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16.7.2015
FSP
BEYOND
ADVOCACY
ADVOCACY
TERMS
OF REFERENCE
OF REFERENCE
FOR
DEVELOPMENT AND DELIVERY OF TRAINING TO THE PSF MEMBERS ON PROJECT DEVELOPMENT
AND PREPARATION TO ACCESS PRI
DEVELOPMENT AND DELIVERY OF TRAINING TO THE PSF MEMBERS ON PROJECT DEVELOPMENT
AND PREPARATION TO ACCESS PRI
VATE SECTOR FINANCING WINDOWS FROM DEVELOPMENT
FINANCE INSTITUTIONS
1. CONTEXT/BACKGROUND
Rwanda’s
Vision 2020 seeks to transform the economy from a low productivity agricultural
economy to a knowledge-based economy led by modernized and highly productive
sectors with activities that are buttressed by supportive industrial and
service activities through active mobilization of people and other resources
towards the achievement of shared goals. It is against the above background
that Rwanda prioritizes the development of the private sector as the engine of
Economic growth through the Economic Development and Poverty Reduction Strategy
(EDPRS Several private sector-oriented objectives of Rwanda’s Second Economic Development
and Poverty Reduction Strategy (EDPRS II, 2013-2018). depend directly on the
availability and cost of suitable financial products. Despite stable increments
in the credit to the private sector, the cost of finance in Rwanda remains
substantial, with average bank lending rates of 17.2% in 2014′. Importantly,
the lending horizons are largely short-term, and the bankability of the
projects is primarily determined based on available collateral.
Vision 2020 seeks to transform the economy from a low productivity agricultural
economy to a knowledge-based economy led by modernized and highly productive
sectors with activities that are buttressed by supportive industrial and
service activities through active mobilization of people and other resources
towards the achievement of shared goals. It is against the above background
that Rwanda prioritizes the development of the private sector as the engine of
Economic growth through the Economic Development and Poverty Reduction Strategy
(EDPRS Several private sector-oriented objectives of Rwanda’s Second Economic Development
and Poverty Reduction Strategy (EDPRS II, 2013-2018). depend directly on the
availability and cost of suitable financial products. Despite stable increments
in the credit to the private sector, the cost of finance in Rwanda remains
substantial, with average bank lending rates of 17.2% in 2014′. Importantly,
the lending horizons are largely short-term, and the bankability of the
projects is primarily determined based on available collateral.
The
Ministry of Finance and Economic Development (MINECOFIN) of the Government of
Rwanda (GoR) has been increasing its efforts in facilitating access to finance
to the Rwanda’s private sector entities. The mandate of the External Finance
Unit (EFU) has been extended to include private sector ” resource mobilization,
in addition to mobilization of foreign resources to Rwanda’s public sector.
Acting on the new extended mandate and to support the Private Sector Federation
(PSF) activities, the EFU has prepared the (Draft) Private Sector Financing Map
— an overview of the increasingly varied landscape of finance that can be
potentially accessed by the Rwandan private sector for either private,
investments or participation in PPPs, including: private sector windows of
Development Finance Institutions (DFIs), bilateral investment organizations,
new developments in the local capital markets (Rwanda Stock Exchange), but also
more innovative considerations, such as challenge funds, remittances funds,
development impact bonds, climate change finance, and crowd funding; as well as
specific trade finance products. These sources can supply a broader variety of
lower cost, longer-term financial products, with lower collateral
requirements.
Ministry of Finance and Economic Development (MINECOFIN) of the Government of
Rwanda (GoR) has been increasing its efforts in facilitating access to finance
to the Rwanda’s private sector entities. The mandate of the External Finance
Unit (EFU) has been extended to include private sector ” resource mobilization,
in addition to mobilization of foreign resources to Rwanda’s public sector.
Acting on the new extended mandate and to support the Private Sector Federation
(PSF) activities, the EFU has prepared the (Draft) Private Sector Financing Map
— an overview of the increasingly varied landscape of finance that can be
potentially accessed by the Rwandan private sector for either private,
investments or participation in PPPs, including: private sector windows of
Development Finance Institutions (DFIs), bilateral investment organizations,
new developments in the local capital markets (Rwanda Stock Exchange), but also
more innovative considerations, such as challenge funds, remittances funds,
development impact bonds, climate change finance, and crowd funding; as well as
specific trade finance products. These sources can supply a broader variety of
lower cost, longer-term financial products, with lower collateral
requirements.
1
BNR Monetary Policy and Financial Stability Statement, 171h February 2015.
