Background

UNCDF is the UN’s capital investment agency for the world’s least developed countries. It creates new opportunities for poor people and their communities by increasing access to microfinance and investment capital.? UNCDF focuses on Africa and the poorest countries of Asia and the Pacific, with a special commitment to countries emerging from conflict or crisis.? It provides seed capital – grants and loans – and technical support to help microfinance institutions reach more poor households and small businesses, and local governments finance the capital investments – water systems, feeder roads, schools, irrigation schemes – that will improve poor peoples’ lives.

In Zambia, 40% of the population is financially excluded, with 44% adult account usage of digital financial services. There has been a rapid rise in the availablility and use of digital financial services as well as its enabling infrastructure, like agents. From 2017 to 2018, the number of agents has risen from approximately 23,000 agents to 47,000 agents. Despite the growth of the industry, there is still a strong need for digital finance products to address the needs of those traditionally underserved (e.g., women, youth, rural populations).

The growing fintech sector and start-up ecosystem is seen as a strong contributor to driving innovation in the financial sector. To enact the full potential of the start-up ecosystem, there is need for collaboration among various stakeholders to ensure that new and innovative products are developed, given a chance to pilot and can achieve scale and sustainability.? One of the main constraints for start-ups to go to market and scale is with navigating the policy and regulatory requirements.? To address their needs, UNCDF is proposing a regulatory intervention that will directly support: a) An Innovation Hub/ local MSME incubator) and up to 10 FinTechs/Digital MSMEs (5 in each cohort) that require support on regulatory navigation; b) Policy makers and Regulators in Zambia.

Duties and Responsibilities

UNCDF is looking for a national consultant with strong expertise in policy, regulation and innovation to support the Zambian start-up ecosystem and Zambian FinTech Regulatory environment. The ultimate objective of this assignment is to create a Regulatory Playbook based on the experience of 10 FinTechs to support future FinTechs and regulators on creating a more transparent and easy-to-access enabling environment. The Consultant’s work will inform a system of engagement, address regulatory barriers, and emphasize the fintech sector’s need to engage regulators and vice-versa.

Scope of Work

Under the direct supervision of the Regional Technical Specialist, the DFS & Innovation Policy Consultant will be responsible for assessing the capacity & needs of Regulators and FinTechs to develop innovative financial solutions that can drive financial inclusion as follows:

A. Assessing Capacity & Need of Regulators and FinTechs:

1. For the FinTechs:

• With Start-up/Technology Incubator, select up to 10 FinTechs that require support in regulatory engagement
• Identify the products/services for each of the FinTechs, and the relevant regulators that would regulate those types of products/services.
• Assess their capacity and need to engage the relevant regulators

 2. Based on activity A1ii, engage relevant regulators (likely to be BoZ, ZICTA, and CCPC) within relevant divisions

• Assess regulatory capacity for specific relevant divisions of regulators
• Identify the knowledge and skill needs and requests of relevant regulators

B. Information sharing so regulators are aware of emerging models and innovations in regulatory tools available to them. This would also include helping the relevant regulators engage with each other to share a common purpose:

• Help regulators understand common FinTech models and best practices around the world on regulation of innovation, with special emphasis on similar local models.
• Develop coordination mechanisms between relevant regulators to identify overlapping jurisdiction and develop common understanding of the potential for innovation
• Curate exposure visits with regional and international examples to show how other regulators are addressing similar challenges.

C.  Facilitating deep industry engagement so regulators understand their role in enabling innovation and gain comfort in the potential of local solutions:

• Help each FinTech engage (separately and, where possible, as a group) the relevant regulators to help understand relevant products/services and solicit guidance or feedback needed on likely compliance requirements.
• Enable communication between regulators and industry on successes/failures, encouraging feedback from regulators and enabling product iteration
• Support regulators, especially BoZ and ZICTA, respectively to identify internal champions who can liaise directly with industry representatives and Innovation Hubs as needed.

D. Suggesting recommendations/advice on regulatory solutions and how these can be implemented locally, including the use of enhanced supervisory tool like sandboxes to relevant regulators.

• Determine how emerging models for managing FinTech innovations and can meet the needs of BoZ/ZICTA and the unique context of Zambia
• Solicit feedback from local providers on the demand for and expectations of regulatory monitoring that will help regulators understand how to manage the risk of new models in a sustainable manner
• Where appropriate, provide clear actionable guidance to help relevant regulators to determine whether a sandbox, or some other enhanced monitoring tools are appropriate.
• Support implementation of regulatory interventions to ensure they align with industry expectations and can be applied consistently.

