRIAS.
3. Study questions
The study will provide answers the following questions, amongst others. TCCIA
Manyara desires that the consultants develop and provide answers to further questions
that they regard as important in order for TCCIA to reach its goal stated above.
3.1.value chain mapping of the sunflower sector including up- and
downstream sector in Babati
This mapping should be in terms of the existing (agri)businesses in the sunflower value chain
within Manyara region with some indication of their quantitative magnitude in terms of
number and distribution of agricultural, processing and other businesses within the value chain
as well as some indication of the magnitude in terms of distribution of the businesses with
regard to capital or turnover size.
3.2.Stakeholder mapping
The main primary, facilitating and supporting actors should be listed as well as their interests
and contribution and challenges to enabling the sector. This can be best done in the form of a
stakeholder mapping table.
3.3.Overview of potential of the sunflower oil manufacturing sector
A description of the potential for qualitative growth of the sunflower oil manufacturing sector
in terms of accessible domestic and external demand for the sector will be done. This assessment
also has to judge, whether the sector has verifiable potential that validate interventions. In case
this is not so, the study should make a clear statement to this effect. The analysis will make a
serious assessment especially for the EAC and other eastern or southern Africa regional markets in the
short, middle and long term. Further market side and marketing opportunities should also be
identified. Underutilized infrastructural -, supply side - or production opportunities will be
identified including adequate justification for analyzing them as such. Potential supply side –,
production or market side economies of scale through cooperation amongst businesses should
be especially assessed. Competitiveness in comparison to other sunflower oil manufacturing
regions having the same target markets is another important area for assessment. Further
assessments as the consultants regard as important should be undertaken.
3.4.Obstacles faced by the sector / value chain
Obstacles preventing “real entrepreneurs” from exploiting identified potential and achieving
growth of the sunflower oil manufacturing sector should be assessed and justification given.
The study should make an assessment, whether the obstacles can indeed be overcome or
whether interventions in the sector are not justified by the analysis. Like for the potentials of
the sector, this will include consideration of infrastructural -, supply side -, production -, market
side -, competitiveness obstacle as well as challenges to cooperation and coordination amongst
businesses, if valid. This will also include an analysis in to how far business - and other risks are
obstacles to the growth of businesses within the sectors and the sectors themselves. Any
additional considerations identified by the consultants can be added.
3.5.Embedding and planning of interventions within the selected sector /
value chain
There are often multiple interventions that have been undertaken, that are being or going to be
undertaken in economic sectors in Tanzania at local, regional or national level. The consultant
through bibliographical research and interviews with key informants will identify these and
their results, successes and challenges.
3.5.1. Mapping of past and ongoing interventions in value chain by other actors
The consultants will map the relevant government, private sector or civil society initiatives
within the sunflower oil manufacturing sector and the sunflower value chain in general as well
as explain how they relate to the overall development of the prioritized sunflower
manufacturing sector, what areas have not been addressed by the initiatives, how they relate
to other ongoing, planed or completed initiatives.
3.5.2.Strategic positioning and description of potential interventions of the current
initiative
Based on the prior analysis of potential and obstacles as well as the mapping of completed,
planed and ongoing other initiatives, the consultants should lay out how they see that
initiatives of the business community and TCCIA could best position themselves to support the
growth of the in the sunflower oil manufacturing sector, - businesses as well as their business
success. This will ensure efficiency of the initiatives and such an identification will help a proper
coordination of all ongoing initiatives within the sector. This will be the basis for the
development of a draft plan of intervention and actor roles for the sunflower oil manufacturing
secto prioritized by the Babati roundtable participants validated by the consultants to have
considerable growth potential. Thise plan will also suggest and outline responsibilities of main
primary, supporting and facilitating actors for each of the outlined interventions and roles as
well as rough monitoring framework for the intervention plans. They will also outline tentative
timeframes for the implementation of interventions allocated to the different stakeholders as
well as how they should take up and be monitored in the further roles they are allocated.
3.5.3. Description of Alternative Strategies
The conditions validating the consultants to develop an intervention plan are that the
sunflower oil manufacturing sector has been found to have growth potential validating
interventions; another condition is that there is space for intervention or coordination to add
value to the sector (i.e. that not all possible interventions and / or coordination efforts are
already being undertaken by other actors). If the conditions are fulfilled, the consultant will
prepare an intervention strategy and plan. The consultants may suggest alternative
intervention strategies / plans, if this seems advisable to them and there are alternative ways to
strengthen the sectors. Since individual interventions within a strategy may be complementary,
they should be treated within 1 Strategy Alternative. This means that interventions may reoccur
in various strategy alternatives. Linkages between the intervention plans can be also be
considered by making this explicit in a separate section. The consultants intervention plan will
have the following structure:
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Sunflower oil manufacturing sector / - value chain intervention plan
o Strategy Alternative 1
o (Strategy Alternative 2)
(Intervention plan linking strategy alternative 1 and 2)
4. Methodology
4.1.
