Background

The United Nations Capital Development Fund (UNCDF) was founded as an independent organization within the UN system in 1966, with a mission “to assist developing countries in the development of their economies by supplementing existing sources of capital assistance by means of grants and loans”. Its creation was part of a larger effort to complement technical assistance and pre-investment activities of the UN Development Programme (UNDP), as well as those of larger partners such as the World Bank.  In 1973 UNCDF’s mandate was narrowed to focus “first and foremost” on the least developed countries (LDCs).  UNCDF today remains a capital investment organization for the LDCs. Its work is designed to help reduce poverty and achieve the objectives of the Brussels Program of Action for the LDCs, as well as the Millennium Development Goals (MDGs). It has special expertise in 1) microfinance / inclusive finance; and 2) decentralization and local development.

UNCDF operates programmes in 26 LDCs, mainly in sub-Saharan Africa. In addition, UNCDF provides technical assistance to UNDP inclusive finance programmes around the world, and partners with other UN organizations on issue-specific aspects of the larger financial inclusion agenda (e.g. ILO on micro-insurance; IFAD on remittances).

The importance of microcredit is widely recognized but there is a high demand for savings from poor families and small and micro enterprises in developing countries. Similarly, savings-based microfinance institutions that fund themselves primarily through local deposits are better positioned to weather periods of financial downturns and local funding is generally more stable and carries no foreign-currency risk. Recognizing (i) the importance of ‘market leaders’ to drive sector development and (ii) the demand for safe, convenient savings products by low income populations, in 2008 UNCDF launched, with the support of the Bill & Melinda Gates Foundation, the LDC Fund to Develop Savings-led Market Leaders (MicroLead).

MicroLead and its funder, The Bill and Melinda Gates Foundation, are committed to documenting the lessons learnt from the different projects funded under the ML program to foster sharing of best practices and knowledge within the microfinance community.

The present terms of reference is related to the completion of a case study related to the project in Ethiopia funded under MicroLead. Included is the Scope of Work, Deliverables, Schedule and Duration for the case study.

Duties and Responsibilities

Scope of Work

UNCDF supported the scale up of small and medium size microfinance institutions in Ethiopia to become market leaders and demonstrate successful deposit mobilization showcases that can be shared and emulated in the microfinance sector at the country level. Institutional capacity building was provided by a Technical Service Provider to strengthen two small size Financial Service Providers and different innovations were successfully implemented with one Financial Service Provider particularly in the area of Branchless Banking to better serve rural markets.

The Consultant will prepare a case study that documents the lessons learned by different partners engaged in its activities in Ethiopia. The assignment aims at documenting the experience gained, the decision making process, the challenges, the measures applied by the FSPs, the way forward to share the potential of those innovations to foster growth, improve performance, deepen quality financial inclusion at the sector level. The case study will also address issues with regard to scaling innovations throughout the FSPs’ branches (revenue/cost considerations, regulatory constraints) as well as clients’ experiences and their perspective on the benefit derived from the innovation.

In preparing the case study, the consultant will:

• With the assistance of the MicroLead Programme team, identify and secure relevant project documents necessary to develop the case study, including but not limited to initial applications, detailed implementation plans, annual work plans and budgets, other relevant reports and correspondence, template and key sections for the case study write up;
• Review, compile and analyze the written program documentation;
• With the assistance of the MicroLead Programme Advisor, identify key stakeholders to be interviewed and obtain contact information, including but not limited to the FSP management and staff, the TSP, other stakeholders involved in the deployment of the identified innovation, and UNCDF management;
• Conduct long-distance interviews (by phone or Skype) with key stakeholders identified;
• If needed to complement the personal interviews, develop and administer a written questionnaire for the relevant stakeholders about implementation of the innovation in the county, and compile and analyze the results.

Deliverables, Schedule and Duration:

• The Consultant will deliver the first draft of the case study to the MicroLead Programme Advisor by January 15, 2015;
• The MicroLead Programme Advisor will circulate the draft for comments, which will be due by January 30, 2015;
• The Consultant will review comments with the MicroLead Programme Advisor by February 05, 2015, and will deliver the final case study that incorporates feedback by February 15, 2015.

Payment of Fees

The Consultant will submit invoices for days worked at the end of the assignment. Payment will be made upon receipt of invoices and approval of the MicroLead Programme Advisor.

Skype is the preferred way of communicating with the different stakeholders, but a couple of interviews may require long distance calls; these will be reimbursable expenses up to a maximum that will be communicated by MicroLead Program Advisor. The consultant will have to submit supporting documents for any reimbursement e.g. phone bill with the calls and costs highlighted or a receipt for a telephone card.

Evaluation Method:

Evaluation Scoring

• Technical evaluation based on competencies, experience and education (70%);
• Financial evaluation based on daily fee quoted by applicant (30%).

Total score: 100%.

Application Requirements:

• Methodology and approach;
• Writing sample;
• Quote including number of days required to complete the activities and Daily rate;
• Offeror’s letter confirming interest and availability form can be found here: http://uncdf.org/en/hiring-consultants;
• Updated CV;
• Daily fee.

Please upload all documents as one file under "CV".

Competencies

Functional Competencies:

Knowledge management and Learning:

• Substantive knowledge and understanding of inclusive finance and microfinance;
• Ability to carry out data collection, to contribute to the formulation of recommendation on the operational and policy level for improving financial inclusion practices based on ongoing experiences with Financial Services Providers;
• Knowledge of development issues;
• Actively works towards continuing personal learning and acts on learning plan and applies newly acquired skills;
• Seeks and applies knowledge, information, and best practices in his/her professional area of expertise.

Required Skills and Experience

Education:

• Master’s Degree in Business Administration or other subject or relevance.

Experience:

• A minimum of 10 years of experience in the field microfinance;
• Sound knowledge and understanding of financial inclusion issues;
• Demonstrated experience in case study write up;
• Prior experience in management of a microfinance institution is desirable ;
• Working experience in Ethiopia is a plus.

Language: 

• Demonstrated excellence in written and spoken English is essential.

Other

The Request for Quotation (RFQ) is open to any individual consultant that has prior experience in writing case studies in the microfinance sector.