E. Supporting the please add the missing part here:

• Testing of selected product under the observation/supervision of regulators if possible, relevant, and needed.
• Communication of the testing of the product to relevant stakeholders
• Review/Summarize existing regulatory guidance, criteria and standards of practice expected for live testing of new models in the Zambian market
• Enable lessons from implementation (activities A, B, and C) to inform future iterations of regulatory engagement and product testing.

Final Produts / Deliverables :

Duration of Assignment, Duty Station And Expected Places Of Travel

Number of working days: Up to 200 days per year.

Duration of assignment: January 2, 2020 – January  2, 2021

Duty station: When required to report in the office, the consultant shall be co-located in the UNCDF Zambia offices and/or the Innovation Hub Partner as needed.

Travel: Travel to the field and other relevant locations may be required and will be compensated on reimbursable basis and following the UNDP/UNCDF rules and regulations which states that consultants shall only be paid the most direct and most economical ticket, as will be quoted by the official UN travel agency. Any amount in excess of the said quotation, such as class and airline preference of the consultant, shall be borne by the consultant and the daily living allowance will be paid in amounts not exceeding the UN established Rate.

This assignment is intended for Zambian nationals. Non-Zambian nationals may apply for the assignment, but UNCDF shall not be obliged whatsoever to provide entitlements normally given to international consultants. Please note that UNCDF cannot guarantee residence permits or visas for consultants. Consultants are responsible for securing their work documentation. Please note that UNCDF cannot guarantee residence permits or visas for Non-Zambian consultants. Non-Zambian Consultants are responsible for securing their work documentation. Applicants that are not nationals of the duty station requested will have to prove their residence status. Please note the consultant will not be compensated for living expenses while in the duty station.

Provision of Monitoring and Progress Controls

The consultant will work under the direct supervision of the UNCDF Regional Technical Specialist based in Lusaka and in close collaboration with other relevant colleagues, experts and/or institutions designated by the Regional Technical Specialist. The Consultant(s) is responsible for providing his/her own laptop during the course of his/her engagement with UNCDF.

The consultant will have weekly communication with the Regional Technical Specialist either in person, via email and/or skype, for coordination and guidance purposes, ensuring consultants’ output quality and targets.

Payment is linked with deliverables and will be paid upon successful completion of deliverables and as per certification and evaluation of the direct supervisor. Final payment shall require a signed performance evaluation of the consultant.

The following supporting documents will serve as conditions for payments to an Individual Contractor:

(i) submission of an invoice and Certificate of Payment (COP); (ii) review, approval and written acceptance of each deliverable by the Regional Technical Specialist (RTS) and any other Project/Programme Manager designated by RTS; (iii) submission of a time-sheet and expenses with relevant supporting documentation; and (iv) an authorization of payment disbursement from a direct supervisor.

Payment schedule:

Competencies

• Understanding and/or background in financial inclusion, microfinance, or access to finance or similar field focused on “innovation for good” oven ability to engage with regulators and/or fintechs
• Understanding of need for sensitivity and confidentially of information involved in dealing with regulators
• Analytical and problem-solving skills of a high order, including the ability to formulate recommendations and advice;
• Ability to translate complex technical ideas to a non-technical audience in verbally and in writing.
• Ability to communicate and function effectively in local/international/multicultural environment;
• Excellent networking with a demonstrated ability to build and maintain professional relationships;
• Ability to meet deadlines and work under pressure.

Required Skills and Experience

Education:

• Master’s degree in Economics, Finance, Banking, International Development, Business Management, Education or related fields is mandatory.

Experience:

• Demonstrated 2 years experience working in (or with) a regulatory body on the management, oversight, or regulation of new technologies and innovation is mandatory;
• Experience within a Central Bank or Telecommunications Regulator is preferred but not mandatory;
• At least five years working for a regulator in Zambia or Southern Africa is preferred but not mandatory;
• 2 years of proven experience and/or understanding of Regulatory Licensing, Sandboxes and other relevant regulatory tools used to supervise and regulate the financial services industry, including FinTechs is mandatory;
• Proven experience working with digital financial service providers preferably in Zambia;
• Proven experience and minimum knowledge of Digital Financial service solutions, and tools that can be used to capture low-income people;
• Previous work in Zambia is preferred;
• Previous work in Southern Africa is mandatory.

