Consultancy Assignment “Diagnostic Study of Sector ...



TERMS OF REFERENCEConsultancy Assignment “Diagnostic Study of Sector Competitiveness in Egypt’s Aqua Feed, Aquaculture and Fisheries Value Chains”under the TC Project “Regional: Sector Development, Competiveness and Value Chain Diagnostics in SEMED Countries”; TC Assignment “Diagnostics in Egypt and Jordan”BACKGROUND AND RATIONALEEBRD investmentThe EBRD is investing in Egypt’s agribusiness sector and is exploring potential opportunities to support sustainable aqua feed, aquaculture and fisheries. One of the focus areas of the Agribusiness Sector Strategy 2019 – 2023 is to increase efficiency and sustainability of livestock, dairy and other primary subsectors and explore opportunities in sub-sectors such as sustainable fisheries and aquaculture.About the Value Chains Competitiveness ProgrammeThe Value Chains Competitiveness Programme (the “VCCP”, the “Programme”) aims to enhance the competitiveness of small and medium enterprises (“SMEs”) in industries such as agribusiness, manufacturing and services, logistics and distribution and information and communication technologies (ICT) in Egypt, Jordan, Morocco and Tunisia. The Programme is financed by the European Union’s Neighbourhood Investment Facility (“EU NIF”). Under the Programme, support is allocated to Instrument 1: Sustainable Value Chains and Competitiveness, which provides investment grants and Advisory/Technical Assistance (‘TA’) to eligible SMEs; and Instrument 2: Sector Development, Competiveness and Value Chain Diagnostics (‘diagnostic studies’, ‘the studies’ ‘diagnostics’). About the Diagnostic StudiesThe diagnostic studies aim at identifying priority subsectors and ways to support SME competitiveness and value chain development. The studies will provide further insight into investments and technical assistance needs to support competitiveness improvements, and to eventually improve access to finance along the value chain. The diagnostic studies will therefore support the successful implementation of Instrument 1 (investment grants and advisory/TA) and of the Programme overall. Diagnostic studies support Programme objectives and are in line with the strategic objectives and initiatives of the EBRD in the Southern and Eastern Mediterranean (“SEMED”) region. Specifically, the Programme and the diagnostic studies contribute to Egypt Country Strategy’s Priority 1: Support Egypt's private sector competitiveness through stronger value chains, improved access to finance for SMEs, and increased economic opportunities for women and young people. Specifically this will support the integration of SMEs into value chains by strengthening backward and forward linkages (objective 1) and facilitating SMEs’ access to finance (objective 2).SMEs play an important role in the Egyptian economy, representing about 90% of employment generation and 55% of the GDP. However, SMEs do not perform very well on international markets since only 6% of SMEs export, while the remaining serve only the domestic market. Through enhanced business linkages with aggregators (producers, processors, exporter-oriented buyers etc.) SMEs can increase the sustainability and quality of their production and become integrated in higher value added supply chains.The aqua feed, aquaculture and fisheries value chains in Egypt can offer opportunities for investment and capacity building for SMEs and for work with aggregators (larger companies that work with many SME farms or suppliers) that can support sustainability and quality improvements and upgrades along the value chain. For example, there is a large number of SMEs operating in the aquaculture sector in the country and investments (e.g. in increased processing and storage capacity) can help upgrade operations and enhance access to markets. The Aqua Feed, Aquaculture and Fisheries Sector in EgyptAquaculture is the world’s fastest growing food sector, playing an increasing role in meeting demand for fish and fishery products. Global production has increased from approximately 49.9 MMT in 2007 to 83.2 MMT in 2018, with 2019 forecast of 86.5 MMT, according to FAO. Egypt is the largest African country and the 10th globally in aquaculture production. Fish aquaculture has increased rapidly in recent years, mainly due to rapid expansion of new technologies such as the use of extruded feed, water circulation systems and improved farm management practices. Tilapia is the species most farmed in the country, representing ca. 70% of total production for 2016. The majority of the country’s fish production is consumed within Egypt.Fish is an important food source in Egypt, accounting for 25.3% of the average household’s protein intake (2016). In 2016 annual fish consumption per capita was 23.5Kg, compared to 14.3Kg in 2002, according to WorldFish. The increase in fish consumption is attributed to the growth in low-cost domestic fish production, improvements in distribution networks and an increase in import of inexpensive canned products. Aquaculture accounts for about 65% of Egypt’s total fish production and about 99% of it is produced by private sector farms. To support increased supply of fish on the local market, the Egyptian government has supported large scale integrated aquaculture projects through launching and managing farms as well as providing sites for aquaculture development. The global aqua feed market accounted for USD 114.20 bn in 2017 and is expected to reach USD 290 bn by 2026. Some of the growth drivers are increasing demand for seafood trading, rising consumer awareness for good quality seafood products and availability of fishmeal. In addition, increasing government initiatives to support aquaculture and rising disposable incomes in developing countries are some of the major opportunities that could contribute to increased demand going forward.?However, increasing raw material prices and stringent environmental regulations