BNR Monetary Policy and Financial Stability Statement, 171h February 2015.
2. OBJECTIVE
Acting
on feedback from PSF members in response to the Draft Private Sector Financing
Map, the PSF is looking to recruit a consultant to design and deliver training
and Technical Assistance (TA) for PSF members on preparation of documentation
to international standards, enabling private firms to access the private sector
financing windows of Development Finance Institutions (DFIs).
on feedback from PSF members in response to the Draft Private Sector Financing
Map, the PSF is looking to recruit a consultant to design and deliver training
and Technical Assistance (TA) for PSF members on preparation of documentation
to international standards, enabling private firms to access the private sector
financing windows of Development Finance Institutions (DFIs).
The
assignment entails two consecutive components:
assignment entails two consecutive components:
I. Designing and
delivering step-by-step training to PSF members on how to access financing from
international finance institutions, with a particular focus on development
finance institutions (DFIs).The targeted participants are medium and large
enterprises, thus familiar with the key general concepts. The key learning
outcome is equipping with practical knowledge of preparing the project
documentation to international standards, and complying with specific
requirements of DFis (please sees Box 1 for the example Application Procedures
of African Development Bank and PTA Bank, noting the different level of
requirements for the Procedures of African Development Bank and PTA Bank,
noting the different level of requirements for the initial application).
delivering step-by-step training to PSF members on how to access financing from
international finance institutions, with a particular focus on development
finance institutions (DFIs).The targeted participants are medium and large
enterprises, thus familiar with the key general concepts. The key learning
outcome is equipping with practical knowledge of preparing the project
documentation to international standards, and complying with specific
requirements of DFis (please sees Box 1 for the example Application Procedures
of African Development Bank and PTA Bank, noting the different level of
requirements for the Procedures of African Development Bank and PTA Bank,
noting the different level of requirements for the initial application).
i) Training Contents: The training should
include (but need not be limited to) hands-on capacity building on the
following:
include (but need not be limited to) hands-on capacity building on the
following:
•
Requirements and preparation of project concept notes;
Requirements and preparation of project concept notes;
•
Standards and preparation of financial records; governance structure; and audit
procedures;
Standards and preparation of financial records; governance structure; and audit
procedures;
•
Requirements and preparation of feasibility studies (°Will this work?’: market
viability — technical viability — business model viability — management model
viability — economic and financial model viability — exit strategy viability;
terminology; articulation of assumptions; assessment and management of risk;
incorporating social/environmental/ benefits).
Requirements and preparation of feasibility studies (°Will this work?’: market
viability — technical viability — business model viability — management model
viability — economic and financial model viability — exit strategy viability;
terminology; articulation of assumptions; assessment and management of risk;
incorporating social/environmental/ benefits).
•
Requirements and preparation of business plans (‘How this will work’: market
analysis, competitive analysis;’ strategy, products/ services, marketing and
sales, operations, financial analysis (cash-flow forecasts, financing sources,
re-financing options).
Requirements and preparation of business plans (‘How this will work’: market
analysis, competitive analysis;’ strategy, products/ services, marketing and
sales, operations, financial analysis (cash-flow forecasts, financing sources,
re-financing options).
•
Negotiation techniques
Negotiation techniques
ii) Training
methodology:
the key value addition is in upgrading the capacity of the business to be able
to comply with international standards. The consultant is expected to collect,
synthesize, and prepare the information for the training. To maximize the
practicality and usefulness of the training, the consultant is expected to
prepare 3-5 example simulated projects:
methodology:
the key value addition is in upgrading the capacity of the business to be able
to comply with international standards. The consultant is expected to collect,
synthesize, and prepare the information for the training. To maximize the
practicality and usefulness of the training, the consultant is expected to
prepare 3-5 example simulated projects:
– A project with substandard documentation
(concept note) that would not pass the initial screening of the DFIs;
(concept note) that would not pass the initial screening of the DFIs;
–
A project with documentation prepared to the standard to proceed to submission
of business plan and feasibility study;
A project with documentation prepared to the standard to proceed to submission
of business plan and feasibility study;
–
Project documentation that would fail on the contents of feasibility study and
business plan; and
Project documentation that would fail on the contents of feasibility study and
business plan; and
–
A successful project and associated documentation that would pass the
assessment of feasibility study and business plan and would stand the chance of
gaining access to finance.
A successful project and associated documentation that would pass the
assessment of feasibility study and business plan and would stand the chance of
gaining access to finance.
