ToR) for Business Case Development for the Use of Solar-Powered Pumps and Drip Irrigation Systems at Rikolto

ToR) for Business Case Development for the Use of Solar-Powered Pumps and Drip Irrigation Systems at Rikolto

Terms of Reference (ToR) for Business Case Development for the Use of Solar-Powered Pumps and Drip Irrigation Systems

• Introduction

Rikolto is an international network organisation with over 50 years of experience in partnering with food chain stakeholders in Africa, Asia, Europe and Latin America. We build bridges of trust and trade between the food industry, governments, research institutions, financial institutions and farmers’ organisations around one central question: ‘What will we eat tomorrow? Rikolto’ s global strategy is directed towards structural changes in the agri-food system and upscaling of well-functioning practices and policies that unlock the farming potential of a critical mass of small-holder farmers. Clear structural change/up-scaling agendas are agreed upon, developed. This is followed by the design of concrete interventions in pilot chains to experiment, learn and build evidence to influence the agreed changes.

Rikolto in East Africa secured a 3-year funding from Flanders (2023-2026) for a horticultural project to demonstrate and scale up the use of integrated solar-powered drip irrigation systems in the Northern and Southern Highlands of Tanzania to strengthen smallholder vegetable and fruit farmers’ resilience to increasingly erratic weather patterns and protect and conserve water sources. 

As the project approaches completion, we aim to assess pathways for scaling up the innovation introduced. We are therefore seeking a qualified consultant (or firm) to develop a comprehensive business case that provides robust, evidence-based justification for scaling the adoption of solar-powered pumps integrated with drip irrigation systems among smallholder farmers.

1.1. Project Summary: 

Main Objective:   To support Tanzania’s climate change intervention strategies, including the protection and conservation of water resources by stimulating the adoption of irrigation systems that are economically viable and environmentally sustainable in smallholder farming communities in Meru and Rungwe districts and scale-up of this model into the Northern and Southern Highlands of Tanzania.

Specific objective 1: To demonstrate how to reduce the impact of erratic water availability on the livelihoods of vegetable and fruit farmers in Meru and Rungwe districts and to strengthen their resilience against the effects of climate change through the adoption of integrated solar-powered drip irrigation systems.

Specific objective 2: To reduce the environmental pressure of vegetable and fruit farming in Meru and Rungwe districts on water resources through more sustainable water management, including practices to increase rainwater harvesting and infiltration and to reduce water usage from natural water sources (wells, rivers, lakes) from vegetable and fruit farming by 70%.  

Specific objective 3: To scale up integrated solar-powered drip irrigation systems as a resilient water management solution, affordable for smallholder farmers, in Arusha, Kilimanjaro, Mbeya and Songwe regions by January 2026. 

Expected Results

Result 1. Smallholder farmers in targeted value chains in Meru and Rungwe districts will increase their productivity by 40 % and improve the quality of their crops, resulting in an increase in selling price/kg by 25% by having a secure water supply for cultivation while decreasing dependency on fossil fuels.

Result 2. Diversified sources of water (rainwater harvesting) and increased efficiency in water usage (irrigation technology and water saving techniques) result in a decrease in water volume taken from natural sources, measured by % decrease in water need per unit area.

Result 3. Minimum 700 vegetable and fruit farming households in Arusha, Kilimanjaro, Mbeya and Songwe regions have adopted affordable solar-powered drip irrigation and sustainable water management on their farms by January 2026. In addition, 9,000 farmers have benefited from water harvesting and management techniques.

2. Objective of the Assignment

The main objective of this assignment is to develop a comprehensive business case that provides up the use of solar-powered pumps combined with drip irrigation systems among smallholder farmers participating in the Kilimo Stahimilivu Project.

3. Specific Objectives

1. To assess the technical performance, financial viability, operational sustainability, and institutional and regulatory feasibility of solar-powered pumps and drip irrigation systems within smallholder farming systems.
2. To evaluate the financial viability of integrated solar-powered drip irrigation systems using farm-level cash flow analysis, Payback Period, Internal Rate of Return (IRR), Net Present Value (NPV), and sensitivity analysis across different farm typologies (small, medium, commercial).
3. To assess the economic (social) returns of scaling solar-powered drip irrigation systems through cost-benefit analysis, including valuation of environmental and resource efficiency benefits.
4. To identify market opportunities and potential business models (purchase, lease, PAYG, cooperative ownership).
5. To assess environmental and social impacts, including water use efficiency, greenhouse gas emission reduction potential, climate resilience benefits, and gender inclusiveness. 
6. To propose scaling and financing mechanisms suitable for smallholders, including partnerships with MFIs, agribusinesses, and cooperative societies.
7. To develop policy and institutional recommendations for sustaining adoption and private sector engagement.

