Terms of Reference for Comprehensive Assessment of the Dairy Value Chain Financing Ecosystem, Capacity Gaps, and Design of an Inclusive and Climate-Smart Financing Model under RDDP II

1. Background

Cordaid promotes a development approach rooted in justice, inclusion, and dignity, aiming to reduce inequality and strengthen systems that enable equitable participation in economic life. Its interventions prioritize inclusive markets, sustainable livelihoods, and climate-resilient economic systems.

The Rwanda Dairy Development Project Phase II (RDDP II) seeks to enhance productivity, resilience, and market integration of smallholder dairy farmers through improved access to animal feed, veterinary services, water management, breeding services, and climate-smart agricultural practices. The project also strengthens post-harvest systems through improved milk collection, storage infrastructure, and organized milk marketing systems.

A central pillar of RDDP II is expanding access to inclusive and sustainable finance across the dairy value chain. This includes strengthening SACCOs and Financial Service Providers (FSPs) to develop tailored dairy financial products, enhancing financial literacy among value chain actors, and promoting digital financial service adoption.

Despite progress, key constraints persist:

• Weak capacity of FSPs to understand dairy value chain risks and structure appropriate products 
• Limited access to tailored finance for actors across the value chain 
• Low penetration of digital financial services in rural dairy systems 
• Limited availability of climate-smart and green financial products 
• Structural exclusion of women and youth from financial systems 

This assignment therefore seeks to generate a comprehensive diagnostic of the dairy financing ecosystem and design an integrated financing model that is inclusive, scalable, and climate-smart

2. Scope of Work

The assignment covers all 27 districts of Rwanda, assessing both supply and demand sides of dairy value chain finance using a mixed-method approach (desk review, structured interviews, field visits, and validation workshops).

The consultant will:

• Engage all relevant Financial Service Providers (SACCOs, MFIs, banks, fintechs, insurers) 
• Conduct structured sampling of branches based on dairy portfolio depth and exposure 
• Undertake full field assessment of 132 Milk Collection Centers (MCCs) 
• Engage all key value chain actors including input suppliers, farmers (including rearing enterprises), cooperatives, MCPs, transporters, processors, and market actors 
• Validate findings with RDDP II (Cordaid), RAB/SPIU, and key stakeholders 

The scope includes assessment of financial products, institutional capacity, value chain linkages, risk systems, digital finance readiness, and climate finance integration, leading to the design of an ecosystem-based financing model.

3. Overall Objective

To comprehensively assess the dairy value chain financing ecosystem in Rwanda and design an integrated, inclusive, and climate-smart financing model that improves access to finance for all value chain actors, enhances institutional capacity of financial service providers, and strengthens the resilience and competitiveness of the dairy sector.

4. Specific Objectives

4.1. Supply-Side Assessment (Financial Service Providers – FSPs)

-Mapping of Financial Service Providers (FSPs)

Identify and develop a comprehensive and institutional mapping of all Financial Service Providers operating across the 27 districts, including D-SACCOs, MFIs, commercial banks, fintech companies, insurance providers, and other relevant financial intermediaries. The mapping will capture their geographic coverage, service footprint in rural dairy areas, institutional typology, and level of engagement in agricultural and dairy financing.

-Institutional Capacity and Dairy Portfolio Analysis

Conduct field visits and structured interviews with all identified Financial Service Providers, complemented by purposive sampling of branches based on variation in dairy portfolio depth and geographic exposure. The assessment will map and analyse financial products targeting the dairy value chain, including financing for input suppliers, dairy production (including rearing as a business), aggregation (MCCs/MCPs), processing, and marketing.

The analysis will further examine:

• Institutional capacity to serve dairy value chain actors at different levels 
• Portfolio exposure to agriculture and dairy-related lending 
• Credit appraisal systems, risk assessment tools, and collateral requirements 
• Use of digital financial services, agent banking, and agri-fintech solutions 
• Staff technical capacity in agricultural and dairy value chain financing 
• Product customization for different client segments within the dairy ecosystem 

-Dairy Value Chain Financing Models and Practices

Analyse how FSPs structure and deliver financing across the dairy value chain, including:

• Input suppliers (feed producers, veterinary service providers, equipment dealers) 
• Dairy farmers and cooperatives (including rearing as a commercial enterprise) 
• MCCs and milk transporters (formal and informal “abacunda” systems) 
• Processors, aggregators, and distributors 

