TERMS OF REFERENCE CONSULTANCY SOCIAL IMPACT INVESTMENT

Introduction

Fairtrade Africa (FTA), a member of the wider Fairtrade International movement represents Fairtrade certified producers in Africa and the Middle East. We operate four regional networks: Eastern and Central Africa Network (ECAN) based in Nairobi, Kenya; West Africa Network (WAN) based in Accra, Ghana, Southern Africa Network (SAN) based in Blantyre, Malawi and the Middle East and North Africa Network (MENA).

Fairtrade Africa is owned by its members, who are African producer organizations certified against Fairtrade International Standards producing traditional export commodities such as coffee, cocoa, tea, flowers, cotton, bananas, cane sugar, wine, fresh fruits, herbs and spices and non-traditional commodities including shea butter and rooibos tea. Currently, the organization represents over 1,083,139 producers across 28 countries in Africa. Fairtrade Africa secretariat is located in Nairobi, Kenya, and has 50% ownership of the Fairtrade system.

Scope of the Assignment.

FTA’s Resource Mobilization Plan guides work paths for increasing FTA’s resources (financial, human and material) and viability while enabling the realization of objectives under the overall 2021-2025 Strategic Plan.

A key objective is to develop new non-traditional opportunities, FTA would like to explore the potential of social impact investment as a possible channel for generating and diversifying income streams for greater impact. By Social Impact investment we mean investments made with the intention to generate positive, measurable social and environmental impact alongside a financial return[1] and create value for our certified producer organizations.

It is against this background that Fairtrade Africa is seeking the services of a consultant who will take the lead in undertaking a landscape scan of social impact investment to provide information and analysis of the following:

o What are the different social impact models through which regional and international development organizations can collaborate with Fairtrade producers and partners for social change;

o What opportunities might be relevant for FTA;

o What funding opportunities exist that match Fairtrade needs and mission.

Purpose and Objectives.

Purpose

The purpose of this assignment is, therefore, to (i) undertake a feasibility study to determine the viability and scope of social impact investment in the context of FTA and (ii) develop a social impact investment strategy for FTA.

Objectives.

1. To understand the social impact landscape and operating environment.

2. To understand existing models through which international development organisations are or can get engaged in the social impact investment spectrum.

3. To explore opportunities relevant for FTA and develop a social impact strategy for FTA;

4. To analyze potential risks for FTA in engaging in Social Impact Investment initiatives.

Key Deliverables

1. An inception report including timelines, action plan, proposed methodologies, tools and organizations/persons to be interviewed/ surveyed.

2. Comprehensive final feasibility report which includes: – an initial analysis of how viable Social Impact investment is for FTA, a review of the social impact landscape, legal framework fit to move this forward, strategic options for engagement, an appropriate vehicle/model to deliver social impact investment, value chain analysis either by product or thematic perspective and risk analysis.

3. Potential social impact investment (long list and shortlist) opportunities aligned to Fairtrade’s mission.

Develop Social Impact Investment Plan comprising recommendations and indicative arrangements including institutional and policy that FTA must put in place to commence work.

Key Activities

1. Evaluate FTA’S organization model to establish how social impact investment might be relevant, building on the current work and direction of the organization.

2. Establish the potential for FTA to deliver social innovations through social impact investment vehicles and funding.

3. Desktop analysis and mapping, of successful social investment financing models in the not-for-profit sector which provide useful examples/learning for FTA.

4. Map out potential social impact investment opportunities for further, investigation by FTA.

5. Provide recommendations and an implementation roadmap with timelines where possible and a risk-return profile of the recommended approach/model to social investment for the organization.

Scope and methodology

The consultant will work alongside the Strategy and Impact and Commercial directorates. The focus of work will be external to gather information, undertake analysis and make recommendations. This may include interviews as well as desk research.

The consultant will develop proposals through a process to be agreed with the inception report will be reviewed, and the next steps agreed upon before proceeding further. There may be adjustments to the terms of reference, timetable, or deliverables, these will be negotiated with the consultant and agreed upon in writing in advance of any change.

Duration of the Work

I. The duration of the contract shall be a maximum of 30 working days from the time of contracting.

II. The Consultant will work closely with FTA Secretariat and will from time to time the progress of activities as agreed.

Duty Station

I. The Consultant may undertake a distance mode of working based on the agreed work plan and methodology.

II. The Consultant is expected to use their own equipment to carry out the task.

Required Expertise, Competencies and Experience

I. Experience in social impact resource mobilisation for not-for-profit organisations

II. Experience working with not for profits, working with social impact investment firms will be an added advantage

III. Strong program design skills, including the capacity to prepare logical, coherent, and consistent documents including log frames and budgets.

IV. Prior demonstrated experience knowledge and understanding of social impact investment sector

V. Excellent English speaking/writing skills required; prior experience in facilitating multi-stakeholders workshops and meetings.

VI. Submit contact of three references

VII. Social Investor contact database

Confidentiality statement

All data and information received from FTA for the purpose of this assignment are to be treated confidentially and are only to be used in connection with the execution of these Terms of Reference. All intellectual property rights arising from the execution of these Terms of Reference are assigned to FTA. The contents of written materials obtained and used in this assignment may not be disclosed to any third parties without the expressed advance written authorization of FTA.

Proposal Guidelines

Proposals from consultants should include the following elements:

• A cover letter introducing the submission.

• An overview of the consultant outlining the relevant skills and experience.

• Samples of at least three social investment projects implemented

• Three references from organizations with whom similar assignments have been undertaken outlining the consultant’s role, performance, and the project deliverables.

• An overview of the consultant’s understanding of this assignment.

• Overview of the consultant’s proposed consultancy plan, methodology, deliverables, and timelines.

• Proposed budget for the provision entire assignment. All proposals must include itemized costs to complete the tasks described in the project scope and must include all relevant fees, taxes, and costs.

• Consultant(s) are encouraged to include any additional information they believe demonstrates added value for FTA within the scope of this assignment

[1] https://thegiin.org/impact-investing/need-to-know/#what-is-impact-investing