Such
practice is expected to deliver practical information and stimulate interactive
discussion with the participants, without expecting them to share their own
business ideas and plans. The consultant is encouraged to use a mixture of
visual (PowerPoint) presentations, videos, written material, open and in-group
discussions, etc. to ensure the participants gain most hands-on practical
experience. The consultant is welcome to identify and invite any relevant
actors to participate in the training delivery (e.g. (resident) representatives
from Rwanda Capital Markets Authority, International Finance Corporation, East
African Development Bank, African Development Bank, etc.)
practice is expected to deliver practical information and stimulate interactive
discussion with the participants, without expecting them to share their own
business ideas and plans. The consultant is encouraged to use a mixture of
visual (PowerPoint) presentations, videos, written material, open and in-group
discussions, etc. to ensure the participants gain most hands-on practical
experience. The consultant is welcome to identify and invite any relevant
actors to participate in the training delivery (e.g. (resident) representatives
from Rwanda Capital Markets Authority, International Finance Corporation, East
African Development Bank, African Development Bank, etc.)
iii) Training
Outcomes (OUTCOME 1):
Participants are fully aware of the procedures and requirements of accessing
finance from Development Finance Institutions, and are able to prepare the
concept note, feasibility study, and business plan to international standards
required by the Development Finance Institutions. Participants are also able to
adapt to the varying requirements of a range of institutions. Participants are
informed about the usual timelines of accessing finance from DFIs (expectations
are managed).
Outcomes (OUTCOME 1):
Participants are fully aware of the procedures and requirements of accessing
finance from Development Finance Institutions, and are able to prepare the
concept note, feasibility study, and business plan to international standards
required by the Development Finance Institutions. Participants are also able to
adapt to the varying requirements of a range of institutions. Participants are
informed about the usual timelines of accessing finance from DFIs (expectations
are managed).
II. Providing individual
coaching (TA) to firms committed to follow up the training with speedy
development of concept notes, business plans, and feasibility studies, based on
their individual business ideas. Upon the completion of the training, the
participants will be presented with an opportunity to visit the headquarters of
selected Development Finance Institutions to further discuss the specific
funding requirements, understand the specific potential financing terms, and to
conduct negotiations aver the projects for which the finance is being sought (The
consultant is not required to participate in this ultimate step).
coaching (TA) to firms committed to follow up the training with speedy
development of concept notes, business plans, and feasibility studies, based on
their individual business ideas. Upon the completion of the training, the
participants will be presented with an opportunity to visit the headquarters of
selected Development Finance Institutions to further discuss the specific
funding requirements, understand the specific potential financing terms, and to
conduct negotiations aver the projects for which the finance is being sought (The
consultant is not required to participate in this ultimate step).
To
access this component of the PSF initiative, the businesses will be required to
prepare the required documentation for application to the targeted DFIs. These
will entail a combination of preparation and completion of a concept note,
feasibility study, business plan, and related documentation, based on the
business’ project idea. The consultant’s role in this component is to coach
individual businesses on their particular business idea, providing technical
assistance in preparation of a concept note, feasibility study, business plan,
or any other documentation directly related to accessing financing from
Development Finance Institutions, or credible other private sector financing
options articulated in the (Draft) Private Sector Financing Map, The consultant
is expected to allocate the time available fairly among the seriously
interested firms. The consultant is expected to keep a high level of
confidentiality at this stage.
access this component of the PSF initiative, the businesses will be required to
prepare the required documentation for application to the targeted DFIs. These
will entail a combination of preparation and completion of a concept note,
feasibility study, business plan, and related documentation, based on the
business’ project idea. The consultant’s role in this component is to coach
individual businesses on their particular business idea, providing technical
assistance in preparation of a concept note, feasibility study, business plan,
or any other documentation directly related to accessing financing from
Development Finance Institutions, or credible other private sector financing
options articulated in the (Draft) Private Sector Financing Map, The consultant
is expected to allocate the time available fairly among the seriously
interested firms. The consultant is expected to keep a high level of
confidentiality at this stage.
Coaching outcomes
(OUTCOME 2):
effective face-to-face or electronically mediated TA and coaching provided to
individual businesses to prepare high international standard concept notes,
feasibility studies, business plans, and other documentation constituting a
requirement to access specific private sector financing window in particular
targeted DFIs, or credible other private sector financing options articulated
in the (Draft) Private Sector Financing Map.
(OUTCOME 2):
effective face-to-face or electronically mediated TA and coaching provided to
individual businesses to prepare high international standard concept notes,
feasibility studies, business plans, and other documentation constituting a
requirement to access specific private sector financing window in particular
targeted DFIs, or credible other private sector financing options articulated
in the (Draft) Private Sector Financing Map.
