Call for proposals: Chili value chain development in Tanzania's Southern Highlands

Call for proposals: Chili value chain development in Tanzania's Southern Highlands

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Terms of reference for developing the chili value chain for smallholder farmers in Tanzania’s Southern Highlands


1. General

1.1 Background

Rikolto is an International network organisation with over 40 years of experience in partnering with food chain stakeholders in Africa, Asia, Europe and Latin America. We build bridges of trust and trade between the food industry, governments, research institutions, financial institutions and farmers’ organisations around one central question: ‘What will we eat tomorrow?’

Rikolto’ s global strategy is directed towards structural changes in the agri-food system and upscaling of well-functioning practices and policies that unlock the farming potential of a critical mass of smallholder farmers. Clear structural change/up-scaling agendas are agreed upon for which specific strategies and actions are developed. This is followed by design of concrete interventions in pilot chains in order to experiment, learn and build evidence to influence the agreed changes.

Rikolto in East Africa secured funding from European Union under the AGRI-CONNECT Programme for a 4-year horticultural programme in Tanzania, which aims to improve and increase market competitiveness in the sector supplying both domestic and international markets. This will run from 2020 to 2024 covering five regions in Tanzania’s Southern Highlands, specifically Iringa, Katavi, Njombe, Mbeya and Songwe.

1.2. Objective of the assignment

In the framework of its AGRI-CONNECT programme, Rikolto wants improve and increase efficiency and availability of different business development services to smallholder horticulture farmers. We are especially targeting business development services to facilitate linkages in terms of production, access to market, and financing. Rikolto strives to work with service development providers to ensure the development / promotion of the chili value chain as a household income generating activity as well an employment opportunity for youth and women in Tanzania’s Southern Highlands.

With this assignment, Rikolto aims to build private sector engagement in the African Bird Eye Chili value chain in Iringa, Njombe, Mbeya, Songwe and Katavi by forging a matching cooperation between interested business development service providers and Rikolto to work together to develop this sub-sector. The focus will be piloting market access / contract farming, learning of best practices on subsector development, establishing the best mechanisms of access / availability of quality seed, extension service delivery and farming technology application with an ultimate goal to increase income and nutritional benefits to rural families and private sector/SME development.

1.2 Specific Objectives

The overall objective of this assignment is the engagement of the private sector to develop and promote the chili value chain in Iringa, Njombe, Mbeya, Songwe and Katavi.

The following are the specific objectives:

  • Farmer access to market for produced chilies through contractual arrangements in five regions of Mbeya, Iringa, Njombe, Songwe and Katavi
  • Farmer access to farm inputs, quality seeds and post-harvest technologies to improve quality of produced chilies in five regions

2. Assignment details

2.1 Scope of Work

Within the framework of the matching grant facility, Rikolto can provide up to 40% of the budget required to facilitate the development of chili value chain in the five mentioned regions. The facility will be relevant for Business Development Service Providers (BDSP) interested in making business relations with famers working in the subsector through access to market, resolving production bottlenecks, export market challenges, technologies for irrigation and drying as well as quality control. By its nature the facility will kickstart the business relation with farmers and the interested BDSP will submit the technical proposal and total budget of the engagement within 20 days from the announcement date.

2.2 Role and Responsibilities of the BDSP

During the delivery of the assessment, the role of the BDSP will be:

  • Improve the production line through steady supply of quality seeds as per your product market requirement of which can be through reliable third party/input service provider.
  • Provide agronomic support by working with LGA Extension system, input companies and make buying plans with farmers so that they can meet chili market requirements timely.
  • Influence training and learning through organized learning sessions during farmer field events and agriculture shows to influence the adoption and scaling up farming technologies among farmers.
  • Make commitment through contracting with farmers and support them through collective marketing and quality control.
  • Pilot sustainable chili drying technologies among farmers by constructing at least 4 drying centres in production clusters.
  • Also facilitate the availability of best technology on postharvest handballing which can be used at individual level preferably best tools for harvesting and packaging to avoid skin contamination and irritation.
  • Intensify the extension services availability to farmers, through building a system which will enable easily accesses to required agronomic pastises and quality control of the produced chili.

3. Requirements for this call for proposals

  • Share technical proposal detailing how the firm is planning to promote chili value chain in the target regions.
  • Sharing a proposal and budget with the Rikolto technical team showing the areas of intervention and how it will help both farmers and BDSP to benefit from the engagement for future business sustainability.
  • In the proposal, clearly show how contractual arrangements and support to farmers will be done.
  • Sharing the details of the proposed team to be involved in the program and how will they be supported.
  • Provide relevant business licenses and other accompanied document legalising the engagement of your organisation in doing business.
  • Clear commitment for co-funding of 60% on proposed budget.

4. Implementation Plan/Project timeline

Rikolto will provide a contract for one year 2022/2023 and is subject to extension upon successful performance of the programme.

5. Qualifications and Experience

We are seeking for BDSP or buying company working with African Bird Eye Chili value chain, experience on export marketing and capable of providing BDS services to farmers.

6. Procedure to apply

Qualified firms are invited to submit their Technical and Financial proposal together with the following documents (also see section 3):

  • Cover letter
  • CVs of team including reference details of previous clients
  • Samples of 2-3 similar previous work pieces preferably working with NGOs to support smallholder farmers/contract farming experience

Send your proposal via email to eastafrica [at] by 10 March 2022 and indicate the source of advertisement and the title of the assignment in the subject line.

Full Terms of Reference in pdf

Please note that the deadline has been extended to 10 March 2022.