CONSULTANT TO DEVELOP NATIONAL ACTION PLAN FOR FINANCIAL LITERACY AND CONSUMER PROTECTION
|Application Deadline :||20-Jun-12|
|Type of Contract :||Individual Contract|
|Post Level :||International Consultant|
|Languages Required :||
|Starting Date :|
(date when the selected candidate is expected to start)
|Duration of Initial Contract :||1 Month|
|Over the past ten years Mozambique has had strong economic performance and macroeconomic stability sustained by structural reforms and substantial foreign aid flows. According to official figures (1) , growth in the key sectors has risen sharply since 1995 compared with other African countries. The financial sector in Mozambique has played a significant role in Mozambique’s economic development by providing credit to firms and individuals. Its role in financing the private sector has also increased, though still insufficient.
The good quality of macroeconomic and financial sector indicators conceals a disturbing reality of poverty levels. The country’s Human Development Index (HDI) still remains one of the lowest in the world, at 172 out of 182 (HDR 2006). More than half of the population in Mozambique lives in absolute poverty. Income inequality has increased. According to the Finscope Survey of 2009 (2), a large majority (66.1%) of the adult population live in rural areas. One third (32.8%) of adults have not been exposed to any form of education or literacy. The country still faces many socio-economic challenges, including infrastructure. The lack of adequate roads, electricity and communication systems further limits market opportunities.
A major challenge resulting from this context is the low level of financial inclusion, amongst the lowest in the SADC region, as follows:
- Despite recent expansion in number and size of intermediaries, approximately 90% of Mozambicans do not have an account at a formal financial institution, with formal credit available to only an estimated 3% of the adult population;
- Only 11.8% of the adult population has access to financial services;
- 77.8% of the population is excluded from any type of financial services, including informal services. This exclusion rate is the highest in southern Africa; and
- Of the population with access to financial services, more than three quarters live in urban areas.
In terms of concentration, traditional banks continue to provide 96% of the credit volume and 69% of the credit accounts.
The microfinance institutions (MFIs) have experienced significant growth over the last five years, but are still highly concentrated. In 2011, more than 90% of the credit portfolio was spread among the 5 largest MFIs. The financial sector is also characterized by a proliferation of non-authorized financial service providers (FSPs).
Like many other African countries, the consumers and clients of FSPs have experienced in the recent past several problems when interacting with formal and informal FSPs. Though at this stage we cannot quantify the extent of the phenomena, over-indebtedness is one key problem affecting many of the borrowers. Borrowers from banks and other FSPs have at times multiple loans which impact negatively the capacity to service these loans, leading in many cases to over-indebtedness.
The credit bureau is an excellent tool to improve management of credit risk by the MFIs, and is preventing some segments of customers from debt problems. However only the MFIs regulated by the Central Bank of Mozambique have access to the credit bureau. The mid-term evaluation of the first phase of the BIFSMO project (2007 – 2011) revealed that many other MFIs are interested and willing to be regulated and report on their clients. Therefore, expanding credit bureau coverage can be an option in addition to other measures to prevent over-indebtedness.
On the side of the clients/consumer, financial literacy and consumer capability programmes/protection measures will go a long way to anticipate and prevent incidences/problems such as over-indebtedness and expand knowledge on the effective use of the financial sector.
Several evaluation findings, analyses, and studies undertaken during BIFSMO Phase I implementation have highlighted the lack of information and the poor level of financial knowledge by the target population as an important issue and constraint for accessing financial services, as well as in benefiting from existing financial services.
The Central Bank of Mozambique along with some other stakeholders is implicated in financial literacy and consumer capability and protection initiatives for more effective financial inclusion. The activities currently implemented are various but do not follow a coordinated framework or national action plan.
BIFSMO has had a strong and productive partnership over a long period of time with these stakeholders at the macro, meso and micro levels of the sector for expanding access to the financial sector. The 2012 Annual Work plan for the continuation of BIFSMO project into the second phase (2013 – 2015) underlines this issue of financial literacy and consumer protection as a means to expand financial access to the majority of the population, as well as in reducing vulnerabilities of the client/consumer base. It has therefore been planned in the 2012 AWP as a priority, with the view that this action plan will contribute to the overall country agenda for Financial Inclusion.
(1) Statistics published in the World Development Indicators (2010).
(2) FinScope Mozambique Survey 2009, Survey Report, August 2009.
