PEP Zambia is a UKaid-funded private sector development programme designed to encourage and support investment and job creation. We work through intervention partnerships across the programme’s four focus sectors to achieve specific development objectives in each sector:
- Food and agriculture: Increased competitiveness and value of Zambian food products in end consumer markets
- Mines and mining services: Increased sustainable and inclusive economic impact of mining in Zambia
- Tourism and hospitality: Increased value and proportion of tourist revenues captured by local businesses
- Business Services for Investment and Growth: Increased access to business services and sources of finance that support growth-oriented businesses
PEP Zambia assists intervention partners to introduce business innovations (new products, services or business models) that deliver profitable growth for partners and open up new market opportunities for Zambian micro, small and medium sized enterprises (MSMEs).
We rely on a combination of the resources, experience and expertise of external service providers to support programme delivery. Services are procured and service providers are contracted according to specific delivery needs. PEP Zambia is now seeking a service provider to deliver the assignment described below.
About the Organization
The specific context for this assignment is:
Globally, handmade products are a design and market trend offering African producers a ready market. The global handicraft sector has undergone significant changes due to ever-increasing competition, technological advancement and economic development. In response, efforts are underway to strengthen the sector in Zambia in order to ensure that the sector can be globally competitive.
Subsequently, over the last 18 months, PEPZ has worked with public and private sector partners to address supply side issues by growing artisan capacity for innovation and product development, improving the quality and consistency of products and supporting craft companies through enterprise development training and coaching to strengthen the entrepreneurial ecosystem in the Zambian crafts industry. Demand-side issues are being addressed, in part, by creating international market linkages (primarily wholesale buyers) within the crafts sector.
Taken together, these efforts have built an expanding foundation for the growth of the Zambian handicrafts sector. The consultant(s) being sought through this terms of reference will continue to grow this foundation.
During the course of PEPZ’s efforts in support of craft sector development it has become evident that several international buyers’ business models involve significant cross border trade within Africa. A number of international buyers source crafts products from several different African countries, ship them separately overland to an intermediate destination (for example, Johannesburg, South Africa, Mombasa, Kenya, Harare, Zimbabwe) where they products are consolidated. In the case of Mombasa, the consolidated products are then shipped internationally to their final destination from the Port of Mombasa or in the case of Johannesburg and Harare, the consolidated products are transported to a final port of disembarkation (such as the Port of Durban, South Africa) where they are shipped internationally to their final destination.
To facilitate small-scale cross-border trade, the Common Market for East and Southern Africa (COMESA) has adopted a simplified trade regime (STR):
“The aim is to make it easier to conduct small-scale cross-border trade activities by putting in place instruments and mechanisms tailored to the trading requirements of small-scale traders that are operating in border areas, where informal trade is rampant. In the Southern Africa Development Community (SADC), no simplified trade regime has been implemented yet. However, efforts are currently underway to develop such a regime for intra-SADC trade.” 
Zambia’s export economy is heavily dependent on efficient export processes that contribute to efficient management of end-to-end trade transactions.
However, on-going engagement with crafts sector stakeholders in Zambia suggest that it is challenging, time consuming and overly costly to conduct cross border trade activities, which is affecting the export competitiveness of Zambian crafts producers and their products.
Given the highly competitive nature of the global crafts industry and the fact that Zambia is a land locked country, it is critical to better understand the cross border trade landscape and identify potential solutions to the obstacles constraining more cost effective and efficient cross border trade.
PEPZ is seeking the services of a service provider to conduct a rapid scan and assessment of the existing craft export supply chain system to:
· Document how the system currently functions;
· Identify primary regulatory and other barriers and governance issues hindering enhanced cross border trade;
· Identify specific areas where Zambia is not competitive relative to international good practices; and,
· Identify potential interventions where specific policies could improve outcomes and realize more efficient and cost effective cross border trade from Zambia over the short, medium and long term.
For more information about this position, please refer to the attached TOR.