Language :

• Written and spoken fluency in English is mandatory ;
• Spoken fluency in Bemba and/or Nyanja is preferred, but not mandatory.

Application Process

Interested individuals must submit the following as proposals in order to demonstrate their qualifications:

(NOTE: the system does not allow multiple uploads of document. Applicants must make sure to upload all documents in one PDF file).

All applications must contain the following information:

• Cover letter with a summary statement of competencies in relation to the TOR
• Earliest availability and proposed schedule for consultancy (can also be included in cover letter)
• Curriculum Vitae
• Financial proposal for the full assignment outlining: Total professional fee (including professional fees), Other professional expenses (such as insurance, taxes, etc.) and current contacts of 3 referees.?

Please use the form available at http://procurement-notices.undp.org/view_file.cfm?doc_id=29916)

• Two (2) Writing Samples less than 10 pages where candidate is the primary author

Proposers who fail to submit the above-mentioned documents may be disqualified and not considered for further evaluation.

Evaluation Criteria:

Applications will be rated on both technical and financial submissions. The following selection method will be used: Highest rated proposal using the combined scoring method, which assigns the weight distribution between the technical and financial proposals. The overall combined score will be 100 points, where weight distribution shall be 70% technical (30% desk review + 40% interview) and 30% financial.

Step I: Screening

Applications will be screened and only applicants meeting the following minimum criteria will progress to the pool for shortlisting:

• (Master’s degree in Economics, Finance, Banking, International Development, Business Management, Education or related fields;

• Demonstrated experience working in (or with) a regulatory body on the management, oversight, or regulation of new technologies and innovation is mandatory.
• Proven experience and minimum knowledge of Digital Financial service solutions, and tools that can be used to capture low-income people;

And

• Submission of the requested two (2) writing samples.

Step II: Shortlisting by Desk Review (100 points)

UNCDF will conduct a desk review to produce a shortlist of candidates and technically evaluate candidates as follows:

• Demonstrated experience working in (or with) a regulatory body on the management, oversight, or regulation of new technologies and innovation preferably within a Central Bank or Telecommunications Regulator; (25 points)
• Proven experience or understanding of Regulatory Licensing, Sandboxes and other relevant regulatory tools used to supervise and regulate the financial services industry, including FinTechs (25 points)
• Proven experience working with digital financial service providers preferably in Zambia (25 points)
• Proven experience and knowledge of Digital Financial Service solutions, and tools that can be used to capture the low-income populace; (25 points)

Only the top three candidates scoring the highest in the desk review and achieving minimum 80 points shall be invited for an interview.

Step III: Interview

A competency-based Interview shall be conducted with the to top three candidates who score the highest in Step II (minimum of 80 points). candidates will be tested on the following:

• Relevant experience
• Sector Knowledge?
• Communication Skills

Only candidates obtaining a minimum of 70% on the total of Step II + Step III will be considered as technically qualified and will be reviewed further for financial evaluation.

Step IV: Financial Evaluation:

The following formula will be used to evaluate financial proposal:

Lowest priced proposal/price of the proposal being evaluated x 30%.

Award Criteria

The contract shall be awarded to the applicant whose offer has been evaluated and determined (i) Responsive/compliant/acceptable; and (ii) Having received the highest score out of a pre-determined set of weighted technical and financial criteria specific to the solicitation.

Both individual consultants and individuals employed by a company or institution are welcome to apply.

Any individual employed by a company or institution who would like to submit an offer in response to a Procurement Notice for IC must do so in their individual capacity (providing a CV so that their qualifications may be judged accordingly). Women candidates or women-owned businesses are strongly encouraged to apply.

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.

 Individual Consultants are responsible for ensuring they have vaccinations/inoculations when traveling to certain countries, as designated by the UN Medical Director. Consultants are also required to comply with the UN security directives set forth under dss.un.org.  If the consultant is over 65 years old, UNCDF reserves the right to require full medical certification and clearance from the consultant’s physician prior to commencing the travel.

Please include all documents into one file while submitting your application.

If you are experiencing difficulties with online job applications, please contact jobs.help@undp.org.

References

UNDP’s Individual Consultant’s General Terms and Conditions are provided here:

http://www.undp.org/content/dam/undp/documents/procurement/documents/IC%20-%20General%20Conditions.pdf