Trade facilitation project

The Swedish International Development Agency (SIDA) funded FSD Kenya to develop and implement the trade facilitation project in November 2018. Among other objectives (see theory of change in Fig 1), the project whose specific objective is to “create market capacity and incentives to innovate trade solutions which deliver real value for the economy, enterprises and households”. Initially budgeted at KShs 750m (KShs 314m for phase 1 and KShs 436m for phase 2) for two years, the Trade project’s budget has since expanded to KShs 1.04b, spanning November 2018 to December 2022. A significant component on the Blue economy was added at the beginning of 2022, with the aim of piloting interventions in this area for further development in future implementation. As implementation ends in December 2022, it is necessary to evaluate the impact of the Trade project has had. A rigorous assessment of achievements, both intended and unintended outcomes, delivery approaches, partner management, the ecosystem, targeting, and emerging lessons. This assessment will furnish stakeholders with proof of positive achievement, while informing FSD’s future implementation.

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Markets are often incomplete. As a result, viable opportunities to connect producers and consumers are lost. Information is at the heart of this market failure. A major reason for low levels of international, inter and intra county trade is the Information asymmetry that characterises all forms of trade in Kenya. Lack of reliable transport and communication infrastructure as well as under-developed legal and regulatory framework is one of the causes of this imbalance and gives rise to constraints that militate against the growth of trade. Holders of information about opportunities in the trading system can extract value from less well-informed players. The result is increasing wealth and income inequality as well as stagnation or decline of important sectors of the economy that are potential drivers of trade like manufacturing and agriculture.

The constraints to trade that arise out of information asymmetry fall into three broad categories which are access to markets, logistics and liquidity. These challenges affect all the players on trade value chains to varying degrees. Primary players on the trade value chain include primary producers, processors and aggregators, retailers and consumers. To achieve the project’s objective, the trade system must evolve in a way that it allocates value to trading partners in line with the value they have added within the system by breaking down information asymmetries. With a fairer allocation of value, trading partners will be more likely to have sustainable enterprises able to contribute to inclusive growth. The trade project is made up of five components: trade facilitation platform solutions, financial solutions for facilitating trade, inclusion of more women and youth in trade, inclusive export promotion solutions and Blue economy (LREB aquaculture value chains.

REQUIREMENTS 
Mandatory requirements 

• Previous performance reviews of private sector development programmes 
• 7 years of consistent work in African financial markets, development economics, agricultural economics, inclusive development, trade and market development and/or other relevant and allied areas 
• Demonstrable experience in conducting studies and assessments 
• 7 years assessing development programmes that use the making markets work for the poor (M4P) approach