The assessment will review:

• Lending methodologies (individual, group, value chain, contract-based financing) 
• Collateral frameworks (physical, movable assets, guarantees, and alternative collateral) 
• Interest rate structures and pricing models 
• Risk-sharing mechanisms and value chain finance linkages 
• Degree of integration with off-takers and market contracts 

-Green and Inclusive Financing Readiness

Assess the readiness of FSPs to design and deliver climate-smart and inclusive dairy financing products. This will include:

• Financing for climate-resilient production systems (fodder, water efficiency, improved breeds) 
• Renewable energy financing (e.g., solar milk cooling, biogas systems) 
• Waste and manure management financing solutions 
• Environmental risk integration in credit assessment 

The assessment will also evaluate:

• Extent of gender-responsive and youth-inclusive financial products 
• Accessibility and affordability of financial services for women and youth 
• Integration of green finance principles into product design and delivery 
• Outreach strategies targeting underserved dairy actors 

-SWOT Matrix and Technical Assistance Needs

Complete a structured SWOT matrix for each Financial Service Provider (FSP) to assess institutional strengths, weaknesses, opportunities, and threats in relation to dairy value chain financing.

The analysis will be used as a diagnostic tool to:

• Consolidate and clearly map financing gaps across all dairy value chain nodes, including input suppliers, production (including rearing as a business), Milk Collection Centers (MCCs), transport, processing, and marketing actors
• Assess the institutional readiness of FSPs to scale dairy financing and integrate climate-smart and green finance solutions
• Identify critical capacity gaps in product design, agricultural risk assessment, credit appraisal systems, and financial service delivery mechanisms
• Evaluate how effectively FSPs are currently structured to serve diverse dairy value chain actors, including women- and youth-led enterprises

Based on the SWOT findings, the consultant will develop tailored technical assistance (TA) packagesfor each FSP aligned with RDDP II objectives, focusing on but not limited on:

• Financial product innovation, restructuring, and diversification for dairy value chain financing
• Capacity building institutional staff on dairy value chain financing and risk management
• Strengthening digital financial systems, agent networks, and agri-fintech integration to improve outreach and efficiency
• Enhancing inclusive, climate-smart, green and conventional financing delivery models that expand access for women, youth, and underserved dairy actors

4.2. Demand-Side Assessment (Dairy Value Chain Actors)

-Comprehensive Value Chain Actor Assessment 

Conduct a comprehensive desk review combined with field-based assessment of financing needs, constraints, and behaviours across all dairy value chain actors, including:

• Input suppliers (feed producers, veterinary services, equipment providers) 
• Dairy farmers and cooperatives (including dairy production and rearing as a business activity) 
• Milk Collection Centers (MCCs) and Milk Collection Points (MCPs) 
• Milk transporters (formal and informal operators) 
• Dairy processors (small, medium, and large scale) 
• Traders, retailers, and distributors 

The assessment will analyse:

• Existing financing sources and financial products used 
• Access barriers (collateral, affordability, informality, financial literacy) 
• Scaling constraints for dairy and rearing-based enterprises 
• Segment-specific financing needs: 
  • Input suppliers: working capital and inventory financing 
  • Farmers/cooperatives: asset finance, breeding, and seasonal production loans 
  • MCCs/MCPs: infrastructure, aggregation systems, and working capital 
  • Transporters: logistics and asset financing 
  • Processors: equipment, expansion, and technology financing 
  • Market actors: trade finance and distribution credit 

-MCC Deep-Dive Assessment (132 MCCs)

Conduct full field assessment of all 132 Milk Collection Centers.

For each MCC, the consultant will:

• Assess governance systems and cooperative management structures 
• Evaluate financial management practices and recordkeeping systems 
• Review business planning capacity and operational sustainability 
• Assess bankability and creditworthiness 
• Analyse aggregation efficiency and linkage to farmers (including rearing-based producers) 

Based on findings, complete a SWOT Matrix and develop tailored capacity-building and technical assistance plans aligned with improved access to finance and operational strengthening.

