Terms of Reference for Consultancy Services:
Provision of guidance and support to MFIs/SACCOs partners of Cordaid for the developed climate-related financial products under TREPA project.
About Cordaid
CORDAID is an internationally operating value-based emergency relief and development organization. We stand with those who are hit hardest by poverty and conflict by supporting them in their struggle to move beyond survival and to fully participate in equitable and resilient societies. CORDAID Rwanda works in the fields of food and income, private sector development, and climate resilience. We pioneer in establishing pro-poor growth through the market system and value chain development, agri-business development services for SMEs and cooperatives, and improving access to financial services.
Project Background
TREPA is a six-year Project coordinated by IUCN from 2022 through 2027 and is being implemented in all districts of the Eastern Province. The Project is funded by the Green Climate Fund (GCF) and intends to restore 60,000 ha of drought-degraded landscapes into climate-resilient ecosystems through re-forestation, agroforestry, restoration of pasturelands, and soil erosion control measures in the Eastern Province of Rwanda. In addition, the TREPA Project will promote improved clean and efficient cooking energy technologies to more than 100,000 households in the Eastern Province of Rwanda. The Project will also develop value chains of climate-resilient agricultural and agroforestry products to incentivize public and private investments in forests, rangelands, and agroforestry. Targeted value chains include those of tree crops, bee products, and fodder. Value chain actors will be supported in overcoming identified bottlenecks and constraints along the nodes of the value chains. The project will finally support the national and local institutions to effectively plan, manage and monitor climate adaptation outcomes from improved land use at national and decentralized levels. The TREPA Project implementing partners are IUCN (Accredited Entity), the Rwanda Forestry Authority and ENABEL CIFOR- ICRAF, World Vision, and Cordaid.
Cordaid intervention
Under TREPA Project, Cordaid is tasked to promote access to finance for smallholder farmers and other actors in the context of value chains in the target area through technical assistance to MFIs/SACCOs in design and development of climate related financial products.
Rationale of the consultancy services
Cordaid through the TREPA project is seeking to engage a consultant firm to support its intervention in the design and development of climate related financial products targeting agriculture value chain (rice, maize and beans), tree products (e.g., seedling/nursery production, fruits, wood fuel, timber, and fodder, honey). The consultant firm shall provide expert guidance and support in the follow-up of the developed climate-related financial products in 50 MFIs/SACCOs partners under the TREPA project.
The consultant will be responsible for monitoring, and reporting on, the adoption and effectiveness of these products.
Scope of Work
The consultant will undertake the following tasks:
- Review of approved climate finance product prototypes in the assigned MFIs /SACCOs
- Determine the evaluation criteria for the selection of climate finance products for their assessment, adaptation and roll out. (Number of climate related financial product assessed, adapted, to mainstreamed)
- Design and monitor the testing of approved prototypes as agreed by MFIs/SACCOs management at least 10 % of the market baseline within two months of the assignment.
- Support the MFIs/SACCOs staff in the review of client loan application files in line with the client need and products feature
- Support FIs in conducting local client marketing campaign on climate finance products under testing.
- Conduct regular follow-up sessions with financial institution representatives to assess progress, address challenges, and refine strategies for maximizing the impact of climate-related financial products.
- Compile comprehensive reports detailing the extent to which clients have adopted the developed climate-related financial products, including both qualitative and quantitative data in each MFI/SACCOs supported.
- Provide analysis and insights into the saving/lending status realized by savings groups and other clients who have embraced the developed financial products, highlighting the financial and environmental benefits accrued.
Deliverables
The consultant firm will be expected to deliver the following:
|
|
Tasks |
Description |
Deliverable |
|
6.1 |
Review of approved climate finance product prototypes in the assigned MFIs SACCO |
The consultant will conduct a desk review to familiarize with the status of each assigned SACCOs and MFIs regarding climate finance products under development (testing phase) and provide technical assistance plan and approach for the assignment |
Inception report |
|
6.2 |
Determine Evaluation criteria for the selection of climate finance products for assessment, adaptation and roll out. (Number of climate related financial product assessed, adapted, to mainstreamed
|
The consultation in consultation with the project team will propose evaluation criteria for climate finance product assessment and validation |
Validated evaluation criteria for climate finance product assessment |
|
6.3 |
Design and monitor the testing of approved prototypes as agreed by MFIs/SACCOs management at least 10 % of the market baseline within two months of the assignment.
|
Validate the status of climate related financial product under testing phase for redesign, roll out or rejection based on the testing phase data and product card (feature). |
Status report of assigned SACCOs/MFIs products testing |
|
6.4 |
Support the MFIs/SACCOs staff in the review of client loan application files using the provided tools including A/L-CAT tool
|
Conduct regular follow-up sessions with financial institution representatives to assess progress, address challenges, and refine strategies for maximizing the impact of climate-related financial products, number of loans provided, savings, new accounts, gender segregation, ...
|
Monitoring report monthly |
|
6.5 |
Support FIs in conducting local client marketing campaign on climate finance products under testing.
|
Guide the MFI/SACCO on content for the developed climate financial product for roll out to increase client awareness |
Number of awareness content developed |
|
6.6 |
Recommendation of the roll out of validated products |
Description of the level of adoption of products under testing, roll out, lessons learnt and challenges for supported MFIs/SACCOs |
|
Timeline
- The consultancy is expected to start on November 2024 and conclude in the first quarter of the year 2025.
