Terms of Reference (TOR) for Revolving Loan Fund with MFIs/Banks in Somalia/land
Target location: Dollow (Southern Somalia) and Elefyne (Somaliland)
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)
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.
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
NB: The selected MFI/bank will also be supported on capacity gaps identified in the MFIs/ banks
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;
We anticipate to recruit MFIs/Bank’s which physical location in the two target locations.
d. Mandatory documents
Please also provide the below documents as part of the application
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
Technical Evaluation
Applicants need to clearly articulate on the following, but not limited to: -
Financial Evaluation
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.
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.