Lease Financing MIS Expert - Enterprise Partners

Job Description

Enterprise Partners

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.

Background specific to this assignment

The Government of Ethiopia (GoE), in cooperation with the World Bank Group, the European Investment Bank and the DFID-funded Enterprise Partners, is implementing the SME Finance Project aimed at enhancing access to finance opportunities for SMEs in Ethiopia. The Development Bank of Ethiopia (DBE) has been identified as the implementing agency for the over $260 million credit facility aimed at supporting SMEs through leasing finance and/or working capital finance through DBE, commercial banks, microfinance institutions and lease finance companies.

The Ethiopia SME Finance Study (2014) represents the analytical background for the project. The study, conducted by the World Bank at the request of the GoE, looked at (the lack of) SME finance as one of the possible obstacles to job creation. The study has demonstrated the existence of a so-called “missing middle” phenomenon in Ethiopia, whereby small enterprises are more credit constrained than either micro or medium/large enterprises. The study also highlighted the inadequacies of Ethiopia’s financial sector to address the financing needs of SMEs, and the existence of severe limitations in the overall enabling environment for SME lending (e.g. the lack of a collateral registry). Moreover, it also highlighted the importance of lease finance as a complementary source of funding for boosting the Ethiopian economy by providing long-term finance to SMEs, which need funds to expand, but often do not have the credit history or collateral sufficient for credit from conventional financing sources.

The project will have four components: Component 1: Financial services to SMEs; Component 2: Enabling environment for SME Finance; Component 3: Business Development Services to SMEs; Component 4: Project’s management, communication and impact evaluation.

Under component 1, the project will provide participating financial intermediaries with a line of credit facility for the provision of leasing and working capital to eligible SMEs. This liquidity support will be complemented with technical assistance (TA) aimed at supporting participating financial institution in designing, piloting, and rolling out financial products, utilizing novel lending methodologies (i.e. cash flow based lending) to successfully expand their outreach to the target SMEs.

DBE will provide direct financing to SMEs, and wholesale finance to other financial intermediaries for on-lending to SMEs through two windows: a lease finance window and a lending (working capital) window.

A TA facility will be established to complement and reinforce the credit facility. In order to make the credit facility more effective, participating financing institutions will receive high-quality, tailored technical assistance. This will be delivered through a combination of specialized trainings and the presence of technical advisors with proven and relevant local and international experience to help build capacity in financial services to SMEs. This capacity building will aim to develop the staff of participating financing institutions to serve SMEs adequately – training them in assessing SME business proposals and developing suitable financial products and lending methodologies for the target group. Participating Financial Institutions will assume full credit risk of lending to SMEs and are free to set pricing and loan conditions, including relevant policies and procedures, commensurate with their cost structure, capital base and risk profile.

The final project beneficiaries will be eligible SMEs operating in the manufacturing, agro-processing, tourism and construction industries. SMEs are defined in terms of number of employees (e.g. from 6 to 100 employees).Working capital loans to SMEs will be limited to a maximum of Birr 10 million per SME, while lease finance loans will be aligned with the DBE Lease Financing Policy requirements: i.e. a maximum lease loan size of Birr 30 million.

DBE as one of the selected Participating Financial Institution to utilize this credit line in its lease financing window is the beneficiary of the TA facility established to reinforce the credit line facility and accordingly an International Lease Adviser and a local TA Program Manager were assigned to manage the specific TA provisions of DBE. Hence, a specific TNA was conducted back in April 2017 to identify the specific gap areas where DBE requires TA and the finding indicates that among other TA components, IT/MIS system for DBE’s lease financing activity is also one critical area that needs to be addressed.

1. SCOPE OF WORK

The Lease Financing MIS Expert is expected to assess DBE’s MIS existing system and requirements of the lease financing activity, and recommend appropriate MIS solutions for DBE management to and assist the implementation process of the recommended solution.

Subject to acceptance of the recommendations, the consultant is expect to advise/support DBE in selecting and operationalizing the system.

The consultant is expected to bring his/her international experience and expertise to provide MIS solution needs for DBE lease financing activity. Working closely with EP Lease Financing Advisor and TA Manager, the consultant is responsible to asses and recommend suitable IT/MIS solutions.

1. SPECIFIC TASKS

The consultant is expected to bring his international experience, judgement and best industry knowledge to support DBE in the execution of IT/MIS TA need of DBE identified in the inception phase of this project. The consultant will be undertaking the tasks and activities listed below:

Expected activities of the consultant are:

1. Assess the needs for an MIS system for DBE to manage its leasing transaction processes and leasing portfolio monitoring.
2. Recommend appropriate MIS solutions (options) for DBE management consideration and decision.
3. Present to DBE senior management the findings of the assessment and recommendations.
4. Assist in implementing the decisions taken by DBE management, to install and bring into operation the selected MIS system for leasing, and train the relevant people in its features and use.
5. Perform other activities as required.

The scope of a potential MIS system for DBE leasing would cover the following areas:

• Integrated software solution for managing the leasing portfolio.
• Leasing transaction processing, collections processing and document flow.
• Contract preparation and contract management (including tracking contract changes).
• Financial reporting on leasing portfolio performance, linking with DBE’s core banking system.

Deliverables

• Assessment report with findings for the first activity
• Recommendations to DBE management for the second activity

Time allocation:

Activities 1, 2 and 3 above are estimated to be completed within 10 working days and activity 4 is expected to take 10 working days.

1. WORKING ARRANGEMENTS

The consultant will divide his/her time between DBE Head Office and EP Office, working closely with the DBE Lease Advisor and TA Manager. The consultant will report to the SME Finance Lead.

1. CONSULTANT REQUIREMENTS

• University degree or higher, in IT, MIS, business, economics, finance or related discipline.
• 7-10 years plus international IT/MIS expertise, and relevant experience with IT/MIS system in leasing companies (or in banks with leasing operations), or experience with firms consulting on IT solutions for leasing with banks or leasing companies.
• In-depth knowledge of international best practice in leasing of manufacturing equipment models and mechanisms.
• Excellent interpersonal skills and ability to work with others.
• Proven ability to develop and deliver coaching and on the job mentoring.
• Experience in development of appropriate technical appraisal tools, policies and procedures.
• Proven expertise in project management and leading a diverse team of functional experts.
• Ability to work with public and private sector stakeholders.
• Commitment to building the skills and competence of the team.
• Additional competencies required include:
  • Fluent in spoken and written English
  • Excellent writing and presentation skills
  • Ability to work under pressure and meet tight deadlines

Closing Date: 10^th December 2017

About the Organization

DAI is an international development company. For 40 years, we have worked on the frontlines of international development, tackling fundamental social and economic development problems caused by inefficient markets, ineffective governance, and instability. Currently, DAI is delivering results that matter in some 80 countries. Our development solutions turn ideas into impact by bringing together fresh combinations of expertise and innovation across multiple disciplines. Our clients include international development agencies, international lending institutions, private corporations and philanthropies, and national governments.