Type of Funding Available

Procurement Contract / Paid Professional Services

This is not a grant, loan, equity investment or funding call for businesses to finance their own projects. MGCA is procuring the services of a qualified professional service provider to undertake a defined consultancy and business-development assignment. Payment will be made in accordance with the Service Level Agreement and is subject to satisfactory delivery and acceptance of agreed milestones.

Issuing Authority

Mpumalanga Green Cluster Agency (MGCA) NPC

MGCA is a South African not-for-profit organisation operating through a cluster model involving Government, Industry, Communities and Academia, with a mandate to identify and remove barriers to an economically viable green economy in Mpumalanga.

Assignment Duration

Up to 10 months

The assignment is structured around three gated analytical stages, followed by development of the Hemp Facilitation Desk Framework and final close-out activities.

Opening Date

4 September 2026

Closing Date

28 September 2026

Late submissions will not be accepted. 

OVERVIEW

The Mpumalanga Green Cluster Agency is seeking a suitably qualified and experienced professional service provider to undertake a province-wide reconnaissance, market gap analysis and bankable business case development exercise for Mpumalanga’s hemp value chain.

The assignment is intended to provide the evidence required to move Mpumalanga’s hemp opportunities from potential concepts towards viable, investment-ready pathways.

The RFP identifies a significant market coordination problem: farmers need assured off-take before planting, while processors need reliable supply before investing in processing infrastructure. MGCA therefore wants a structured assessment of the provincial hemp ecosystem, market opportunities, production requirements, processing options, skills needs, financial viability, regulatory requirements and investment potential.

The assignment is also specifically intended to ensure that hemp expansion is considered alongside Mpumalanga’s food-security and water-security priorities, rather than assuming that land and water resources are unconstrained.

WHY THIS ASSIGNMENT IS BEING COMMISSIONED

Existing national and provincial work has identified industrial hemp as a potential opportunity for Mpumalanga, including opportunities in cultivation, primary processing and downstream manufacturing.

The RFP notes significant provincial assets and potential, including:

• Approximately 240,000 hectares of degraded mine land with phytoremediation potential.
• Approximately 820,000 hectares of arable land suited to crop rotation.
• Approximately 490,000 hectares of wood plantation with intercropping potential.
• Potential for up to 24,000 direct cultivation jobs and a further 297 jobs in primary processing by 2030, based on the referenced Presidential Climate Commission assessment. 

The RFP further references six Tier 1 national demand pathways identified through the 2026 Industrial Hemp Value Chain Development Study, while this assignment focuses on the five pathways selected for detailed provincial analysis.

PURPOSE OF THE ASSIGNMENT

The appointed service provider must conduct a province-wide, gated market gap analysis and develop individual bankable business cases and co-fundraising strategies for every pathway that is confirmed viable through the study.

The work must also include:

• An upfront reconnaissance of existing hemp activity and stakeholders.
• An explicit assessment of food-security and water-security trade-offs.
• Strategic cultivar and seed-bank considerations.
• Development of a framework for a Hemp Facilitation Desk within MGCA. 

TARGET HEMP VALUE-CHAIN PATHWAYS

The assignment must assess five pathways:

1. Textiles

High-value hemp fibre for:

• PPE
• Clothing
• Apparel

2. Biofuels

Hemp biomass for:

• Green energy
• Industrial fuel substitutes

3. Building & Construction

Hemp hurd and fibre for:

• Hempcrete
• Sustainable construction materials

4. Automotive

Hemp-based:

• Bio-composites
• Interior components

5. Food, Beverages, Animal Feed & Nutraceuticals

Processing of:

• Grain
• Seed
• Oil

for healthcare and wellness applications.

SCOPE OF WORK

Stage 1 — Provincial Hemp Reconnaissance, Desktop Study & High-Level Pathway Prioritisation

The service provider must establish a consolidated picture of hemp activity across Mpumalanga, including:

• Existing and pilot cultivation projects.
• Licensed growers and processors.
• Government-led and government-supported initiatives.
• Academic and research initiatives.
• Private-sector parties interested in cultivation, processing or off-take. 

The service provider must then assess the five candidate pathways and may recommend additional pathways if appropriate.

A high-level desktop market-demand assessment must be undertaken for each pathway, drawing on available industrial capacity, provincial and national studies and secondary information.

The study must also assess:

• Land use.
• Water requirements.
• Food-security implications.

This must identify pathways or production scales presenting material food- or water-security risks.

Stage 1 Deliverable

Desktop Prioritisation Report

This report must rank the candidate pathways according to:

• High-level market demand.
• Strategic fit for Mpumalanga.
• Food-security and water-security risk.

