Call for proposal : Implementing Partner to Organize a Business Plan Competition in Alemwatch/Dabat Refugee operation, Ethiopia.

Organization

International Labour Organization (ILO)

Project Title

PROSPECTS: Partnership for improving Prospects for host communities and forcibly displaced persons

Eligibility

Registered CSO/ non-profit organization including government institutions

Terms of Reference – Integrated Business Plan competition

Background

Ethiopia is the third largest refugee-hosting country in Africa, home to over 933,000 refugees and asylum seekers—mainly from South Sudan, Somalia, and Eritrea. The Tigrayan crisis led to difficult humanitarian conditions including limited access to basic social and life-saving services for refugees in the Shire refugee operation and its camps. Coupled with the security breakdown, many refugees opted to move from the Mai Ani, Hitsas and Adi Harush camps to Alemwach, Dabat in the Amhara region. Over 15,000 refugees spontaneously relocated from the Tigray camps to Alemwach between February and July 2022, going through difficult transit. Following the cessation of hostilities in November 2022 with improved access to Mai Tseberi, UNHCR, RRS, and IOM relocated 7,080 refugees to Alemwach. According to UNHCR, there are 8,295 households and 22,046 refugees and asylum seekers in Alemwach of which 65% are male and 45% are female.

The Partnership for Improving Prospects for Forcibly Displaced Persons and Host Communities (PROSPECTS) brings together the Government of the Netherlands and the International Finance Corporation (IFC), the International Labour Organization (ILO), the UN Refugee Agency (UNHCR), the UN Children’s Fund (UNICEF) and the World Bank (WB) and aims to foster economic inclusion, and improve access to education and protection of forcibly displaced populations and host communities. As part of this Partnership, the ILO aims to promote market-based approaches and provide support to Micro, Small and Medium Enterprises (MSMEs) and entrepreneurs

In its second phase, the ILO’s PROSPECTS Programme is planning to focus on improving the socio-economic conditions for refugees and host communities in Alemwach. To this end, a comprehensive labour market assessment is currently being launched and is expected to provide information on the overall socio-economic context as well as the supply and demand of employment opportunities in and around Alemwach.

Several interlinked intervention streams are planned under PROSPECTS Phase 2, notably to improve sustainable access of refugees and vulnerable host communities to high-quality skill development training and certifications relevant business development services, financial services and capacitating technical and vocational education and training (TVET) to facilitate the creation and development of small enterprises and income-generating activities in and around settlements.

To this end, the ILO will work with selected public and private local institutions to build their capacity to effectively offer high quality service to refugee and host communities’ needs and aspirations which will improve the overall ecosystem of refugee and host communities in the area. The ILO will also make use of its ‘Approach to Inclusive Market Systems (AIMS)’ to identify and develop sectors and value chains with potential to encourage the creation of additional job opportunities for refugees and host communities in the wider region.

In a more immediate instance and while assessments and preparations for a more detailed strategy under PROSPECTS 2 are ongoing, the ILO is hoping to launch an integrated business plan competition for the benefit of refugees and hosting communities settled in and around Alemwach. This business plan competition will serve several objectives, and will:

1. Provide refugees and vulnerable host communities with immediate and direct financial and non-financial support that is needed to start and develop income-generating activities that have the potential to create jobs in and around Alemwach.
2. Provide entrepreneurship, business management, financial literacy and technical capacity building for a selection of refugees and host community members participating to the business plan competition through the provision of upskilling and reskilling trainings based on the needs assessment developed during the competition.
3. Link refugees and host community members with financial services providers to raise awareness about the business potential that represent this new market segment, support reducing the perceived risk by financial services providers and provide an outlet for refugees and host community to trust and be more confident towards the financial sector.
4. Demonstrate the viability of successful business creation and development by refugees to BDS and financial services providers as well as private sector actors that might be reluctant to see refugee settlements as a viable market for service provision.
5. Engage selected public and private partner organizations including BDS and financial service providers, Dabat TVET college, Dabat woreda agricultural office, – Dabat woreda local economic and development and job creation bureau, and LED offices as private sector associations in the organization of the competition in a way that encourages networking and exchanges, as well as paving the way for further action to build capacities and improve coordination amongst public and private stakeholders.