are restricting the market. During the past decade, the fish feed sector in Egypt has witnessed an outstanding expansion. The demand is estimated to exceed 1.5 MMT annually by 2020. Local production levels of major feed ingredients do not meet the demand and 50% to 99% of raw materials are imported. As feed represents on average 85% of total farm operating costs, an increase in international prices for raw feed materials and the decline in the EGP exchange rate have led to a substantial increase in the price of fish over the last six to seven years. Significant investments have been made by private sector companies operating in the sector to meet the increase in feed required.In light of the above, the EBRD will hire a consultant (the “Consultant”) to review Egypt’s aqua feed, aquaculture and fisheries market’s competitive position and help identify potential investment and capacity-building opportunities (the “Assignment”).OBJECTIVESThe objective of the Assignment is to conduct a diagnostic analysis of Egypt’s aqua feed, aquaculture and fisheries value chains, their competitive position and development prospects. The Assignment aims to help identify potential private sector investment and capacity-building needs and opportunities for local and international investors and development partners to support sustainability and quality improvements in the selected value chains.This will be achieved through the following main components:Diagnostic Analysis of Sector Competitiveness Scoping of Investment and Capacity-Building OpportunitiesUltimately, the Assignment will support VCCP objectives to enhance supply chain linkages and access to finance for SMEs in Egypt, to increase their competitiveness and support value chain development. SCOPE OF WORK Specific Tasks The Consultant is expected to carry out the following tasks and activities inter alia, working under the leadership of the EBRD and in close coordination with relevant sector players. The analysis will cover the following value chains: (i) aqua feed, (ii) aquaculture, and (iii) fisheries (referred to as the “selected value chains”). The analysis will be conducted through one-to-one and/or focus group discussions with relevant private sector companies, technical experts, and other relevant players operating in the selected value chains as well as through some analysis of secondary data. This will include discussions with at least 10 companies operating in the aqua feed sector, 10 in aquaculture and 5-10 in fisheries. The analysis will be complementary to available information/studies about the sector and will aim to identify new findings through primary research. The Consultant will develop and administer surveys/questionnaires for private sector companies to facilitate primary data gathering. The Consultant will agree in advance with the EBRD the survey content and the specific players to approach, which should be representative of the selected value chains.The analysis will comprise of two main components, each with its own timeline. Diagnostic Analysis of Sector Competitiveness The objective of this component is to assess the competitive environment of the sector focusing on the selected value chains.Provide a brief overview of Egypt’s aqua feed, aquaculture and fisheries value chains (“the selected value chains”), covering the sourcing of inputs (locally sourced and imported, with a breakdown, including tariffs or relevant regulations on imported inputs), production and processing capacity, consumption, trade, export potential, competition, socio-economic importance, efficiency and environmental and sustainability aspects;Outline the main players in the selected value chains, their size, market share and competitive advantages, strategies, etc. and compare their strengths (in a table or a format to be agreed with EBRD). Provide separate details on current FDI players and potential new market entrants in Egypt. Comment on the investment plans and strategy of key players and their positioning in the market;Carry out market analysis (current and forecasted market size, market dynamics by product, key customers and suppliers, key competitors, imports, barriers to entry and exit, relevant market trends etc.); Provide an independent view on the market structure / competitive environment in the relevant market/selected value chains;Review productivity and efficiency considerations (e.g. achieving maximum output from minimum input) as well as growth and profitability drivers. Provide details on the cost structure and profitability of main sector players; Provide an overview of different product offerings, prices of key producers in the selected value chains; assess the commercial viability of different products and their competitiveness; Evaluate the sustainability of supply of inputs for aqua feed players. Analyse supply chain and trading specificities in the aqua feed market (i.e. terms/credit period for the purchase of inputs and sales to buyers and the impact on different market players along the value chain);Assess the key risks in the sector, in particular related to the environmental and social sustainability of the selected value chains (e.g. water and waste management, food safety and hygiene, CO2 impact compared to production of other proteins, impact on ecosystems and wild fish such as risk of escape of non-native species into the aquatic environment and potential of transfer of disease into the environment, potential impacts on antimicrobial resistance (AMR), labour management etc. – the specific aspects to cover are to be agreed with the EBRD during Assignment implementation). Highlight key mitigating factors for such risks;Identify private sector players in Egypt that have adopted high standards and best practices in environmental and social sustainability and evaluate how widely applied such standards are; Analyse applicable market requirements, regulations, standards, and