TERMS OF REFERENCE FOR THE ESTABLISHMENT OF TOMATO PROCESSING PLANT IN GOBWEYN VILLAGE, KISMAYA DISTRICT JUBALAND, SOMALIA.

Overall Program Tittle: CFSP

Specific Project title: Promoting food resilient community in Kismaya

Duration: 1 Years

Project site:

Gobweyn Village, Kismaya District

Government counterpart agency:

▪  Ministry of Trade and Industry

▪  Ministry of Agriculture

Implementing  agency /cooperating agency: ALIGHT in cooperation with GIZ

Donor: GIZ/BMZ

1.     GENERAL BACKGROUND INFORMATION

▪  Context

Somalia has just come out of an unprecedented five consecutive season of below-average rainfall exposing vulnerable people to additional risk. About eight million people lack access to adequate food and safe water and sanitation facilities. Drought-induced displacement has increased fivefold since the beginning of 2022. Due to such conditions, the country has been facing severe food insecurity, resulting in increases in food prices combined with an escalation of conflict and displacement.

Agriculture sector is further weakened by Poor access to markets: Access to markets is challenging mostly due to a lack of infrastructure that could stimulate the opening of markets and spur rural and urban development. Insecurity is also a major hindrance to market development and functionality. A lack of surplus local production leads to over-reliance on food imports but also inhibits rural development as it limits market activity in rural, hard-to-reach areas. Market development in terms of putting in place physical infrastructure, establishing a conducive policy environment, and establishment of linkages between producers and private sector (business-to-business linkages) is key to improving market access.

A lack of or limited investment in value addition and value chain development: There is limited agro-processing and value addition in almost all aspects of the food systems. The agro-processing industry is constrained by the shortage of skilled labourers, the high cost of energy, lack of infrastructure, lack of formal credit facilities and limited capacity for innovation and investment. Low agricultural production and productivity and underdeveloped value chains lead to low dietary diversity, malnutrition, and high levels of unemployment especially in rural communities, and particularly for women and the youth.

Other than the production, post- harvest losses is a major challenge that needs to be prioritised. To reduce post- harvest loss, there is need for improved access to innovations applied across main value chains through an evidence- based model and replication of good and best practices remains key.

▪         Proposed response

Piloting simple methods of processing agricultural products to add value to production and reduce post-harvest loses. Due to the climate volatility, farmers need more diverse income to reduce risk of poor agricultural harvests. One way of doing this is by introducing some new technologies that can enhance production and processing of product value-chain. Alight in partnership with GIZ has identified establishing of solar powered tomato paste/puree processing plant as an opportunity of promoting tomato value chain by promoting farmers’ access to market and prevent post-harvest losses. Alight intends to provide training on product processing skills to introduce these technologies to the target groups and provide necessary equipment, tools and machines to help initiate the new enterprises.

2.     Description of the Tomato Processing Activity:

▪  Mandate and scopeofwork:

The scope of the proposed Terms of Reference will focus on the implementation of Activity 2.1.3. Tomato value addition processing in Gobweyn. The project is committed to promoting local value addition, establishing agribusiness cottage industries, and promoting diversification of production of goods and services with an aim of establishing processing business in the villages out of the city of Kismayu. One of the key crops targeted is tomato which is among the high-value crops planted in gobweyn and other villages along jubba River with an estimate of 200Ha of land and over 11,000 farmers. planted in the region. Tomato processing in a riverine area will promote production both during season and the off-peak season às excess production shall be needed to sustain the factory production. The agro-industry project is the first of its kind to be established in Kismayu and although at the onset the plant would focus on tomatoes but is expected to eventually expand its processing to a more agricultural product.

The rationale for the proposed establishment of tomato processing plant in Gobweyn is to support the development of an inclusive and sustainable tomato value chain in Kismaya by increasing value-addition and enhancing technical capacities of Women, thereby enhancing their employability and job/business opportunities. The Tomato paste processing plant is designed to ensure that, the Primary producers (particularly of tomato varieties for processing) have access to market opportunity for their product through value-addition. This output is however linked to GIZ project on improving agricultural production which is currently implemented in partnership with NRC which is expected to work towards ensuring the Primary producers (particularly of tomato varieties for processing) have improved production capacity and quality products suitable for processing.

How it contributes to GIZ’s Results: It does not only create income for direct beneficiaries, but it also provides complementary value to GIZ's outcome of resilient food production implemented by NRC, such that while outcome 1 promotes increased production of selected key food crop & vegetable value, the proposed Agri-processing ensures farmers' access to ready market for those products.

