Call for Proposals Initiative for Stabilization Transition and national development (I-STAND) Implementation of Micro-financing of Eligible 45 Small and Medium size – Mogadishu, Hargeisa & Baidoa
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- Post date:18 Jul 2021
- Job expires in: 3 days
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CALL FOR PROPOSALS
Initiative for Stabilization Transition and national development (I-STAND) Implementation of micro-financing of eligible 45 Small and Medium size
Enterprises (SMEs) owned and managed by women/young females in 3 locations (Mogadishu, Hargeisa and Baidoa)
Nordic International Support Foundation – NIS FOUNDATION
19th July 2021
NIS Foundation is seeking to competitively contract a microfinance institution that will be responsible for all aspects of the project delivery and administration including: (1) outreach and engagement of target beneficiaries and key stakeholders (bringing both SMEs and concerned institution into the project); (2) conducting due diligence of beneficiary SMEs; (3) disbursing funding to the target beneficiaries; and (4) establishing a database for SMEs and regular monitoring and reporting about the progress. Please refer the attached ToR for further details.
Interested institutions are required to provide the following details:
Information about the Microfinance institution background (updated institution profile).
Demonstrable experience of successfully implementing three similar projects with international donors (attach at least 3 mains from previous contracts).
List and testimonials (CVs) of key people who will be managing this project indicating expected level of effort.
Understanding of the TOR (max 3pages).
Description of the approach, methodology of fund disbursement andWorkPlan with timelines
Valid registrations or permits from both Somalia/Somaliland relevant authorities.
Detailed activity-based budget with comments.
Submission of proposals
The deadline for submitting complete proposals is 11:59pm on 31st July 2021. Proposals must be submitted electronically to firstname.lastname@example.org, with the subject line “Implementation of micro-financing of eligible 45 women/young females SMEs in Somalia/Somaliland- CALL FOR PROPOSALS.”
Please forward any query to the following e-mail address: email@example.com, and copying: firstname.lastname@example.org & email@example.com
NB: OFFERS WILL BE REJECTED IF ANY ILLEGAL OR CORRUPT PRACTISES HAVE TAKEN PLACE IN CONNECTION WITH THE AWARD.
NB: NIS Foundation promotes gender equality and social inclusion. Suppliers/contractors that represent/are owned by women, male and female youth and/or other marginalized groups are encouraged to apply for this activity.”
The Nordic International Support Foundation (NIS) is a Norwegian-registered non-profit organization engaged in stabilization and reconciliation initiatives in conflict and post-conflict locations. Our primary areas of intervention are institutional development, public service delivery and conflict resolution. NIS Foundation is currently implementing a wide range of stabilization projects in Somaliland, Banadir and other Federal Member States with plans to expand into new areas. The projects, funded by different donors, aim to support the implementation of government policies across a range of sectors, all working in different ways to achieve greater stability and better prospects for the country’s longer-term development goals. The various stabilization initiatives share the objective of contributing toward a more inclusive post-conflict society which sees the value of diversity and gender equality.
One of the key pillars of the Initiative for Stabilization, Transition and National Development (I-STAND) program is Gender Equality and Social Inclusion (GESI). As a key stakeholder, NIS acknowledges the major role played by women in the social, economic and political growth of Somalia/Somaliland. Women also contribute significantly to the stability of the Somali society at the household, local, regional and national levels, through their concerted efforts to build resilience through economic interventions that not only sustain their families but contribute to the country’s Gross Domestic Product (GDP).
Based on this background and in consideration of the challenges and the disadvantages that women in particular face regarding income generating opportunities, NIS has initiated a gender and inclusion initiative through which it seeks to support/upgrade local women owned and operated small and medium sized business enterprises (SMEs), business cooperatives or groups of women that are jointly running enterprises in three locations in Somalia/Somaliland.
The women economic empowerment initiative aims to increase women’s productivity and improve their access to the microfinancing and their livelihood at large as well. The nature of SMEs should be credible, legally, and socially acceptable and add value to the women who directly or indirectly depend on them.
Earlier, NIS has supported women owned companies through solar electrification installation to increase the benefits for women. NIS Foundation aims to test the micro finance institution (MFI) approach in delivering results at scale for women through revolving small loans to women entrepreneurs across Somalia/Somaliland, through experienced MFI institutions based in the country. Eligible SMEs accepted into this program will receive a financial support delivered through the institution selected by NIS Foundation through this procurement process.
For the implementation of this initiative, NIS Foundation is seeking to competitively contract a microfinance institution that will be responsible for all aspects of the project delivery and administration including: (1) outreach and engagement of target beneficiaries and key stakeholders (bringing both SMEs and concerned institution into the project); (2) conducting due diligence of beneficiary SMEs; (3) disbursing funding to the target beneficiaries; and (4) establishing a database for SMEs and regular monitoring and reporting about the progress.
2. Objective of the initiative
Supporting women to start off or improve their existing small businesses is a sustainable approach in reducing poverty and guaranteeing economic empowerment of women. The overarching objective of the initiative is to scale-up women owned SMEs in Baidoa, Mogadishu and Hargeisa locations. NIS Foundation theorizes that creating more opportunities for women entrepreneurs to engage successfully with their customers and markets can yield high dividends for them, their families, and communities; and deliver society-wide gains as a result of increased productivity and more inclusive economic growth.
