Food Security and Development of Agricultural Markets

Background:

South Sudan has experienced persistent conflict during the last decades with an upsurge in violence starting in December 2013. A peace deal was signed in August 2015, but has so far only partially been implemented. The conflict and its corollaries have affected any aspect of life: levels of primary production and processing, trade, and education are extremely low, infrastructure is either inexistent or dilapidated, and trust is a rare currency. State services are weak or completely absent. Even though South Sudan has the natural endowments to feed its population, about 4.6 million are currently severely food insecure, another 3.3 million are estimated to be moderately food insecure (about 2/3 of the population).

In order to sustainably overcome the precarious levels of food insecurity, agricultural production and productivity needs to be re-established and increased in a sustainable way. In this perspective both natural resources preservation and economic rationality require a close attention. The population’s resilience capacity should be balanced in regard of financial risks linked to investments. Market relations also need to be revived or be newly established. Technical and entrepreneurial capacities of existing or potential private sector actors are to be developed to contribute to those aims. The program ‘Food Security and Development of Agricultural Markets (FSDAM)’ of which the assignment will form part, aims at improving food security of vulnerable households in targeted regions of South Sudan through stimulating agricultural market development.

Purpose and scope of the consultancy:

1) Increasing agricultural production and productivity;

2) Increasing incomes and promoting rural economic cycles;

3) Improving nutritional status;

4) Increasing the stability of food security and capacities to cope with fragility.

The interventions to be implemented by refer to area 2) and 4).

A rapid appraisal to assess the initial situation is part of the assignment. Target districts are primarily, but not limited to Yei, Morobo, Magwi, Yambio and Nzara (Greenbelt).

Management of incubation and innovation grants and development of accompanying services:

Its expected to manage grants for start-ups and for reorganizing existing MSMEs. This includes the selection of recipients, if appropriate on the basis of business plan competitions.

Its foreseen to develop, test and provide accompanying services as well as to strengthen service delivery capacities of local actors. Services should ensure competent preparation and on-the-job coaching of MSMEs and start-ups and include financial literacy, strategy consulting (business model and market development), and management consulting (business plan development; risk and market analysis; cost, financial and risk management). In order to facilitate market access, trainings on how to improve negotiating competencies and to create and maintain business relationships, on legal requirements, quality guidelines and food safety as well as labor and social standards are to be developed and provided. Local actors able to deliver theses services in the long-run shall be identified and trained. Exploring options of how access to investment capital, technologies and technical equipment can be provided in the long run is also part of the assignment.

Establishment of Agricultural Business Centers:

In order to increase incentives for producer organisations and traders to engage in local production and trade, the World Food Programme (WFP) has built 11 warehouses in the Greenbelt. FSDAM cooperates with WFP and has contracted EAGC HQ to assist the private operators managing these warehouses (contract expires on April 30th, 2016). The objective is to gradually transform these warehouses into service centers, capable of delivering support and operational services to trigger increases in production, improvements of trader capacities and the establishment of processing facilities.

Its expected to provide intensive advice and coaching to these warehouse operators to help them implement and potentially redefine their business models and to ensure they provide demand-oriented quality services.

Organizational development of Eastern Africa Grain Council, South Sudan Chapter:

The South Sudan Chapter of EAGC has been founded in January 2013, but could only be formally registered in 2015. It is now staffed, but still in its infancy and not yet capable of fulfilling its role. Its expected to support the South Sudan Chapter in becoming functional.