Consultancy to develop a Regional Value Chain strategy for Rwanda in the Context of implementation of the AfCFTA At Deutsche Gesellschaft für Internationale Zusammenarbeit
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Expression of Interest (EoI)
Consultancy to develop a Regional Value Chain strategy for Rwanda in the Context of implementation of the AfCFTA
1. Introduction
The Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH is a federally owned international cooperation enterprise for sustainable development with worldwide operations. GIZ has worked in Rwanda for over 30 years. The primary objectives between the Government of Rwanda and the Federal Republic of Germany are poverty reduction and promotion of sustainable development. To achieve these objectives, GIZ Rwanda is active in the sectors of Decentralization and Good Governance, Economic Development and Employment Promotion, Energy, and ICT (Information and Communications Technology).

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2. AfCFTA Background
After only 3,5 years of free trade negotiations amongst all 55 African countries, the African Continental Free Trade Area, in brief, AfCFTA, was established. The AfCFTA was operational-ised on 30th May 2019, 30 days after Sierra Leone and Sahara Republic deposited the last two necessary ratifications with the African Union (AU) for the AfCFTA to legally come into force for the ratifying countries. This landmark agreement offers significant promise for the continent’s transformation. The number of countries that have signed the Agreement currently stands at fifty-four (54) and as at 6th February 2022, forty-one (41) countries had deposited their instruments of ratification.

Through the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ), Germany currently provides technical support to the African Union Commission (AUC), specifically to the Economic Development, Trade, Tourism Industry, Minerals (ETTIM)Department of Trade and Industry (DTI) and the AfCFTA Secretariat, with its project “African Continental Free Trade Area (AfCFTA)”. The project’s main objective is that “the framework conditions for intra-African trade have been strengthened”. Besides the outstanding topics of AfCFTA Phase I on Trade in Goods and Trade in Services, phase II negotiations such as Investment, competition policy or digital trade are supported. Furthermore, involvement of the private sector and civil society are supported. To this end, the project pursues a multi-level approach on the continental level working with the AUC DTI ETTIM and AfCFTA Secretariat, the regional level supporting Regional Economic Communities (RECs), and the national level, specifically in the projects focus countries, like Rwanda.

Regional value Chains Context under AfCFTA
The AfCFTA is perceived as a platform that would facilitate a process of inclusive structural transformation of African countries, contributing to meeting Africa's Agenda 2063 Vision. In this process, the Free Trade Agreement would also help Africa to make progress in implementing the 2030 Agenda and Sustainable Development Goals. After years of limited intra-regional trade, which have been serious constraints to inclusive growth and development, African countries have an opportunity to leverage the potential of the AfCFTA to accelerate their industrialization efforts and greatly improve their economic well-being.

The AfCFTA will support economic diversification and industrialization in the continent Africa by expanding markets for consumers and capital goods as well as drawing together capacities from a variety of countries. This would no doubt, however, require a greater degree of specialization between nations and the exploitation of economies of scale, with the pursuit of regional value chains providing an entry-point for policy action. However, the design of policy actions for the development of regional value chains requires upfront a careful mapping of opportunities for more integrated industrialization in the continent.

Regional value chain development, on one hand, whilst it emphasizes potential for enhancing economic integration based on improved specialization, anchored on the efficient exploitation of resource endowments, comparative and competitive advantage (i.e. capabilities, capacities and skills) of Rwanda) it also provides a framework for systematic analysis of factors that prevent investment and growth. The regional industrial value chains would revolve around deepening regional integration, fostering a competitive business climate across the region and the continent, boosting prospects for improved regional infrastructure investments, reliance on special economic zones and balanced growth of regional economies, as natural resources are optimally exploited.

Rwanda, like many African countries, firm productivity remains low across sectors and Rwanda remains dependent upon foreign aid as a source of foreign exchange. Therefore, there is need to develop regional value chain strategy to inform policymaking, planning and investment in Rwanda on a National level, regional level on how to leverage the country, region and continent’s rich and diverse natural resources to drive a resource driven industrialisation programme/strategy for the nation. This will in the medium- to- long-term strengthen the prospects for enhanced manufacturing capacity in Rwanda, hence, marking a transition from commodity dependence towards high value creation industrial production for enhanced income growth.

3. Objectives.
• The overall goal is to conduct an Assessment and develop a regional value chain roadmap as a prelude to more active continental value chain participation by small and larger firms to allow Rwanda to capitalize on both import and export opportunities.
• Enhance knowledge among Rwanda policymakers, experts and private sector on requisite value chain development process for fostering and strengthening regional supply and value chains.

4. Specific objectives
• To assess Rwanda’s growth of regional and continental value chains and give an overview of the current state of its supply chain trade. The study/assessment will look at intra-regional and continental trade within three priority value chains namely edible oils, pharmaceuticals and textile and conclude with recommendations of where and how Rwanda can integrate into the AfCFTA edible oils, pharmaceuticals and medical devices, and textile value chains.
• To support Rwanda with the development of the recommendations or strategy to be part of these regional VCs to meet industrial development needs in the region & continent and make the most of the opportunities posed by the new agreement on the AfCFTA among the three priority value chains.
• To identify comparative and competitive advantages for industrial production in Rwanda, given its resource endowment and existing and potential technological / industrial capacities and suggest spatial allocation of primary production, value addition and markets across boarders in the EAC & Africa region; among the three priority sectors.
• To compare Rwanda’s integration progress into EAC supply value chains with the goal of highlighting the experience to inform the recommendations on how Rwanda can further improve supply chain trade in the region and through the continent.
• To provide initial cost assessments of the value chain or specific products development under the identified value chains, clearly showing the approximate capital and operating expenditures for specific products within the integrated value chain.

