Tender Description

TERMS OF REFERENCE (TOR) FOR PUNTLAND SMALL AND MEDIUM-SIZED
ENTERPRISES POLY DEVELOPMENT
Assignment Tittle: Consultant - PUNTLAND SMALL AND MEDIUM-SIZED
ENTERPRISES POLICY DEVELOPMENT.

1. Background
   The Ministry of Commerce, Industries and Investment (MoCII) is mandated with creating and
   enforcing sensible trade laws and policies in order to stimulate economic growth. By guaranteeing
   adherence to industrial quality standards and conforming to the demands of global frameworks
   such as the World Trade Organization (WTO) and the Sustainable Development Goals (SDGs) to
   reduce poverty and increase economic prosperity, the Ministry plays a critical role in creating an
   environment that is conducive to investment and the growth of the private sector.
   The Ministry is implementing strategic reforms to modernize regulatory frameworks, boost
   institutional capacity, and improve the business climate in order to fulfill its goal. These initiatives
   are essential to establishing Puntland as a top investment destination and guaranteeing a
   sustainable and competitive business environment on a global scale. The assignment will also
   consider Puntland’s position within regional trade integration, including opportunities and
   challenges associated with the East African Community (EAC) market.
   Small and Medium-sized Enterprises (SMEs) continue to play a key role in the growth and
   sustainability of Puntland’s economy. SMEs are core to the emerging private sector in Puntland
   and constitute the base for private sector led growth in the country. SMEs play a critical role as
   drivers for inclusive growth and employment creation for the citizens of Puntland and dominate
   Puntland’s private sector which is estimated to contribute to over 80% of the states’ Gross
   Domestic Product. SMEs therefore have potential to drive Puntland’s future economic growth,
   wealth and employment creation.
   The consultancy sought under these ToRs aims to strengthen the institutional capacity of the
   MoCII, enhance private sector development through preparation of a business-enabling
   environment with the availability of business regulations, policy frameworks and promotion of
   domestic production and facilitation of the local, regional and international markets through
   ensured quality of import and export commodities. The business regulatory frameworks to better
   support women’s economic empowerment and the inclusion of ultra-poor entrepreneurs. This is in
   the recognition of the need to address barriers such as limited access to finance, skills and markets.
   MoCII aims to develop SME Policy to facilitate formalization and growth of SME and
   accessibility of markets, addressing barriers that impede these groups from full participation in the
   economy.
   Small and Medium Enterprises (SMEs) are the backbone of the economy in the Puntland State of
   Somalia. However, local businesses face systemic constraints, including limited access to
   finance, entrepreneurial skill gaps, and a fragmented regulatory environment.
   Currently, no dedicated SME Policy exists to translate these strategic directions into a coherent
   framework. Interventions remain project-based, donor-driven and weakly coordinated, with
   overlapping mandates between ministries and limited mechanisms for systematic engagement with
   the private sector. A formal SME Policy is therefore required to define government’s vision,
   mission, objectives and instruments for SME development, and to provide a clear basis for
   programming, budgeting and partner support.
   This ToR presents the Background, methodology, analytical framework, and work plan for the
   consultancy assignment to develop the Puntland SME Policy, aligned with Puntland’s Economic
   Development Agenda 2036 and the Puntland State Development Plan 2026–2030.
2. Purpose of the Assignment
   The primary objective of this 2-month consultancy is to design, draft, and validate a
   comprehensive, gender-sensitive Puntland SME Policy. This framework will establish an
   enabling business environment, foster public-private partnerships (PPPs), streamline microfinance mechanisms, and drive formal  job creation aligned with the Puntland Development Plan.
   To engage a qualified Consultancy expert to support MoCII to:
   • Draft Small and Medium Enterprises Policy
   • Institutional Capacity Building: Strengthen the Ministry of Commerce and Industry's
   capacity to support SME development, including improving service delivery to the private
   sector.
   • Stakeholder Engagement: Facilitate public-private dialogue with stakeholders, including
   chambers of commerce, women entrepreneurs, and relevant Ministry officials.

Skills Required

Attachment

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