3.     Purpose of the ToR

The purpose of this TOR is to seek Qualified professional training institutions or and individuals with expertise in Tomato Processing and Management skills who are interested and capable in offering their services to local community group in regards to developing Tomato paste products..

4.     Target Beneficiaries:

Although the project will have its impactful services reach to the entire tomato value chain, but the project has identified a group of 12 Women in Gobweyn village who will be target primary beneficiary owners of the proposed processing enterprise. Identification and Selection of the beneficiaries has been done by Alight in close collaboration with GIZ and the local community.

Other beneficiaries who will be impacted by the project are are the first part of the tomato value chain which includes tomato growers either individual farmers, agriculture cooperatives, agriculture companies or fresh tomato suppliers to the factories.

5.     Deliverable outputs

The expert is expected to demonstrate how the proposal will deliver the following outputs

▪          Output 1; Output Indicator; One Tomato Processing plant established and is operational

▪         Output 2: Target Women group and their Human resources involved in the tomato processing plant have acquired new technical and managerial skills as demanded by the sector;

▪         Output 3: The Established tomato processing plant have introduced innovative solutions, processes and/or products, in line with local market demand and with quality that meets local standard.

▪         Consultant and experts who demonstrate an innovative idea of a product with superior market competitive advantage will be highly rated and preferred.

6.  TASK

▪         Component 1: Provide technical advice towards the establishment of a community managed small to medium scale tomato paste processing plant in Gobweyn village.

The consultant will Support establishment of tomato paste production plant by undertaking the following tasks.

-        Conduct short professional course training on Tomato paste processing/making skills in a diversify product portfolio.

-        Provision of Tomato paste making machines preferable of solar-powered and provide Operator training skills for the target Women Group

-        Proposal to Supply suitable product packaging & Branding machines for small scale plant suitable for the target women group. Consulting expert required to provide different options in regards to approach and capacity.

-        Supply and delivery of Product packaging containers and Branding materials Suitable for different quantity of Paste suitable in the local demand including domestic use and hotel industry etc.

-        Test production unit and demonstration operations: the task will include set-up and installation of equipment, machines and establish entire production line. Guide the women in the production of new products on trial and in bulky, ensure target women are well equipped to apply the production skills and technology for the small/medium scale commercial production for revenue generation. Also equipping them of different processing methods both use of hand-made/manual as well as use of machinery or any other good practices of tomato processing.

▪         Component 1: Improved Business partnership management capacities of target women Group

Based on Alight’s previous experience, other than facing low production due to low capital investment, similar groups often fall risk of facing Management related challenges after start and this is common when they have no group constitution; lack of management structure and leadership; absence of resource shairing plan & agreement as well as Partnership Management capacity are some of the major challenges. Thus, considering the fact that, the proposed target women have never got training on business partnership as well as Business management skills, the consultant is expected to Develop/propose a suitable business model and provide Training of Business management and Partnership for a group of 10-12 Women. Strengthening their knowledge on Business records to help them find understand their income statement as well as work on their profit and loss. In adequate capacity to do proper marketing strategy and plans. Other Management related challenges which should be considered during the capacity building is the lack of group constitution; lack of management structure and leadership; Lack of resource shairing plan & agreement. Develop Business Partnership model in consultation with the Group while ensuring measures are put in place to mitigate the risk of conflict that may lead to collapse.

Specific Task of the consultant: Develop/propose a suitable business model and provide Training of Business management and Partnership for a group of 10-12 Women.

N.B: Alight will support facilitation of Group registration and opening of bank Accounts as well as Provision of sustained regular mentorship support services and monitoring progress.

Below are the application requirements as well as the selection and evaluation criteria for a potential host institution.

The interested institutions or technical expert willing to undertake the services are asked to submit to a comprehensive narrative and financial proposal including the following:

•        Profile of the company or CV of the Individual: including a historical background on the organization; mandate and scope of work; available personnel and qualifications; track record in working with and supporting various actors in the tomato value chain and mainly on processing, packaging and branding as well as experience in the development and delivery of trainings (academic and vocational); experience in provision of advisory and consultancy services especially to SMEs and experience in product development /innovation and food technology matters and clearly demonstrating specific experience on designing practical programs related to tomato product processing gribusiness.

•        Annexes and supporting documents including proposal, budget, implementation plans and pictures that demonstrate past experience of undertaking similar task.

Interested applicants should submit their application to below email SMProcurement-[email protected] NOT later than 15th December 2024, 5:30PM EAT. Application submitted past this date and time will NOT be considered.