Reporting (OUTCOME
3):
Upon completion of, the training and coaching components, the consultant will
prepare a report, identifying the key challenges faced by the firms, .including
(but not limited to): which components of the training attracted most
attention/discussion, which steps of the documentation preparation encountered
the largest skill or capacity gaps, in preparation to which processes did firms
face most challenges domestically (BPO, red tape, etc.), which aspects in the
process of preparation for accessing DFI funds participants found most
complicated, or any other relevant aspects revealed in the process. This
outcome will serve as an auxiliary data collection exercise for PSF and
MINECOFIN, helping to identify and address the current bottlenecks in private
sector accessing finance. The report will be submitted to PSF no later than
31″July 2015.
3):
Upon completion of, the training and coaching components, the consultant will
prepare a report, identifying the key challenges faced by the firms, .including
(but not limited to): which components of the training attracted most
attention/discussion, which steps of the documentation preparation encountered
the largest skill or capacity gaps, in preparation to which processes did firms
face most challenges domestically (BPO, red tape, etc.), which aspects in the
process of preparation for accessing DFI funds participants found most
complicated, or any other relevant aspects revealed in the process. This
outcome will serve as an auxiliary data collection exercise for PSF and
MINECOFIN, helping to identify and address the current bottlenecks in private
sector accessing finance. The report will be submitted to PSF no later than
31″July 2015.
3. INDICATIVE TIME
SCALE AND OUTPUTS.
The consultant will spend (15) days in total preparing and delivering training,
coaching individual firms, and preparing final report. The indicative timeline
is as follows:
SCALE AND OUTPUTS.
The consultant will spend (15) days in total preparing and delivering training,
coaching individual firms, and preparing final report. The indicative timeline
is as follows:
4. REQUIRED SKILLS
AND EXPERIENCE OF THE CONSULTANT:
AND EXPERIENCE OF THE CONSULTANT:
This
assignment requires managerial and organizational skills to be effective in a
structured but evolving work environment at PSF. It also requires an ability to
interface with tact and decisiveness with senior authorities captains of
Industry, the local banking community and international organizations.
assignment requires managerial and organizational skills to be effective in a
structured but evolving work environment at PSF. It also requires an ability to
interface with tact and decisiveness with senior authorities captains of
Industry, the local banking community and international organizations.
Additional
requirements are as follows:
requirements are as follows:
•
MBA or Masters in International Business/Finance/Economics, or other related
field
MBA or Masters in International Business/Finance/Economics, or other related
field
•
Knowledge and experience of development work, multi-sectorial policies and
Rwanda’s financial sector
Knowledge and experience of development work, multi-sectorial policies and
Rwanda’s financial sector
•
Proven experience in trainings
Proven experience in trainings
•
Excellent written and verbal communication skills
Excellent written and verbal communication skills
•
Familiar with demand-driven and participatory approaches.
Familiar with demand-driven and participatory approaches.
•
Excellent communication and facilitator skills, able to address the
institutional complexity and multi-disciplinary environment of the Project.
Excellent communication and facilitator skills, able to address the
institutional complexity and multi-disciplinary environment of the Project.
•
Excellent interpersonal and teamwork skills, with the ability to establish and
develop relationships and work under tight deadlines to meet objectives
Excellent interpersonal and teamwork skills, with the ability to establish and
develop relationships and work under tight deadlines to meet objectives
•
Fluency in English (Knowledge of. Kinyarwanda will be an asset.)
Fluency in English (Knowledge of. Kinyarwanda will be an asset.)
5. SUPERVISION
ARRANGEMENTS
ARRANGEMENTS
•
The consultant will adhere with internal reporting requirements stipulated in
PSF’s organizational policies and procedures manual. The expert will work
closely with SPIU/PSF.
The consultant will adhere with internal reporting requirements stipulated in
PSF’s organizational policies and procedures manual. The expert will work
closely with SPIU/PSF.
Expressions
of interest including motivation letters and resumes must be delivered in a
written form to the address below (in person, or by mail) by 16th
July 2015 at 10 am.
of interest including motivation letters and resumes must be delivered in a
written form to the address below (in person, or by mail) by 16th
July 2015 at 10 am.
Head of Procurement
Unit
Unit
Attn:
NGIRABATWARE Martin
NGIRABATWARE Martin
P
O. Box 319 Kigali — Rwanda Tel:+250 0788463080 E-mail: martinn@psf.org.rw
O. Box 319 Kigali — Rwanda Tel:+250 0788463080 E-mail: martinn@psf.org.rw
