Job Description

Terms of Reference (TOR) for Revolving Loan Fund with MFIs/Banks in Somalia/land

Target location: Dollow (Southern Somalia) and Elefyne (Somaliland)

1. Background:

The Somalia Resilience Programme (SomReP) is a consortium of seven international non-governmental organizations (INGO) and one Local NGO. SomReP works to enhance the resilience of chronically vulnerable households, communities and systems across Somalia/land.

The Somalia Resilience Program (SomReP) is an ambitious approach to tackle the challenge of recurrent droughts and the chronic vulnerability among pastoralists, agro-pastoralists, and peri-urban households in one of the poorest countries in the world. SomReP is being implemented through a consortium of 7 INGOs (ACF, ADRA, CARE, COOPI, DRC, Oxfam and WVI) and 1 Local NGO(Shaqodoon)

1. Introduction

The Somalia Resilience Programme (SomReP) uses sustainable approaches to tackle the challenges of recurrent droughts and the chronic vulnerability among pastoralists, agro-pastoralists, and peri-urban households and communities. The consortium has deep experience in Somalia context joined as a consortium in 2012 to build a resilience model based on the global resilience thinking, innovative livelihood approaches for the Somalia context, and bridging the relief to development continuum. SOMREP intends to partner with a bank/MFI so as to support our existing village saving and loans associations (VSLAs), Livestock associations, farmer groups by extending financial services to them. In this case SomRep project in Dollow (Southern Somalia) and Elefyne (Somaliland) requires reputable and qualified MFIs/banks to support this process. The financial institutions/banks will provide access to a flexible source of capital for our program cohort in business through a loan revolving fund. The VSLA concept involves groups of people collaborating to pool their savings together in order to create a fund for lending and borrowing. The primary goal of the of the MFI/bank will be to provide savings and loan services to this economic groups including livestock associations, farmer groups etc.

1. Objectives:

The objective of the ToR is to find suitable MFIs or banks that will provide demand driven quality and innovative financial services to small and micro enterprises. The key role of for the financial

service provider will be to operate and manage a loan revolving fund on behalf on the agency. The loan revolving fund will be used to give out loans to agreed cohort between the bank/MFI

and SOMREP program participants in Dollow and Elefyne. Additionally, the financial service provider will also offer access to other appropriate financial services including savings, and fund transfer to the SomRep cohort. All this will ensure sustainability of the current programs

1. Expected Results:

• With support of a consultant review or design tailor made and relevant financial products to support and strengthen micro and small business development. The package should embed bill pay services and money transfer services, which help ensure the ease and safety of their financial transactions. The loans products should be women inclusive.
• Provision of financial services including saving and loans to Economic groups i.e. Saving groups, Farmer/Livestock groups etc.
• Increased access to formal financial institutions that provides savings and loan services.
• Increased accessibility of financial transactions of MBIs through different platforms including mobile banking system.

NB: The selected MFI/bank will also be supported on capacity gaps identified in the MFIs/ banks

1. Scope of work

The selected financial institutions will be responsible for managing a loan revolving fund on behalf of SoMRep and facilitate loans to economic groups identified by the project staff across project target locations. Additionally, the bank/MFI will also offer additional financial services like opening savings accounts etc. to the project participants The scope of work of the financial institution under this ToR shall include but not necessarily limited to the following;

1. Target location: Dollow and Elefyne

We anticipate to recruit MFIs/Bank’s which physical location in the two target locations.

1. Eligibility Criteria for the MFIs/banks:

• The FIs must operate and have operational offices in the project locations, Dollow and Elefyne district or willing to establish one
• Must be reputable and legally registered financial institution
• Relevant experience in facilitating transactions, implemented RLF activities, and other economic empowerment activities in the past with NGOs
• The FIs must have presence either premises or physical in the target project locations
• The FIs must have other alternative banking systems (mobile banking) whereby remote villages with limited access to physical financial institution could access and do transactions digitally.
• Experience in implementing Micro-finance related activities with mainly focusing micro, small and medium enterprises (MSME) those targeting small business owners.
• The MFI/bank should have or be willing to develop women friendly loan products

Experiences and Qualifications

1. Requirements

• Relevant experience in providing financial services to MSMEs in Dollow and Elefyne.
• Legally registered financial institution and have presence in the target locations/regional.
• Ability to engage with MSMEs from project locations
• Ability to work effectively and deliver all reports in English

d. Mandatory documents

Please also provide the below documents as part of the application

• Registration certificate by central bank of Somalia/land
• Commercial operating license from govtment of Somalia
• Clearance taxation certificate

Evaluation Criteria

The Selection of the firm will be made based on cumulative analysis (i.e., mandatory requirement and technical qualifications as follows:

Mandatory requirements

• Registration certificate by central bank of Somalia/land
• Commercial operating license from government of Somalia
• Clearance taxation certificate
• References including names and contact information from previous clients who can be contacted regarding relevant experience in managing a revolving loan fund (At least two)
• Successful bidder will be required to sign World Vision Supplier Code of Conduct form

Technical Evaluation

Applicants need to clearly articulate on the following, but not limited to: -

• A Consulting profile and cover letter outlining the suitability of the consultant in undertaking the assignment (Not exceeding two pages)
• Up to two-page statement of capability (referencing the selection criteria) and the approach to be take in undertaking this assignment
• Clear work plan including time frames for the financial services market assessment
• Detailed CVs of key personnel (including any formal qualifications) should be provided including company organogram

Financial Evaluation

• A financial proposal with a detailed breakdown of costs quoted in USD. Applicable tax amount must be clearly stipulated and separated from the base costs.
• Payment Terms and credit Period

Financial proposal should not be part of the technical proposal; it should be a separate document.

Submission of Proposals:

Interested individuals and firms should submit their proposal accompanied with a cover letter, in English by email to somo_supplychain@wvi.orgon or before 30th Jan 2024.

Proposals should be submitted in three distinct/separate attachments, namely Mandatory Requirements, Technical Proposal and Financial Proposal (Bidders who will combine both technical and financial proposals shall be disqualified)

Email title should be; Revolving Loan Fund with MFIs/Banks in Somalia Target location: Dollow (Southern Somalia) and Elefyne (Somaliland

Bids received after deadline shall not be considered.

Skills Required

Follow us on social media