Investment Readiness Expert- TEREN Agro

NIRAS

CONSULTANCY OPPORTUNITY

Title: Investment Readiness Expert- TEREN Agro
Locations: Lilongwe
Expected Period: February 2025 – June 2025
  1. CASA PROGRAMME OVERVIEW

As a programme funded by the UK’s Foreign, Commonwealth and Development Office (FCDO) – International Climate Finance (ICF), CASA demonstrates the business case for global and national investment in climate-resilient agri-food systems that increase smallholder farmer incomes. The programme facilitates increased investment in agribusinesses by demonstrating the commercial and development potential of inclusive business models with smallholder farmer supply chains. CASA achieves this by:

  • Demonstrating the commercial viability – and building the investment-readiness – of small and medium-sized (SME) agribusinesses with smallholder farmer supply chains
  • Helping impact and return-oriented investors to increase the impact of their investments through the provision of inclusive technical assistance
  • Strengthening the voices of smallholder producers (especially of women in agribusiness decision-making) and their positions within supply chains (through improved offtaking or aggregation arrangements), and
  • Filling the information, evidence and learning gaps holding back investment.

To demonstrate the commercial and development potential of business models with smallholder farmer supply chains, CASA Component A (Market Systems Development), implemented by NIRAS and Swisscontact, pilots catalytic interventions within agricultural value chains in Ethiopia, Malawi, Nepal and Rwanda (and formerly Uganda) that support agri-SMEs to prepare for and secure investment while connecting smallholder farmers to commercial markets and building their resilience in the face of climate change.

  1. ASSIGNMENT BACKGROUND

Several challenges hamper the overall productivity of the aquaculture sector here in Malawi. One of the most persistent challenges is limited access to quality feed – feed accounts for about 60 to 80% of total production costs in aquaculture production – as most feed is still imported from Zambia, while locally produced feed, although a little cheaper, is still unaffordable and  inaccessible to poor farmers across the country.

CASA has facilitated a tripartite partnership between TEREN Agro, a local manufacturer of floating fish feeds, and MlimiPay, an innovative payment solutions company, to address the underlying problem and make high quality fish feeds more accessible and affordable. The partnership will also enable TEREN Agro and MlimiPay to effectively collaborate in the provision of quality inputs and extension and advisory services on favourable terms to the smallholder fish farmers with whom the partnership will work. The two companies will work with smallholder farmers from Lilongwe and surrounding districts, which are easily accessible to the two Lilongwe-based companies, through legally binding contractual arrangements.

Through this tripartite partnership, TEREN Agro will expand its customer base while reducing feed delivery costs. By aggregating input orders and delivering them directly to farming communities, TEREN Agro will be able to achieve cost-effective distribution at no additional expense to the farmers. As this partnership serves as a pilot initiative to establish a commercially viable expansion model, TEREN Agro plans to onboard more smallholder farmers, invest in warehousing facilities, and introduce an affordable lay-buy scheme. To support this effort, CASA Malawi is seeking an Investment Readiness Short-Term Technical Assistant (STTA) to help develop a comprehensive and commercially sustainable investment plan.

About TEREN Agro

TEREN Agro Limited, a subsidiary of TEREN Investments, was established by Temwanani Phiri and Taziona Chigwe. The company initially focused on trading soya beans but diversified into livestock feeds in 2023, including floating fish feeds for tilapia. It was incorporated in 2022. With grant support, TEREN Agro invested in machinery to increase production capacity by 900% to 1 tonne per hour. In 2023, the company is projected to have a turnover of MK361 million (£270,482) and employ seven people. The company is positioned for growth in the aquaculture sector and is seeking to collaborate with motivated partners.

About MlimiPay

MlimiPay Limited, established in 2021 by Stanislaus Sakwiya, is a Malawian fintech company that is transforming the agricultural sector through the provision of digital financial solutions. Mr Sakwiya, the company’s sole shareholder, is supported by a team of four. MlimiPay’s core product offerings include the Mlimi Digital Wallet, which enables smallholder farmers to purchase farming inputs in instalments via mobile money, thereby ensuring price stability and bulk savings. MlimiPay currently has 1,000 active users and plans to add a further 1,000 smallholder fish farmers and 5,000 dairy farmers to its customer base. During the 2022/23 financial year, the company facilitated payments for over 240 tonnes of inputs, with a total value of £184,359. Furthermore, the company provides the Mlimi Digital Advisor, which offers agronomic guidance and weather updates to farmers.

