Terms of Reference (ToR)

Climate finance training, product customization, and harmonization

1. Introduction and Background

Under the TREPA Project implemented by Cordaid in Rwanda, significant progress has been made in strengthening the climate finance capacity of financial institutions. A key achievement was the development and rollout of a comprehensive Climate Finance Curriculum, designed to equip financial institutions with practical knowledge to integrate climate considerations into their operations.

This curriculum was previously delivered to Umurenge SACCOs (U-SACCOs), targeting managers, credit analysts, loan officers, and board members. The training contributed to improved understanding of climate-related risks and opportunities in financial decision-making. Additionally, climate-related financial products were developed, piloted and rolled out at the U-SACCO level as part of the project's interventions.

Following the Government of Rwanda’s restructuring of U-SACCOs into District SACCOs (D-SACCOs), a capacity gap has emerged. Many newly appointed staff and leadership teams within these D-SACCOs have not benefited from the earlier training. Furthermore, climate-related products previously developed at the U-SACCO level require harmonization to ensure consistency and effective adoption across the newly established D-SACCO structure.

To address these gaps and ensure the continuity and impact of TREPA’s climate finance initiatives, Cordaid seeks to engage a qualified consultant to deliver a targeted training program and facilitate the harmonization of climate-related products for D-SACCOs.

2. Overall Objective

To strengthen the climate finance capacity of D-SACCOs and Cordaid technical staff, and to harmonize climate-related financial products for consistent adoption across D-SACCOs, thereby enabling the delivery of climate-resilient financial services.

3.  Specific Objectives

The specific objectives of this assignment are to:

• Review and update the comprehensive Climate Finance Curriculum with the new policies and strategies, to equip financial institutions with practical knowledge to integrate climate considerations into their operations.
• Equip D-SACCO staff (managers, credit analysts, loan officers, board members) with practical knowledge of climate finance principles.
• Enhance the ability of D-SACCO staff to integrate climate risk assessments and climate-smart considerations into financial product development and lending decisions.
• Build the capacity of Cordaid technical staff to provide effective ongoing support to financial institutions on climate finance matters.
• Harmonize the climate-related financial products previously developed at the U-SACCO level for standardized adoption across all D-SACCOs.
• Ensure continuity and effective application of the previously developed Climate Finance Curriculum within the new D-SACCO structure.

 4. Scope of Work

The consultant will be responsible for the following tasks:

4.1. Inception and Planning

• Prepare and submit an inception report detailing the methodology, work plan, timeline, and tools (including training materials, templates, and evaluation forms) to guide the assignment.

4.2. Training Delivery and Capacity Building

• Facilitate a series of training sessions and workshops for D-SACCO staff and Cordaid technical staff using the Climate Finance Curriculum and Environmental & Social Management (ESM) modules.
• Deliver training on:

• Green finance and Environmental and Social Safeguards in line with BNR guidelines
• Customized climate-related financial products

• Conduct workshops to present and validate the ESMS frameworks developed for the 7 D-SACCOs.
• Train Cordaid technical staff on the updated Green Finance Curriculum.
• Collect participant feedback and evaluate training effectiveness.

4.3. Market Needs Assessment

• Conduct a market needs assessment to identify demand for climate-related financial products, particularly group loan products for clean cooking technologies (e.g., improved cookstoves - ICS).
• Analyze affordability, access, and cost-sharing mechanisms for targeted households.
• Use findings to inform product customization at the D-SACCO level.

4.4. Environnemental & Social Management (ESM) Assessment

• Assess the current Environmental and Social Management practices of the seven D-SACCOs.
• Review policies, procedures, governance structures, and operational systems related to E&S risk management.
• Evaluate compliance with BNR guidelines on climate-related financial risk management and alignment with good international practices.
• Identify gaps in institutional capacity, risk screening, monitoring, and reporting systems.

4.5. ESMS Framework Design and Development

• Develop tailored Environmental and Social Management Systems (ESMS) for each of the seven D-SACCOs based on assessment findings.
• Design key ESMS components, including:

• Governance and risk management guidelines in line with BNR requirements
• Scenario analysis and stress testing frameworks
• Disclosure and reporting mechanisms for climate and environmental risks
• Self-assessment tools for ESMS compliance

• Facilitate validation workshops with D-SACCO stakeholders.

