SCOPE OF WORK
Microfinance Policy Development
Location of Assignment: Dar es Salaam, Tanzania
Proposed Level of Effort: Approximately 3 weeks
Anticipated Start Date: July 2019
Anticipated End Date: August 2019
Background
The Tanzania Enabling Growth through Investment and Enterprise Program (ENGINE) is a USAID-funded Feed the Future activity that aims to streamline and enhance many of the regulatory, informational and financial channels that encourage domestic and foreign investment in the southern mainland agricultural regions of Mbeya, Morogoro, and Iringa, and in Zanzibar.
ENGINE works at the district level, using a broad-based approach to engage with Local Government Authorities (LGAs), private sector associations, business development service providers, financial institutions and small and medium enterprises.
Problem Statement
Microfinance in Tanzania started in 1995 via SACCOS and NGOs, which emerged in response to the lack of access to formal financial services for most of the country’s low-income groups.
Unfortunately, the majority of microfinance institutions (MFIs) in Tanzania experience many challenges in an already competitive environment, where clients are becoming increasingly better informed and demanding more from financial service providers. Some of the challenges faced by MFIs include limited available capital, inadequate credit delivery and management, poor recovery rates, inability to reach the most vulnerable and marginalized, lack of internal policies, regulation and supervision problems, as well as high turnover of MFI staff.
However, with proper policies and procedures in place, MFIs can use limited resources more efficiently to provide consistent customer service and position the institution for growth. If better managed, these MFIs can have a positive impact on the wellbeing of low-income individuals and communities.
ENGINE is seeking an experienced microfinance expert to work alongside two Tanzanian microfinance institutions (MFI). Each MFI needs support to develop and apply appropriate policies and procedures that align with each organization’s goals and vision.
Objectives of the Assignment
This assignment aims to offer critical assistance to two MFIs to be able to develop and document proper policies that will provide frameworks for each institution’s operations and be well-understood by all employees. Specifically, the MFIs are requesting support to develop these policies: 1) procurement policy 2) anti-fraud and corruption policy 3) training policy 4) budgeting policy 5) coast allocation policy and 6) credit policy.
The consultant will work closely with each MFI staff to review the effectiveness and adequacy of the MFIs’ policies and procedures if available and determine whether the policies contain the information required, assess the scope of procedures, or ensuring that the policies meet the requirements of regulatory agency examiners. Finally, the consultant will support the MFIs to develop and document policies that align with MFIs business goals and plans, flexible and reflect the culture of the business.
Approach
Anticipated Tasks
The Expert Volunteer will complete the following tasks:
Prior to departure:
Upon arrival in Tanzania:
Deliverables
The Expert Volunteer will submit the following deliverables:
Additionally, the Expert Volunteer will provide exit debriefings to the ENGINE staff.
Volunteer Qualifications
The International Executive Service Corps is a Washington, DC based not-for-profit that focuses on private sector growth. We support and catalyze the development of private enterprises, business support organizations, financial institutions, and public institutions around the world. Utilizing skilled consultants and expert volunteers, we’ve implemented over 25,000 short-term projects and 200 programs in 130 countries. True to our mission — Promoting Prosperity and Stability through Private Enterprise — we’re proud to have created over one million jobs across the globe