The African Agriculture and Trade Investment Fund’s (AATIF) mission is to realise the potential of Africa's agricultural production, manufacturing, service provision and trade for the benefit of the poor. AATIF aims to provide additional employment and income to farmers, entrepreneurs and labourers alike. Increasing productivity, production, and local value addition by investing in efficient value chains and providing knowledge transfer are paramount.
Within the framework of Rwanda’s development program “Vision 2020”, the Development Bank of Rwanda (BRD) seeks to catalyse USD 2.3 billion in investments over five years. Of this total amount, BRD intends to allocate nearly USD 12 million to the agricultural sector in the first program year (2018).
In view of BRD’s Agricultural Strategy for 2020, this technical assistance project aims to support the Bank’s agricultural portfolio growth while at the same time ensuring a good quality. The objective of this consultancy is therefore to provide support to the Bank in specifying financing needs and suitable products it should offer in the agricultural sector, as well as identifying training needs of the Bank in topics permitting the effective provision of the required credit services to the actors at all levels of the value chains.
Value Chain Analyses:
- Description of the key value chain segments including a description of the main activities and the main players. For the primary sector also a farmer segmentation will be made;
- Analysis of the present situation focusing on the economics of the value chains, determining unit costs, market prices and margins of farmers, collection centres, farmer organisations (FOs), transporters, processors and exporters;
- Key risks & mitigants at the different stages of the value chain;
- Determination of the investment needs required at the different levels of the value chains;
- Identification of target clients in terms of their size and performance of the enterprise, the market share in a certain region using the situation in the respective main producing regions as examples;
- Recommendation on suitable types of credit and credit conditions;
- Identification of suitable ways to disburse and manage loans to the various value chain actors, especially considering forms of indirect credit disbursal via farmer organisations (FOs) or other marketing organisations;
- Data provision (gross margin and cash flows) that can be used as benchmarks for investment decisions by farmers, collection centres, FBOs, transporters, processors and exporters;
- Introduction of the sectors to, and sharing the key findings of each sector document with BRD staff.
- Analysis of the present situation of the Bank’s poultry portfolio, including portfolio aging, restructured loans, foreclosures and written off cases for characterization and identification of the status quo;
- In-depth review of at least 20 loans in the poultry portfolio, including loan application process, the pertaining internal credit analysis documents, risk assessment, terms & conditions;
- Financial and business case analysis of the selected loans for identification and assessment of key risks, cross-checking with results of the VCA.
- Recommendations for potential loan-product redesign and improved loan assessment and development of other supporting tools such as benchmarking key KPIs.