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SOS Children's Villages Zambia

TERMS OF REFERENCE FOR A CONSULTANT TO UNDERTAKE A COMPLETE MARKET RESEARCH ON
LIVELIHOOD OPPORTUNITIES IN NDOLA/MASAITI DISTRICTS

1\. Introduction

SOS Children’s Villages is a childcare organisation whose mission is to build
families for children in need, help them shape their futures, and participate
in the development of their communities. The organisation seeks to improve the
lives of children who are at risk of losing parental care, or those that have
already lost it. SOS Children’s Villages Zambia looks after children who have
lost parental care through the Alternative Care programme, whilst those who
are at risk are looked after through their guardians with support from the
community-based Family Strengthening Programme.

SOS Children’s Villages Zambia seeks a consultant or consulting agency to
conduct a market analysis on the Copperbelt and investigate the market chains
for selected livelihood options (selected goods/services/natural resource
products) in Ndola and Masaiti Districts. The consultant will be responsible
for providing an in-depth analysis of the livelihood options and their market
opportunities for the target communities. The study report will guide future
interventions that enhance the livelihoods of the target beneficiaries and
communities and contribute to the conservation of the natural resource base.
The study will focus on identifying the sustainable market potential for
selected livelihood options/products, determining strategic entry points into
identified markets, and highlighting the capacity needs of local
communities/beneficiaries in entrepreneurship and business management.

2\. Background

Understanding the market is crucial when it comes to setting up businesses;
and conducting a market research has been recognized as critical in ensuring
that products and services are designed to meet the needs of a specific
segment. The Government of the Republic of Zambia has recognized that starting
with a market research in economic strengthening Programmes is one of the
elements of success, as with skills training, clearly outlining the market
opportunity before a project begins, to ensure the market is not already
saturated. Therefore, the Government through the Ministry of Youth, Sport and
Child Development has set ‘starting with market assessments’ when implementing
economic strengthening activities as one of the standards in the National
Standards and Guidelines for Services and Programmes for Orphans and
Vulnerable Children in Zambia (2016). Economic activities should be based on
market assessments, to ensure that the intended economic strengthening
activity responds to existing local and global political, technical, socio-
cultural, and economic situation while ensuring environmental sustainability.

The SOS Family strengthening (FS) in Ndola and Masaiti Districts are
implementing the economic strengthening activities to ensure that programme
participating families (caregivers and youths) have Income Generating
Activities (IGAs) to enable them have sufficient income to meet the basic
needs for their children and young people. IGAs involve working with groups of
caregivers (or, in some cases individuals) to design a project that produces
income to be shared among group members or generate personal income. The
programme targets vulnerable families with children at risk of family
separation and those who have already lost parental care. The current
catchment areas are Mackenzie, Chipulukusu, Nkwazi, Kaloko communities in
Ndola District, and Shimibange in Masaiti District.

3\. Rationale for the study

The viability of the market, coupled with specific training and provision of
start-up inputs through a financing arrangement enables several producers to
continue sustainable enterprises after the initial project phase. In order for
households to increase production and income, there must be sufficient market
and business case for the livelihood, meaning generating income that is
greater than the costs. The Economic Strengthening Program design should be
based on sound market analysis, as it is important to identify relevant or
growing markets for products and services with which to link vulnerable
children, their caregivers, or their communities. Conducting the market
research will help provide answers to questions on demand, supply, profit
margins and suitability of a livelihood option for the target beneficiaries:

> Is there a market for the product? How big is the market?
> What is the price for the production in the market? How is pricing affected by different factors such as greater competition or increase in production?
> What is likely to happen in the future to this market? Will it grow? Will it disappear?
> Are there any market opportunities that the disabled can take advantage of?
> Are there any effects of COVID-19 on the market? If so, what are they, and how can we overcome them?

4\. The Assignment

The market research to be conducted should bring out the three main criteria
that determine the viability of a livelihood:

I. Marketability to determine whether there is sufficient demand for the
livelihood. This market research is expected to help identify marketability
and provide information on competition, pricing points, demand, quality
requirements, and future potential for the livelihood.
II. Feasibility to determine whether the good or service can be produced
without any harm. The market research should help examine a range of factors
affecting production, including availability of land, natural inputs such as
water, other inputs such as extension services, as well as skills needed to
develop the livelihood. The assessment should also provide an indication of
the impact on the environment and natural resources of the livelihood option,
and whether there are any risks in terms of climate change on the future of
production levels.
III. Acceptability of the options in the local context, as well as
practicality for the participant to successfully engage in the livelihood.
Cultural sensitivity may relate to gender relations or social status that
allows or prevents certain groups from carrying out certain activities such as
selling goods in a market. Practical considerations involve assessing how much
extra time a livelihood activity will involve and whether this places an
unacceptable additional burden on women, children, or on people living with
disabilities.

5\. Objectives of the Market Research/Analyses

The main objectives of the study are as follows:

5.1. In consultation with local communities, select priority livelihood
options (also considering natural resource products) for analysis
5.2. Identify profitable, sustainable opportunities to sell goods or services
and for improved efficiency, pricing, market access, etc.
5.3. Conduct market and value chain analysis of selected goods and services to
determine sustainable market potential, opportunities for value addition and
the necessary policies and systems to support such enterprises.
5.4. Highlight strategic entry points and undertakings for enhanced community
participation in the market from the natural products trade.
5.5. Identify capacity gaps of local communities in sustainable harvesting,
utilization and marketing of natural resource goods and services.
5.6. Provide recommendations for enabling the optimum utilization of the
products.

