Analysis of Relevant Business Environment including Financing Mechanisms for Value Chain Development underway

Within the Innov4AgPacific project, the consultancy assignment on the ‘Analysis of Relevant Business Environment including Financing Mechanisms for Value Chain Development’ is in line with the main objective of the project: To strengthen the capacity of the Pacific Island governments, farmer and private sector organisations and sub-regional institutions to develop strategies and programmes, to mobilise financing that can effectively enable poor rural people to increase their access to nutritious and healthy food.

Background

Doing business in the Pacific Islands has its challenges and the World Bank ‘Ease of Doing Business’ rankings reaffirms this. The ease of doing business index is meant to measure regulations directly affecting businesses and considers aspects such as procedures for starting a business; dealing with permits; getting access to infrastructure utilities (e.g. electricity); taxation; contract enforcement; and investor and consumer protection.  Out of the 190 economies covered in the World Bank report, the 7 project countries rankings are as follows: Vanuatu (83), Tonga (85), Samoa (89), Fiji (97), Solomon Islands (104), Marshall Islands (143) and Kiribati (152).

Aim

The objective of this research assignment is to analyse the relevant policy and legislative procedures that support or hinder agribusiness development and growth to better understand the constraints that agribusinesses, especially small and medium enterprises, face. The assignment is to also to identify good practices and opportunities for investment in the agri-business sector.

Ultimately the assignment will lead to set of recommendations to facilitate discussions with stakeholders and work together to lobby and advocate for business friendly policies, legislations and support that particularly benefit local agribusinesses.

How it is being done

The research study is expected to be a desktop research coupled with consultations/ interviews with relevant agribusinesses and stakeholders such as industry group/networks, financial institutions, government ministries and municipal/local councils.

The current agribusiness environment in each Project target country; Fiji, Kiribati, Marshall Islands, Samoa, Solomon Islands, Tonga, and Vanuatu, will be analysed, including general overview and mapping/ profiling of the main type of agribusinesses (distinguishing between formal and informal and size) and relevant stakeholders (private companies, public organizations, governments, sectoral organizations/ associations, exporters, processors, etc.).

Issues to be covered include: Processes for business set up and issues around compliance; regulatory framework pertaining to taxation, SME  incentives (including women and youth in business), access to infrastructure, utilities, business development services, and financing platforms and mechanisms; current constraints and opportunities for the private sector to invest and engage in agribusiness sector; good practices/cases of private sector entering the agriculture sector/agribusinesses successfully established and developed; opportunities for PPPs and legislations and policies that facilitate this.

A stocktaking exercise/assessment of current policy and legislation requirements and procedures to set-up and operate a business in the target Pacific Island countries will be undertaken.

Particular gaps in relevant policies and regulations will be identified that hinder the growth of agribusiness as well as identify clear opportunities for improving the agribusiness environment.

Download the Terms of Reference here: ToR_Business_Environment_Analysis