Study strategy
The consultants will discuss their outline of the study process presented in the proposal during
an initial debriefing meeting with TCCIA Manyara and Trias. The points below can give some
guidance what should be discussed additional to the submitted proposal:
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Stakeholder consultation
Meeting with key stakeholders that participated in the process (government
representatives, TCCIA & key representatives business community; other
stakeholders)
Literature research
Debriefing after literature review, which can be through an email summary and
telephone conference on the most important findings regarding the mapping and
the potential of the sector as well as intial intervention strategy ideas.
Furthermore open and controversial questions, will be raised in order to jointly
develop ideas.
Field research for clarification of open questions
Before submission of the first draft the consultant will arrange a debriefing
meeting with stakeholders in Babati to validate their findings.
4.2.
Tools & sampling
The methodology of the research shall be consistent with the study questions and include desck
research, interview guides and possibly questionnaires in each of the areas applicable Samples
and sampling frames will be agreed in consultation with TCCIA Manyara and Trias Tanzania.,
5. OUTPUTS AND DELIVERABLES.
The Consultant is expected to deliver the following:
i.
A draft report of the complete study findings from research and interviews that
will be discussed during the stakeholders’ meeting.
ii.
A power point presentation of research and draft plan that is suitable for
debriefing of the stakeholders of the business strategy development process.
(format will be jointly agreed)..
iii.
Presentation of research and draft plan to the stakeholders of the business strategy
process during the 2nd roundtable (date to be agreed with TCCIA Manyara).
iv.
The final report of the findings and recommendations from the research and
interviews.
v.
Complete documentation of data collected (databases & quantitative data in
Excel, for other types of data format will be agreed)
6. QUALIFICATIONS OF THE CONSULTANT
The Consultant shall have the following qualifications:
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A Master’s degree in economics or business administration.
PHD in economics and statistics will be an added advantage
A basic understanding Government policies on business and economic
development
An understanding of the private sectors and its operations.
Adequate experience and competent research skills
Excellent report writing and presentation skills
Analytical and critical thinking skills
Adequate knowledge on data collection techniques and data analysis.
We expect candidates to have research ethics, we expect full transparency.
7. TIMEFRAME
The research will commence as soon as possible, but latest by 28th October 2016 and
be completed by 30th November . First draft should be submitted by 20th November
2016. After which TCCIA Manyara and Trias Tanzania will review and return with
comments by 25th November.
8. Table of Contents.
The structure of the report to be submitted to Trias should be the following.
1. Introduction (Explain the terms of reference/What is the job about)
2. Methodologies used
3. Findings study questions
3.1.1. Value chain mapping of the sectors including up- & downstream sectors
3.1.2. Stakeholder mapping
3.1.2.1. Overview of potential of the sectors
3.1.2.2. Obstacles faced by the sectors
3.1.3. Mapping past & present interventions in VC
3.1.4. Strategic positioning and description of potential interventions of the current
initiative
3.1.5. Draft intervention plans for stakeholders as input for next roundtable5
4. Conclusions study questions
5. Recommendations
6. Annexes
6.1. List of people met/interviewed including locations and dates
6.2. List of present buyers including location (telephone numbers, emails & physical
addresses)
6.3. List of potential clients, including location (telephone numbers, emails & physical
addresses)
6.4. List of suppliers (present and potential)
6.5. List of key informants
6.6. Gross profit margin analyses, projected turnover for the coming 3 years under
the production capacity proposed by the consultants.
6.7. Documentation of data collected
The study without annexes should not contain more than 45 pages
5
Including tentative time frames and responsible
9. BUDGET AND PAYMENT MODE.
i. BUDGET
The consultant will prepare the budget which should not exceed 5,000 Euro. The budget
will be discussed with TCCIA in collaboration with TRIAS Tanzania.
ii.
PAYMENT MODE.
Payment will made according to TCCIA and TRIAS regulation(at the beginning
consultant will be paid half of budget and the remaining balance will be paid after
complete the activities.
10.
Contents & timing of proposal
The selected proposal will provide the basis for the preparation of a final study design based on
its discussion with TCCIA and Trias. The proposal should include the following:
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Overview of how the study is intended to be implemented and what strategies will be
employed. This should include amongst others a proposal of how the consultants will go
about identifying the potentials and obstacles in the prioritized sectors..
Detailed methodology
Detailed timetable
Budget
CVs of the lead consultant and assistants team (attached)
Organisational profile of implementing company (if implemented by a company)
Briefly explain how the expertise of the evaluators / evaluation team will be sufficient
to fulfill the task at hand
The proposal will be submitted to TCCIA Manyara latest by the 24th October 2016 12 midnight.
11. Annex: relevant literature
TCCIA Manyara and Trias Tanzania will provide a number of background documents to
the selected consultant. This will include, programme documents, member and
government consultation reports for Babati, secondary literature on the sunflower value
chain and sunflower processing sector in Tanzania in general and within Manyara region
and Babati in specific.
12. REPORTING AND CONTACT:
Mrs. Mwanahamisi Hussein,
Regional Executive Officer,
Tanzania Chamber of Commerce, Industry and Agriculture,
P O Box 339,
Manyara,
Tel & Fax:+(255 27) 251 0037
E-mail:[email protected], [email protected]
([email protected])
+(255) 757305667