UNDP Jobs - 40494- International Finance Consultant to Assess Demand

International Finance Consultant to Assess Demand and Recommend Options for Social Business Financing Mechanisms

Location :

Dili, Timor Leste

Type of Contract :

Individual Contract

Starting Date :

01-Nov-2013

Application Deadline :

04-Oct-13 (Midnight New York, USA)

Post Level :

International Consultant

Duration of Initial Contract :

90 Days

Languages Required :

English

Expected Duration of Assignment :

90 Days

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. UNDP does not tolerate sexual exploitation and abuse, any kind of harassment, including sexual harassment, and discrimination. All selected candidates will, therefore, undergo rigorous reference and background checks.

Background

Micro Small and Medium Enterprises (MSMEs) have been accepted worldwide as an important engine of economic growth and promoting inclusive growth. Improvement of business opportunities through strengthening MSMEs could serve as a catalyst for achieving the Millennium Development Goals (MDGs). To accelerate the achievement of the MDGs, the Government of Timor-Leste through the Ministry of Commerce, Industry and Environment and UNDP are collaborating to explore innovative ways to mobilize the private sector to contribute proactively to development in the country. Financed by the Korea-UNDP MDG Trust Fund, the Government of Timor-Leste and UNDP officially launched a project to Mobilize Social Business (SB) to Accelerate Achievement of Timor-Leste MDGs, in April 2012. The overall objective of this 3-year project is to promote SB that will contribute to private sector development as well as attainment of MDGs in Timor-Leste. As a result of this project, social businesses are expected to contribute to the reduction of poverty in rural areas of the country and generate rural employment opportunities and income. SB is defined as: non loss, Non dividend business/Company designed to contribute to achievement of a social objective; within the highly regulated marketplace of today. It is distinct from a nonprofit organization because the business should seek to generate a modest profit but this will be used to expand the company’s reach, improve the product or service or subsidize the social mission. There are two main prototypes of social business. The first type of a SB focuses on providing a product and/or service with a specific social, ethical or environmental goal. The second type of a social business is a profit oriented business that is owned by the poor or other underprivileged parts of the society, who can gain through receiving direct dividends or by indirect benefits.

This project aims at mobilizing and supporting SB to contribute to private sector development, poverty reduction and acceleration of the MDGs achievement in Timor-Leste. Social businesses seek to create not only financial returns but also social returns to their beneficiaries, but as financially viable and sustainable businesses with a social focus, they are distinct from non-profit organizations In order to achieve its objective, the project will focus on four key outputs: (1) Enabling environment for SB development in Timor-Leste; (2) SB Fund is established for financing viable Social Business; (3) Improved capacity of service providers to provide accessible needs-based technical support to SB; and (4) Improved coordination and networking of investors, service providers, regulatory bodies and SB. During the design stage of this project many initiatives of social business have been identified, however their results remains limited and require systematic technical support to leverage their and scale up their impact. Worldwide the lack of financing and challenges related to access to finance are among the many obstacles preventing entrepreneurs from setting up SB; UNDP Timor-Leste seeks to recruit a finance expert to support the establishment of a social business fund.

Duties and Responsibilities

The objective of this consultancy is to assess the existing funding/lending mechanisms for small-medium scale businesses, assess the need for establishing an independent/ special funding mechanism for SB financing taking into consideration SB particularity, provide multiple case scenarios for the management and institutional arrangement for SB fund, recommend the optimal scenario for the context of Timor-Leste and develop set of standard operating procedures for managing the fund taking into consideration the prevailing economic opportunities and challenges in Timor-Leste.

The consultant should carry out consultation with potential social business fund suppliers, relevant government institutions, partners in the financial sector and clients implying various research methods such as focus groups or survey.
The consultant should conduct assessment of the demands for establishing a lending facility for social business in Timor-Leste, taking into consideration currently existing business financing in Timor-Leste, potential fund recipients and the size and scale of the SBs accessing the facility;
The consultant should provide UNDP. MCIE and other national institutions a full review/analysis report of the demand side;
Conduct extensive consultation with the government counterparts, the current financial intuitions, banks, private sector and social business owners and beneficiaries to assess potential risk and how to mitigate the risk that may threat social business fund in Timor-Leste;
The consultant should review all possible scenarios for the financing tools offered by the fund (guarantee, loans, leasing, and equity) and the institutional arrangements for administering the SB fund;
Also asses and analyze the pro and cons of each possible administrative arrangement of the SB fund;
The consultant is expected to recommend to UNDP and the national counterparts of the project the optimal scenario that will create a breakthrough in the impediments of access to funding for strengthening/establishing SB.
The consultant should review the potential sources/opportunities for further mobilizing resources to increase the capital of the SB fund;
The consultant should recommend minimum standard operating procedures for the SB fund including the governance mechanism that maintains flexibility, accessibility of the poor, transparency, sustainability of the fund and risk mitigation.

Key Deliverables:

Detailed demand study for financing social business fund in Timor-Leste;
Multiple case scenarios for social business fund institutional/administrative arrangement with tools offered; with detailed information on the pro and cons of each possible scenario and recommend optimal scenario in Timor-Leste;
Resource mobilization and sustainability strategy/mechanism for SB funds;
Set of standard operating procedures for SB fund management.

For more details please refer to ToR at following link.

http://www.tl.undp.org/content/dam/timorleste/docs/Procurament/IC%20Notice%20%26%20ToR_%20International%20Consutant%20for%20SB%20Fund.pdf .

Competencies

Ability to communicate and function effectively in an international, multicultural environment;
Excellent interpersonal and networking skills, including the ability to liaise effectively at senior levels;
High planning skills and ability to work independently;
Business modelling skills.

Required Skills and Experience

Academic Qualifications:

Master degree in Business Administration, Economics, Finance, Banking or related fields.

Experience Qualification:

10 years of experience of relevant professional experience for the financial industry specially funding institution establishment;
Past experience in providing financial policies advisory services;
Experience in developing financial institution; standard operating procedures;
Past experience in Social Business fund establishment and management;
Knowledge of the private sector funding requirement and needs in post conflict and early development countries;
Timor Leste and/or regional experience.

Language Requirement:

Must be fluent in both spoken and written English. Excellent writing skills in English are necessary.