25/10/2024
CONSULTANCY TERMS OF REFERENCE
Title: Outgrower and Inputs Credit Facility Contracts Expert
Locations: Nkhotakota and Salima
Expected Period: November 2024 to December 2024
Persons Responsible: Kennedy Phiri (Market Manager); Innocent Thindwa (Country Manager)
CASA PROGRAMME OVERVIEW
CASA is an FCDO-International Climate Finance (ICF) funded programme driving global investment for inclusive climate-resilient agri-food systems that increase smallholder incomes. CASA makes the case to impact and return-oriented investors for increased investment in agribusinesses that work with smallholder supply chains. The programme achieves this goal by:
- Demonstrating the commercial viability and investment-readiness of small and medium-sized (SME) agribusinesses with significant smallholder supply chains.
- Helping investors to increase the impact of their investments through the provision of inclusive technical assistance.
- Strengthening the socio-legal empowerment of smallholders within value chains.
- Tackling the information and evidence gaps holding back investment.
For demonstrating the commercial and development potential of smallholder sourcing models, CASA focuses on catalytic interventions in the agriculture sectors of Ethiopia, Malawi, Nepal, and Rwanda that support agri-SMEs prepare for and secure investment while connecting smallholders to commercial markets.
CASA’s work on research and communications is structured around identifying constraints, opportunities and addressing evidence gaps through research; shaping the debate on smallholder agriculture to influence actions of investors, governments, and donors; and creating networking opportunities through events and stakeholder engagement.
ASSIGNMENT BACKGROUND
CASA has partnered with Nkhotakota Steadfast Cooperations for Youth (NS4Y) to implement a project entitled Commercialising Aquaculture for Better Market Access by Smallholder Farmers. The partnership aims to leverage NS4Y’s existing fish processing capacity and market for fish products by ensuring a reliable and volume supply of fish produced by smallholder farmers through the expansion of their fish purchase scheme to include contract farming and input credit financing for smallholder farmers. At the same time, the partnership aims to empower smallholder farmers to increase their production and income by linking them to NS4Y’s purchase scheme, which will facilitate smallholder farmers’ access to technical aquaculture production expertise, quality inputs, input credit financing and more profitable and reliable markets for their production.
Through the project, CASA will support NS4Y to expand the procurement and marketing of tilapia and catfish to supply the targeted urban market in Lilongwe City and the towns of Nkhotakota and Salima. This will be achieved via the establishment of a contract farming and pay-as-you-grow (PAYG) inputs credit financing models which will among other features employ the use of digital payment systems for repayment of input loans and payment of sales proceeds. NS4Y will contract 100 smallholders in a pilot phase, and depending on the success of the pilot, 900 more smallholders will be contracted in a scale up phase. In order to successfully support the partner in this regard, CASA Malawi is now seeking the services of a Legal Expert to draft outgrower and inputs credit facility contracts, for the contracted farmers.
About Nkhotakota Steadfast Cooperations for Youth
Nkhotakota Steadfast Cooperations for Youth is a local company based in Nkhotakota district in the central region of Malawi. The company was established in 2019 but was formally registered as an unlimited liability partnership on 29 May 2021.
NS4Y’s main activities revolve around the processing of various agricultural products sourced from smallholder farmers in Nkhotakota and surrounding districts. Their product range, which is distributed in Lilongwe city, Nkhotakota and Salima towns, includes milled and packaged rice, smoked fish, dried fish and fresh packaged fish.
OBJECTIVES AND SCOPE OF ASSIGNMENT
The main objective of this assignment is to provide technical support to NS4Y by drafting legal instruments that will be used in formalizing the PAYG arrangement between NS4Y and the smallholder farmers. The expert will work closely with the NS4Y and CASA programme team to establish a legally binding and commercially symbiotic relationship. Specifically, this will include:
- Assessing of the scheme to establish terms and conditions to be met by all parties;
- Incorporate strategies in the legal documents, to minimize default on the repayment of input credit
- Drafting contracts that will be used in formalizing the PAYG arrangement between NS4Y and the smallholder farmers
- Preparing periodic progress reports and outputs for relevant project interventions in accordance with communication guidelines and needs; and,
- Complying with the Standard Operating Procedures (SOP) manual and other relevant requirements of NIRAS Malawi.
DUTIES AND RESPONSIBILITIES
Under the overall management of the CASA Market Manager for aquaculture, the Outgrower and Inputs Credit Facility Contracts Expert will support NS4Y by drafting contracts that will include both parties´ obligations, ensuring a mutually beneficial commercial relationship between NS4Y and the smallholder farmers.
The specific duties of the Expert will include the preparation of the following:
- Inception report, outlining a detailed methodology for the assignment.
- Draft contracts, comprehensively outlining all the terms and conditions of the input credit financing facility and all other relevant obligations for both parties.
- An assignment completion report outlining the activities carried out as part of the assignment with recommendations for improvement.
Deliverable Timelines:
1 Inception Report: 0.5 Man-Days
2 Draft Contracts: 3 Man-Days
3 Assignment Completion Report: 0.5 Man-Days
ASSIGNMENT MANAGEMENT and DURATION
a. Duration
Expected Start Date: 18th November 2024
Expected End Date: 30th November 2024
b. Assignment Days: Up to 4 Workdays.
c. Reporting Lines
The consultant will report to the CASA´s Aquaculture Market Manager Aquaculture.
REQUIREMENTS and EXPERTISE
Key qualification and field of expertise for the ideal expert are:
- Possession of a bachelor’s degree in law, or any other relevant fields. Those with specialised commercial law qualifications will have an added advantage;
- Prior proven experience in developing contracts in the agriculture/aquaculture sectors
- Excellent analytical and research skills;
- Ability to analyze legal issues and think critically about different aspects of any potential cases that might culminate with regards to smallholder farmer contracts
- Excellent writing and oral communication, listening and interpersonal skills with the ability to deal tactfully and diplomatically with a wide range of people combined with an appreciation of the importance of confidentiality;
- Willingness to take on new tasks at short notice and travel frequently to remote places;
- Ability to make decisions regarding own work, often in ambiguous situations and suggest recommendations regarding own function/discipline;
- Ability to function with minimum guidance and under pre-set procedures with attention to detail; and
- Able to exercise independent judgment within defined policies and practices.
TERMS OF PAYMENT
As per NIRAS-LTS norms and mutually agreed during the signing of the contract.
Note: This term of reference can be amended by the CASA Malawi Team as necessary without prior notice.
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