TERMS OF REFERENCE FOR ASSESSING IMPACT OF THE AGRICULTURE CREDIT FACILITY TO FARMERS IN UGANDA
Posted 4 years ago
- Introduction
The contribution of agriculture to feed a growing population, generate employment, earn foreign exchange, and provide raw materials for industries cannot be underestimated. The sector’s contribution to overall GDP was 24.0 percent in 2019/20 compared to 23.1 percent in the FY 2018/19, which is a 0.9 percentage point increase in the share to GDP. In Uganda, the 2016/17 Uganda National Household Survey (UNHS) revealed that the highest percentage of the working population (64.6%) was engaged in the Agriculture, forestry, and fishing industry. According to the Bank of Uganda State of the Economy Report (June,2021), the economy grew by 3.3 percent in FY2020/21 compared to a revised growth of 3.0 percent in FY2019/20 which was driven by agriculture and industry output. As such, availability of agricultural credit offers an opportunity to achieve the potential and stimulated development in the sub programme to the benefit of farmers.
- Background to the Agriculture Credit Facility
The Agricultural Credit Facility (ACF) was set up by the Government of Uganda (GoU) in partnership with Commercial Banks, Uganda Development Bank Ltd (UDBL), Micro Deposit Taking Institutions (MDIs) and Credit Institutions all referred to as Participating Financial Institutions (PFIs). The Scheme’s operations started in October 2009, with the aim of facilitating the provision of medium- and long-term financing to projects engaged in Agriculture and Agro processing, focusing mainly on commercialization and value addition. Loans under the ACF are disbursed to farmers and agro-processors through the PFIs at more favorable terms than are usually available under conventional loans. The scheme is administered by the Bank of Uganda (BoU) and its operations are guided by the Memorandum of Understanding (MoU) signed by all the stakeholders. The GoU is represented by the Ministry of Finance, Planning and Economic Development (MFPED). The scheme operates on a refinance basis in that the PFIs disburse all the loan amount required by a client and seek for a re-imbursement from BOU.
- Statement of work
There is widespread recognition of the need to boost productivity and value addition in agriculture; however limited access to credit is one of the major deterrents to achieving this in Uganda. The Civil Society Budget Advocacy Group (CSBAG) has been keenly engaging on the need for well-tailored ACF to invest in inputs and insurance cover to help farmers when they experience adverse natural or business circumstances as well as mechanization of agriculture. It is against this background that CSBAG seeks to undertake an assessment of the effectiveness of the ACF towards promoting agriculture production and productivity especially for farmers. Evidences generated from this aanalysis will inform CSBAG’s advocacy agenda towards influencing policy change in in improving agricultural credit financing.
- Specific Terms of Reference
Terms of Reference for this assessment are:
a) Establish funds allocated to the ACF and the existing disbursement mechanism to farmers for a period FY 2018/19 – FY 2021/22.
b) Evaluate the funding and financing arrangement of ACF and its effectiveness in improving farmer production and productivity.
c) Document evidence on the impact ACF has had on promoting agriculture production and productivity over the years – Support this with number and category of benefitting farmers
d) Assess the effectiveness of the ACF approach in comparison to other existing agriculture loan packages by financial institutions. If any reforms have been introduced over the years on how to make ACF more accommodative to agriculture/farming, these should be documented
e) Identify key gaps and challenges stifling the effective performance of agriculture credit facility and propose policy recommendation to inform CSBAG’s advocacy agenda for policy change.
- Time frame and Expected Outputs and Deliverables
The analysis will be undertaken in a period of 20 working days after signing the agreement and the consultants will be expected to submit:
a) An approach Memo detailing interpretation of these TORs, methodology and workplan
b) Draft Report for review/validation
c) Final approved report
- Expected Competencies
a) Excellent knowledge of Public Finance Management (PFM) practices and principles in Uganda.
b) Practical knowledge and experience with CSO advocacy approaches
c) Proven experience in public policy analysis
d) An excellent understanding of the agricultural sector dynamics in the region and latest trends.
e) A Master’s degree in Agricultural economist will be an added advantage.
- Supervision and Support Requirements
The consultant will be reporting to the Executive Director, directly on this assignment but will have close working relationship with the Budget Policy Specialist.
- Submission of proposals for the tasks
CSBAG is inviting Proposals for implementation of all outputs and activities as specified in this Terms of Reference.
i. Interested consultants are requested to submit Technical and financial proposals in Uganda Shillings:
ii. The proposal should contain:
a. Description of the understanding of the tasks, including comments on the TORs.
b. A clear description of the methodology to be followed, to achieve the desired objectives.
c. Work plan and Time scheduling of information gathering and other activities.
d. CVs of the consultant/s
e. A budget proposal, including staff time cost, direct expenses, reimbursable expenses
- Application Process.
Interested candidates should submit their application letter, updated CVs, technical and financial proposals and references for similar work conducted previously to the Executive Director, Civil Society Budget Advocacy Group (CSBAG), email: hr@csbag.org Cc: jakello@csbag.org P. O. Box 660, Ntinda Kampala, Uganda, Plot 11 Vubya Close Ntinda – stretcher road by 5:00pm 25th January 2022.
Job Features
| Job Category | procurement |