The ILO is seeking an implementation partner to support the preparation, organization, and implementation of such a business plan competition in and around the Alemwach refugee site.

Objectives

The Business plan competition (BPC) will aim to provide a selected number of refugees and host communities with technical, financial and non-financial support to start and develop small businesses as well as income-generating activities with the potential to create job opportunities also for other refugees and hosts. The BPC is open to both communities, but quotas will ensure that a minimum number of refugee businesses will be selected. Collaborations and joint ventures between refugees and host communities including in the form of cooperatives and joint ventures are highly encouraged to promote social cohesion amongst both groups.

The BPC will be organized in close collaboration with relevant local institutions to facilitate access of vulnerable groups to relevant financial and non-financial services in the long run, facilitate trust-building between institutions and refugee communities, and encourage networking between different institutions to set up a ‘one-stop shop’ system in close collaboration with the regional bureau for jobs creation and skills development.

To this end, a local committee consisting of relevant organizations shall be set up and shall be involved in the preparation and implementation of the BPC including in the support programme for participating refugees and host communities. This local committee will include but may not be limited to representatives of the UNHCR, RRS, the Dabat city mayor’s office, the
Dabat city LED and job creation office, the Dabat city agricultural office, the Dabat TVET college, the agricultural office, 2-3 key financial services providers, 2-3 key BDS providers and selected private sector associations.

In parallel, a more restrained group of private sector experts will be created to act as a jury that will evaluate and select submitted business plans. This jury will consist of experts with the proven capacity to analyze and evaluate business project ideas and business plans based on criteria including the viability of the business idea, quality of the business plan, realism of technical implementation and continuation as well as ultimate market and job creation potential. To safeguard the objectivity of such a jury tasked with the evaluation of business ideas, it will be essential to include in the jury several experts from Amhara regional office and regions office without direct ties or involvement in the local support programme. The jury will thus include a restraint and selected number of experts from financial service providers, BDS providers and the private sector.

The BPC will be organized in different phases with different types of support and technical assistance being provided at different stages, as follows:

Phase 1: Co-design the concept for a BPC with the ILO and key partners

The implementing partner will work closely with the ILO and partners or/and steering committee to consolidate a concept and work plan for the BPC and ensure that it is context specific. The ILO has initial drafts of a concept and work plan, and the implementing partner will review this draft, propose changes if need, and use the work plan as a joint working document throughout the implementation of the BPC. In the design of the BPC, the implementing partner should ensure that the focus remains on both refugees and host communities.

Phase 2: Launch, sensitization, and support to business idea development

This initial phase will focus on the official launch and spreading of information regarding the business plan competition. It is important that all potentially interested and eligible participants have a clear idea of the process and requirements to maximize its potential impact. To this end, at least one large ‘launch workshop’ should be held to spread information. Additionally, a marketing campaign involving flyers, posters and social media posts shall be launched to spread the information.

This first phase shall also see the organization of several brainstorming sessions with selected experts and representatives of institutions to brainstorm on possible market opportunities in the area. The objective of these brainstorming sessions is to inspire and accompany potential participants and help them find a business idea that is somewhat innovative and responds to a real demand and needs on the market. The underlying assumption here is that Alemwach settlement has already seen the emergence of small businesses that cover the immediate daily needs of clients including cafés, small kiosks, convenience stores, hairdressers and clothing stores. The BPC thus seeks to encourage the emergence of more innovative businesses to avoid overcrowding the immediate local market in Alemwach and attract capital inflows through the sales of services and goods outside the immediate settlement.

Along the same lines, this first phase will also make use of the ILO’s ‘Generate your business idea (GYB)’ training that takes participants through the process of assessing market demand for potentially offered goods and services.

Phase 3: Submission and evaluation of ‘project ideas’

Making use of the results of brainstorming sessions and GYB training, the participants can then submit their business ideas. A template form to be filled in will be provided to all interested participants. These initial business ideas will then be analyzed by a jury of experts and 70-120 project ideas will be selected. A minimum of 40% of selected ideas will need to involve at least one refugee as part of the business team, and a minimum of 30% of refugee, host community or joint business each will need to be led by women.