Duties and Responsibilities
Specifically, the consultancy will:
- Identify and analyze interests and comparative advantages of development partners in relation to financial education and client protection;
- Suggest orientation, actions needed for better alignment, implementation and coordination with current interventions and identified actions on this issue;
- Analyze the legal framework for improvement if necessary for the achievement of targets;
- Analyze existing support infrastructures at the meso-level and provide appropriate recommendations on greater involvement in the issue;
- Identify the barriers and needs of both suppliers and clients for financial education actions, as well as their constraints, and provide adequate recommendations on support needed;
- Assess current coordination mechanisms and suggest an institutional framework for national leadership, taking into consideration technical and financial partners and their existing/planned activities in financial education and consumer protection;
- Propose an effective implementation mechanism and entry points which will ensure maximum outputs from all implicated partners in the action plan;
- Define potential mechanisms of monitoring the action plan (either as part of the existing steering committee, or alternative) and the linkages with the actions defined in the overall national finance strategy;
- Identify activities and their budget to be planned as part of the action plan, and outline which activities can be provided by UNCDF and UNDP that will add value in the Mozambican context;
- Strengthen coordination and partnerships between technical and financial partners and their progressive alignment with the action plan that will accompany the national literacy program; and
- Draft a strategy document, with a detailed action plan for each identified institution/component at each level (macro, meso, micro) including a logical results based framework, indicators, responsible agency/party and indicative budget.
Senior Consultant Responsibilities:
- Documentation review;
- Leading the consultant team in planning, conducting and reporting on the entire process, accountable for respecting the TOR;
- Deciding on division of labour within the consultant team;
- Use of best practice methodologies in drafting the action plan;
- Leading the presentation of the draft of findings and action plan;
- Conducting the briefing and debriefing for BIFSMO and relevant stakeholders;
- § Leading the drafting and finalization of the action plan; and
- Take responsibility to incorporate comments after the workshop with UNCDF/UNDP/DNPDR.
Junior Consultant Responsibilities:
- Documentation review;
- Contributing to the development of the formulation plan and methodology;
- Conducting those elements of the formulation determined by the lead consultant;
- Contributing to the presentation of the formulation document to relevant stakeholders; and
- Contributing to the drafting and finalization of the formulation report.
The study will be undertaken by a team of two consultants, led by one Senior Consultant supervising one Junior Consultant. The Senior Consultant is responsible for meeting the requirements of the TOR, assisted by the Junior Consultant.The consultants must in addition possess the following attributes:
Senior Consultant Profile:
- Must have at least ten years of practical experience in strategy drafting (inclusive finance, financial sector, microfinance), preferably in Africa;
- Knowledge and experience in development and implementation of microfinance or bank management and/or consulting experience (minimum of five years);
- Excellent report writing and communication skills in English, in addition Portuguese or Spanish knowledge is an asset; and
- Ability to work in a team and in multi-cultural situations with tact.
- Knowledge and experience in development and implementation of financial literacy and consumer capability initiatives;
- Extensive inclusive finance training and technical assistance experience;
- Comprehensive knowledge of financial services industry best practices; and
- Experience at the country wide sector level/understanding of building inclusive financial sectors, preferably in Africa.
- Excellent writing and analytical skills;
- Ability to communicate clearly and concisely; and
- Excellent coordination skills.
Junior Consultant Profile
- A minimum of five years of microfinance management experience;
- Microfinance technical experience; and
- Knowledge of CGAP benchmarks and industry best practices.
The staff of the BIFSMO in collaboration with the UNCDF Regional office for Southern and East Africa will provide technical supervision to the mission.
Required Skills and Experience
- Both consultants must have at least a Masters Degree in Economics, MBA, or relevant degrees with relevant experience in financial literacy and consumer capabilities programmes in Sub-Saharan Africa.
Documents to be included when submitting the proposals:
Interested consultants must submit the following documents/information to demonstrate their qualifications:
(i) Letter of Interest explaining why they are the most suitable for the work;
(ii) Technical Proposal:
- Providing a clear description of the methodology and work plan that the consultant proposes to execute the assignment, illustrated where appropriate, clearly and concisely with charts of activities;
- A timeline/chronogram for carrying out the assignment;
- Personal CV of the Senior Consultant including past experience in similar projects and at least 3 references. The Personal CV of the Jr. Consultant that will assist the Senior Consultant must be attached.
(iii) Financial proposal indicating consultancy fee (lump sum).
The financial proposal shall specify a total lump sum amount, and payment terms around specific and measurable deliverables. Payments are based upon output, i.e. upon delivery of the services specified in the TOR. The financial proposal will include a breakdown of this lump sum amount (including travel, per diems, and number of anticipated working days). The senior consultant is responsible for the remuneration of the Jr. Consultant.
All envisaged travel costs must be included in the financial proposal. This includes all travel to join duty station/repatriation travel.
NOTE: the workshop costs are NOT to be included in the financial proposal.
UNDP will cover the costs of the stakeholder workshop.
Technical Proposal – 70%
Financial Proposal – 30%
An offer should be considered qualified and responsive if it receives a score of at least 70% on the technical proposal. Under the cumulative analysis scheme, a total score is obtained upon the combination of weighted technical and financial attributes.
How to Apply:
Please upload your proposal where the system request you to upload resume and upload your P11 for the next stage.
Please request the Terms of Reference and the P11 Form at the following email address: firstname.lastname@example.org
UNDP is committed to achieving workforce diversity in terms of gender, nationality and culture. Individuals from minority groups, indigenous groups and persons with disabilities are equally encouraged to apply. All applications will be treated with the strictest confidence.