Global Alliance For Improved Nutrition (GAIN)- Request For Proposal For Improving The Capacity And Access To Funding For Micro-, Small- And Medium-Scale Enterprises Along The Value Chain For Biofortified Cassava And Maize In Nigeria

DEADLINE: 28TH JUNE, 2021
GLOBAL ALLIANCE FOR IMPROVED NUTRITION (GAIN)
REQUEST FOR PROPOSAL
IMPROVING THE CAPACITY AND ACCESS TO FUNDING FOR MICRO-, SMALL- AND MEDIUM-SCALE ENTERPRISES ALONG THE VALUE CHAIN FOR BIOFORTIFIED CASSAVA AND MAIZE IN NIGERIA

(1.0) PROJECT BACKGROUND AND SCOPE OF WORK

ABOUT GAIN AND HARVESTPLUS
The Global Alliance for Improved Nutrition (GAIN) is a Swiss-based foundation launched at the UN in 2002 to tackle the human suffering caused by malnutrition. Working with both governments and businesses, we aim to transform food systems so that they deliver more nutritious food for all people. At GAIN, we believe that everyone in the world should have access to nutritious and safe food. We work to understand and deliver specific solutions to the daily challenge of food insecurity faced by poor people. By understanding that there is no “one-size-fits-all” model, we develop alliances and build tailored programmes, using a variety of flexible models and approaches. We build alliances between governments, local and global businesses, and civil society to deliver sustainable improvements at scale. We are part of a global network of partners working together to create sustainable solutions to malnutrition. Through alliances, we provide technical, financial and policy support to key participants in the food system. We use specific learning, evidence of impact, and results of projects and programmes to shape and influence the actions of others.

At HarvestPlus, we believe that hidden hunger should not be inevitable for the people most at risk. We break down silos between agriculture and nutrition to develop creative solutions to hidden hunger. Our food-based approach targets some of the most vulnerable populations around the world. We use a process called biofortification, which adopts conventional breeding to improve crops. This approach complements other nutrition interventions, and is evidence-based, cost-effective, and sustainable. We work across the entire value chain to develop and deliver nutrient enriched seeds, grains and foods to the people who need it the most via a large collection of innovative and traditional supply chain activities. HarvestPlus is part of the CGIAR Research Program on Agriculture for Nutrition and Health (A4NH). CGIAR is a global agriculture research partnership for a food secure future. Its science is carried out by its 15 research centres in collaboration with hundreds of partner organizations.

GAIN and HarvestPlus share an ambition to expand coverage of biofortified nutrient dense foods to at least 190 million consumers by 2022, realizing a higher reach of up to three times this (600 million) from the initial investment by 2028. The current focus will be on biofortified varieties of six highly promising crops, developed by HarvestPlus and its partners. These crops form the frontline cluster of sentinel nutritious staple crops to be considered for commercialisation at scale by the partnership. We define commercialisation – the priority delivery approach – as the process of introducing a product into commerce or making it available in the market, rather than producing solely for family consumption.

In May 2018, HarvestPlus and GAIN launched a landmark partnership to accelerate progress in improving access to biofortified seeds, grains and foods via commercial channels with the Commercialisation of Biofortifed Crops (CBC) programme. The CBC programme works with national partners to catalyse commercial markets for biofortified crops and foods in six countries with pervasive levels of malnutrition: Bangladesh, India, Kenya, Nigeria, Pakistan, and Tanzania. Initial funding for ths program is from Germany’s Federal Ministry of Economic Cooperation and Development (BMZ) and the Dutch Ministry of Foreign Affairs.

The partnership brings together two leading actors in the global nutrition space. It combines the deep expertise of HarvestPlus in all aspects of biofortification with GAIN’s proven track record of working with fortification and food companies to create sustainable market models for nutritious food systems.

The Commercialization of Biofortified Crops (CBC) programme is designed to scale up the commercialization of biofortified foods. The activities of the programme aim to achieve the following three goals with a sound evidence-based footing:

(1) Improve access to inputs and markets for biofortified seeds and food products by: identifying and overcoming barriers to access and acquisition of biofortified seeds, accelerating business development along the supply chains, and ensuring iterative research and development services are opened to link consumer and processor needs to continued crop and product modification.

(2) Generate demand for these nutrient-rich staple crops using a demand creation approach that taps into the rational and emotional drivers of consumer choices for nutrient rich staples.

(3) Improve the enabling environment for biofortified seeds and food products through advocacy, catalytic financing, and technology licensing services.

(2.0) BACKGROUND
As part of this work, GAIN and HarvestPlus are jointly issuing this Request for Proposals (RFP). GAIN will be the administrative lead organisation for this RFP.