5. Tasks to be performed by the contractor
The study will provide specifications of what can be found in Rwanda, in the region and continentally as well as the investment required to add value in the mentioned sectors. The analysis should provide the understanding of the links and synergies between regional value chains and the regional integration. The analysis should further demonstrate the value chain and supply chain, and clearly illustrate where and how Rwanda can position itself within these value chains.
The export opportunities presented by the Continental Free Trade Area call for the urgency to enhance industrial development through intra-regional trade. The study will specify the types of linkages either backward or forward to be undertaken by Rwanda to participate in continental value chains and the countries to engage. It is important to indicate the impact of the regional value chain in positing Rwanda to take advantage of the global value chains and examine Rwanda’s engagement in regional value chains.

The work to be carried out should focus on:
• Assess the current state of the regional value chains in edible oils, pharmaceutical and medical devices, and textile sectors.
• Produce a full mapping of pre-selected value chains today
• Demonstrate the existing supply chain and value chain development of the three sectors;
• Develop recommendations to promote value chain development of the three sectors and Determine the current potential in Rwanda within the three sectors, specifying where along the value chain Rwanda can be situated;
• Based on the current potential, determine what can be provided strategically to the region by Rwanda and what can be found outside Rwanda;
• Assess Rwanda’s integration into the AfCFTA edible oils, pharmaceutical and medical devices, and textile value chains
• Assess obstacles and constraints to regional value chains, including on financing gaps, investment and equity requirements, and logistics needs among others.
• Develop a RVC Study for Rwanda in the selected priority areas. This will define roles and responsibilities for the implementation of the scaling up strategy, as well as recommended policies and measures to enhance competitiveness.
• Conclusion and strategic recommendations

Contract deliverables
The contractor is requested to produce the following concrete deliverables:
1. Preliminary report/study by August 31st2022
2. Final report on 30th September 2022

6. Period of Assignment
The assignment is expected to be implemented within the period 1st July 2022 to 30th September 2022 for 30 working days.

7. Proposed Workplan
Milestones Deadline
Start of contract 1st of July 2022
Kick off meeting with MINICOM and GIZ, presenting approach and process (including final inception report after kick off meeting) 1st or 2nd week of contract
Conduct a needs assessment, incl. interviews relevant stakeholder; Private sector, etc. 15th August 2022
Development and Submission of first draft of the Assessment report and Regional value Chain Study. 31st August 2022
Presentation to stakeholders and Submission of draft Assessment report and Regional Value Chain Study. 7thSeptember 2022
Submission of the Assessment report and the Regional Value Chain Study to MINICOM 20th September 2022
Preparation and facilitation of validation workshop 29th September 2022
Finalization and submission of final RVC Study. 30th September 2022

8. Personnel concept
Qualifications
• University master’s degree in economics, law, trade or similar
• Excellence in the analysis of trade and manufacturing value added (MVA) data
• Solid experience in value chain analysis
• Familiarity with best practices in Rwanda 's approach to policy advice
• Experience with regional industrial analysis and policy support in Rwanda
• Excellent English writing skills
• Full working availability during July – September 2022 .
9. Inputs of GIZ
GIZ will cover printing and logistics for hotel costs for validation meetings ( if held physical)

10. Submission and Evaluation of Expression of Interests
EoI will be evaluated based on the following criteria:
• Company or individual profile,
• Relevant experience,
• Company strategies to assure agility, flexibility, and responsiveness,
• Personnel and,
• Financial offer

The consulting firm shall submit written technical and financial proposals. The technical proposal should not be more than 12 pages and must include but not be limited to:
• A detailed workplan
• The CVs of relevant staff and consultants
• Quality control measures
• References to similar assignments
• Company registration certificate
• Tax clearance certificate

Financial offer must include;
• The consulting firm is responsible for the costs of the consultants’ accommodation, feeding and travel and must be included in the financial proposal
• The arrangement for pre- and post-assessment, printing of materials, as well as report writing and submission, are all contractual duties of the consulting firm and must be included in the technical and financial proposals
• The Financial Proposal indicates the contract price, supported by a breakdown of consultancy fee per day + all other costs such us (if needed) daily allowance, accommodation expenses. The cost must be in RWF and VAT excluded.

Submission Procedure
Please submit electronically your EoI (technical & Financial offer) in 2 separated PDF files to this email: RW_Quotation@giz.de until latest 2nd June 2022
Please you must write in your email subject this sentence:
EOI number 83409608 - submission of technical& financial offer,
without this sentence, your offer may not be considered
Hard copies are not allowed this time
Job Info
Job Category: Tenders in Rwanda
Job Type: Full-time
Deadline of this Job: 02 June 2022
Duty Station: Kigali
Posted: 20-05-2022
No of Jobs: 1
Start Publishing: 20-05-2022
Stop Publishing (Put date of 2030): 20-05-2056
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