  1. OBJECTIVES AND SCOPE OF ASSIGNMENT

In line with activity 4.2.5 and budget lines 15 and 16 of TEREN Agro and MlimiPay’s project business plan, the primary objective of this consultancy assignment is to provide expertise, supporting TEREN Agro in preparing an investment plan for their feed manufacturing business which will guide the company in seeking the right kind and amounts of investment for its projected needs. The assignment will concentrate on achieving the following specific objectives:

  • Conduct a business process analysis for TEREN Agro that will also include the feasibility of using MlimiPay’s services for aggregating payments for feed and improving distribution efficiency. The results of this analysis will guide the development TEREN Agro’s business and investment plan;
  • Develop a comprehensive Business and Investment Plan for the company focussing on its feeds manufacturing and marketing operations;
  • Develop investor communication tools to assist TEREN Agro in seeking the right type of investment;
  • Produce regular progress reports and outputs for the assignment; and,
  • Adhere to the Standard Operating Procedures (SOP) manual and other relevant requirements of NIRAS Malawi.
  1. DUTIES AND RESPONSIBILITIES

The Investment Readiness will work closely with TEREN Agro, under the overall supervision of the CASA Market Manager for aquaculture. The objective is to prepare TEREN Agro as an attractive destination for third party financing that will foster its growth. The specific duties of the Expert will include the following:

  • Inception report, outlining a detailed methodology for the assignment.
  • A Business Process Analysis Report containing an analysis of the current state of efficiency and profitability of TEREN Agro’s feeds processing and marketing operations and the feasibility of incorporating MlimiPay’s digital services in the operations.
  • Business and Investment Plan fully guiding the company´s expansion plans
  • Investor communication tools to be used in attracting third party investment
  • An assignment completion report outlining the activities carried out as part of the assignment.

Deliverable Timelines

# Deliverable Work-Days
1 Inception Report 0.5
2 Training report 2
3 Feasibility Study Report 4
4 Business and Investment Plan 15
5 Investor Communication Tools 3
6 Assignment Completion Report 0.5 
  1. ASSIGNMENT MANAGEMENT and DURATION

a. Duration

Expected Start Date: February 2025.

Expected End Date: June 2025.

b. Assignment Days

Up to 25 Workdays

c. Reporting Lines

The consultant will report to the TEREN Agro´s senior management team, with oversight from CASA´s Market Manager for Aquaculture

6. REQUIREMENTS and EXPERTISE

Key qualification and field of expertise for the ideal expert are:

  • Possession of at least a bachelor’s degree in business, finance, accounting, economics, mathematics, or any other relevant fields. Those with master’s degree in the same field will have an added advantage;
  • Strong analytical skills with a deep understanding of financial concepts;
  • Excellent organizational and time management skills;
  • Excellent writing and oral communication, listening and interpersonal skills with the ability to deal tactfully and diplomatically with a wide range of people combined with an appreciation of the importance of confidentiality;
  • Willingness to take on new tasks at short notice and travel frequently to remote places if need be;
  • Ability to make decisions regarding own work, often in ambiguous situations and suggest recommendations regarding own function/discipline.
  • Ability to function with minimum guidance and under pre-set procedures with attention to detail; and
  • Able to exercise independent judgment within defined policies and practices.
  1. MODE OF APPLICATION

Applicants should send an Expression Of Interest comprising the following:

  1. An EOI submission letter outlining suitability for the role and stating preferred daily rate in GBP (maximum two pages)
  2. A proposed methodology for the assignment (Maximum 4 pages)
  3. Up to date CV suitably tailored to the TORs concentrating only on relevant experience. Emphasis will be placed on consultancy experience in the last 10 years (Maximum 3 pages)

Applications will be evaluated on a rolling basis and we will settle for the first suitable candidate we get even before the deadline.

Applications should be received by 16th February 2025. Send applications to RHCH@niras.com. Indicate the position being applied for in the subject line.