Assessment of the Economic and Commercial Viability for three farm blocks in Zambia


  • SOLICITATION NUMBER: 0002008822
  • INSTITUTION:  IFC
  • ASSIGNMENT LOCATION: Zambia
  • ISSUE DATE AND TIME: May 08,2024 05:51
  • CLOSING DATE AND TIME: May 21,2024 23:59

IFC — a member of the World Bank Group — is the largest global development finance institution focused on the private sector in emerging markets. We work in more than 100 countries; using our capital; expertise; and influence to create markets and opportunities in developing countries. Our mission is to leverage the power of the private sector to end extreme poverty and promote shared prosperity in a sustainable way. For more information; visit www.ifc.org <http://www.ifc.org/> .The IFC 3.0 strategy aims to stimulate more investment activity across emerging markets; especially in Low Income Countries (LICs) and Fragile and Conflict affected States (FCS). Our goal is to create; deepen; and expand markets and design and develop impactful investment projects. This strategy is; in part; premised on improved country/sector diagnostic; strategic; and public sector engagement capabilities; which seek to: 1) resolve obstacles to private sector growth via diagnostic and strategic work that informs both IFC operations and relevant IBRD/IDA policy operations; and 2) overcome the shortage of investable projects in priority markets by proactively improving the private sector ecosystem at the country and regional level.About the Zambian Farm Blocks and the ProjectThe Government of Zambia (“GoZ”) initiated the Farm Blocks program in 2002; aiming to commercialize agriculture; attract private sector investments; increase export opportunities; and create agro-based jobs. The GoZ launched ten Farm Blocks to attract private sector investments for large-scale integrated agribusiness investments. The general concept of the farm block comprises a core venture; large; and medium and small-scale farms operating under an out-grower arrangement. Since its launch in 2002; the farm blocks program has faced challenges and of the ten planned farm blocks; only three; namely Luswishi; Nansanga; and Luena; have seen partial success. The limited interest is due to information gaps and infrastructure constraints and require advisory and financing support to GoZ. The information gaps relate to regulatory framework; demand analysis; feasibility studies; and environmental and social assessments. The GoZ has requested IFC’s advisory services to support the implementation of the Farm Blocks initiative; enabled by upstream interventions; with a view to creating an enabling framework to unlock new private sector investments. The interventions are aimed at boosting the development of integrated climate smart agro-industrial developments to improve food security and exports. Specifically; the IFC will provide support to the Ministry of Agriculture and Zambia Development Agency to assess the viability/feasibility of the 3 partially functioning Farm Blocks; including assessment of any constraints to investment in these blocks; with a view to developing a roadmap for enhancing their performance. IFC is therefore; looking to engage a competent and resourceful consulting firm to carry out a needs assessment and Diagnostic study of the three stated Farm Blocks (Nansanga; Luswishi and Luena) by conducting a needs assessment to assess the economic and commercial viability and sustainability of the 3 partially functional farm blocks. This will also include a comprehensive assessment of strengths and weaknesses and identification of any potential deal breakers with strong focus on investment. ObjectiveThe overarching objective of the assignment is to undertake a comprehensive assessment of the viability/feasibility of the 3 partially functioning farm blocks; including an assessment of challenges; opportunities; and investments potential in targeted value chains within these blocks; supporting infrastructure such as warehousing; with a view to developing a roadmap for enhancing the performance of the 3 farm blocks. Specifically; the assessment which will be done in close collaboration and partnership with Ministry of Agriculture; and Zambia Development Agency will cover 4 broad areas:(i)   Detailed site assessments of the 3 farm blocks to analyze the strengths; weaknesses; opportunities and threats; list development issues and challenges and the identification of any fatal flaws or deal breakers. (ii) Assessment of the suitability of the legal; regulatory and incentives framework governing the development of the farm blocks; as well as land commercialization framework. The review will identify. gaps and proposed recommendations to address the legal and regulatory gaps; and structuring of the incentives framework. (iii) Business case development through market demand assessments; to determine industry/sector focus; market potential and forecast investment demand and value proposition to investors. This will include market testing and targeted investor surveys to identify potential investment opportunities; and to generate a potential investor pipeline for the farm blocks. (iv) Develop a comprehensive roadmap with a phased approach including actions and reforms necessary to unlock the potential for the 3farm blocks. This will include a benchmarking exercise with countries within and outside the region to ascertain best practice. These recommendations are to become the basis for advisory work by IFC.  PART 1: Assessment of the Economic and Commercial Viability of the Three Farm Blocks    The specific tasks are:        I.   Detailed site assessments: This will build on the environmental and social assessment findings undertaken under a separate TOR. The task will entail an analysis of the 2 farm blocks. 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