Phase 4: Support to business plan development and financial management

Under this phase, the 50-100 project ideas selected will receive further support to develop solid and well-detailed business plans based on their business ideas. To this end, participants will benefit from ‘Start your Business (SYB) trainings during which they will be taken through the process of business plan development by expert trainers. Additionally, participants will benefit from the ILO Financial Education training, adapted to the needs of refugees and host communities in Ethiopia, to build their capacity and help them optimally manage household and small business finances.

Participants also have the option to participate in Gender and Entrepreneurship together (GET Ahead) trainings that specifically focus on supporting women entrepreneurs overcoming gender-specific challenges. The provision of these training programmes should be strong supporting factors for financial services providers to reduce their perceived risks for the provision of financing solutions to these selected refugees and host communities.

Participants will receive individual counselling aimed at assessing their technical, entrepreneurial and financial capacities as well as their specific support needs, and will then be connected to technical training offered by TVET partners for upskilling and reskilling, to financial service providers to facilitate access to loans and financial services, as well as to other local partner institutions for advice and support based on specific needs.

To build participants’ capacity and confidence, this phase will also include ‘pitching’ and networking sessions in which participants get the chance to practice pitching their business idea to the expert jury and receive advice and coaching on how to improve and develop their business idea further. This will be the opportunity for the selected participants to have a secondary encounter with financial services providers to present their ideas, ask their finance-related questions, build trust and potentially connect to access financial support.

Phase 5: Submission of business plans

Building on the received support, the 70-120 participants can now submit their full-fledge business plans to the jury of experts. The jury of experts will select 50-60 winning business plans. The selection will be based on a range of criteria including number of jobs that can be created, feasibility of the project idea, degree of innovation of the project idea and quality of the business plan. At least 40% out of the 30-40 business plans selected shall include refugees, and at least 30% shall include women.

Phase 6: Announcement of winners and prices

The winning business plans will now be announced and receive their prizes. All winners will be part of a continuous support programme that includes individual coaching and counselling sessions as well as ‘Improve your Business (IYB)’ training to strengthen business management skills, and further technical skills training to strengthen technical skills as needed.

Additionally, the winners will receive a financial contribution (to be determined in the co creation phase of the project). All winners will be connected to financial services providers and receive support to facilitate access to adequate loan products, adapted to their socio-economic situation in terms of loan sizes, loan term, interest rate, collateral requested, KYC documents, etc., to support them in financing the remainder of the required start-up capital.

Phase 7: Provide ongoing technical support and conduct M&E

The Implementing Partner will continue to facilitate access to needed business development and financial services, including through the provision of coaching and other forms of post-training support to the winners of the BPC. The Implementing Partner will also conduct monitoring and evaluation, collecting information on business growth and impact in terms of jobs created and/or improved as a result of the interventions and collect lessons learned and success stories, in close collaboration with the ILO.

1. Tasks associated with this assignment.

The implementing partners is expected to support the preparation, organization and implementation of the BPC as per the processed outlined above. The following tasks are associated with this:

• Preparation: Assist with the preparation of the BPC including through support to the setting up of the local committee and the private sector expert jury. This also involved liaising on a regular basis with the members of the local committee to keep them engaged in the BPC process. Collaborate with one or two financial services providers present in Dabat to develop a more sustainable financial model for successful awardees including a mix of loans and grants utilized as individual guarantees for financial institutions to provide larger loans.
• Phase 1: Support the organization of launch events and prepare flyers, posters and social media campaigns to inform potential participants on the BPC and related process. Facilitate the organization of brainstorming events and GYB trainings including through the recruitment of relevant experts and trainers to lead these events.
• Phase 2: Facilitate the submission of project ideas and ensure that all interested candidates receive the required template form and a chance to submit.
• Phase 3: Ensure individualized counselling sessions for the 50-100 participants and analyze their needs in terms of technical support. Support the organization of SYB, Financial education and Get Ahead trainings and connect participants to relevant technical training. Liaise with the committee and relevant project partners to organize ‘pitching’ events.
• Phase 4: Facilitate submission of business plans and ensure that all business plans are collected.
• Phase 5: Support the announcement of winners and disperse the prices as described above. Organize individual coaching and counselling sessions, organize IYB and technical training and liaise with relevant project partners to ensure winners are connected to required services including financial services, and BDS.
• Throughout all phases: act as focal point for participants and ensure that participants have all needed information on the next steps and receive adequate support. Liaise with the ILO and project partners to keep all relevant parties informed on progress and any arising challenges.

