Terms of Reference (TOR) for Revolving Loan Fund with MFIs/Banks in Somalia
Target location: Baidoa, South-West State, Somalia
The Somali 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.
The Somali 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 Baidoa 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 Baidoa. 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.
✓ 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.
The selected financial institutions will be responsible for managing a loan revolving fund on behalf of SomReP & COOPI 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 Baidoa.
✓ The FIs must operate and have operational offices in the project locations, Baidoa 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.
✓ Relevant experience in providing financial services to MSMEs in Baidoa.
✓ 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
Please also provide the below documents as part of the application
✓ Registration certificate by central bank of Somalia
✓ Commercial operating license from Federal Government of Somalia & Government of South-West State.
✓ Clearance taxation certificate.
✓ Company profile and organogram.
✓ Capability statement.
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.
Interested individuals and firms should submit their proposal accompanied with a cover letter, in English by email to logistic.nairobi@coopi.org or before 8th September 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)
COOPI - Cooperazione Internazionale is an Italian humanitarian organization, founded by Father Vincenzo Barbieri in 1965. Over the last 55 years, COOPI has aimed at breaking the cycle of poverty and supporting population affected by wars, socio-econo... Read More
