Terms of Reference
FCDO Occupied Palestinian Territories (OPTs) Trade Facilitation and Customs Support (Tasdeer) Programme
Recruit the services of a consultant to conduct a feasibility study on the use of fabric waste from garment factories in the Gaza Strip
The Project: FCDO Trade Facilitation and Customs Support (Tasdeer)
Tasdeer is a Trade Facilitation and Customs Support programme (2020-2025; £15m) funded by UK Aid from the British Government and implemented by a consortium led by Cowater International.
Our objective is to improve the Palestinian private sector’s competitiveness and Palestinian Authority (PA) capacity in trade, customs and import policy regulation and administration. We aim to increase sustainable private sector-led economic growth and job creation in the Occupied Palestinian Territories, supporting the PA’s fiscal sustainability while promoting equitable access to the benefits of increased trade and improved institutional capacity.
Job Purpose: Recruit the services of a consultant to conduct a feasibility study on the use of fabric waste from garment factories in the Gaza Strip
The consultant will be required to conduct both desk and primary research to assess the economic, environmental, and social viability to use the fabric waste of garment factories in the Gaza Strip in the production of value-added products. The consultants will examine other countries’ experiences, list potential new products along with their technical specifications, and assess the demand and supply sides. If the result of the research finds the concept to be valid, the consultant will propose a business model for making use of the generated waste.
The garment and textile sector were a major industrial sector in Gaza in the 1990s, with about 900 factories employing 36,000 workers. With the second intifada and the imposed closure, the numbers decreased. By 2006, only 100 factories remained operational, employing 2,000 workers. The easing of the imposed closure in 2014 led to the re-establishment of export activities to Israel and the sale of products in the West Bank. This encouraged a steady increase in the number of operating factories. By 2015, the number of exporting factories reached 9, with a total export value of about USD 2,337,368, according to Palestinian Federation of Garment and Textile Association (PFGTA) records. Exports from this sector continued to rise, reaching 100 exporting factories in 2020 with a total value of USD 15,193,779. By 2021 this had risen to 226 factories employing 5,500 workers.
Currently, about 35% of textile exports from Gaza are to the Israeli market, while the remaining 65% of products exiting Gaza are sold in the West Bank market. Products sold in the West Bank have greater value-added than those sold in Israel, due to subcontracting arrangements with Israeli businesses. For sale to the West Bank, manufacturers complete the entire production process, from buying the fabric to delivering the finished product. For exports to Israel, manufacturers receive the design and fabric and deliver the end product to Israel.
The garment and textile sector has lost much of its trained workforce due to the closure of Gaza’s borders with Israel in 2006. Loss of business and closure of factories has meant that few workers have been trained since 2006, and the current labour market lacks skills in garment and textile production. This is considered a major impediment to the growth of the sector.
The recent reclamation of export business and markets due to the easing of the closure has increased demand for high-skilled workers with special technical skills. The extended period of closure has depleted the pool of skilled workers and made it challenging for garment factories to find needed workers. The historical lack of business also means factories lack resources to invest in skilling new workers.
Although this is a sector that historically employed women and PwD, the current participation of women and PwD is estimated to be 5%. Women’s unemployment in Gaza is currently high, at 64%.
PFGTA has identified an opportunity in the sector using produced fabric waste through recycling into new products. Garment factories in Gaza produce at least 3-5 tons per day of fabric waste, which is not utilized in the manufacturing process and is thrown away.
جميع الحقوق محفوظة لموقع جوبس.
Roles and Responsibilities
The Consultant is expected to complete the task through extensive desk and field research with the aim to collect all the needed business information. The consultant will coordinate and agree on activities with an international consultant who will be hired to participate in this assignment. The field research should target the garment and textile factories in Gaza, sector customers such as garment factories and retailers and other relevant institutions such as the Palestinian Federation of Industries, PalTrade and the Chambers of Commerce.
The main scope of work is expected to include, but not be limited, to the following:
- Desk research of similar initiatives including new developed products and lessons learnt if any.
- Raw material analysis: Assessment to measure the potential quantity and quality of raw materials (fabric waste). The consultant should categorize the raw materials based on their usability. Assessment should include the cost of obtaining these raw materials.
- Product and market analysis: Assessment of the main products that can be produced based on the raw material analysis and international practices. The assessment should include the type of products, needed production technology, infrastructure, capacity and skills, and market potential (both domestic and/or export) of these expected/recycled products. The assessment should cover the expected financial return from the products to be reproduced/recycled. (Under this part of the assignment it is expected to have input from an international expert).
- Financial analysis: based on the two analyses (raw material and product analysis), the consultant will analyse the financial feasibility of the “intended company” including the expected return on investment.
- Business modelling and plan: If feasible, the hired consultant will propose a business model for the intended company.
The business model should address the following:
- Business structure of the company including the departments needed and the operating procedures that should be followed.
- Human resources needed for the company for management, producing the expected products and marketing.
- Business partnership: the type of agreement and relation that should be established between the intended company and the garment and textile factories that provides the raw material (waste fabric).
- Marketing: promoting and branding strategy that the company should follow.
- Establishment cost and financial strategy: a detailed budget of the projected cost for the establishment, operation cost and financial modelling for the first 5 years of the company.
- Impact analysis: the hired consultant will perform an impact analysis of establishing such a company. The analysis should measure the impact on:
- Overall impact on the garment sector and its business.
- The environmental impact by calculating the reduction of waste.
Feasibility Study that includes the following:
· Raw material analysis
· Product analysis
· Financial Analysis
· 5-years budget and financial model (including cash-flow analysis)
· Return on Investment Analysis
· Business Modelling and plan
· Economic, Social and Environmental Impact Analysis
· Risk analysis
The assignment is expected to start on January 1st, 2023, and to be undertaken over a maximum period of two months with 30 days Level of Effort (LoE).
Geographic coverage and duty station
The Consultant will undertake the assignment from his/her own office and is expected to make field visits inside Gaza. The consultant will be expected to maintain regular contact with Tasdeer and the PFGTA and relevant stakeholders including organizations representing women and PwD’s.
Reporting Line and key relationships
The Feasibility Study Consultant will report to the Tasdeer Gaza Lead and Work Stream 3 Lead.
Required Expertise and Competencies:
The consultant should demonstrate strong and evidenced experience in delivering similar assignments, and in working with and developing small businesses to scale up and export local products. Experience in working in the Occupied Palestinian Territory or the Middle East is an asset. Experience and understanding of Gender Equality and Social Inclusion analysis is a plus.
- A minimum of a bachelor’s degree in business administration, Economics, Environmental Studies or related fields
- A minimum of 10 years relevant experience in conducting feasibility studies and business modelling
- Experience and understanding of textile sector in Gaza is a plus
- Very good understanding of economic development and development theory
- Strong analytical, verbal and writing skills in English and Arabic
- Ability to produce accurate and concise reports.
Please submit a one-page CV and one-page cover letter explaining why you are the right person for this role, based on your work experience to [email protected]
The deadline for receipt of applications is December 26th, 2022. Only shortlisted candidates will be contacted for interview. We will interview on a rolling basis.