Evaluation criteria

1. Technical Evaluation (70%): Technical proposal will be evaluated as per the following criteria:

Applicants depth and quality of response to the TOR (10 points)

• Does the application pack included all required documentation (supporting documents including, technical and financial proposals, curriculum vitae of key personnel, expression of interest and contact details) – 3 points
• Understanding and detailed response to the objectives – 2 pts
• Are the major outputs for the project stipulated in the TOR included in the proposal as well as strategies to attain them – 2 points
• Does the applicant demonstrate an understanding of the target group (FDPs and host communities) issues- 3 points

Technical compliance with the Terms of Reference (30 points)

• Quality of the application including coherence, logical framework, linkages with current government and development partners intervention, M&E and sustainability -7 points
• Does the applicant propose a clear and feasible project management framework including selection of beneficiaries (FDPs and hosts), geographies (Addis Ababa, Fafan zone, Keberbeyah refugee and host communities), and delivery of interventions including financial and non-financial BDS- 7 pts
• Does the proposal provide a clear and feasible strategy for address all components of the TOR (selection of target Coops/SMEs, formation of steering committee and BPC partners, capacity building of local actors, designating of BPC events, linkages with other component of the ILO interventions, marketing the ideas of BPC, communication strategy to ensure maximum visibility of the project) – 10 pts?
• Does the applicant offer a full package service as stipulated in the TOR including all logistics and financial costs – 3 points
• Does the service proposed provide a realistic and sustainable exit strategy – 3 points

The qualifications and experience of proposed key personnel (15 points)

• Does the NGO/CSO/company/institution and/or the team members have experience working with vulnerable groups including FDPs and undertaking similar services/assignments including BPC, BDS provision, training on entrepreneurship, financial education and cooperative management including familiarity with ILO tools? 7 points
• Does the NGO/CSO have knowledge, skills and experience in organizing similar activities through the government and private/humanitarian system? 5 points
• Does the applicant state having capacity and experience working in the region especially in the project that target host and refugees incline with the new refuge response philosophy? – 3 points

The proposed implementation, management plan and sustainability (15 points)

• Is the proposed implementation and management plan feasible and within the identified timeline? – 5 points
• Does the proposed human and operational resource + structure cover the project target areas ? – 5 points
• Does the NGO/CSO provide innovative project intervention models that can better support the implementation and sustainability of the planned activities/interventions 5 points

2. Financial evaluation (30%)

Financial Proposal of offers having passed the technical review will be considered (scoring 60). The financial offer will account for 30% of the final score. The maximum number of points assigned to the financial proposal will be allocated to the lowest priced proposal. All other price proposals receive pro-rated points according to the following formula: p = y (x/z), where: p = points for the financial proposal being evaluated y = maximum number of points for the financial proposal x = price of the lowest priced proposal z = price of the proposal being evaluated. The proposal obtaining the overall highest score, after adding the score of the technical and the financial proposals, is the one that offers best value for money.

The financial proposal should detail each line of envisaged expenditure, in particular:

• Award fees for each category
• Travel costs for local missions, event organization
• Sub-contracting related with entrepreneurship trainings
• Follow up support after the training and awards including BDS services
• Costs related with communication of the BPC, support to the applicants, evaluation so the applications, interviews for the shortlisted applicants, steering committee meetings
• Administrative costs including cost of staffs

The TOR and application templates are found in the below link.

Call for implementing partners to organize a Business Plan Competition (BPC) in Alemwatch/ Dabat refugee operation, Ethiopia. (ilo.org)