The purpose of this RFP is to engage services of a Service Provider to develop and implement a comprehensive strategy targeted at micro-, small- and medium-scale enterprises (MSMEs) across the value chain for biofortified cassava and maize to build capacities on efficient business management practices to make businesses bankable and investment ready, and improve access to funding in selected states in Nigeria.

(2.1) FINANCING OF SMALL AND MEDIUM SCALE ENTERPRISES IN NIGERIA
Nigeria is one of the largest economies in Africa, and home to different businesses, ranging from micro, small, medium, and large enterprises. These enterprises play a vital role in the growth and development of the Nigerian economy. Food enterprises in Nigeria are dominated by small and medium scale businesses, with specialization in production and processing of food commodities consumed across homes in Nigeria.

According to the Central Bank of Nigeria, SMEs are broadly defined as businesses with turnover of less than N100 million per annum and/ or less than 300 employees. The Bank of Industry (BOI) further classified SMEs based on the number of staff, assets, and annual turnover. According to BOI, microenterprises have less than 10 employees, an asset of less than 5 million Naira and an annual turnover of less than 20 million Naira; small scale enterprises have 11 to 50 employees, an asset of less than 100 million Naira but greater than 5 million Naira and an annual turnover of not more than 100 million Naira. On the other hand, medium enterprises have a staff strength of more than 51 but less than 200 people, a total asset of more than 100 million Naira but less than 500 million Naira and an annual turnover of not more than 500 million Naira; while large-scale enterprises have values higher than these.

According to NDHS 2018, approximately 66% of Nigerian children are at risk of vitamin A deficiency due to a lack of diversity in their diets as a consequence of poverty. Ensuring food and nutrition security is one of the most pressing challenges for sustainable social and economic development in Nigeria. Meeting this need presents an important opportunity for tackling malnutrition. Diets of rural Nigerians are particularly poor, and many Nigerians currently experience vitamin and mineral deficiencies leading to severe health outcomes including premature and preventable death especially in under 5-year-olds.

GAIN and HarvestPlus understand that micro to large scale enterprises are key to national growth and development and will collaborate to support the commercialisation of biofortified cassava and maize in Kaduna, Niger, Nasarawa, Oyo, Osun, Anambra, Cross River and Imo states. Specifically, they will work with key businesses along the cassava and maize value chains to build their capacities and scale up production and utilization of these crops.

To date, GAIN, HarvestPlus have developed implementation plans for both biofortified crops and we commissioned an assessment to understand the gaps that impact businesses from accessing funds in Nigeria. We found that the key issues affecting the SMEs in the country. can be grouped into four categories namely:

• Unfriendly business environment,
• Poor funding,
• Low managerial skills, and
• Lack of access to modern technology.

Additionally, SMEs are more likely to face funding gaps because they are small and do not have adequate financial structures in place. In addition to this, most MSMEs have poor management structures and exhibit key main risks which makes financial institutions reluctant to lend to them. As a recommendation for businesses, the need to form participant/borrower’s groups improves chances of accessing funds in addition to capacity support on best practices.

(3.0) OBJECTIVES
The main objective is to develop and implement a strategy targeted at micro-, small- and medium-scale enterprises (MSMEs) across the value chain for biofortified cassava and maize to build capacities on efficient business management practices to make businesses bankable and investment ready, and improve access to funding.

The scope of this work will focus on Osun, Anambra, Cross River and Nasarawa States for vitamin A cassava (VAC), and Imo, Kaduna, Niger, Oyo for Vitamin A Maize (VAM) while utilizing findings from our previous research work.

The specific objectives are to:
(1) Develop and implement a strategy that will build capacities of MSMEs across the value chain for biofortified cassava and maize in selected states and facilitate making these businesses investment ready.

(2) Support selected businesses, to improve efficiency in business management practices and growth to achieve commercialization of their biofortified food products.

(3) Facilitate linkages between MSMEs across VAM and VAC value chains with institutions that provide financial and or agro-credit facilities to improve access to funding for businesses.

The Service Provider should propose how the above-mentioned objectives would be met based on their expertise and team structures.

(4.0) SCOPE OF WORK AND DELIVERABLES
(4.1) SCOPE OF WORK

The successful applicant shall provide the following services:

• Develop a detailed strategy for review and approval by GAIN and HarvestPlus.
• Carry out all aspects of the strategy, including capacity development support across the eight states, including production of training materials and other activities as detailed in the strategy.
• Draft monthly progress reports on all activities.
• Draft a final report, including overview of the strategy, activities, results, and future recommendations.

(4.2) DELIVERABLES AND TIMELINE
The timeline for completion of all aspects of the Scope of Work and submission of deliverables is outlined in the following table:

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