SOS Children’s Villages Zambia under Kitwe Children’s Village has set aside funds in the 2023 budget under the FLC department to hire a consultant to undertake a complete market research on livelihood opportunities in Solwezi district.

SOS Children’s Villages Zambia is now inviting capable and registered consultants from the general public.

In order to qualify for participation, suppliers must submit the following documentation as part of the bid.

1)    Business registration certificates (PACRA Incorporation certificate)

2)    Valid tax clearance certificate

3)    Valid PACRA Annual returns

4)    Fully priced quotation with payment terms (SOS Children’s Villages Zambia does not offer advance payment. All payments will be made immediately after delivery has been completed).

5)    Partial deliveries will not be accepted. The submitted bids should clearly state the delivery period from the date of receipt of the purchase order.

6)    Curriculum Vitae with three traceable references.

Eligible suppliers can obtain further information at SOS Children’s Villages, Plot number 20092, Great North Road from the Procurement Office. The email address for business purposes is angiekmalama@gmail.com. No telephone calls shall be accepted, as all communication will be documented.

All bids/quotations must be submitted electronically to the email below on or before 17:00hrs on Wednesday 29th November 2023. Late bids will be rejected.

Address:-

SOS Children’s Villages,

Kitwe, Zambia.

Email:angiekmalama@gmail.com and copy Peter.Mutale@sos-zambia.org,    Lameck.Hakanomba@sos-zambia.org    Paul.Katati@sos-zambia.org

Terms of Reference   

For a Consultant to Undertake a Complete Market Research on Livelihood Opportunities in Solwezi District

1.       Introduction

SOS Children’s Villages in Zambia seeks a consultant or consulting agency to conduct a market analysis and investigate the market chains for selected livelihood options (goods/ services/ natural resource products) in Solwezi District. The consultant will be responsible for providing an in-depth analysis of the livelihood options and their market opportunities for the target communities. The study report will guide future interventions that enhance the livelihoods of the target beneficiaries and communities and contribute to the conservation of the natural resource base.

The study will focus on identifying the sustainable market potential for selected livelihood options/products, determining strategic entry points into identified markets, and highlighting the capacity needs of local communities/ beneficiaries in entrepreneurship and business management. The main focus area of the research will be Solwezi Central and the surrounding communities were children who are under the Kitwe Alternative Care programme come from. The areas include Airport Mulemba Villa, Community of Solwezi, Highland area, Kajoba area, Zambia compound, Kandemba compound, Kimitento compound, Kyalalankuba, Kyawama, Rodwell, Ma grade extension, Mukuba and Mitukutuka.

2.       Background

Market Research is an important tool for businesses and organizations to gain insight into the local market. It helps identify customer needs, track market trends, and provide an understanding of the competitive landscape. Through Market Research, companies can gain more knowledge of their target market and make more informed decisions.

Market research can include both primary and secondary research. Primary research involves collecting data directly from the target market through surveys, interviews, and focus groups. Secondary research involves gathering data from existing sources such as reports, statistics, and published studies. No matter the type of Market Research, it is important to ensure that the research design is tailored to the needs of the business. This includes determining the right sample size, selecting the proper research methods, and collecting data that is relevant and reliable.

Additionally, it is important to use Market Research to inform marketing strategies and product development. Overall, Market Research in Zambia is an invaluable tool for businesses and organizations to gain a better understanding of the local market and to make more informed decisions.

The SOS Children’s Village Alternative Care programme in Kitwe is currently focusing on reintegrating children and young people into their communities and families of origin as guided by organization’s 2030 Strategy.

3.       Rationale for the Study

The viability of the market, coupled with specific training and provision of start-up inputs through a financing arrangement enables several producers to continue sustainable enterprises after the initial project phase. In order for households to increase production and income, there must be sufficient market and business case for the livelihood; meaning generating income that is greater than the costs.

The Economic Strengthening Program design should be based on sound market analysis, as it is important to identify relevant or growing markets for products and services with which to link vulnerable children, their caregivers, or their communities. Conducting the Market Research will help provide answers to questions on demand, supply, profit margins and suitability of a livelihood option for the target beneficiaries:

–       Is there a market for the product? How big is the market?

–       What is the price for the production in the market? How is pricing affected by different factors such as greater competition or increase in production?

–       What is likely to happen in the future to this market? Will it grow? Will it disappear?

4.       The Assignment

The Market Research to be conducted should bring out the three main criteria that determine the viability of a livelihood:

Marketability to determine whether there is sufficient demand for the livelihood. This Market Research is expected to help identify marketability and provide information on competition, pricing points, demand, quality requirements, and future potential for the livelihood.
Feasibility to determine whether the good or service can be produced without any harm to either people or the environment. The Market Research should help examine a range of factors affecting production, including availability of land, natural inputs such as water, other inputs such as extension services, as well as skills needed to develop the livelihood. The assessment should also provide an indication of the impact on the environment and natural resources of the livelihood option, and whether there are any risks in terms of climate change on the future of production levels.
Acceptability of the options in the local context, as well as practicality for the participant to successfully engage in the livelihood. Cultural sensitivity may relate to gender relations or social status that allows or prevents certain groups from carrying out certain activities such as selling goods in a market. Practical considerations involve assessing how much extra time a livelihood activity will involve and whether this places an unacceptable additional burden on women, children, or on people living with disabilities.
5.       Objectives of the Market Research/Analyses

1.         In consultation with local communities, select priority livelihood options (also considering natural resource products) for analysis

2.         Identify profitable, sustainable opportunities to sell goods or services and for improved efficiency, pricing, market access, etc.