certifications for key target markets (local and export, current and potential), including opportunities, barriers and requirements for access to EU markets for Egyptian products in the selected value chains. Outline relevant dynamics in MENA/Gulf markets; Analyse the impact of the regulatory environment and any potential market distorting mechanisms such as tariffs, non-tariff measures, support mechanisms and other policies impacting the selected value chains (both for imported inputs and exports) as well as the competitiveness of main players absent market distorting mechanisms. Identify government-led initiatives and projects in the selected value chains and relative competitive advantages; Compile the findings in 1 comprehensive report version confidential to the EBRD which includes all the above content as well as in 1 shorter version which is a redacted summary of generalised non-confidential findings for a wider audience. The specific content and timeline of both versions will be agreed with the EBRD. All reports should include an executive summary and a list of recommendations sections. Scoping of Investment Opportunities The objective of this component is to assess opportunities and constraints for the development of the aqua feed, aquaculture and fisheries value chains in Egypt and evaluate potential areas for future investment and technical cooperation (TC).Map the main private sector players in the selected value chains including SMEs and larger companies/corporates that work with SMEs, suppliers and buyers, local and international companies operating at all stages along the value chain (including aqua feed input producers, aqua feed and aquaculture producers, processors, logistics/distribution/wholesale companies, packaging, exporters etc.). The map should include background on company size (turnover and employee count where available), market share, location, ownership, principal sector/activities, history (how many years in operation), any other business holdings/activities, principal markets (local/export) etc.;Assess private sector investment gaps and needs, capacity-building priorities including on standards and upgrades required, product volumes handled and destinations for sales including local and export markets. Highlight key constraints to sector development and related investment opportunities and how these could be potentially addressed. Identify opportunities where technical assistance can be delivered to SMEs through work with buyers/aggregators/larger companies and outline the specifics and modalities of assistance needed;Map local representative sector associations, export councils, chambers of commerce, cooperatives, producer groups/agglomerations etc. and relevant public sector authorities and highlight their respective activities in the sector to identify potential partners for TC. Develop a list of relevant representative sector associations and their members; Develop specific recommendations for sector investment and capacity-building/TC and the role that can be played by investors including local banks, international financial institutions etc. as well as by international development partners/donors;Compile the findings in 1 comprehensive report version confidential to the EBRD and 1 redacted version that can be made publically available. All reports should include an executive summary and a list of recommendations sections; Develop a powerpoint presentation summarising main findings under components A and B and present it to the EBRD in London HQ and/or in the Cairo regional office to a selected audience. The timing and format of the presentation/seminar will be agreed in advance with the EBRD. Organise and hold a stakeholder workshop in Cairo with companies operating in the sector in Egypt as well as EU representatives and other relevant sector stakeholders to increase awareness of investment needs and opportunities in the selected value chains and build the capacity of local companies on selected technical topics. This will include developing a list of invitees, workshop agenda, the content of panel discussions and technical presentations, sending invitations, following up with invitees to ensure their participation, briefing of panellists, developing training/capacity-building materials and carrying out all logistical arrangements (including arranging venue, translation etc. as relevant). Organise and lead discussion panels and technical presentations on topics to be identified together with the companies and the EBRD. Develop, together with the EBRD, a press release/article on the workshop while ensuring appropriate visibility for the EU donor and support its dissemination as requested; Share all draft deliverables under the Assignment with the EBRD before finalisation and address and incorporate EBRD questions/comments on them. Answer any ad hoc questions and provide clarifications on technical aspects covered by the study throughout the Assignment. IMPLEMENTATION ARRANGEMENTSThe Consultant will report on all aspects of the Assignment to the Bank’s Operation Leader (“OL”) for the Assignment, Gergana Nedelcheva, Associate, Value Chain Competitiveness Programme (nedelchge@; +44(0)2073386840).The anticipated duration of the Assignment is six months, tentatively August 2019 – February 2020. A certain portion of the Assignment budget (approximately EUR 3000 although this amount might vary) will be allocated to workshop organisation and logistics (e.g. hiring a venue, arranging for catering, IT equipment, translation and other relevant costs). DELIVERABLES The Consultant will deliver the following inter alia:Outlines of the two comprehensive reports and an action plan with a timeline of activities and deliverables submitted to and accepted by the EBRD within 2 weeks of Assignment start.Survey/questionnaire for private sector players and draft list of private sector players to hold discussions with submitted to and