Terms of Reference (ToR)
Interim Manager for a Textile and Garment Factory
Enterprise Partners (EP) is a 7-year (2013-2020) wealth creation programme which, inclusive of women and the environment, aims to support the private sector and Ethiopia’s economic growth. By applying the Making Markets Work for the Poor (M4P) approach for sustainable results, it aims to facilitate market development in order to spur innovation and investment that creates jobs and increases incomes for the poor. It does so with a combination of technical assistance and market facilitation in resolving market failures. EP is being implemented by a consortium led by DAI Europe, and includes First Consult, Enclude and ITAD.
The EP pillars are:
- The Finance Pillar is expected to achieve the outcome of increasing investment levels in the Ethiopian economy, particularly for growth-oriented Small and Medium Enterprises (SMEs). This will include funding of green technologies where appropriate and develop funding for green growth investments. In addition, the finance team also focus on the base of the pyramid, where market failures are being addressed to increase the usage of semi-formal and formal financial services by the poor.
- The Agro-Industrial Pillar is expected to achieve the outcome of increasing returns on investment (productivity) and investment levels in the priority sectors of cotton/textiles/apparel, livestock/leather and fruits/vegetables, in order to achieve the impact of creating jobs and raising household incomes. Additionally, this pillar will incorporate the promotion of climate change awareness and addressing women’s economic empowerment.
The government of Ethiopia has adopted the second growth and transformation plan (GTP II) with the prime focus of transforming the country to a middle-income country by the year 2025. The need to redirect the economy into an industrialized one is central to the transformation plan and the government intent to boost the Ethiopian textile, apparel-manufacturing sector, and create an attractive investment proposition for foreign and local investors, while creating employment opportunity.
Background specific to this assignment
The textile industry has been one of the most dynamic and geographically mobile industries globally. The industry is made up of buyer-driven complex global production networks with suppliers located in developing countries, including Ethiopia. Ethiopia is one of the largest and most resource rich countries in Africa. The textile industry is a bridge for development because it integrates agriculture with industry. It is labour intensive, starting from cotton cultivation to fashion product, with many opportunities for value addition that could benefit Ethiopia. The Ethiopian textile and apparel sector has grown at an average of 51% over the last 5-6 years, with employment targets of up to 174,000 by 2020.
The Government of Ethiopia (GoE) has embarked on an ambitious programme to attract foreign direct investment (FDI), increase production for export and create new jobs. The manufacturing sector is at the centre of the government’s effort to achieve this goal, because of its ability to mobilise foreign investment, create employment and generate foreign currency. Among selected priority sectors that will drive this growth, the textile and apparel value chain constitutes the central pillar in the structural transformation of the Ethiopian economy.
The Ethiopian Growth and Transformation Plan (GTP) set an ambitious target for exports of textiles and apparel which the country was not able to meet. However, the GoE succeeded in attracting large textile and apparel manufacturers to set up factories in Ethiopia. In addition, significant government spending on infrastructure and industrial parks is expected to attract more investments. The GoE is working tirelessly to improve investment-enabling conditions and achieve the targets set in the GTP II for FDI in the textile sector, export value and new jobs creation.
Ethiopian textile and apparel companies export t-shirts, polo shirts, uniforms, nightwear and other garments to international brands, retailers and buying houses. They face many challenges but benefit from duty free access to major markets, cheap, green energy and dedicated infrastructure.
One of the leading vertically integrated textile and apparel facilities operating in Ethiopia is facing internal and external challenges and is operating below capacity.As a result, there is a need to hire an interim manager to deal with immediate strategic and coordination issues.
The objective of this assignment is to implement an immediate Rescue Strategy for the company on which the planned Turnaround strategy will be build establishing the project’s communication within the factory, organizing stakeholders’ relations and activities and preparing the ground for the formulation of the permanent turnaround strategy.
SCOPE OF WORK AND SPECIFIC TASKS
The interim manager is expected to bring his/her best experience, judgement and industry knowledge to implement and manage the project in delivering the core activities listed below:
- Communicate the immediate rescue strategy to the factory’s owner and obtain his consent in order to carry out the activities.
- Set-up the advisory board with the owner as the president with gradually reduced decision-making power on operational level and on financial issues.
- Coordinate Stakeholders involved. Develop of a Memorandum of Understanding between stakeholders in which the shared tasks and commitments are stated.
- Facilitation of a timely, effective and solution driven communication between owner and stakeholders especially on financial issues.
- Provide close guidance for owner and top management. Introduction of financial tools and follow up of financial analysis. Rational decision making based on data. Support the development of the inventory management / ERP (Enterprise Resource Planning System).
- On-boarding of turnaround manager as the new CEO with full decision-making power on operational issues. Introduction to staff, workforce, and clients. Providing crucial background information about the factory. Continuous back-up and support.
- Preparing the factory for an accelerated start of the turnaround strategy
DELIVERABLES AND TIMEFRAMES
The assignment will last for 4months, from mid of July 2018 until end of October 2018. The expected deliverables are as follows:
- Develop inception report detailing the rescue strategy
- Facilitate establishment of advisory board and work out major duties and responsibilities of the Board (TOR)
- Create effective coordination and clear communication among all stakeholders
- Detail Financial analysis and follow-up and development of financial plan to the company to be part of the working document
- On boarding turnaround manager
- Provide continued guidance and support for the owner , turnaround manager and management
- Final handover report
WORKING ARRANGEMENTS AND REPORTING
- The interim manager will be hired by the factory.
- At least two weeks onsite presence per month shall be expected at the factory in Ethiopia.
- The focal person for this assignment to whom the interim manager will report to the steering committee and to the turnaround strategy manager.
- More than 10 years of international experience in working with textile and garment factories.
- Excellent mediation and facilitation skills.
- Thorough understanding of the textile and garment sector in Ethiopia.
- Thorough understanding of the functioning of the textile supply chain.
- Ideally, familiarity with the relevant stakeholders involved
- Leadership and senior management experience. Experience in stakeholder management, negotiation and communication.
- Ideally, experience working with international brands
Additional competencies required include:
- Fluent in spoken and written English;
- Excellent writing and presentation skills;
- Strong analytical skill;
- Ability to work under pressure and meet tight deadlines; and
- Excellent interpersonal skills and ability to work with others.
Last date for submission of applications is 17th July 2018.