-MCC Categorization and Performance Framework

Develop a standardized MCC performance assessment framework using validated metrics covering:

• Financial performance (revenue, liquidity, profitability) 
• Operational efficiency (milk handling, losses, collection volumes) 
• Governance and leadership quality 
• Bankability and financial reporting standards 

In consultation with RDDP II (Cordaid), categorize MCCs into:

• High-performing MCCs 
• Medium-performing MCCs 
• Low-performing MCCs 

Each category will be linked to:

• Appropriate financing pathways 
• Capacity development packages 
• Institutional strengthening interventions 
• Risk-based financing models 

-Climate-Smart and Green Investment Needs

Assess investment gaps across the dairy value chain for climate-smart transformation, including but not limited:

• Climate-resilient production systems and improved breeds 
• Feed and water efficiency technologies 
• Renewable energy solutions (solar cooling, biogas systems) 
• Waste management and manure valorization systems 

The analysis will also identify:

• Barriers to adoption of green technologies 
• Cost, awareness, and financing constraints 
• Opportunities for scaling green investments across all actors, including farmers engaged in rearing as a business, MCCs, and processors 

-Inclusion Analysis (Women and Youth)

Analyse participation and access to finance for women and youth across the dairy value chain, including production, aggregation (MCCs), processing, and trade.

The assessment will:

• Identify structural, financial, and cultural barriers limiting access to finance 
• Examine participation gaps in ownership, leadership, and enterprise development 
• Assess inclusivity of existing financial products and delivery systems 
• Propose targeted financing mechanisms and empowerment interventions 
• Ensure alignment with RDDP II inclusion targets (45% women, 25% youth) 

4.3. Bridging Supply and Demand: Systemic Analysis and Model Design

-Systemic Bottlenecks in Dairy Finance Ecosystem

Identify and analyse systemic constraints affecting dairy value chain financing, including:

• Inefficiencies in flow of finance across value chain nodes 
• Mismatched risk perceptions between FSPs and value chain actors 
• Weak coordination among financial institutions, cooperatives, processors, and service providers 
• Limited incentives for green and climate-smart investments 
• Structural barriers limiting scale of value chain financing 

-Design of Inclusive Ecosystem-Based Dairy Financing Model

Develop a comprehensive, integrated dairy financing model covering:

• Input financing systems 
• Production and rearing-based financing 
• MCC and aggregation financing structures 
• Processing and market financing mechanisms 

The model will integrate:

• Climate-smart and green finance instruments 
• Digital financial services and agri-fintech solutions 
• Risk-sharing mechanisms (guarantees, blended finance, credit enhancements) 

It will clearly define roles of:

• Financial Service Providers 
• MCCs and cooperatives 
• Processors and market actors 
• Government and development partners 

A visual ecosystem model illustrating financial flows and actor linkages will be developed.

-Implementation and Scaling Strategy

Develop a phased rollout strategy including:

• Pilot testing of financing model 
• Scaling and replication framework 
• Institutionalization pathways 

The strategy will define:

• Strategic partnerships 
• Policy and regulatory enablers 
• Coordination mechanisms across stakeholders 
• Alignment with RDDP II and national dairy development priorities 

-Inclusive and Sustainable Financing Framework

Ensure the financing model promotes:

• Gender and youth inclusion 
• Climate resilience and environmental sustainability 
• Investment in sustainable dairy production, rearing, processing, and value addition systems

5. Deliverables

a. Supply-Side Assessment Report (Financial Service Providers)

A comprehensive analytical report presenting findings from all Financial Service Providers (SACCOs, MFIs, banks, fintechs, insurers) across the 27 districts. The report will include:

• A complete mapping of FSPs and their geographical and functional coverage within the dairy value chain 
• Detailed analysis of financial products relevant to dairy financing across all value chain segments (inputs, production, aggregation, processing, marketing) 
• Assessment of institutional capacity, portfolio exposure, risk management systems, and delivery channels 
• Evaluation of digital finance adoption, agent banking systems, and agri-fintech integration 
• Structured SWOT analysis for each FSP 
• Assessment of green and inclusive financing readiness 
• Tailored technical assistance (TA) recommendations for each FSP aligned with RDDP II objectives 

b. Demand-Side Assessment Report (Dairy Value Chain Actors)

A comprehensive report covering all dairy value chain actors, including input suppliers, farmers (including rearing as a business), MCCs, MCPs, transporters, processors, traders, and distributors.

