CONSULTANCY TO STRENGTHEN INTERNAL CONTROLS AND INVENTORY MANAGEMENT

Job Description

EnerGen WAO Inc was established in Sierra Leone in 2017 with the intention of offering a PAYG pay-to-own option that would make energy affordable for the poor through a grassroots distribution, installation, and service network. Customers pay a small down payment and pay off their loans in 12 to 24 monthly instalments to own the system. A remote monitoring technology manages payments, tracks sales and usage and diagnoses system for maintenance. The expected impact of the project is to reach 54,167 households, provide employment to 38 employees, and work with 1,151 SMEs and 245 agents by year 6 of the project.

This young company (established in 2017) is currently grappling with an organization structure that will need improvement in streamlining to avoid overlaps while establishing stronger internal controls. This follows a recent case of fraud, with money lost due to weak controls and overlapping duties.

Support will be needed in reviewing of the existing management team structure, fiduciary duties (Managing Director, Business Manager, Finance Manager, Sales and Marketing Manager, Technical Support/IT Manager, Customer Support Manager, Inventory Manager, PAYG Manager, Human Resource Manager), including properly set-up organogram defining scope of work and establishment of stronger internal controls.

The company needs a better inventory management system, to manage the inventory in the warehouse before they are sold. To achieve this objective a software/platform integration for inventory management, automated payments and customer monitoring will be required for tightening controls.

The company will also be venturing into the retail market and will require credit assessment skills necessary for the identification of good payers.

1. Analyze the company’s strategic fit to the industry and growth path in the target market in Sierra Leone.
2. Work with the company to detail a comprehensive strategic capacity building support framework for the employees with regards to automated processes.
3. Revised organization structure with clear organogram, roles and responsibilities.
4. Internal controls established to eliminate loopholes and financial losses that may be caused by fraud.
5. Prudent financial controls that attract other financiers.
6. Financial safeguards to be implemented especially with regards to customer selection processes.
7. Proper corporate governance instilled in the company for better accountability in line with AECF’s financial controls.

Comprehensive TA delivery report, detailing:

1. Strategic capacity building support framework.
2. The final organogram with a clear division of roles and duties for each employee.
3. Internal control structures established to prevent future recurrence of fraud and theft in the company.
4. Financial controls and safeguards put in place after the consultancy.
5. Corporate governance structures in place in the company after the consultancy.
6. Software/ integrated platform for end to end inventory management

The duration of the service will be 20 man-days spread over a period of 3 months. This service is expected to commence on 1^st June 2019.

Qualified consultants (individual or institutional consultants) are invited to submit the proposal that includes the following:

1. Qualification and experience of the individual/institution.
2. Approach and methodology to undertake this assignment.
3. Previous experience in similar assignment(s).
4. Detailed financial budget (in USD) and work plan.
5. Technical and Financial proposals will need to be submitted as separate documents.

• A degree in business management science
• Experience in formulating internal control and efficient corporate governance structures for large companies
• At least 5 years’ experience in the Business Management.

The consultant will be accountable to AECF Programme Manager

The AECF is obliged by the Kenyan tax authorities to withhold taxes on service contract fees as well as ensure VAT, at 16%, is charged where applicable. Applicants are advised to ensure that they have a clear understanding of their tax position with regards to provisions of Kenya tax legislation when developing their proposals.

An evaluation committee will be formed by the AECF and shall include employees. All members will be bound by the same standards of confidentiality. The vendor should ensure that they fully respond to all criteria in order to be comprehensively evaluated.

The AECF may request and receive clarification from any Vendor when evaluating a proposal. The evaluation committee may invite some or all of the Vendors to appear before the committee in order to clarify their proposals. In such event, the evaluation committee may consider such clarifications in evaluating proposals

In deciding the final selection of qualified bidder, the technical quality of the proposal will be given a weighting of 70% on the basis of the evaluation criteria. Only the financial proposal of those bidders who qualify technically will be opened. The financial proposal will be allocated a weighting of 30% and the proposals will be ranked in terms of total points scored.

The mandatory and desirable criteria against which proposals will be evaluated are identified in the table below.

Key Areas for Evaluation/ Assessment

Weighted Award

a) Technical Proposal

80

i) An understanding of the consultancy requirements;

· Demonstrate understanding of the assignment

5

· An in-depth understanding of business structuring, internal controls and corporate governance.

15

ii) Methodology and work-plan for performing the assignment: Demonstrate capacity to deliver the task(s) within a realistic timeline, based on the consultancy days designated per task.

25

iii) Relevant services undertaken by the bidder in the past engagements: Demonstrate relevant experience.

20

iv) Detailed reference list indicating the scope and magnitude of similar assignments:

· Letters of reference from past customers or associates to the lead consultant or the consulting organization.

10

· Registration and other relevant statutory documents (applies to institutional consultants).

5

b) Financial Proposal: Clarity, relevance, reality to market value/ value for money of cost for the assignment (inclusive of any applicable tax).

20

AECF reserves the right to determine the structure of the process, number of short-listed participants, the right to withdraw from the proposal process, the right to change this timetable at any time without notice and reserves the right to withdraw this tender at any time, without prior notice and without liability to compensate and/or reimburse any party.

To be considered, your proposal reference “Internal controls and Inventory Management consultant-Energen Inc-” must be addressed to procurement@aecfafrica.org and received by Sunday, 26th May 2019 5:00 PM EAT.

About the Organization

The AECF is a development institution which supports businesses to innovate, create jobs, leverage investments and markets in an effort to create resilience and sustainable incomes in rural and marginalized communities in Africa. Launched in 2008, the AECF has mobilized over US $356 million to date, leveraging more than US $658 million in matching capital and improving the lives of more than 19 million people in 2018 alone through jobs and increased household incomes. The AECF has so far supported 268 companies in 26 countries in sub-Saharan Africa across 40 value chains in our focal sectors of agribusiness and renewable energy.

In the new 2018-2020 strategy, our goal is to “double our impact in half the time”. To achieve this, we will continue to focus on the agribusiness and renewable energy sectors, increase support to climate-smart technologies, refine our challenge model, expand regional presence, deepen focus on gender, youth and employment by expanding our products and partnership approach to better meet our investees’ current needs; and ensure they rapidly scale and transition to external financing and sustainability thereby attaining our vision of ‘A Prosperous and Enterprising Rural Africa’.

Since 2012, AECF has provided investment support, worth (US$131m) to a cluster of 78 businesses in across Sub-Saharan Africa focusing on either renewable energy or adaptation to climate technologies. The businesses have experienced a number of challenges and technical assistance is expected to help address these in the growing portfolio. Since the inception, The AECF through REACT has provided investment support (US $63m) to a cluster of 58 businesses in across East Africa, focusing on renewable energy or adaptation to climate change technologies (REACT) and agribusiness. Some of the businesses have experienced several challenges and the AECF is providing technical assistance to help in addressing those challenges and improve the performance of the respective businesses.

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