Request for Proposals : Baseline Survey of Production Capacities of Edible Oil Manufacturers in EAC
The East African Business Council (EABC) is the apex body of business associations of the Private Sector and Corporates from the 5 East African Countries. It was established in 1997 to foster the interests of the Private Sector in the integration process of the East African Community.
Currently, EABC has 54 Associations and 102 corporate Members. Amongst the associations are all the national Private Sector Apex Bodies; four manufacturers’ Associations; 5 Chambers of Commerce, 3 Employer Associations; 2 Women Associations, 2 Bankers Associations and the Confederation of Informal Sector Associations of East Africa. Given that the Secretariat is based in Arusha, EABC’s structure includes National Focal Points (NFPs) – who are all currently the national private sector apex bodies.
EABC’s overarching objective is to be an effective change agent for fostering an enabling business environment and to promote private sector’s regional and global competitiveness in trade and investment. EABC therefore provides a regional platform through which the business community can present their concerns at the EAC policy level, with the overall aim of creating a more conducive business environment through targeted policy reforms. Additionally, EABC also works towards promoting private sector’s regional & global competitiveness in trade and Investment through addressing challenges experienced by Members at organizational and firm level; and through provision of tailored market intelligence.
2.0 Rationale of this assignment
The EAC Sectoral Council on Trade, Industry, Finance and Investment (SCTIFI) held its ordinary meeting from 30th January to 3rd February 2017 at the EAC Headquarters in Arusha, Tanzania. During the meeting a report of EAC experts on analysis of Rules of Origin with regard to edible oils of chapter 15 of the revised EAC rules of origin was discussed. At its 34th Meeting of the Council of Ministers, the EAC Secretariat was asked to undertake a comprehensive review on the CET and Rules of Origin and to report the findings of these reviews to SCTIFI by September, 2017 (EAC/CM 34/Directive 60). The Council further directed the EAC Secretariat to analyse the Rules of Origin with regard to edible oils of Chapter 15 and report to SCTIFI at its next meeting (EAC/CM 34/Decision 60)1.
One of the key recommendations arising out of these SCTIFI deliberations was that the proposal of including edible oils in the list of sensitive items and increase the duty rate progressively to 40% be considered during the comprehensive review of the CET and Rules of Origin;
In view of the above recommendation, EABC is now undertaking a capacity assessment of edible oils manufactured within the EAC region with the objective of making proposals regarding the sensitivity of edible oils during the review process of EAC Common External Tariff (CET) from evidence based point of view.
3.0 Tasks and duties of the consultant
The study is expected to deliver clear data on the current production levels of edible oils in the EAC and to match this production capacity with the prevailing demand.
In the context of this envisaged capacity assessment, the consultant is expected to:
1) Carry out interviews among key producers of edible oils in the EAC region in order to gather robust and evidenced intelligence about the estimated production capacity of the sector;
2) Gather intelligence about the potential demand on edible oil products among consumers in the EAC;
3) Match both demand and supply in order to develop recommendations how to design the duty rate as part of EAC’s CET in order to help producers to sustain and expand their market but at the same time protect the rights of EAC consumers for stable pricing processes;