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(Zambia Agribusiness and Trade Project) Call for Proposals – Producer Organisations

Call for Proposals – Producer Organisations

Download Business Proposal Template

 Are you a Cooperative or any active Producer Organisation with a winning business proposal or business idea?

We are looking for Business Proposals/Business Models based on strong concepts or innovative ideas and high potential development impact and strong financial sustainability!

The Ministry of Commerce, Trade and Industry (MCTI) through the Zambia Agribusiness and Trade Project (ZATP) invites Business Proposals from Cooperatives/Producer Organisations. Specifically, the project supports Cooperatives/Producer Organisations in rural communities and surrounding areas of the following provinces and districts:

Lusaka Province: Lusaka, Chilanga, Chongwe, and Kafue

Eastern Province: Chipata, Lundazi, Katete and Petauke

Central Province: Kabwe, Kapiri Mposhi, Chisamba and Mumbwa

Copperbelt Province: Ndola, Kitwe, Lufwanyama and Mpongwe

Southern Province: Livingstone, Choma, Monze and Mazabuka

The ZATP aims to increase market linkages and firm growth in Agribusiness in Zambia, by working with Producer Organisations and Agro SMEs. The Project supports small scale and emerging farmers or producers of agro products (mainly food) to sustainably and commercially link into commercially viable value chains based on agreements with larger end markets.

The Project aims to achieve this by facilitating the formation of ‘Productive Alliances’ that bring together producers and buyers into medium to long term commercial relationships.  The project support focuses on strengthening the linkage between producers and buyers in commercial alliances, through the provision of core inputs, productive investments, technical assistance and business development services.

The support is structured in a way that the Alliance has the potential to be self-sustaining over the medium to long term, even after the Project has ended.

What You need to Know

Who can participate?  

The Project supports smallholder producers (emerging and poor farmers) from selected districts of Zambia, who are Zambians, domiciled in the subproject areas and are organised into self-governing groups of commercially oriented Producer Organisations (POs). These are selected based on their Proposals and Plans, which show their potential to increase their productive capacities to meet buyer volume, quality and consistency requirements. However, they must also meet the following requirements:

  • Have at least two years of experience in the productive activity proposed for the alliance;
  • Be registered formally as an organisation, including some form of business registration to enable them to legally do business in Zambia and possibly beyond.
  • Be both willing and able to identify viable interventions for building a productive alliance with their specific buyers/off takers;
  • Be market oriented and willing to be assisted to be linked to specific markets, with specific agreements, having established (or potential) demand from the private sector or public sector for the types of products and services they are offering;
  • Have a track record of success in group enterprises and good governance practices.
  • Develop a viable business/sub-project proposal and financing plan, based on a sound organisational profile that includes evidence of:
    • a cohesive group which is in good standing with registration authorities and having no less than 1o paid up members willing to participate;
    • No previous history of fraud or illegal activity;
    • No current or active grants from donors or government, to ensure that assistance goes to those who actually need it; and
    • Financial stability and capacity to match the competitively allocated grant financing as per grant financing guidelines of 30%: 70% match.
  • Exhibit signs of basic financial health, including a commercial bank account for their operations, keep financial records, prepare (or have assistance in preparing) fully disclosed cash-flow statements, and clearly defined basic financial management practices as required in the Laws of Zambia: such as the Societies’ Act, Cooperatives Act and/or Companies’ Act, whichever are applicable.

Examples of the types of Producer Organisations (POs) that are targeted are: Cooperatives, District Business Associations, District Farmers’ Associations and Community Based Organisations that have business registration.

In the profiles submitted, individual members of such potential beneficiary POs/PA’s will need to be:

  • smallholders, whose land holding is less than 5 ha for small scale and between 6 and 20 ha for emerging farmers. Their major source of income should be from production/harvesting and sale of commodities from this and communal land;
  • producers of crop, livestock, aquaculture or non-timber forestry commodities, working together in the production of one (or one set of) commodities to an agreed set of market requirements as determined and should be in active discussion with a buyer or buyers;
  • willing to agree on the commodity, the common approaches, standards, quantities, delivery mechanisms required under the proposed productive alliance as discussed in agreement with the buyer; and
  • non-public servants and Zambians living in the district and area of the subproject.

What will the Project Support?

The project will provide the following assistance:

  1. Market brokerage: Linkages to new and high value markets to enable farmers get better prices and earn assured incomes.
  2. Matching Grants for the acquisition of productive inputs and small infrastructure investments that will enhance the productivity and market position such as irrigation equipment, transportation, packing facilities or storage facilities
  3. Complementary infrastructure investments to enhance productivity of POs and unlock more local areas which have economic potential and therefore facilitate the creation of more Productive Alliances. As such, the project will fund small scale basic access or rehabilitate market infrastructure.
  4. Technical assistance including mentoring and coaching

Eligibility Criteria for Applicants

Project assistance will be through organised groups of small – scale and emerging farmers/other producers of crops, livestock, aquaculture and forestry products, who have:

  • The Commitment to be market focussed, and willing to be assisted to link to specific markets, with specific agreements;
  • A good track record of performance success in group enterprises and good governance practices; and
  • A record of financial accountability.

How to Apply

Proposals should be submitted in writing and soft copy to the Regional Facilitators who are situated at the following addresses:

Copperbelt Province:      1st Floor One Stop Shop, Nchanga House, President Avenue, KITWE

Southern Province: One Stop Shop Offices, along Mosi-O-Tunya Road-LIVINGSTONE

Eastern Province: ZESCO/ZANACO Building, 2nd Floor off Perirenyatwa Road, CHIPATA

Central Province: Room 2.7, Second Floor, Mukuni House, KABWE

Lusaka Province: One Stop Shop, 1st Floor, Kwacha House Annex, Cairo Road, LUSAKA

Or through the Project Office at 3rd Floor, Kwacha Pension House, Corner of Church Road and Tito Roads.

For more information, please email the Agribusiness Specialist on info@zatp.org.zm and copy ljere@zatp.org.zm and gmakayi@zatp.org.zm.  You may also send a text/sms or WhatsApp +260 977817517 or call the Project Office on +260 211 220422.

Please note that the Proposal Templates are available at all Regional Offices listed above or may be downloaded on www.zatp.org and www.mcti.gov.zm

Deadline for Applications:  Friday July 17th, 2020

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