4. Scope of Work

The consultant/firm will conduct the following tasks:

4.1 Data Collection and Review

1. Review project documents, reports, and existing studies on solar irrigation systems in Tanzania and comparable contexts.
2. Collect quantitative and qualitative data from selected pilot sites implementing Kilimo Stahimilivu in the Northern and Southern Highlands of Tanzania.
3. Conduct key informant interviews with farmers, water user associations, irrigation technicians, Rikolto and Simu Solar staff, financial institutions, and relevant government agencies.
4. Assess institutional, governance, and regulatory frameworks relevant to irrigation, water use, and renewable energy deployment.

4.2 Financial and Economic Analysis

1. Compare total cost of ownership for solar-powered irrigation systems versus diesel- and grid-powered alternatives.
2. Estimate financial performance indicators including Payback Period, Internal Rate of Return (IRR), Net Present Value (NPV), Return on Investment (ROI), and projected cash flows over a 3–5 year period.
3. Assess farm-level profitability of integrated solar-powered drip irrigation systems for key target crops.
4. Conduct sensitivity and scenario analysis to assess risks related to price volatility, yield variability, maintenance costs, and financing terms.
5. Undertake economic cost-benefit analysis to evaluate broader social and environmental returns, including resource efficiency and emission reduction benefits.

4.3 Market and Value Chain Analysis

1. Map stakeholders and the value chain for solar irrigation (suppliers, distributors, service providers, financiers, and support institutions).
2. Examine supply chain capacity, product affordability, after-sales service availability, and potential market size.
3. Identify scalable and context-appropriate business models aligned with smallholder needs and cash flow patterns.

4.4 Environmental, Social, and Institutional Analysis

1. Quantify potential water savings, energy reduction, and carbon footprint improvements.
2. Assess gender and youth inclusion opportunities through technology adoption.
3. Evaluate operational sustainability, including maintenance ecosystems, technical support availability, and farmer capacity.
4. Analyse institutional readiness and governance arrangements affecting long-term adoption and scaling.
5. Highlight climate resilience and sustainability impacts.

4.5 Business Case Development

1. Synthesize findings into a structured, practical, and evidence-based business case document.
2. Present financial and economic models, risk analysis, investment scenarios, and scaling pathways.
3. Provide implementation recommendations, financing mechanisms, and policy considerations to support sustainable scaling.

5. Deliverables

1. Inception Report outlining detailed methodology, analytical framework, workplan, and data collection instruments.
2. Draft Business Case Report including financial analysis, economic assessment, market analysis, environmental and institutional findings, and preliminary recommendations.
3. Facilitation of a validation workshop, including presentation of key findings and structured stakeholder feedback.
4. Final Business Case Report incorporating stakeholder feedback, including executive summary, visual presentations (charts and graphs), detailed financial and economic models, risk matrix, and annexes.

6. Methodology

The consultant is expected to adopt a participatory, analytical, and evidence-based approach, combining qualitative and quantitative methods to ensure robust financial, economic, institutional, and environmental assessment. The methodology shall include:

1. Desk review of project documents, policy frameworks, regulatory guidelines, and relevant secondary literature.
2. Collection and analysis of quantitative farm-level data to support financial and economic modelling.
3. Key informant interviews and focus group discussions with farmers, water user associations, service providers, financial institutions, and relevant government agencies.
4. Field visits and case documentation to assess operational performance and institutional readiness.
5. Development of financial and economic models using Excel or other appropriate analytical software, including sensitivity and scenario analysis.
6. Comparative benchmarking against alternative irrigation technologies (diesel and grid-powered systems).
7. Validation and iterative feedback sessions with the project team and key stakeholders to ensure accuracy and relevance of findings.

7. Duration and Timeline

The assignment is expected to last eight (8) weeks from the date of contract signing.

8. Required Qualifications and Experience

• At least 7 years of experience in agricultural economics, agribusiness development, or renewable energy.
• Proven expertise in business case development, financial modeling, and climate-smart agriculture.
• Strong understanding of irrigation systems, water resource management, and solar energy markets.
• Demonstrated experience working with smallholder farmers and private sector actors in East Africa.
• Excellent communication and analytical skills, with ability to present findings clearly.

9. Mode of application

Submit your proposals via to [email protected] by 15 March 2026 and should indicate the source of advertisement and the title of the survey on the subject line. Only shortlisted candidates will be contacted. If you do not hear from us within two weeks, please consider your submission unsuccessful.