- A monthly progress reporting shall be done based on deliverables, regularly throughout the duration of the consultancy.
Qualifications and Experience
The consultant firm shall possess a diverse team with the following profile:
Educational qualification
Bachelor's degree in finance, Economics, Business Administration, Environmental Science, rural development or a related field or a master's degree in Sustainable Development, Climate Finance, Financial Inclusion, or other fields related to climate-focused financial products and sustainable finance solutions is an added advantage.
Relevant Professional training in climate finance, green finance, or financial product design and implementation will be an advantage.
Work experience:
- 5+ years of experience in the finance sector, preferably with MFIs, SACCOs, or similar institutions, with demonstrated experience in product development, product adaptation, and market testing.
- At least demonstrated working on climate finance initiatives or products designed to support environmental sustainability or climate resilience within low-income and rural communities.
- Proven track record of designing and implementing financial products in collaboration with microfinance institutions (MFIs) or SACCOs, ideally in Sub-Saharan Africa or similar contexts, government agencies and/or development partners or INGOs.
- Experience working on initiative supporting gender and agriculture value chain financing is an added advantage.
Core Competencies:
Climate Finance Product Design:
- Extensive knowledge in developing climate-related financial products tailored to local markets, including assessment, adaptation, and mainstreaming processes.
- Ability to identify and define evaluation criteria for assessing product suitability and effectiveness, considering environmental impact, financial feasibility, and market relevance.
Market Research and Baseline Assessment:
- Expertise in conducting market baseline studies and analyzing the readiness and responsiveness of the target population toward climate-related financial products.
- Capacity to design, monitor, and evaluate product testing efforts, ensuring alignment with set timelines and market penetration goals (e.g., achieving a 10% target of the baseline market within the first two months).
Stakeholder Engagement and Training:
- Strong skills in building partnerships with MFI/SACCO management and staff, guiding them through product development, loan application review processes, and client needs assessments.
- Experience leading client marketing campaigns and sensitization activities to encourage climate finance product adoption at the grassroots level.
Performance Monitoring and Reporting:
- Proven ability to conduct regular follow-up and evaluation sessions with financial institution representatives to assess progress, address implementation challenges, and refine product strategies.
- Proficiency in compiling comprehensive reports on climate finance product adoption, analyzing quantitative and qualitative data to assess the financial and environmental impact.
Data Analysis and Impact Assessment:
- Strong analytical skills to assess savings and lending status among clients (for example farmers, savings groups) using climate-related financial products, with a focus on tracking both financial and environmental benefits.
- Experience preparing insightful reports and presentations, translating complex data into actionable insights for stakeholders.
Additional Requirements:
- Fluent in English and Kinyarwanda; knowledge of French is an added advantage.
- Ability to work in rural and underserved areas, understanding the unique challenges of the Rwandan market and financial ecosystem.
- Proven ability to communicate effectively with diverse stakeholders, including clients, MFIs/SACCOs staff, and local community members.
Evaluation CriteriaEvaluation Criteria Matrix
|
Criteria |
Sub-Criteria |
Weight (%) |
|
Technical Proposal |
|
70% |
|
1. Understanding of Scope & Methodology |
|
25% |
|
15% |
|
|
10% |
|
|
2. Consultant’s Relevant Experience |
|
20% |
|
10% |
|
|
10% |
|
|
3. Expertise of Team Members |
|
15% |
|
5% |
|
|
10% |
|
|
4. Work Plan & Timeline |
|
10% |
|
5% |
|
|
5% |
|
|
Financial Proposal |
|
30% |
|
1. Cost-Effectiveness |
|
20% |
|
10% |
|
|
10% |
|
|
2. Budget Clarity & Justification |
|
10% |
|
5% |
|
|
5% |
|
|
*Only proposals scoring at least 50 out of 70 points in the technical evaluation should proceed to the financial evaluation ** All expenses incurred by the consultant, including travel, accommodation, and other related costs, should be included in the proposed budget |
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Submission of Proposals
Interested consultant firms are invited to submit their technical and financial proposal relevant with the tasks outlined in the terms of reference, detailed CVs highlighting the relevant competence and experience, one work sample for reference on the following email: apollinaire.nshimiyimana@cordaid.org not later than 13th November 2024 in one zipped folder with following pdf file:
- Expression of interest letter signed by the legal representative
- Technical proposal with CVs of proposed team members
- Financial proposal for the assignment
- proof of relevant work experience
- relevant legal license to operate in Rwanda.
Disclaimer
By submitting a proposal, bidders acknowledge and accept that the contracting organization is under no obligation to reimburse any costs or expenses incurred, regardless of the outcome of the bidding process or whether a contract is awarded. Cordaid shall bear no liability or obligation regarding any costs incurred by bidders in preparing and submitting their proposals in response to this solicitation.
Approved by:
Patrick Birasa, Country Manager
CORDAID RWANDA