Call for proposal : Implementing Partner to Organize a Business Plan Competition in Fafan zone Jigjiga Refugee operation, Ethiopia

International Labour Organization

Background

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 Labor 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.

As part of its interventions under the framework of PROSPECTS, the ILO is organising a Business Plan Competition (BPC) in the Somali region. A BPC can strengthen enterprises and organizations by facilitating access to financial and non-financial business development services, provide support to entrepreneurs and MSMEs and stimulate growth and innovation in sectors important to the livelihoods of refugees and host communities.

BPCs are avenues to provide financial and non-financial support to entrepreneurs who may not otherwise have access to these services due to lack of collateral and not being able to meet the KYC requirements of financial service providers. In the aftermath of COVID-19 and the context of continuing drought, BPCs can help to identify and respond to the entrepreneurial needs of refugees and members of host communities, and particularly to inject funds into MSMEs and cooperatives that may not be ready or able to access loans in the immediate aftermath of the crisis. The ILO is selected dairy value chain as a sector that can be developed and a potential to create more jobs for host and refugees in the Somali region. Dairy, livestock, agriculture and other sectors including manufacturing, construction, service and trade are among the sectors considered growing and have a potential for creating more jobs in in Somali region and expected to take the bigesst part of a BPC, as it can be facilitated by offering Financial Service Providers (FSPs) the opportunity to engage with, get to know better and serve, entrepreneurs and innovators in a less financially risky set up. This can ease the acute financial needs for investments and operational costs payment and unleash the innovation potential while tackling the risk aversion, from the entrepreneur as well as the FSP side, when time comes for loans.

PROSPECTS is also supporting the certification cycle of SIYB, GET Ahead and financial education and the establishment of a network of Business Development Services (BDS) providers with the view of ensuring sustained services to the underserved segment of the population. The BPC can be also a good initiative to further advance their certification paths and sustainably link them with the regional and federal level actors for better and the extension of integrated service for host and refugees in Fafan zone, Somali region.

Furthermore, BPCs that include both refugees and members of host communities can create opportunities and strengthen for positive contact through mutually beneficial events, development of joint business ventures, and mixed financial inclusion groups such as VSLAs and cooperatives trainings and workshops. These positive interactions have the potential to contribute to enhanced social cohesion.

The ILO is looking for an implementing partner to support the organization of a BPC in Fafan zone of the Somali region (the project operation is targeting Fafan and Kebrebeyha) and Addis Ababa that would be open to both refugees and members of host communities.

Objectives

In close coordination with the ILO and guided by a steering committee of key stakeholders, the implementing partner will roll-out a BPC in Fafan (Somali region). While the BPC will have a focus on dairy and livestock value chains in the Somali region, as these are the ILO’s sectors of focus in the region, participation will also be open to SMEs that operate in different sectors and develop innovative business ideas. The primary objective of the BCP is on growing and high potential mid-sized as well as small/micro enterprises

The major/main objectives of the BPC are to:

The BPC will support women and men entrepreneurs to start, re-start and grow and expand sustainable enterprises in the post drought and -COVID-19 context, particularly those in the agriculture and dairy/ livestock sectors in the Somali region. The BCP will also provide the opportunity for identification of viable business plans and funded them as well as SMES and businesses will be supported/mentored to grow their profitability. The entrepreneurs or potential entrepreneurs with innovative ideas to spur growth in other sectors will also be supported.

One of the main outcomes of the BPC will be that entrepreneurs will develop and manage viable businesses and financial plans to consolidate their business ideas or re-start and grow their businesses.

Specific objectives

• Build the capacity of local financial and non-financial business development service providers to support and meet the entrepreneurial needs of refugees and host community members.

• Re-ignite and strengthen entrepreneurial activities, local markets, cooperatives and MSMEs in order to alleviate the negative impacts of the recent drought and COVID-19 on the local economy and the livelihoods of refugees and host community members.

• Facilitate the sustained access of refugees and host communities to targeted financial and non-financial services.

• Provide mentoring support to the successful entrepreneurs to ensure that they grow their businesses and contribute to job creation and local economic development

Scope of the assignment

The work of the implementing partner will include the following:

1. Co-design the concept for a BPC with the ILO: The implementing partner will work closely with the ILO and a 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.

2. Establish partnerships with key actors: The implementing partner will work with the ILO to establish partnerships with key actors, including government bureaus, development partners, financial and business development service providers, ILO supported BDS networks, key sectoral associations, and government representatives. The role of partners will be to support with logistics for the BPC, provide trainings to entrepreneurs, promote the BPC, contribute prizes, and act as judges across the different categories. The partners will also provide post award business mentorship to the successful businesses for a limited period and access to finance for the longer term. While the ILO has a list of potential partners, it is expected that the implementing partner is also able to mobilize partner networks effectively.

