Overview of CSJ Program

Climate Smart Jobs (CSJ) Component 1 is a four-year programme funded by the UK's International Climate Fund. It consists of three sub-components: 1A - Market Systems Development, 1B – Uganda Climate Innovation Fund, and 1C -Ecosystems Services.  Component 1 seeks to sustainably increase agricultural productivity and ultimately improve the incomes of smallholder farmers (particularly women, refugees, and host communities). CSJ understands that smallholder farmers (SHFs) are extremely vulnerable to the effects of climate change (particularly extreme weather events) and face numerous constraints. Mitigating these effects is central to the programme’s approach.

The constraints SHFs face in improving agricultural productivity and income levels include limited access to inputs for crops and livestock, poor soil and water management, limited access to an efficient distribution model for climate-resilient varieties, limited access to affordable extension services for both livestock and crop, weak engagement between Private Sector Actors (PSAs) and research institutions, high incidence of pests/parasites and diseases for crops and livestock, uncertainty in seasonality (unpredictable rainfall, prolonged dry spell, spatial distribution of rainfall), limited access to affordable on-farm mechanisation services), and weak market access and value addition.

CSJ intends to work with market actors to trigger change in the market system in a way that enables SHFs to gain increased access to affordable, quality input products and services, in turn increasing their incomes and ability to adapt and become resilient to the effect of climate change

This TOR focuses on the provision of Technical Assistance (TA) to conduct a policy and framework review and develop a Policy Brief pertaining tax on tractor spare parts and its effects on agricultural mechanization in Uganda.

Background to the Assignment

Uganda’s agriculture sector is predominantly characterized by smallholder farming, which accounts for more than 70% of national food production. However, the sector is constrained by low levels of mechanization, which undermines productivity, efficiency, and resilience to climate shocks. In response to this, several initiatives have been launched to promote the adoption of climate-smart, low-horsepower tractors (15–50HP) and appropriate conservation implements, particularly in the Northern region and refugee-hosting districts. A 2025 market scan conducted by Shalom Ventures under the Climate Smart Jobs (CSJ) initiative, focusing on Acholi, Lango, West Nile, and Kiryandongo regions, revealed major operational bottlenecks tied to the availability and affordability of genuine spare parts. These challenges were linked to three core issues:

• High taxation (including import duties and VAT) on tractor spare parts and accessories.
• Inadequate local supply chains and distribution networks.
• Prevalence of substandard or counterfeit components, resulting in high tractor failure rates.

Despite the growing demand for mechanized services, many tractor owners struggle with timely repairs or access to quality affordable spare parts, leading to equipment downtime, increased production costs, and reduced service reliability. Additionally, mechanics and service providers struggle to obtain parts quickly or at affordable rates due to complex import procedures and fiscal barriers. Given these challenges, there is an urgent need for evidence-based policy advocacy that addresses taxation policy reform and incentivizes private sector investment in the tractor spare parts supply chain. A well-crafted Policy Brief is necessary to stimulate high-level dialogue among government agencies, private sector actors, and development partners, with the goal of improving mechanization access and performance for Uganda’s smallholder farmers.

Objectives of the Assignment

CSJ requires the services of a suitably qualified and experienced Consultant to provide technical expertise and guidance to develop a Policy Brief that critically examines Uganda’s tax and regulatory framework related to tractor spare parts and proposes actionable recommendations to facilitate the availability, affordability, and accessibility of genuine spare parts and services for low-power tractors. Specifically, the Policy Brief should:

• Show how current taxation policies (import tariffs, VAT, levies) affect the cost and distribution of spare parts for lower horsepower tractors.
• Illustrate the consequences of limited spare part availability on smallholder productivity and agricultural mechanization.
• Propose practical and realistic policy options (e.g., tax exemptions, subsidies, or public-private partnerships) to improve spare parts access while supporting local businesses and sustainability.
• Influence dialogue with relevant stakeholders including ministries, the private sector, and development partners.

