RFI for the Liberia Agribusiness Development and Incubator Activity_FE (2).pdf

SPECIAL NOTICES

REQUEST FOR INFORMATION (RFI)

LIBERIA AGRIBUSINESS DEVELOPMENT & INCUBATOR ACTIVITY

The United States Agency for International Development (USAID) mission in Liberia has developed a draft concept and Theory of Change (TOC) for agribusiness development and incubator activity. The purpose of this Request for Information is to solicit feedback on the viability of the proposed activity and its components in achieving the results outlined below. Likewise, the RFI aims to identify best practices and strategies related to the inclusion of the Government of Liberia's (GOL) climate change goals and strengthening the agricultural sector, especially for women and youth.

DISCLAIMER

This is a Request for Information (RFI) only. This is NOT a solicitation for proposals, proposal abstracts, quotations, or applications. It shall not be construed as an obligation on the part of the U.S. Agency for International Development (USAID). In accordance with FAR 15.201 (e), responses to this notice are not offers, and cannot be accepted by the Government of the United States to form a binding contract. Responses are strictly voluntary, and USAID will not pay respondents for information provided. Responses will not be returned, and respondents will not be notified of the result of the review. It is the respondent’s responsibility to monitor www.sam.gov or www.grants.gov for the release of any further information. Note that responding to this RFI will not give any advantage to any organization in any subsequent procurement. No telephone calls will be accepted, and neither will responses to questions be provided with regards to this notice.

INSTRUCTIONS

To respond to this RFI, interested sources must provide not more than a maximum of seven (7) pages in Microsoft Word or PDF format by Wednesday, February 23, 2022, 5:00 PM, Liberian time. Please submit responses to Ingrid Korsgard, Acquisition & Assistance Specialist at ikorsgard@usaid.gov with copy to Garth Patterson, Contracting Officer at gpatterson@usaid.gov. Submissions to any other e-mail address will not be accepted. Interested sources must provide the following information:

✔ Responses to questions posed outlining sources of information.

✔ Additional comments or suggestions on the concept, if any.

Sincerely

Garth Patterson Contracting and Agreement Officer http://www.sam.gov http://www.grants.gov mailto:ikorsgard@usaid.gov mailto:gpatterson@usaid.gov

Questions For Feedback:

Responses are not limited to the questions posed. If there is other pertinent information that should be highlighted, please include that information as well. Responses will be kept confidential and not shared with anyone outside of USAID.

1. Are the components outlined below appropriate for achieving the stated goal taking into account the current challenges and limitations of Liberia’s commercial agriculture sector?

a. If yes, please provide evidence and details that support this methodology.

b. If not, what additional components or modifications would you recommend for achieving the stated goal?

2. What knowledge, lessons learned or recommendations do you have for effective implementation of a grants facility that enables appropriate access to financing for micro, small, and medium enterprises (MSMEs) in Liberia that is not administratively burdensome or onerous for applicants to apply or qualify for?

a. What evidence or experience can you share about the use of milestone grants or tiered investment models, their administrative burden, and the spectrum of grantees who might be more appropriate to use milestone grants?

b. What evidence or experience can you share about recoverable grants that could potentially be applied to Liberia?

c. What evidence or experience can you share about other types of grant facilities not mentioned above?

d. In an effort to broaden the pool of businesses reached through this activity (micro, small, and medium) what thresholds for grants would be successful in the Liberian context?

3. The Mission’s desire is to ensure that this activity design is inclusive of women, gender, marginalized groups and include digital integration where possible. What case studies or information can you share about inclusive design for an agribusiness activity?

4. What recommendations do you have for qualified local business development service providers that have deep knowledge of the Liberian agribusiness ecosystem (challenges and opportunities) and the capacity to administer a business development incubator program for MSMEs?

a. What evidence or experience can you share about the use of BDS vouchers for agribusiness grantees to procure service from providers?

5. Please share lessons learned from previous or ongoing incubator programs (successes and/or failures) in Liberia or a similar environment as Liberia that would be relevant for the design team.

6. Who are the private sector actors (local, regional, or international, including diaspora organizations/businesses and those led by women) doing innovative work in the commercial agricultural or agribusiness sector that USAID/Liberia should know about and whose innovations or technology the Mission could potentially help to scale?

7. What (local, diaspora, non-traditional or private sector) organizations that are working to strengthen (traditional and non-traditional) value chains or add value to crops targeting the regional or international export market?

8. What are some good examples of CLA strategies to generate evidence about programming that promote an inclusive commercial agriculture sector and develop the agribusiness ecosystem in thin markets like Liberia’s?

9. This activity seeks to support USAID’s Agency priorities (in alignment with the goals of the GOL) of combating climate change, working with new and underutilized partners, and supporting diversity, equity, and inclusion. What techniques would you recommend to ensure that these priorities are addressed in this activity?

All data received in response to this RFI marked or designated as corporate or proprietary information will be fully protected from release outside the Government. Since this is a request for information announcement, no debrief, evaluation letters, questions, and/or results will be issued to the participants.

