Enhancing Last-mile Agri-input Networks and Services in Isiolo, Samburu and Marsabit Counties.

Program Background

The RANGE program is a 5-year initiative funded by the Embassy of the Kingdom of Netherlands (EKN). The program is implemented by a Consortium of three partners that includes Mercy Corps, FCDC and the Faculty of Geoinformation Science and Earth Observation, The University of Twente, in ASAL counties of Marsabit, Isiolo and Samburu. The program aims to strengthen communities’ resilience to improve sustainable economic and social development in a well-managed landscape.
RANGE proposes an integrated package of activities and interventions that will; strengthen rangeland management and encourage regenerative practices, ensuring migratory and sedentary livelihoods can peacefully co-exist; improve herd management and market access for small-scale producers; strengthen the institutions and policy frameworks that govern the livestock sector, and prioritize the development of robust spatial-temporal data sets to strengthen outcomes and help mitigate the impact of climate change and prevent further land and rangeland degradation.
The program has four integrated outcomes with mutually reinforcing interventions integrated across the thematic areas led by the different consortium partners with gender and diversity mainstreaming embedded in all outcomes;

1. Improved rangeland management repairs ecosystem health and increases food, nutrition and water security
2. Sustainable livestock and alternative livelihood production and competitiveness of markets strengthened within an improved policy environment.
3. Improved linkages among and between communities and government structures to support collaboration on economic, environmental and social issues promote stability and sustained development.
4. Strengthened Research and evidence-based programming contribute to impactful project implementation, effective coordination, early warning and early action, innovation and learning for resilient ASAL communities.

RANGE is employing a Market Systems Development (MSD) implementation approach to stimulate sustainable large scale systemic change. This involves establishing private sector partnerships with multiple system actors to catalyze the supply productivity enhancing Agri input. Through co-investment with private sector partners, intensified and sustained pastoral and Agro-pastoral production will be improved and the competitiveness of markets strengthened.

Objective of Call for Applications

The objective of this call for applications is: To expand and improve last-mile private sector Agri-input supply and services for male and female farmers in selected wards of Isiolo, Samburu and Marsabit counties.
RANGE is welcoming applications from existing Agri-input companies (importers, wholesalers, other input distributors or retailers) who are interested in expanding their business through developing new or improved networks of last-mile retailers (e.g. Agrovets) or agents, to create better access to quality agricultural inputs for last mile pastoral and Agro-pastoral communities.
Following a rigorous evaluation process, partnership agreements will be negotiated with successful applicant businesses based on the criteria described below. If the proposed business innovations / practices to be introduced require financial investment, the business company will be expected to co-invest (in cash or in kind) in the adoption of the new business practices.

Program Target Areas

Mercy Corps will consider applications from businesses who are interested in expanding their business networks and market reach in the following wards of the three target counties (applicants may choose to focus on selected counties or the wards, rather than targeting all locations):
Isiolo County:

• Burat ward
• Ngaremara ward
• Chari ward
• Kinna ward

Samburu County:

• Waso ward
• Wamba West ward
• Lodokejek ward
• Baawa ward

Marsabit County

• Laisamis ward
• Sagante/Jaldesa ward
• Maikona ward
• Gobo ward

Eligibility Criteria for Application

Interested applicants must fill in the following ELIGIBILITY criteria:

• Existing business: Applicants should be registered business entities under Kenyan law and must have an active business license from the relevant authorities.
• Type of business: Applicants should be the owners of an active Agri-input wholesaler, distributor or retailer with at least two years of active operations. The business should be based in the RANGE target counties or elsewhere in Kenya but with existing retailer networks in or around RANGE targeted wards.
• Commitment to work with last-mile Agrovets / agents: Applicants must have a business interest in investing in last-mile Agri-input suppliers that are in the program target wards.
• Co-investment and financial capacity: Applicants must be willing to contribute at least 50% of the total cost of the planned investment in new business practices / innovations, from their own source of funds.
• Commercially driven: Applicants should propose new business practices / innovations that they intend to continue a sustainable basis, as part of a commercial business model.
• Collaborative: Applicants should be open to, and interested in, a partnership with Mercy Corps based on collaboration and joint learning.