Scope of Work

The preferred Consultant will deliver the following responsibilities:

1. Review the Legal and Regulatory Framework

• Conduct a comprehensive review of the current tax laws and regulations applicable to the importation, sale, and distribution of tractor spare parts in Uganda.
• Identify applicable tariffs, VAT rates, exemptions, and non-tariff barriers (NTBs) affecting both local suppliers and international importers.
• Assess how these tax instruments compare with those applied to other agricultural inputs such as seeds, fertilizers, and irrigation equipment.

2. Synthesis of Existing Studies ad Market Data

• Analyse findings from existing studies, including the 2025 Shalom Ventures Market Scan report to extract key insights about the supply chain, farmer demand, common tractor breakdowns, and spare part shortages.
• Review additional national reports or research related to agricultural mechanization, tax policies, or spare parts market conditions to support evidence triangulation.

3. Stakeholder Consultations

Conduct in-depth Key Informant Interviews (KIIs) with selected stakeholders and their perspectives on the effectiveness, challenges, and unintended effects of current tax policies on spare parts and repair services. These may include:

• • Officials from the Uganda Revenue Authority (URA) and Ministry of Finance, Planning and Economic Development.
  • Representatives from the Ministry of Agriculture, Animal Industry and Fisheries (MAAIF
  •  Tractor dealers and spare part importers.
  •  Mechanics and service garage operators in target districts.
  • Smallholder tractor owners, cooperatives, and farmer groups.

4. Benchmarking against Regional Best Practice

• Examine taxation policies in other East African countries (e.g., Kenya, Tanzania, Rwanda) to identify lessons and best practices that Uganda can adapt.
• Highlight successful models of incentivizing local spare part production or facilitating affordable importation.

5. Policy Gap Analysis

• Identify critical policy and implementation gaps, including inconsistencies in how tax exemptions (if any) are applied to agricultural equipment versus spare parts.
• Analyze the institutional capacity and readiness of regulatory bodies to implement tax reforms or support industry regulation.

Deliverables
The Consultant will deliver the following in execution of the Scope of Work:

1. Inception Report

Outlining the consultant’s understanding of the assignment, methodology, work plan, and stakeholder engagement strategy

2. Stakeholder Consultation Summary
Documenting findings from KIIs

3. Draft Policy Brief
First draft including analysis, policy options, and recommendations.

4. Final Policy Brief
Revised document incorporating feedback from CSJ and partners.

5. Slide Deck
PowerPoint Slides for stakeholder engagement and influencing.

Required Competencies
The preferred candidate will exhibit the following competencies:

• Achieve Results: Sets and aligns challenging, achievable objectives in performance of tasks having lasting impact.
• Think Innovatively: Proactively mitigate potential risks, develop new ideas to solve complex problems.
• Learn Continuously: Create opportunities to help teams expand horizons, diversify experiences.
• Adapt with Agility: Proactively initiate and champion change, manage multiple competing demands.
• Act with Determination: Think beyond immediate task/barriers and take action to achieve greater results.
• Engage and Partner: Politically savvy, navigate complex landscape, champion wider collaboration.

Required Skills and Experience

• Master’s degree in either of the following: Public Policy, Agricultural Economics, Development Studies, International Trade, or related field.
• Proven experience in policy analysis, particularly in agricultural taxation, trade, or input supply chain management.
• Demonstrated history of conducting similar consultancies (e.g., policy briefs, regulatory reviews) in Uganda or the region; include samples of previous work; Familiarity with agricultural mechanization trends and challenges in Uganda, especially in the smallholder context.
• Technically sound expert with a thorough understanding of methodology and implementation plans.
• Strong writing skills with the ability to present complex information in a clear, concise, and policy-friendly format.

Assignment Timeline

The assignment will be delivered over 20 days following this timeline:

Submit your CV and a 1-page Cover Letter describing your suitability for this role. Include in your submission 2 examples of previous work and 2 references. Make your submission electronically to info@csj.co.ug.

Note that only shortlisted consulting firms/individuals will be contacted. If you have not received communication from CSJ MD within four weeks from the submission deadline, consider your submission unsuccessful

Our company provides equal employment opportunities (EEO) to all employees and applicants for employment without regard to race, color, religion, sex, national origin, age, disability or genetics.