Terms of Reference Microfinance Consultant – Somalia
The Africa Enterprise Challenge Fund (AECF) is a non-profit organization, with its headquarters in Nairobi supporting early and growth-stage businesses in the agribusiness and renewable energy sectors. Our aim is reducing poverty, promoting resilient communities and creating jobs through private sector investment. AECFs’ goal is to transform lives by proving funding and technical assistance to businesses that improve the lives of rural communities and display potential for credible commercial viability and growth.
AECF’s strategy is focused on agribusiness/agriculture and renewable energy sectors with increased support to climate technologies, deepened focus on gender, youth, and employment, aimed at attaining the institution’s vision of ‘A Prosperous and Enterprising Rural Africa’.
Recently, The AECF was awarded a grant to implement the Finance for Inclusive Growth in Somalia (FIG – Somalia) funded by the European Union.
About the Programme
Funded by European Union, Finance for Inclusive Growth in Somalia (FIG – Somalia) is a pilot programme component under the European Union’s Inclusive Local and Economic Development (ILED) programme, whose objective is to contribute to stability in Somalia by extending state authority and services, promoting local reconciliation and peacebuilding, creating inclusive economic opportunities and protecting the most vulnerable.
FIG-Somalia seeks to work through participating financial institutions to fill a financing gap in Somalia by providing them with access to a revolving fund for credit to be used for the sole purpose of providing onward lending to women and youth in business and producers. We are therefore seeking a Microfinance Consultant to support the AECF programme team and long-term Advisor, based in Somalia, as they seek to build the capacity of local microfinance institutions to reach this target market.
Overview of the Role
The Microfinance Consultant will be an expert with experience in MSME banking, microfinance industry, training, organizational development and business development in the MENA/Horn of Africa region. The Microfinance Consultant will work closely with the Senior Technical Advisor, transferring knowledge and expertise for the long-term benefit of the programme.
1.0 Scope of Work
The scope will entail:
1. Assess the Partner MFIs current operations, with a specific focus on how the current structures are serving on-lending to youth, women and businesses in the productive sectors such as agriculture, fisheries and livestock (‘target beneficiaries’).
2. Critically evaluate the operations of the Partner MFIs, reviewing existing credit methodology, credit process, products, costs structure, internal audit processes, risk management, IT infrastructure and credit manuals of the two partner financial institutions – against the real needs of the target beneficiaries.
3. Determine what are the real needs of the target beneficiaries and establish if the MFIs credit processes and structures are speaking to these needs.
4. Conduct a market assessment to inform the development of products and training packages for Partner MFIs staff and develop a strategy related to the new expansion of this product.
5. Based on findings from market assessment, develop the microfinance products (market definition, market research, product prototype, costing and pricing, pilot testing, rollout, marketing, lifecycle management, and so forth) and clarify the impact the impact of introducing new products on the MFI (human resources, corporate culture, operations and systems, financial results, and operating results).
6. Recommend improvements to MFI operations and products complete with the implementation road map and recommended templates, forms, manuals and comprehensive policies.
7. Train the Partner MFIs leadership and staff, in a workshop, on all areas of product and operations improvement agreed upon, to ensure effective transfer of knowledge and accountability.
8. Conduct a Training of Trainers for the Partner MFIs to build their capacity to train and coach Target Beneficiaries in the following areas: Business Management, Marketing, Business Linkages, Leadership and Governance, Financial literacy, Group Dynamics, and such other areas that will be deemed necessary for the success of the financed enterprises.
9. Based on the products developed, recommend and customize a loan and guarantee fund mechanism model
The consultant will provide the following:
1. A market assessment report
2. Capacity needs assessment/gap analysis report
3. Model an appropriate loan and guarantee fund lending mechanism for each of the MFIs.
4. Complete documentation on the products developed, policies and processes
5. Implementation road map for the products developed
6. Identify training areas complete with module structure for training staff as a trainer-of-trainers for the different target beneficiaries - women, youth and producer groups, guided but not limited to the following delivery channels:
· Individual lending
· Group lending
· Electronic/mobile banking
· Agent-based banking
· Self-help group / village-savings-and-loans
3.0 Duration of Service
The assignment will run for 150 days, commencing no later than November 2020.
· A Master’s degree in Business Administration, Finance or Economics;
· At least 7 years of experience in microfinance with a minimum of 15 years of experience in MSME banking and the financial industry of which a significant portion should be in the MENA/Horn of Africa region;
· Experience in training, organizational development and business development;
· Experience working with the private sector, and in developing microfinance products targeting difference economic sectors: agriculture, livestock, youth and women;
· Experience in conducting sectoral analysis and value chain analysis to develop financial products/financing;
· A certified trainer of trainers (ToT) in MSME, MFIs and banks with specific experience in the MENA/Horn of Africa region
· Monitoring and coaching experience for start-up businesses/microfinance institutions;
· Extensive and proven track record in financial institution administration, operations. Knowledge of Islamic banking a must.
· Experience of working in a challenging environment with poor infrastructure and human capacities and difficult security conditions;
· Fluency in English with strong written and verbal communication skills; and
· Knowledge of Somali/Arabic is an asset.
5.0 Proposal submission
Interested and qualified individuals/firms are invited to submit their proposal(s) comprising of the following:
1) Methodology and approach for conducting the assignment
2) Detailed reference list indicating the scope and magnitude of similar assignments.
3) Relevant services undertaken in the past three (3) years.
4) Financial proposal showing clearly the budgeted cost for the work to be conducted under the scope of work above.
5) Technical and Financial proposals will need to be submitted as separate documents.
The consultant will be accountable to the Senior Programme Officer – Agribusiness.
AECF is obliged by the Kenyan tax authorities to withhold taxes on service contract fees as well as ensure VAT 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.
8.0 Evaluation Criteria
An evaluation committee will be formed by the AECF and shall include employees. All members will be bound by the same standards of confidentiality. Bidders should ensure that they fully respond to all criteria to be comprehensively evaluated.
In deciding the final selection of qualified bidder, the technical quality of the proposal will be given a weighting of 70% based on the evaluation criteria below. 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.
Understanding the Terms of Reference
Methodology and work - plan for performing the assignment
Demonstration of how the individual/firm meets the above-listed qualifications
Detailed reference list indicating the scope and magnitude of similar assignments (two minimum)
Geographical Reach (Somalia and Somaliland): Demonstrate relevant geographical experience, knowledge and reach to effectively carry out the consultancy
Financial proposal; clarity, relevance, reality to market of value/ value for money of cost for the assignment (inclusive of any applicable tax).
AECF invites qualified consultants/firms to send a proposal to firstname.lastname@example.org, clearly marked “Terms of Reference for Microfinance Consultant Somalia” to be received no later than 29th October 2020 by 5.00 pm East Africa Time (GMT +3) addressed to The AECF, Procurement Department
All clarifications and or questions should be sent to email@example.com
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.