3. Scope of the initiative/service:
A total of 45 SMEs (15 per location) in three (3) locations including Baidoa, Mogadishu and Hargeisa are expected to benefit from this initiative over one (1) year period, with the loans expected to revolve to reach more women SMEs over a longer period. The selected MFI should be well established in the three target locations.
Upon successful awarding of the contract, the hired MFI will be responsible for the following activities;
Identify the project stakeholders such as Chambers of Commerce in the targeted locations, Ministries of Finance, and other relevant institutions/authorities to become strategic partners and participate in the project implementation. The selected MFI should be proactive in communicating with the relevant government offices.
The selected MFI will be provided with the relevant project documents and the expected outcomes of the grant from which to develop the selection criteria for the SMEs beneficiaries.
Recruit existing tested and successful women owned SMEs who have the potential to be scaled-up through outreach and share the list with NIS Foundation for verification.
Conduct due diligence of SMEs beneficiaries and share their business plans with NIS Foundation for review.
Develop a database of eligible SMEs based on the due diligence assessment conducted and shared business plans with agreed upon milestones.
When NIS Foundation disburse funds, SMEs are recruited, the selected MFI will provide trainings to the beneficiaries when and where required.
Beneficiary SMEs will be eligible for financial disbursements of up to $10,000 if they meet their agreed implementation targets. The MFI will verify that the targets are met and manage these disbursements. Disbursements will only be done upon target completion. The fund for disbursement is separate from the funds allocated for operational costs.
Carry out periodic assessments preferably in every six months for SMEs to track progress, identify SMEs who dropped out, and for the graduates of the program within the agreed timeline.
Compiling information and images/videos on participating SMEs about their feedback on the given loan/fund and regular reporting about the progress of the project. Coordinate with the overall communication and M&E units for the project.
Based on the above scope of work, potential MFIs are invited to submit their applications detailing their experience, delivery approach, overall management and project coordination, the potential risks associated with the implementation of such interventions and how they intend to mitigate those risks
The following deliverables are expected from the MFI during to submit.
Proposal for the implementation of the project which will include the following:
Basic selection criteria/approach that the institution will use to recruit the 45 potential SMEs owned or managed by women/young females in the identified three locations.
Proposed budget breakdown for the activity including the operational/admin costs.
List and testimonials (CVs) of key people who will be managing this project.
Work plan and timelines.
Method of funds disbursement to the SMEs.
Challenges associated with SMEs funding management according to previous experience.
After the contract is awarded, the followings are expected from the successful MFI.
Provide quarterly and monthly update reports to NIS Foundation summarizing project activities progress and next steps.
Documented success stories from the beneficiaries
Final narrative report including lessons learnt and recommendations.
Reporting timelines will be discussed and agreed with the successful MFI.
4. Monitoring & Evaluation
Due diligence assessment on SMEs participating in the project will be carried out to serve as benchmark, and changes will be tracked by both NIS Foundation and selected MFI against the benchmark. Regular monitoring visits will also be done by the selected MFI jointly with NIS Foundation team. The set of required information to be collected will also be jointly developed.
5. Minimum criteria to qualify by SMEs.
• Applicant must be from respective target location as per revolving grant agreement.
• Applicant must be women with running businesses with special consideration of those coming from
socially marginalized communities.
• The application is open to entrepreneurs with business skills and has small enterprises and interest
in expanding their businesses.
• Applicants must have registered business as set forth in the Commercial Code of Somalia/Somaliland,
at least must have one year or more business experience.
• Individual participation is allowed, and group participation is encouraged but not more than five or
• Applicant must possess an authorization document (such as a valid local or business registration
document, a passport or national identity card)
• Business license and documentation of the applicants should match.
• Ability to provide a financially stable guarantor.
• The applicant must complete the application form provided and alongside present a clear and detailed business plan.
• Term of loan is 12 months and 24 months for larger amounts.
6. REQUIRED EXPERIENCE
The following criteria should be met by the interested MFI:
Demonstrable experience of successfully implementing three similar projects with international donors.
Capacity and experience in collaborating with diverse sets of stakeholders, such as civil society organizations, government officials, donor representatives, international institutions.
Capacity to carry out field monitoring, and reporting on development interventions.
Capacity to train the SMEs beneficiaries.
Physical presence in Somalia/Somaliland regions and carried out similar interventions.
The institution should possess a valid registration or permits from both Somalia/Somaliland relevant authorities.
Regional fund/loan distribution among Clients
The total budget allocated to potential eligible 45 SMEs owned and managed by women at minimum is 200,000 USD with extended repayment period of two years (maximum) excluding the operational /admin cost of the MFI.
The average loan size will start from 500 USD to 10,000 USD distributed to eligible 45 clients at minimum in phase one. The loans are expected to be returned within 12 -24 months by the successful 45 clients in phase one. Once the full amount of the loan is returned, a grant of 50% of the loan will be granted to the succeeded clients/enterprises after evaluation done by NIS and the hired MFI.
The 100,000 USD returned loans will be re-distributed again to 20 -25 new clients.
The 50,000 USD returned loans will be again distributed to another 10 – 20 new clients.
The returned loans of 25,000 USD will again be benefited to another 5 new clients.
The MFI institution will revolve the grant into this cycle until the fund is exhausted.
Fund distribution: Hargeisa 80,000 USD, Baidao 40,000 USD and Mogadishu 80,000 USD
Fund distribution: Hargeisa 80,000 USD, Baidoa 40,000 USD, and Mogadishu 80,000 USD.
b) Admin cost of MFI
A detailed admin cost of MFI institution to be presented separately and included in the bid document.
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