MGCA will then determine which pathways proceed to Stage 2.

STAGE 2 — DETAILED MARKET GAP ANALYSIS

For each pathway selected by MGCA at Gate 1, the service provider must conduct a detailed assessment covering at least six dimensions.

Seed & Cultivar

Assessment of:

• Suitable hemp varieties/cultivars.
• Agronomic suitability.
• Seed availability and cost.
• Regulatory and permitting requirements.
• Recommended cultivars.

The assignment must also consider, at strategic level, what would be required to establish seed multiplication/storage capacity.

Agronomic Practice

Assessment of:

• Planting.
• Irrigation.
• Crop husbandry.
• Harvesting.
• Post-harvest handling.
• Land, water and input requirements.
• Yield expectations.

This must be considered against Mpumalanga conditions, including degraded mine land, arable land and forestry/wood plantation intercropping where relevant.

Processing Technology

Assessment of:

• Processing technologies.
• Equipment requirements.
• Technology options.
• Capital-cost implications.
• Technology readiness/maturity. 

Technical Skills

Assessment of:

• Required cultivation skills.
• Processing skills.
• Quality-control skills.
• Availability of skills within Mpumalanga.
• Training and capacity-building requirements. 

Market

Assessment of:

• Demand.
• Pricing.
• Competitor landscape.
• Realistic off-take routes.

Primary market engagement should be used where necessary to validate the desktop assessment.

Financials

A preliminary financial-feasibility assessment must cover:

• Indicative capital costs.
• Operating costs.
• Revenue potential.
• High-level commercial viability. 

Stage 2 Deliverable

Detailed Market Gap Analysis / Feasibility Report per selected pathway

MGCA will conduct a second gate review and determine which pathways proceed to Stage 3.

STAGE 3 — BANKABLE BUSINESS CASE & FINANCIAL MODEL

For each pathway approved at Gate 2, the service provider must develop a comprehensive investment-ready business case suitable for due diligence by:

• Commercial funders.
• Development Finance Institutions (DFIs).
• Impact investors. 

The business case must cover:

• Executive summary.
• Organisational structure.
• Management capacity.
• Governance.
• Funding rationale.
• Mission and strategic fit.
• Detailed project programme.
• Scope of application.
• Process and equipment layout and costing.
• Innovation.
• Partnerships.
• Beneficiaries.
• Employment plan.
• Environmental and regulatory compliance.
• Development impact.
• Project impact.
• SWOT analysis.
• Risks and mitigation.
• Marketing and off-take strategy.
• Stakeholder matrix.
• Financial sustainability. 

The financial model must include:

• Capital expenditure.
• Funding requirements.
• Revenue and cost assumptions.
• Working capital.
• Depreciation.
• Tax.
• Sensitivity analysis.
• Scenario analysis.
• Key financial ratios.
• Funding/repayment structure. 

CO-FUNDING & INVESTMENT MOBILISATION

For each shortlisted pathway, the service provider must:

• Map potential funding institutions and investment partners.
• Identify DFIs.
• Identify enterprise/social investment funds.
• Identify relevant corporate social investment programmes.
• Identify commercial funders.
• Develop co-funding and capital-raising strategies.
• Map grant, debt and equity/blended-finance possibilities.
• Prepare funder-specific investment-readiness packages. 

This is an important part of the assignment because the ultimate objective is not only to analyse the hemp value chain, but to develop bankable pathways capable of attracting investment and co-funding.

HEMP FACILITATION DESK

The successful service provider must also develop a framework for a Hemp Facilitation Desk within MGCA.

The framework must address:

• Mandate and functions.
• Stakeholder coordination.
• Maintenance of a provincial hemp project and stakeholder register.
• Permitting and regulatory-navigation support.
• Relationship with MGCA's investment-facilitation role.
• Proposed institutional structure.
• Staffing.
• Reporting line.
• Relationship with the Project Steering Committee.
• Funding-model options, including donor/grant funding and cost-recovery mechanisms. 

KEY DELIVERABLES

The RFP identifies six principal milestones:

Milestone 1

Provincial Hemp Reconnaissance & Desktop Prioritisation Report

Milestone 2

Detailed Feasibility Reports per Selected Pathway

Milestone 3

Bankable Business Cases & Financial Models

Milestone 4

Provincial Hemp Facilitation Desk Framework

Milestone 5

Co-Funding & Investment Mobilisation Package

Milestone 6

Final Consolidated Report & Close-Out.

PROJECT TIMELINE

The assignment must not exceed 10 months from contract commencement.

The indicative structure is:

• Up to 8 weeks — Stage 1
• Up to 3 months — Stage 2
• Up to 5 months — Stage 3
• Up to 3 weeks — Hemp Facilitation Desk Framework

The latter may run in parallel with the latter part of Stage 3.