3. Co-develop selection criteria and judging criteria: The implementing partner will support in establishing selection criteria and judging criteria, together with the ILO and the steering committee. The selection criteria should prioritize job creation and job quality improvements, productivity gains, and innovative solutions. At this stage, award sizes and prizes should also be confirmed.

4. Promote the BPC, establish application process and shortlist participants: The implementing partner will launch communications and sensitization around the BPC to allow ample time for participants to apply. The Implementing partner will coordinate application processes from entrepreneurs, and then short-list participants based on the agreed-upon criteria. The application process should be simple and accessible to refugees and members of host communities. Applicants should be able to enter their submissions through a variety of channels that may include applying in-person, by phone, through an email account set up by the project, or through a partner organizations providing financial and non-financial services. Standard registration forms based on the SYB Business Plan Booklet or the GET Ahead Participant’s Workbook will be developed to standardize the process and ensure that applications are in a format that entrepreneurs are familiar with.

5. Collaborate with ILO to support entrepreneurs: The implementing partner will coordinate the provision of support to entrepreneurs as they get ready to pitch their business ideas. This will include facilitating access to financial education, entrepreneurship and cooperative management trainings using the ILO’s trainer networks and tools, either through the Implementing Partner directly, or by establishing collaborations and contracts with service providers and trainers.

6. Organize BPC: The Implementing Partner will lead the logistics for organising the BPC, including in terms of venue bookings, agenda, coordination of the day(s) and award-giving, communication, and visibility, in close collaboration with the ILO.

7. Conduct due diligence: The Implementing Partner will conduct due diligence to ensure viability of businesses that are short-listed and winners of the BPC, in collaboration with the steering committee.

8. Disburse funds: The Implementing Partner will coordinate and oversee the disbursement of funds to winners of the BPC, as agreed upon with the steering committee and the ILO. The fund transfer should ensure continues partnership of SME operators with financial service providers.

9. 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.

10. Provide periodic reports on the progress of the assignment on a monthly basis. The report formats will be shared with the successful implementing partner. The IP will report on the progress of the successful businesses in areas covering jobs created business growth and access to financial services over a period of 12 months from the time of award of the grants.

Eligibility criteria

The potential implementing partner must fulfil the following requirements:

a) Must be a registered and licensed organization/CSO or company operating in Ethiopia.

b) Must have office and staff presence in the Somali region

c) Must have been in operation for a period of not less than 5 years in Ethiopia.

d) Should have experience in working with the local communities and refugees

e) Should demonstrate experience in working in the business development service, jobs creation, enterprise promotion, financial education, and system building

f) Should be ready to work with the regional government, and private sector actors and other stakeholders best placed to deliver on the different outputs in the implementation of the project.

g) Provide a technical and financial proposal with a clear workplan and an activity- based budget on how to deliver the interventions over the 12 months period.

h) Experience working with government and relevant bodies as well as target communities, preferably FDPs and host communities

i) The applicant should be capable of assembling/ providing a team of technical experts that can deliver the above activities and outputs. It is expected that the leader of the team will need to have a post graduate Degree in Social Sciences or Development Studies, or another relevant field, with 5 years’ experience in the region.

Evaluation

The application documents (technical weighing 85 % and financial weighing 15%) will be evaluated based on the following criteria.

1. Technical Evaluation (85%): Technical proposal will be evaluated as per the following criteria:

Applicants depth and quality of response to the TOR (15 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) – 4 points

· Understanding and detailed response to the objectives – 3 pts

· Are the major outputs for the project stipulated in the TOR included in the proposal as well as strategies to attain them – 5 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? 5points

· 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 Somali region especially in the project that target host and refugees incline with the new refuge response philosophy? – 5 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 (15%)

Financial Proposal of offers having passed the technical review will be considered (scoring 60). The financial offer will account for 15% 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

How to apply

Application process

Interested applicants that meet the eligibility requirements should submit their detailed:

Technical and financial proposals including CV of the key personnel to work on this project

Business license/ CSO registration

Updated and recent audit report for period ending June 2021

Other supportive documentation electronically to: [email protected]

ILO Country Office for Ethiopia, Djibouti, Somalia, Sudan and South Sudan

UNECA Compound- Addis Ababa

Kindly title your email subject as, “Call for proposal – Business plan competition in the Somali region and Addis Ababa”

Shortlisted/ Successful applicants will be interviewed. The successful organization will be expected to start the project in June 2022.

Deadline for application will be 10 June 2022 05:00 pm (EAT).


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