6\. Activities

6.1. Conduct preliminary community consultation at the inception level to
identify the products for analysis through participatory approaches
6.2. Develop brief inception report detailing key questions and approach for
agreed products

6.3. Research and identify potential local, domestic and export market
opportunities for natural products from the region and determine ways in which
to best penetrate the selected markets. This should include:

a. Mapping and description of key markets including composition, key players,
characteristics, distribution and sales channels (e.g. local markets) and
potential points of opportunity or barriers to entry and growth
b. Description and analysis of current market positioning including product
gaps, supply and demand considerations (i.e. values and volumes, quality
standards), expected size, trends and values for each
c. Identification of opportunities for value addition, supply chain and
distribution synergies and gender-specific development opportunities
d. Any other considerations as considered by the consultant and SOS-Family
Strengthening team.

6.4. Develop a list of livelihoods following the three steps process

6.5. Conduct detailed strategy assessment of key markets including;

a. SWOT or similar analysis of identified products/livelihood options, and
market opportunities
b. Any relevant success stories and case studies to highlight approaches from
other products/region
c. Key partnership opportunities, business development and training needs and
opportunities
d. Policy issues (e.g. levies) and supporting information requirements
e. Discussion of financial and credit considerations (e.g. revolving funds
from cooperatives).

7\. Expected Outputs

I. Inception report outlining approach and plans for the consultancy
(including community consultation processes).
II. A market and value chain analysis of selected goods and services
(inclusive of natural resource goods) available including :
a. Description of key markets, including market composition maps and key
players
b. SWOT analysis for key markets
c. Strategic recommendations and action plan for the Family strengthening and
local partners.

It is expected that from the Market research, a final list of right
livelihoods options will be provided after a careful screening process that
reduces a long list of options to a final short list of livelihoods. The three
steps process should be followed in developing the list of livelihood options:

I. Create a long list: All livelihoods options possible, now and in the future
should be listed and this includes products that may be a by-product or
additional service needed in a value chain, for example, organic fertilizer (a
by-product of keeping livestock). This list should be checked for any known
risks, such as negative impact on women or children (for instance forcing them
into labour) or environmental destruction, so that they can be eliminated. In
short, the long list should break down each livelihood by product or service;
identify complementary products or inputs; identify services (sorting,
cleaning, transport); and remove high-risk options for vulnerable groups such
as women, children, and people living with disabilities.

II. Assess a short list: The short list of livelihoods options may contain 15
– 30 options, which look possible, and need to be evaluated for their
profitability and viability. The listed options should be examined for
viability including:
a. Marketability: Is there sufficient demand for each product?
b. Market saturation: What effect does an increase in supply of the product or
service have on demand and price?
c. Market access: Where are the buyers for the product or service? Can
programme participants/beneficiaries access these buyers?
d. Feasibility: Can the vulnerable households in extreme poverty produce the
good or service where they live on a regular and on-going basis, and without
destroying natural resources?
e. Acceptability: How acceptable is the option in the context? Does it
sufficiently change social norms that are at the root cause of poverty,
disempowerment and inequality?
f. Risk: What are the risks affecting this livelihood? How do these risks
affect production and selling or marketing this product or service?

III. Generate the final list of livelihood options: It is expected that every
option in the short list will be evaluated for its business potential. Based
on the market, production, and risk information, the expected should be
calculated:
a. Profit: How long will it take the livelihood to generate a profit for each
household? How much profit can the household expect for the first 18 months of
this livelihood? Note that the profit is gross income (or sales) minus
expenses (costs).
b. Return on Investment: How long will it take the livelihood to begin
generating an income? Is this soon enough for the household to generate the
income it needs to cover its expenses. (Recommended timeframe is 3-6 months).
c. Other costs and resource requirements: What are the costs involved in
providing this livelihood package and do these fall within the programme
budget? What other resources, such as space or inputs, are needed?

8\. Duration and Timeline

The study is anticipated to begin by 1st July 2020. The entire work shall be
expected to be completed in 25 days from the signing of the contract. This
period includes fieldwork and reporting. Should the prospective consultant not
be available on the start date indicated above, he/she may also propose an
alternative start for the study in written. Family Strengthening team and the
local partners in the communities will be available to assist in the field
whenever needed.

9\. Consultant Qualifications and Experience

The consultant will be a an enterprise expert with at least a master’s degree
in the relevant field such as Entrepreneurship, Enterprise Development,
Business Administration, and Economics with over 10 years progressive working
experience with proven skills in conducting elaborate market studies and
business planning.

10\. How to apply

Interested persons should submit the following documents:

(i) Submit TPIN certificate or tax clearance (either one will be accepted)
(ii) a brief write-up on his/her interpretation of the TORs;
(iii) a work plan for the activity;
(iv) CV and
(v) Financial proposal

The above must be addressed to the undersigned;

The Tender Box
The Procurement Officer
SOS Kitwe
Kitwe

Submission should be in sealed envelope clearly marked “consultancy to
UNDERTAKE a COMPLETE MARKET RESEARCH ON LIVELIHOOD OPPORTUNITIES IN
NDOLA/MASAITI DISTRICTS”

No electronic submission shall be allowed.

The closing date of proposal submission will be Tuesday 30th June 2020 at
14:00hrs



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Email:: elastol.lungu@sos-zambia.org


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