Bidders are expected to propose their own detailed workplan reflecting the scope.

WHO SHOULD APPLY?

This procurement is intended for a professional service provider with demonstrated capability in the areas required by the assignment.

The proposal requirements indicate that bidders should be able to demonstrate expertise in:

• Hemp value-chain analysis.
• Value-chain feasibility.
• Pathway prioritisation.
• Bankable business-case development.
• Financial modelling.
• Regulatory and environmental compliance.
• Agro-processing/agri-business value chains.
• Co-funding strategies.
• DFI engagement. 

TECHNICAL PROPOSAL REQUIREMENTS

The technical proposal must include:

• Executive Summary
• Understanding of the Assignment
• Approach and Methodology
• Workplan and Timelines
• Team Composition and CVs
• Company Profile and Track Record

Bidders must provide a minimum of three references from comparable assignments completed within the past five years.

FINANCIAL PROPOSAL REQUIREMENTS

The financial proposal must cover all assignment costs, including:

• Professional fees.
• Disbursements.
• Applicable taxes.

Pricing must be structured as:

• A fixed fee for Stage 1.
• A fee per pathway for Stage 2.
• A fee per pathway for Stage 3.

This allows MGCA to determine at Gate 1 and Gate 2 how many pathways will actually proceed.

The financial proposal must be presented in South African Rand (ZAR) and include a detailed schedule of fees.

MANDATORY ADMINISTRATIVE REQUIREMENTS

All bidders must satisfy the qualifying administrative stage.

Required documentation includes:

• CIPC company registration documents
• SARS Tax Compliance Status (TCS) PIN
• Valid B-BBEE certificate or affidavit, as applicable
• Original, stamped bank confirmation letter verifying the company's banking details, not older than three months. 

Failure to comply with these mandatory requirements results in automatic disqualification from further evaluation.

EVALUATION CRITERIA

The procurement uses three main components:

• Mandatory Administrative Evaluation
• Technical Evaluation – 70% threshold
• Pricing Evaluation – 80% weighting
• B-BBEE Evaluation – 20% weighting. 

Technical Evaluation

The technical section totals 100 points.

It assesses:

Qualifications & Expertise — 50 points

This includes the team's expertise in:

• Value-chain feasibility.
• Pathway prioritisation.
• Bankable business cases.
• Financial modelling.
• Regulatory/environmental compliance.
• Agro-processing/agri-business value chains.
• Co-funding/DFI engagement.

It also assesses the proposed methodology and understanding of the assignment.

Organisational Experience & Track Record — 20 points

Including:

• Comparable bankable business-plan assignments.
• Experience navigating South African permitting processes.
• Experience developing co-funding strategies. 

Capacity to Implement — 30 points

Including:

• Alignment of the proposed timeline.
• Detailed methodology and approach. 

Only bidders achieving the required 70-point technical threshold progress to financial evaluation.

B-BBEE

B-BBEE contributes 20 points to the evaluation.

The points vary according to the bidder's B-BBEE status level, ranging from 20 points for Level 1 to lower scores for other levels, with a non-compliant contributor receiving 0 points.

IMPORTANT PROCUREMENT CONDITIONS

Bidders should also note:

• No fronting is permitted; a bidder found to have fronted will be automatically disqualified. 
• Only duly authorised persons may sign submitted documents.
• Joint ventures must provide the required establishment documentation and signatures. 
• MGCA may reject a bid that does not meet the specified requirements.
• MGCA is not required to accept the lowest-priced bid or any bid.
• MGCA may award the assignment in part, depending on which pathways are ultimately selected. 
• Bids remain valid for 90 days after the closing date. 
• The successful provider must comply with applicable South African agricultural, environmental, planning, municipal and occupational health and safety legislation. 

PAYMENTS

Payments will be made as stipulated in the Service Level Agreement, subject to satisfactory delivery and acceptance of the agreed milestones.

The RFP does not state a fixed contract value in the provided document. Bidders are instead required to submit their own financial proposals using the specified Stage 1 fixed-fee and Stage 2/Stage 3 per-pathway pricing structure.

CONFIDENTIALITY & INTELLECTUAL PROPERTY

All information provided by MGCA to the service provider must be treated as confidential.

Unless otherwise agreed in writing, all:

• Final reports
• Tools
• Templates
• Datasets
• Outputs

developed under the assignment will become the property of MGCA.

APPLICATION / SUBMISSION

Proposals must be submitted in accordance with the RFP requirements.

Closing date: 28 September 2026

Late submissions will not be accepted.

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