Call for Consultancy
Financial Services Providers’(FSPs) Capacity Assessment
Catholic Relief Services/Ethiopia
1. Background
Catholic Relief Services(CRS/Ethiopia) seeks to hire an individual consultant or consulting firm to carry out a Financial Services Providers’(FSPs) capacity assessment for two new projects - the USAID Feed the Future (FtF) funded Ethiopia Livelihoods Resilience - Oromia (LRO) and USAID’s Office of Food for Peace (FFP) funded Development Food Security Activity (DFSA), also known as the Ethiopian Livelihoods & Resilience Program (ELRP). Both programs are implemented in Oromia regional state, with CRS’ DFSA also working in Dire Dawa Administrative Council. The two projects share four woredas. The capacity assessment covers fourteen woredas in Oromia Regional State and Dire Administrative council.
2. Objectives of the Consultancy
The consultancy should address the following proposed specific objectives:
i. Identify potential FSPs with capacity to provide financial services to Activity participants including proximity of FSP to PSNP clients (distance traveled and associated costs).
ii. Explore quality, terms and conditions of existing FSP products and services and whether they meet PSNP client needs as well as Know Your Customer (KYC) client identification requirements and the MFIs/RuSACCOs readiness to develop new products, when required.
iii. Identify growth potential (both financial and geographic) of the FSPs and willingness to address PSNP clients, with emphasis on women and youth, based on agreed terms and conditions with CRS/MCS/HCS.
iv. Identify community and stakeholders’ perception on the MFIs/RuSACCOs.
v. Identify capacity strengths and weaknesses of the FSPs and their boards, management and staff, and key intervention areas with priority given to 1) physical and human capacity gaps of operation towards improving effectiveness and efficiency of the FSPs branch in servicing the target beneficiaries, and 2) capacity gaps in accessing government conditional capacity building grant.
vi. Explore how FSPs have used loan guarantee funds in the past, if any, and identify any best practices in designing the management of these loan guarantee funds.
vii. Develop strategies and approaches for the financial linkage to be implemented.
viii. Develop simple business plan development template (maximum three pages)
3. Methodology
The assessment will be conducted on FSPs- namely Microfinance Institutions (MFIs) and Rural Saving and Credit Cooperatives (RuSACCOs) operating in DFSA and LRO operational woredas. The consultant will employ both qualitative and quantitative data collection and analysis methods to conduct the assessment.
4. Deliverables/Expected Outputs
· Inception report with detailed methodology.
· Share interim report to CRS (LRO and ELRP/DFSA) project teams.
· Present the FSPs capacity assessment result to validation workshop participants and incorporating validation workshop comments.
· Final report including a summary report of findings for Siraro woreda (to be shared with World Vision for their programmatic interventions)
· Develop strategy document and guideline of financial linkage and a sample business plan acceptable for both FSPs and clients.
5. Personnel Requirements and Qualifications
The lead consultant should have at least three years’ experience of conducting capacity assessment with focus on financial institutions, particularly MFIs and RuSACCOs, skill in research and analysis, and familiar to approaches and tools of capacity assessment with at least Master’s degree in economics, agricultural economics, business, Microfinance, Cooperatives Management or any other relevant professional areas. The lead consultant should have three experts (assistants) who should all have at least a Bachelor’s degree and at least three years’ work experience, preferably in conducting research and surveys with financial institutions and should have a professional background with FSP and/or livelihoods components of current or previous Productive Safety Net Program (PSNP).
6. Key working relationships
Internal: The consultant will closely work with CRS LRO Financial Services for the Poor Advisor and DFSA Economic Livelihood Manager. In addition, the consultant will work closely with the wider LRO and DFSA technical teams, CoP for LRO and CoP and DCOP -Programs for DFSA.
7. Place of performance
The assessment will take place in Addis Ababa, Oromia region and Dire Dawa Administrative Council, including their regional, zones, woredas and selected kebeles.
8. Duration of the consultancy
The total estimated period of performance will be 47 days.
Timeline for Contract: CRS wishes to enter into agreement with the consultant on March 25, 2018. Start date will be dependent on consultancy proposal on how to submit the deliverables as per the above-mentioned delivery date.