10013553-Pool of experts for implementation of inclusive Contract Farming (iCF) schemes

Description

The BMZ commissioned project "Strengthening Rural Value Chains" has received a co-financing from the Gates Foundation to develop a robust, competitive and inclusive horticulture sector in Ethiopia, Kenya and Uganda, in alignment with the implementation of the Ethiopia National Horticulture Strategy (ENHS) and the CEHA National Chapters in Kenya and Uganda. By strengthening fruit and vegetable value chains (in particular avocado, onion and potato), the project seeks to drive sustainable job creation, income growth, improved nutrition, and enhanced regional trade integration across the COMESA and EAC regions. The primary target group consists of small-scale producers (SSPs), with particular emphasis on women and youth aged 18-35, as well as agribusinesses engaged in production, aggregation, value addition, exports, and domestic market supply. The project focuses on enterprises with strong growth potential in structured domestic, regional, and international markets, while addressing systemic constraints faced by women and youth, including limited access to finance, technical skills, productive resources, and market opportunities. In addition, the project works closely with producer organizations, cooperatives, industry associations, and private-sector service providers in areas such as finance, insurance, climate-resilient inputs, innovation, and sustainable farming solutions. The project is built around two complementary intervention areas. The first focuses on strengthening inclusive business models through inclusive Contract Farming (iCF) schemes and investor readiness support. Small-scale producers will be professionalized and integrated into sustainable markets through partnerships with aggregators, exporters, and other off takers. The project promotes improved access to quality inputs, advisory services, finance, and reliable markets, while supporting contracting enterprises to strengthen governance systems, operational efficiencies, and internal controls. Depending on the maturity of the enterprise, investor readiness support may include business model strengthening, financial management improvements, governance support, and access-to-finance facilitation. This approach enables agribusinesses to become more creditworthy, scalable, and resilient, while simultaneously improving market access and income opportunities for SSPs. The project also supports the development of domestic, regional, and export markets to diversify market opportunities and reduce vulnerability to market shocks. The second intervention area focuses on strengthening key market institutions and the enabling environment for the horticulture sector. The project supports the implementation capacities of the ENHS and the CEHA National Chapters in Kenya and Uganda, as well as their member associations. Horticulture sector associations will be strengthened to improve governance, service delivery, market information provision, collective marketing, and advocacy for conducive policy and regulatory frameworks. Enhanced institutional capacity will enable these organizations to better represent sector interests, influence policy reforms, and provide more effective services to their members. Addressing constraints simultaneously at micro, meso, and macro levels will improve sector competitiveness and create sustainable economic opportunities. By combining inclusive contract farming, investor readiness, market systems development, and institutional strengthening, the project is expected to increase the integration of small-scale producers into formal markets, improve access to finance and services for agribusinesses, strengthen sector coordination, and enhance the resilience and competitiveness of the horticulture sector.

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