accepted by the EBRD within 3 weeks of Assignment start. Discussions (interviews/focus groups/surveys) conducted with private sector companies in the selected value chains. Draft Diagnostic Analysis of Sector Competitiveness (confidential comprehensive version) covering all topics listed above delivered to and accepted by the EBRD by end September 2019 (meeting this deadline is critical for Assignment implementation). EBRD questions/comments on the draft addressed within 1 week of receipt of questions/comments. Draft Scoping of Investment Opportunities (confidential comprehensive version) covering all topics listed above delivered to and accepted by the EBRD by mid November 2019. EBRD questions/comments on the draft addressed within 1 week of receipt of questions/comments. Final versions of the Diagnostic Analysis of Sector Competitiveness and the Scoping of Investment Opportunities (confidential comprehensive version) delivered to and accepted by the EBRD (tentatively by end December 2019).Redacted versions for a wider audience of the Diagnostic Analysis of Sector Competitiveness and the Scoping of Investment Opportunities incorporating EBRD comments and guidance developed and delivered to the EBRD before the stakeholder workshop.Presentation on findings developed and delivered to the EBRD at London HQ and/or in the Cairo regional office (deadline tbc). Stakeholder workshop held with private sector companies in the selected value chains in Egypt with visibility and training materials developed and disseminated with companies (tentatively Q1 2020). Ad hoc questions by EBRD addressed throughout the Assignment duration. The above timelines may be amended by the EBRD based on evolving business needs. DONOR VISIBILITYThe Donor funding for activities related to this Assignment is provided by the European Union (EU). The Consultant will ensure that all visual material, including reports, documentation, marketing, and publicity materials produced in relation to the Assignment and exchanged between the Consultant and sector players, as well as promotional material and communications with external audience if relevant, should have clear references to the support of the EBRD and the EU, identified as the Programme’s donors. The form of such references must be agreed with the EBRD. The Consultant will also help identify success stories to produce articles, videos, photography and social media messages to promote the role of the EU as a donor among local and international audience.CONSULTANT PROFILEConsultant Profile: Corporate services are required. The Consultant will be a firm or a group of firms preferably with previous project experience related to:In-depth expertise in the aqua feed, aquaculture and fisheries sector in Egypt and international markets (such as the Middle East and North Africa region, Persian Gulf Countries and/or the EU); Practical business experience working with/for private sector companies in the aqua feed, aquaculture and fisheries sector; experience working with both SMEs and corporates;Conducting market analysis and developing practical reports with investment recommendations; Organising and facilitating interviews/focus groups, workshops and trainings with private sector companies on technical topics.? Team members should include experts fluent in written and spoken English and Arabic. At least one team member should be able to speak and write fluently both English and Arabic. The Consultant's expert team is expected to include the following key experts (the 'Key Experts'):Senior Sector Expert Preferably 10-15 years of experience in the aqua feed, aquaculture and fisheries sector; Practical business experience working with/for private sector companies in the aqua feed, aquaculture and fisheries sector. Experience working with both SMEs and corporates and conducting technical training would be beneficial; In-depth knowledge of the Egyptian market and international markets (such as the Middle East and North Africa region, Persian Gulf Countries and/or the EU);Experience in carrying out market analysis and developing practical reports with investment recommendations; Academic degree in a relevant field such as Economics, Finance, Business Administration, International Development, Agribusiness, Aquaculture/Fisheries, etc.Fluent spoken and written English is essential. Fluent spoken and written Arabic is an advantage. Principal Sector Expert Preferably 5-10 years of experience in the aqua feed, aquaculture and fisheries sector; Practical business experience working with/for private sector companies in the aqua feed, aquaculture and fisheries sector. Experience working with both SMEs and corporates and conducting technical training would be beneficial; In-depth knowledge of the Egyptian market and international markets (such as the Middle East and North Africa region, Persian Gulf Countries and/or the EU);Experience in carrying out market analysis and developing practical reports with investment recommendations; Academic degree in a relevant field such as Economics, Finance, Business Administration, International Development, Agribusiness, Aquaculture/Fisheries, etc.Fluent spoken and written English is essential. Fluent spoken and written Arabic is an advantage. Project Manager Preferably 5-10 years of experience in project management, workshop organisation, technical trainings or a related area;Experience working with/for private sector companies, preferably with exposure to and knowledge of companies in the aqua feed, aquaculture and fisheries sector in Egypt;Expertise in organising and facilitating interviews/focus groups, workshops and trainings with private sector companies on technical topics;? Experience in contributing to primary and secondary research and analysis and to tailored practical reports; Fluent spoken and written English and Arabic are essential. ................
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