The report will include:

• Integrated desk and field-based assessment of financing needs and constraints 
• Segment-specific analysis of access to finance, financial behavior, and barriers 
• Detailed assessment of all 132 MCCs, including individual SWOT analyses 
• Validated MCC categorization framework (high, medium, low performance) 
• Governance, financial management, and bankability assessment of MCCs 
• Climate-smart and green investment needs across all value chain nodes 
• Inclusion analysis focused on women and youth participation and access to finance 
• Tailored capacity-building and technical assistance plans for value chain actors 

c. Inclusion Ecosystem-Based Dairy Financing Model and Implementation Framework

A comprehensive financing framework that integrates the entire dairy value chain into a coherent financial ecosystem.

The deliverable will include:

• End-to-end dairy value chain financing model (input to market level) 
• Integration of climate-smart, green, and digital finance instruments 
• Risk-sharing mechanisms including guarantees, blended finance, and credit enhancements 
• Defined roles and interaction pathways among FSPs, MCCs, cooperatives, processors, government, and development partners 
• Visual representation of the financing ecosystem and financial flows 
• Phased implementation and scaling roadmap (pilot, scale-up, institutionalization) 
• Policy and institutional recommendations aligned with RDDP II and national dairy strategies 

6. Duration and Timeline

The assignment will be implemented over a period of 2 months (60 calendar days) starting from contract signing date, covering all activities across the 27 districts.

7. Required Qualifications and Experience

The assignment will be undertaken by a consulting firm or multidisciplinary team with proven expertise in livestock/dairy value chain, agri-finance and financial incubation and development.

7.1. Team Composition

Team Leader

• PhD in veterinary, Agribusiness, Agricultural Economics, Economics, Finance, or related field with working expertise in dairy value chain.
• At least 10 years’ experience in livestock development, agri-finance, financial sector development, and agribusiness value chain financing 
• Proven experience in research linked to dairy, designing financing frameworks and leading large-scale multi-district researches and assessments 

Key Experts

Each with at least 7 years of relevant experience in:

• Agricultural and livestock finance (dairy strongly preferred) 
• Strong experience engaging financial institutions and development programs in agriculture/livestock sectors 
• Experience working with public and private sector actors engaged in dairy development 
• Notable understanding of the dairy development and market in Rwanda
• Experience in research related to agri-value chains and financing models 
• Experience in financial incubation and inclusion and digital finance systems 
• Experience with cooperative management and SME financing 
• Conversant with financial capacity building and incubation programs 

Core Competencies

The team must demonstrate:

• Proven delivery of financial needs assessments and value chain diagnostics 
• Experience working with dairy actors and Financial Services Providers 
• Experience in dairy and livestock sector development programs 
• Strong field research and multi-district data collection capacity 
• Experience in gender and youth-inclusive analysis and disaggregated data systems 
• Strong understanding of climate-smart agriculture and green finance systems 
• Familiarity with Rwanda’s dairy sector and financial ecosystem is highly desirable 

Language Requirements

• Fluency in English (mandatory) 
• Fluency in Kinyarwanda (mandatory for fieldwork engagement) 

8. Application Requirements

8.1. Technical Proposal

The technical proposal must include:

• Detailed methodology for supply-side and demand-side of the assignment 
• Sampling strategy covering FSPs, branches, and all 132 MCCs 
• Tools for analysis (SWOT, performance frameworks, value chain finance mapping) 
• Work plan and implementation timeline 
• Detailed team composition, capacity and roles 
• Lead and members’ CVs with proof of relevant previous assignments completed
• Firm registration certificate (RDB) and valid tax clearance certificate (for firms) 

8.2. Financial Proposal

The financial proposal must clearly present:

• Professional fees per expert and level of effort 
• Fieldwork and operational costs 
• Data collection, logistics, and stakeholder engagement costs 
• Taxes allocation 
• Clear cost justification demonstrating value for money 

9. Evaluation Criteria

Proposals will be evaluated using the following weighting:

• Technical Proposal & Methodology – 40%
  Clarity, depth, feasibility, and robustness of approach 
• Team Composition & Qualifications – 10%
  Relevance and strength of proposed experts 
• Relevant Experience as detailed in section 7– 20%
• Financial Proposal – 30%
  Cost-effectiveness and value for money 

10. Submission

All proposals must be submitted electronically to:

Email: rwanda.procurement@cordaid.org

• Subject line must indicate the consultancy title clearly 
• Deadline: 13 May 2026, 5:00 PM (Rwanda time) 
• Late submissions will not be considered

Patrick BIRASA

Country Manager