Institutional Capacity and Business Development Services

Link to Atlas Project

00147926 - SPACE project

Documents

Template CFP
TOR

Overview

  1. Project Description

South Sudan gained its independence in 2011 following a long and protracted civil war. Since then, two significant conflicts broke out (December 2013 and July 2016) plunging the country into a deep economic, social, and political crisis which have undermined the development gains achieved since independence and exacerbated the continuing humanitarian crisis. The country is endowed with vast natural resources and economic potential that has not translated into improved standards of living for the citizens. The agricultural sector plays a major role in South Sudan’s economy, accounting for approximately 15 percent of its non-oil gross domestic production with 80 percent of households depending on cultivation as their primary source of livelihood. Despite South Sudan having huge agricultural potential, it continues to be food insecure, import-dependent, and low in productivity. 

The country's biggest challenges are its weak institutions and state infrastructure. Protected conflict and insecurity meant that economic development and access to finance, especially for MSEs, were disregarded as central issues in the political economy of South Sudan. MSEs, as has been revealed in other African Countries like Kenya, are a key engine for job creation and are essential for South Sudan’s growth and development. However, private sector development in South Sudan is crippled by lack of access to finance for the growth and expansion of the sector. 

The agriculture sector and natural resources of South Sudan are the foundation for economic and social development to satisfy important economic, social, cultural, and political needs of its people.  To avoid food shortages and high commodity prices from spiraling into another conflict driver, it is imperative to boost local production, primarily to augment current supplies and, in the long term, substitute imports. Options for boosting local production include stimulating agriculture-linked value chains and local enterprises to create livelihood and income-generating opportunities, especially for the Country’s predominantly vulnerable populations, women, and youth.  

Producer groups, farming associations, and cooperatives, as well as micro and small enterprises, are vehicles for getting rural populations working together, buying inputs, jointly selling outputs, and accessing goods and services that would allow them to improve practices, reduce post-harvest losses, add value to produce, and ultimately increase incomes. Such farmers or producer-led groups have the potential to play a central role in value chain development and poverty alleviation in rural environments in South Sudan.

The South Sudan Transitional Constitution prioritizes private sector development as a pathway towards recovery, resilience, and peace. It also stresses that equitable economic development should be based on the agricultural and agro-industrial sectors, and the promotion of the private sector within the framework of transparent and accountable governance[1].

It is against this background that UNDP, in partnership with the National Ministry of Agriculture and Food Security and IFAD, with support from GAFSP, is implementing the Rural Enterprises for Agriculture Development (READ) project to improve food security, income, and resilience among targeted rural households.  The primary objective of the project is to empower Rural Producer Organisations (RPOs), Cooperatives (Coops), Village Saving and Loans Associations (VSLAs), and MSEs, as sustainable and resilient value chain players by (i) strengthening their institutional and organisational structures, (ii) improving their business skills for enterprise development, (iii) facilitating access to finance, and (iv) providing them with policy and regulatory support. 

In this regard, UNDP South Sudan is calling for proposals from four (4) interested service providers (National NGOs/CSOs/Firm) in Eastern Equatoria, Upper Nile, Western Equatoria, and Northern Bahr el Ghazal (one IP for each target state) with local/state presence and demonstrated capacity to deliver business development services, financial literacy, experience and sensitivity to gender equality, social inclusion, climate change adaptation and nutrition issues, agriculture value chain-based skills training and expertise in strengthening the institutional and organization structures of APGs, RPOs, VSLAs, SACCOs, MSEs, and Cooperatives. 

 

The delivery of business development services will be through the Integrated Business, Employment, and Innovation Hubs (iHubs) established by UNDP, as well as existing training institutions and centers, in partnership with the private sector and financial institutions.  The project will support existing formalized organizations such as cooperatives and the less structured Agriculture Producers’ Groups (APGs), including women and youth groups, through a graduation approach. The focus is to equip them with the assets and capacities needed to promote equitable and sustainable market linkages for rural producers. The project interventions will be based on identified Agri-value chain sectors informed by Gender, Youth, Climate and Nutrition-Sensitive Value Chain Analysis. The READ project will benefit from the Agricultural Value Chain Studies conducted by UNDP in Eastern Equatoria, Western Equatoria, and Upper Nile State. The READ project will only conduct a Gender, Youth, Climate, and Nutrition-Sensitive Value Chain Analysis in target states where a study has not been undertaken by UNDP. 

 

The selected IP is expected to develop, prepare, and support the project's target beneficiaries of APGs, RPOs, VSLAs, SACCOs, MSEs, and Cooperatives to access matching grants and inclusive rural finance services through an independent financial institution selected by UNDP.  

 

 

  1. Scope of Work

 

  1. Targets

Geographic targets: the primary target group are rural poor smallholder farmers who are reached through membership-based organizations such as agricultural producer groups, agricultural cooperatives, Village Savings and Loans Associations and Savings and Credit Cooperative Organizations. These organizations are the primary channels for reaching the end beneficiaries.