Potential Business Innovations/Activities that could be supported

The following are potential new business innovations / practices that could be supported through the RANGE partnership.
This list is not exhaustive, and RANGE welcomes additional ideas or combinations of ideas that are aligned with the main objective of this RFA.

• Open a new Agrovet branch in one of the target wards
• Develop business relationships with existing Agrovets in the target wards, are selling quality Agri-input products and providing technical and/or business training / mentoring as an embedded service to producers.
• Establish / improve a county-level wholesale enterprise, including introducing new marketing approaches and climate-smart Agri-input products.
• Develop a last-mile business model through the selection and training of agents, to create an agent network for sales at the ward level
• Develop new products and/or marketing approaches targeting female farmers.
• Provide embedded services such as credit-based sales, market information and advisory services
• Any other innovative idea that will enhance the capacity of Agri-input retailers so that quality input will be accessible and affordable to pastoralist and Agro-pastoralist communities.

Amount of Award and Cost Share Requirements

• RANGE expects to provide a maximum of USD 10,000 (KES 1,293,500) to each successful applicant. However, if an applicant is proposing a high level of innovation and scale, RANGE will consider larger contributions.
• Partners are expected to contribute the equivalent of, or more than, the RANGE contribution (i.e., minimum of 50% of the total investment costs).
• Applicants that are willing to co-invest more than the 50% minimum contribution are encouraged and will be prioritized during the selection process.

Required Reporting Under the Grant
Selected partners will be required to submit quarterly data on business performance for the duration of the partnership and until the end of the RANGE program. Selected partners are expected to participate in monthly progress meetings with the RANGE team.

Evaluation Criteria

The evaluation criteria are shown in the table below. Applicants should refer to these criteria in drafting the proposal. Mercy Corps may deem it necessary to conduct oral or written discussions with applicants in the competitive range following the completion of the initial review of applications or request clarifications and additional materials. These additional discussions and/or requests for information should not be considered a final decision for the award, but rather part of the evaluation
process.
The Mercy Corps sub-awards team will perform a preliminary Eligibility Check of the submitted applications to check:

1. Administrative compliance: Verification that the application is complete and that the application file
   includes all required items.
2. Eligibility: Verify that the applicant and the proposed business innovation / practices are eligible according to the eligibility criteria (organizations, types of projects, and business practices).

The Selection Committee will only be asked to evaluate applications that meet all the preliminary administrative compliance and eligibility verification as show on this LINK.

Conditions

Issuance of this solicitation in no way constitutes a commitment by Mercy Corps to execute any agreement or to pay any costs incurred by any applicant in submitting an application.
Please note that Mercy Corps will fully respect the confidentiality of all companies involved in the program. If selected, Mercy Corps will establish an agreement with the applicant that describes the objective of collaboration and that clearly defines each party’s respective responsibilities, roles, and obligations. Successful applicants must be willing to share information with Mercy Corps regarding their performance, and Mercy Corps will conduct interviews with clients / customers to gather information on impact and to monitor progress.
Mercy Corps reserves the right to reject any or all applications received. Applications are submitted at the risk of the Applicant, and all preparation and submission costs are at the Applicant’s own expense.

All applicants that meet the criteria will be considered, however, Mercy Corps reserves the right not to accept any applicant if none are qualified.

How to apply

RFA Submission Process

Fill in the application form via the following LINK and send the below supporting documents to ke.office@mercycorps.org with the title of the posting as your subject line;

1. Company Profile (if available).
2. Certificate of Business Registration.
3. Valid Business Permit.
4. Copy of Tax Registration Certificate.
5. Valid Tax Compliance Certificate (TCC).
6. Summary budget, using the template provided in Annex 1.

Download the Budget submission form, Annex 1 on this LINK