4.6. Product Customization and Harmonization

• Review and analyze existing climate-related financial products developed at U-SACCO level in collaboration with Cordaid technical staff.
• Facilitate a participatory process with D-SACCOs to harmonize and adapt products to local contexts.
• Develop standardized templates and frameworks for climate-related financial products across all D-SACCOs.
• Design and customize:

• At least one women-focused climate finance product
• At least two group loan products for climate-smart technologies (e.g., ICS)

• Provide recommendations for integration into D-SACCO lending portfolios and systems.

4.7. Product Finalization and Marketing Support

• Produce final customized climate-related financial products for each D-SACCO ready for rollout.
• Support the development of marketing and communication materials in collaboration with a design firm engaged by Cordaid.
• Develop rollout plans and coordinate product launch activities with D-SACCOs.

4.8. Institutional Strengthening on Climate Resilience

• Provide technical guidance to strengthen D-SACCOs’ institutional capacity to support climate-resilient investments.
• Recommend systems for ongoing monitoring, evaluation, and reporting of climate finance integration.

4.9. Reporting

• Prepare and submit:

• Training reports (including attendance, evaluations, and feedback)
• Market needs assessment report
• ESM assessment report
• Product analysis and alignment report
• Final assignment report consolidating all outputs, lessons learned, and recommendations for sustainability and scale-up

Key Deliverables

The consultant shall provide the following deliverables:

6. Timeline and Duration

The assignment is expected to be completed within 12 weeks from the date of contract signing. The exact schedule for training sessions and harmonization workshops will be agreed upon during the inception phase.

7. Qualifications and Experience of the Consultant

7.1. Firm Experience

• The consultancy firm should have proven experience of at least 8 years in developing and delivering climate finance training to financial institutions, preferably MFIs in Rwanda.
• The consultant firm must possess a valid licenseor authorization to operate and provide services to microfinance institutions in Rwanda, issued by the Central Bank of Rwanda.
• Valid RDB company certificate to operate in Rwanda in the needed field
• Strong understanding of the Rwandan financial sector and the context of the transition from U-SACCOs to D-SACCOs.
• Demonstrated expertise in climate risk assessment and climate-smart financing methodologies including Climate Related and Environmental financial Risks Management for Financial Institutions as requested by the BNR proven by 2 proof of good completion. 
• Experience in product development or harmonization of financial products within the microfinance subsector.
• Excellent facilitation, communication, and reporting skills.

7.2. Proposed Team Composition

The consultant firm shall provide a team of at least two key experts with complementary expertise to deliver the assignment effectively. The proposed team must meet the following qualifications:

Expert 1: Microfinance and Business Administration Specialist

• A minimum of a master’s degree in business administration (MBA) or a related field.
• Proven experience working of at least 8 years with microfinance institutions, financial cooperatives, preferably in Rwanda.
• Demonstrated expertise in financial product development, credit risk management, and institutional capacity building within the microfinance sector.
• Strong understanding of the operational context of SACCOs, including the transition from U-SACCOs to D-SACCOs.
• Experience in facilitating training and providing technical assistance to financial institutions in green financing Environmental and Social Safeguarding Management for MFIs

Expert 2: Climate Finance and Environmental Specialist

• A minimum of a master’s degree in environmental studies, Environmental Science, Climate Change, agribusiness or a related field.
• Alternatively, a combination of a relevant advanced degree and recognized certifications in climate finance, climate risk management, or climate change adaptation.
• Demonstrated 8 years of expertise in the in-climate finance, climate risk assessment, and the integration of environmental considerations into financial services.
• Experience in developing or delivering climate finance training programs for financial institutions.
• Familiarity with climate-smart agriculture, renewable energy financing, or other climate-relevant sectors is an added advantage.

7.3. Additional Requirements

• Both experts must possess strong facilitation, communication, and report-writing skills.
• Previous experience working with U-SACCOs in Rwanda is essential for both experts.
• The team must collectively demonstrate the ability to deliver high-quality training and product harmonization support within the specified timeline

 8. Management and Coordination

The consultant will work under the direct supervision of the TREPA Project Coordinator, with technical support from the Access to Finance Advisor at Cordaid, who will provide day-to-day guidance and collaboration throughout the assignment

8.1. The Cordaid team will be responsible for:

• Providing the final list of participants.
• Arranging the training venue and logistics.
• Facilitating access to documentation on previously developed climate-related products.
• Reviewing and approving deliverables.
• Providing any necessary background information and facilitating introductions with D-SACCO leadership.

9. Company’s Eligibility Criteria 

• Company Registration certificate 
• Company Tax Clearance

10. Submission Guidelines

A soft copy of both technical and financial proposals shall be submitted through
email:rwanda.procurement@cordaid.org 10th April 2024.
11. Authorization