Terms of Reference for Comprehensive Assessment of the Dairy Value Chain Financing Ecosystem, Capacity Gaps, and Design of an Inclusive and Climate

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.

Key Challenges

• 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

Assignment Objective

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

Scope of Work

The assignment covers all 27 districts of Rwanda, assessing both supply and demand sides of the dairy financing ecosystem.