Liberia Agribusiness Development & Incubator Activity

Theory of Change

USAID’s Theory of Change (TOC) is that: If Liberian agribusinesses and agriculture entrepreneurs are able to better access business and financial services and resources, technical assistance, and technology, Then investment in and productivity of agribusiness will increase and further develop Liberia’s commercial agriculture sector.

Background / Context

Liberia is a low-income and largely agrarian economy characterized by low productivity and unrealized potential. Despite highly favorable climate, soil, and geography, Liberia achieves low crop yields, imports most of its food, and exports almost no fruits or vegetables. Large concessionaires dominate agriculture production in the country, exporting raw commodities including rubber, oil palm, cocoa, and timber. In 2019, the Liberian agricultural sector accounted for 43 percent of formal employment yet contributed just 27 percent of gross domestic product . About 70 percent of the country’s population depend on agriculture1 for their livelihood and food security .2

The Liberian agriculture sector can only grow through economic transformation driven by increased productivity, diversification of production, value addition from agriculture processing, and commercialization. However, the sector faces many constraints including inadequate road and electricity infrastructure, a weak business enabling environment, limited access to inputs, low levels of education, and a risk-averse financial sector that offers loan products with high interest rates and short tenors. In addition, six of Liberia’s 15 counties lack a commercial bank branch, which makes access to formal financing options even more challenging for a predominantly rural sector like agriculture.

To address some of these constraints, the agribusiness activity will work to strengthen the ecosystem and foster promising agribusinesses and entrepreneurs who seek growth opportunities in the agriculture sector but need assistance to develop business plans, reduce business risk, and obtain financing. A grant facility paired with appropriate technical assistance will be an attractive offering for Liberia’s ambitious businessmen and women and members of its diaspora who can bring new investment and employment opportunities to Liberia’s agriculture sector.

The Government of Liberia (GOL) has demonstrated a strong commitment towards climate reform and reduction of greenhouse gasses, specifically carbon emissions. This commitment is formalized through the GOL’s revised Nationally Determined Contribution (NDC), which outlines mitigation and adaptation measures, in agriculture and other sectors , as well as the National Policy and Reform Strategy on Climate3

Change . USAID supports the GOL’s policies and priorities for climate change action and risk reduction,4

4 Republic of Liberia, National Policy and Response Strategy on Climate Change, August 2018

3 Environment Protection Agency, Republic of Liberia, Liberia’s Revised Nationally Determined Contribution (NDC), July 2021

2 MOA. 2017. Smallholder Agricultural Productivity Enhancement and Commercialization Project (SAPEC).

1 World Bank. 2020. Project Information Document (PID). Liberia Rural Economic Transformation Project (P175263). pg. 4 especially where they align directly with USG priorities. Interventions that align with the USG and GOL’s climate goals will be prioritized.

The USAID/Liberia is in the process of designing an intervention that is hoped will achieve the following goal and purpose:

Goal

Country Development Coordination Strategy (CDCS) Intermediate Result (IR) 1.2: Commercial agricultural sector strengthened, especially for women and youth.

Purpose

To strengthen the commercial agricultural development and trade ecosystem and improve investment in and productivity of Liberian agribusinesses.

Expected Outcomes:

● Better enabled, financed, and productive agribusiness entrepreneurs in the commercial agriculture sector, especially women and youth entrepreneurs evidenced by long-term business development including necessary full time staff (such as accountants) financed by businesses and not donors, clear understanding of proper financial management and the ability to distinguish business and personal resources, ability to access unsubsidized credit, increased market linkages, increased sales, and improved marketing and communications skills.

● A better enabled, financed, and strengthened system for the provision and access of good quality business development services for agribusiness entrepreneurs evidenced by the development of improved business models, enhanced skills in pitching and communications, and demonstrated success with seed funding and other investment.

● A more robust commercial agribusiness environment that is fueled by productive businesses that contribute to innovation, job creation, and enterprise-driven development. Gains will be evidenced by an overall improved business enabling environment, increased investment in SMEs, and increased opportunities for access to finance

The Agribusiness Development & Incubator Activity has the following components:

Component 1: Design and administration of a grant financing facility including technical assistance (TA) that directly supports, coordinates, and engages with qualifying recipients;

Component 2: Design and administration of a business development incubator to facilitate professional development for Liberian entrepreneurs and micro, small & medium businesses to strengthen and improve investment in and productivity of Liberian agribusinesses;

Component 3: Design and administration of an innovation competition to scale local or diaspora innovations that align with the goal of strengthening inclusive commercial agricultural development in Liberia (i.e., development that includes women, youth, and other marginalized groups);

Component 4: Design and administration of a collaborating, learning, and adapting (CLA) agenda to gather and share evidence on which strategies work to promote agribusiness development and the commercial agriculture sector in thin commercial markets like Liberia’s.

Each component of the portfolio will directly support Development Objective (DO) 1 “Market driven, inclusive economic growth supporting increased job creation” and Intermediate Result (IR) 1.2 “Commercial agricultural sector strengthened, especially for women and youth.”