3.         Conduct market and value chain analysis of selected goods and services to determine sustainable market potential, opportunities for value addition and the necessary policies and systems to support such enterprises.

4.         Highlight strategic entry points and undertakings for enhanced community participation in the market from the natural products trade.

5.         Identify capacity gaps of local communities in sustainable harvesting, utilization and marketing of natural resource goods and services.

6.         Provide recommendations for enabling the optimum utilization of the products.

6.       Activities

i.         Conduct preliminary community consultation at the inception level to identify the products for analysis through participatory approaches

Develop brief Inception Report detailing key questions and approach for agreed products
Research and identify potential local, domestic and export market opportunities for natural products from the region and determine ways in which to best penetrate the selected markets. This should include:

–          Mapping and description of key markets including composition, key players, characteristics, distribution and sales channels (e.g. local markets) and potential points of opportunity or barriers to entry and growth

–          Description and analysis of current market positioning including product gaps, supply and demand considerations (i.e. values and volumes, quality standards), expected size, trends and values for each

–          Identification of opportunities for value addition, supply chain and distribution synergies and gender-specific development opportunities

–          Any other considerations as considered by the Consultant and the SOS Children’s Villages team

iv.      Develop a list of livelihoods following the three steps process

v.       Conduct detailed strategy assessment of key markets including;

–          SWOT or similar analysis of identified products/livelihood options, and market opportunities

–          Any relevant success stories and case studies to highlight approaches from other products/ regions/ organisations

–          Key partnership opportunities, business development and training needs and opportunities

–          Policy issues (e.g. levies) and supporting information requirements

–          Discussion of financial and credit considerations (e.g. revolving funds from cooperatives).

7.       Expected Outputs

Inception report outlining approach and plans for the consultancy (including community consultation processes). Include how you understand the assignment, the methodology, survey design and detailed time table
A Final Report on the market and value chain analysis of selected goods and services (inclusive of natural resource goods) available including:
–          Description of key markets, including market composition maps and key players

–          SWOT analysis for key markets

–          Strategic recommendations and action plan for the Family strengthening and local partners.

It is expected that from the Market Research/analysis, a final list of right livelihoods options will be provided after a careful screening process that reduces a long list of options to a final short list of livelihoods. The three steps process should be followed in developing the list of livelihood options:

Create a long list: All livelihoods options possible, now and in the future should be listed and this includes products that may be a by-product or additional service needed in a value chain, for example, organic fertilizer (a by-product of keeping livestock). This list should be checked for any known risks, such as negative impact on women or children (for instance forcing them into labour) or environmental destruction, so that they can be eliminated. In short, the long list should break down each livelihood by product or service; identify complementary products or inputs; identify services (sorting, cleaning, transport); and remove high-risk options for vulnerable groups such as women, children, and people living with disabilities.
Assess a short list: The short list of livelihoods options may contain 15 – 30 options, which look possible, and need to be evaluated for their profitability and viability. The listed options should be examined for viability including:
(a)    Marketability: Is there sufficient demand for each product?

(b)    Market saturation: What effect does an increase in supply of the product or service have on demand and price?

(c)    Market access: Where are the buyers for the product or service? Can programme participants/beneficiaries access these buyers?

(d)    Feasibility: Can the vulnerable households in extreme poverty produce the good or service where they live on a regular and on-going basis, and without destroying natural resources?

(e)    Acceptability: How acceptable is the option in the context? Does it sufficiently change social norms that are at the root cause of poverty, disempowerment and inequality?

(f)      Risk: What are the risks affecting this livelihood? How do these risks affect production and selling or marketing this product or service?

Generate the final list of livelihood options: It is expected that every option in the short list will be evaluated for its business potential. Based on the market, production, and risk information, the expected should be calculated:
(a)    Profit: How long will it take the livelihood to generate a profit for each household? How much profit can the household expect for the first 18 months of this livelihood? Note that the profit is gross income (or sales) minus expenses (costs).

(b)    Return on Investment: How long will it take the livelihood to begin generating an income? Is this soon enough for the household to generate the income it needs to cover its expenses. (Recommended timeframe is 3-6 months).

(c)    Other costs and resource requirements: What are the costs involved in providing this livelihood package and do these fall within the programme budget? What other resources, such as space or inputs, are needed?

8.       Supervision and Reporting

During the assignment, you will report to the Regional Programme Manager based at the Kitwe Children’s Village.

9.       Duration and Timeline

The study is anticipated to begin by the second week of November 2023. The entire work is expected to be completed in 25 days from the signing of the contract. This period includes fieldwork and reporting. Should the prospective consultant not be available on the start date indicated above, he/she may also propose an alternative start for the study in written. The SOS Children’s Villages team and the local partners like CWACs in the communities will be available to assist in the field when needed.

10.   Consultant Qualifications and Experience

The consultant will be an enterprise expert with at least a Master’s Degree in the relevant field with over 5 years’ progressive working experience with proven skills in conducting elaborate market studies and business planning.

11. How to Apply

Interested persons should submit the following documents:

(i) A brief write-up on his/her interpretation of the TORs;

(ii) A work plan for the activity;

(iii) CV; and

(iv) Financial proposal to:

The Regional Programme Manager

SOS Children’s Villages Zambia

Plot AA 842 Luangwa Turnoff

Off Ndola-Kitwe Dual Carriageway

P.O. Box 22141

KITWE