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The activities of SACP are organised in three mutually interdependent components as follows:

⦁ Component 1: Inclusive Value Chain Development

⦁ Component 2: Climate-Proof Value Chain Infrastructure

Component 3: Policy and Institutional Support and Project Coordination.

Component 1- Value Chain Development

This component is the key investment component of SACP. The component design reflects the situation Zimbabwe, in which the country’s gaps in smallholder-based value chain organisation result in low productivity and low farmer incomes. Challenges persist in commercial smallholder production systems and the financial sector is unable to channel urgently required financing for investments by smallholder farmers and agribusinesses. Component 1 is designed to address these challenges through the activities in three inter-related sub-components:

⦁ Cluster Identification and VC Mobilization

 This sub-component’s expected results are:

⦁ eight smallholder production clusters identified

⦁ 800 Agricultural Producer Groups (APGs) mobilized and organized

⦁ 200 microenterprises (MEs) 

⦁ 40 Value Chain Lead Enterprises (VCLEs) identified and mobilized.

Sub-component 1.2, Technical Services for APGs and Microenterprises: 

The projected results of this sub-component are

⦁ 800 APGs received Business Development Skills (BDS) trainings and are able to complete bankable climate smart business plans

⦁  (ii) 200 MEs received BDS trainings and are able to complete bankable business plans, which comply with Environmental, Social and Governance (ESG) standards

⦁  (iii) 800 APGs implement Climate Smart Agriculture (CSA) practices. Technical services will target APGs and Agribusinesses identified through Subcomponent 1.1. A balanced gender and social inclusion will be ensured in the targeting of services, with special attention being given to women, youth and Persons with Disabilities.

Sub-component 1.3: -Financing for Inclusive VC Investments

 SACP will co-finance, through a competitive selection process, privately owned and managed investments by smallholders and agribusinesses for VC upgrading. Matching grants (MGs) will be made available for 800 APGs, 200 rural microenterprises. 

Additionally, 40 VCLEs will benefit from  Line of Credit, which will be established at a selected financial institution, to initiate access to commercial bank financing for value chain development activities.

Component 2 – Climate Proofed Value Chain Infrastructure

Component 2 is designed to facilitate SACP’s investments in public and semi-public infrastructure. Specifically, the project will improve irrigation water supply and management, domestic water supply, and local-level feeder roads to facilitate the commercialisation of smallholder agriculture in its target areas. 

Activities under this component are targeted at  encouraging private sector investments in SACP areas

ii) promoting the production and marketing of large quantities of quality produce

iii) reducing the time and cost of transport to the markets. 

Component 2 is divided into two sub-components as follows:
  ⦁ Sub-component 2.1: Participatory ward level infrastructure investment planning
  ⦁ Sub-component 2.2: Climate proofed infrastructure investments.
 
The expected results of this component include:
    prioritised ward level community infrastructure investments identified through participatory stakeholder consultations
   ⦁ 1,780 ha equipped with improved irrigation systems
   ⦁ 89 km of roads rehabilitated and climate proofed
   ⦁ 100 wards benefiting from improved water supply and sanitation facilities.
 

Component 3

Component 3 is divided into two sub-components as follows:

⦁ 3.1. Policy and Institutional Support: This sub-component is designed to support efforts to create a conducive policy and institutional environment for private sector-led smallholder agriculture transformation in Zimbabwe.

⦁ 3.2. Project Coordination: This sub-component focusses on project coordination and covers the management functions of SACP, including the management of project implementation processes in the project’s provinces and districts and SACP, including financial management, procurement M&E, and knowledge management activities.

Categorisation of Target Area into Value Chain Clusters
The mechanism for identifying and selecting value chains to be supported by SACP involves calls for proposals from APGs, MEs and VCLEs, who will indicate value chains of interest to them.  APGs focusing on particular value chains will be organised into clusters for purposes of aggregation and achieving economies of scale.
An initial eight clusters were identified at the project design stage Clusters combine wards that are in close proximity to each other and are focussing on same value chains, irrespective of district boundaries.  In all the clusters, smallholder farmers will engage in production for commercial purposes and for food and nutrition security.  The selection of additional clusters will follow the same criteria as the selection of the pre-identified ones, which are as follows:
 
     ⦁ Suitability of climate
     ⦁ Agricultural policy priorities
     ⦁ Historical production trends
     ⦁ Enabling environment
     ⦁ Number of farmers involved in the value chain
     ⦁ Women or youth-led value chains
     ⦁ Potential for improving nutrition
⦁ Potential value for private sector players.
The initially identified eight clusters are summarised below, with further data selection rationale and criteria in Table 2: 
     ⦁ Cluster 1 covers wards in Rushinga, Mt Darwin, Muzarabani and Shamva, and the selection of crops include sesame and traditional grains (sorghum, rapoko, and finger millet)
⦁ Cluster 2 covers wards in Rushinga, Mt. Darwin, Muzarabani, and Shamva, and the selection of value chains includes sheep and goats.
     ⦁ Cluster 3 covers selected wards in Goromonzi, Murehwa, Mutoko, and UMP, and the selected value chains include a variety of horticulture crops, including leafy vegetables, tomatoes, peas, etc.
     ⦁ Cluster 4 covers selected wards in Goromonzi, Murehwa, Mutoko, and UMP, and the focus will be on small livestock such as broilers, layers and indigenous chicken
     ⦁ Cluster 5 covers wards in Chegutu, Mhondoro-Ngezi, Zvimba, Sanyati and Chrumanzu, and the focus will be on maize and citrus 
     ⦁ Cluster 6 covers wards in Chegutu, Mhondoro-Ngezi, Zvimba, Sanyati and Chirumanzu, and the focus will be on poultry and piggery
     ⦁ Cluster 7 covers wards in Hwange, Binga, Lupane, Nkayi and Kwekwe districts, and the value chains selected include traditional grains (sorghum, pearl millet and finger millet)
⦁ Cluster 8 covers wards in Hwange, Binga, Lupane, Nkayi, and Kwekwe districts, and the focus is on beef and goat value chains.