Consultancy to Refine Business Strategy and Financial Modelling

1.0 The Africa Enterprise Challenge Fund

The AECF is a development institution which supports businesses to innovate, create jobs, leverage investments and markets in an effort to create resilience and sustainable incomes in rural and marginalized communities in Africa. Launched in 2008, the AECF has mobilized over US $356 million to date, leveraging more than US $658 million in matching capital and improving the lives of more than 19 million people in 2018 alone through jobs and increased household incomes. The AECF has so far supported 268 companies in 26 countries in sub-Saharan Africa across 40 value chains in our focal sectors of agribusiness and renewable energy.

In the new 2018-2020 strategy, our goal is to “double our impact in half the time”. To achieve this, we will continue to focus on the agribusiness and renewable energy sectors, increase support to climate-smart technologies, refine our challenge model, expand regional presence, deepen focus on gender, youth and employment by expanding our products and partnership approach to better meet our investees’ current needs; and ensure they rapidly scale and transition to external financing and sustainability thereby attaining our vision of ‘A Prosperous and Enterprising Rural Africa’.

Since 2012, AECF has provided investment support, worth (US$131M) to a cluster of 78 businesses in across Sub-Saharan Africa focusing on either renewable energy or adaptation to climate technologies. The businesses have experienced a number of challenges and technical assistance is expected to help address these in the growing portfolio. Since the inception, The AECF through REACT has provided investment support (US $63M) to a cluster of 58 businesses in across East Africa, focusing on Renewable Energy or Adaptation to Climate Technologies (REACT) and agribusiness. Some of the businesses have experienced several challenges and the AECF is providing technical assistance to help in addressing those challenges and improve the performance of the respective businesses.

2.0 FINCOOP SACCO LIMITED

FINCOOP SACCO was established in Malawi in 2004 with the core business of serving micro, small and medium entrepreneurs, farmers and salaried employees. Between 2010 and 2015 the SACCO suffered a huge setback with most of the Agri- loan book going bad due to drought and other challenges. The company embarked on a recovery plan and in 2015 introduced Green loan focusing on the sale of solar home systems and this now constitutes 30% of the total loan portfolio of the SACCO. The products are multilight SHS ranging and are using traditional lending processes with products costing about $120 and repayment periods of 12 months. They offer cash sales and credit sales (loans) with which salaried members are deducted directly from their salaries whilst other non-payroll members pays through their network of branches, field visit programs and other means like mobile money. The company was awarded total funding of US$350,000 (US$250,000 grant & US$100,000 loan) to support them in providing green loans for the SHS to make the units affordable to the rural and marginalized communities in Malawi. By the end of year 6 (2023), FINCOOP expects to have reached 6,000 households with a net benefit of US$50 and 18 agents with a net benefit of US$2,738.

3.0 Purpose and Deliverables of the Assignment

FINCOOP SACCO understands that the PAYG model is capital intensive and the company has gone all out to mobilize the necessary additional financing from its shareholders, asset finance providers, commercial banks etc. These efforts are not materializing as fast as expected due to the need to further streamline their cost projections and develop a clearer financial model around realistic financial needs in line with the best product mix to meet the sales targets.

The objective of the assignment is to review the existing product pricing and product mix, conduct an in-depth financial review to assess financial needs and advise on the best ways to raise additional funds to sustain the efficient operation of the PAYG model.

3.1 Specific Duties and Responsibilities of Consultant

a) Conduct a market analysis to develop a strategic plan that defines the opportunity and growth path including consideration for PAYG model that the company is integrating.

b) Identify key target markets and mapping of customers with the aim of developing a distribution plan to achieve sales targets.

c) Train credit officers (who act as salespeople) in sales training to maximize productivity and achieve targets.

d) Develop an operational sales and marketing plan to meet more ambitious targets and gain the first mover advantage

e) Develop a marketing and sales manual for onward internal refresher training

3.2 Outputs and Reporting Requirements

Comprehensive TA delivery report, detailing:

a) A strategic plan with a clear growth plan

b) Distribution plan aligned to sales targets

c) Sales and marketing training plan for credit officers

d) Operation and market plan

e) Sales and market training manual

4.0 Duration of Service

The duration of the service will be 20 man-days spread over a period of 3 months. This service is expected to commence on 1st June 2019.

5.0 Proposal Submission

Qualified consultants (individual or institutional consultants) are invited to submit the proposal that includes the following:

a) Qualification and experience of the individual/institution.

b) Approach and methodology to undertake this assignment.

c) Previous experience in similar assignment(s).

d) Detailed financial budget (in USD) and work plan.

e) Technical and Financial proposals will need to be submitted as separate documents.

6.0 Qualifications

• Masters in strategic management and planning

• At least 6 years’ experience in management consulting and PAYG financing model.

7.0 Reporting

The consultant will be accountable to AECF Programme Manager

8.0 Pricing

The AECF is obliged by the Kenyan tax authorities to withhold taxes on service contract fees as well as ensure VAT, at 16%, is charged where applicable. Applicants are advised to ensure that they have a clear understanding of their tax position with regards to provisions of Kenya tax legislation when developing their proposals.

9.0 Evaluation Criteria

An evaluation committee will be formed by the AECF and shall include employees. All members will be bound by the same standards of confidentiality. The vendor should ensure that they fully respond to all criteria in order to be comprehensively evaluated.

The AECF may request and receive clarification from any Vendor when evaluating a proposal. The evaluation committee may invite some or all of the Vendors to appear before the committee in order to clarify their proposals. In such event, the evaluation committee may consider such clarifications in evaluating proposals

In deciding the final selection of qualified bidder, the technical quality of the proposal will be given a weighting of 70% on the basis of the evaluation criteria. Only the financial proposal of those bidders who qualify technically will be opened. The financial proposal will be allocated a weighting of 30% and the proposals will be ranked in terms of total points scored.

The mandatory and desirable criteria against which proposals will be evaluated are identified in the table below.

Key Areas for Evaluation/ Assessment

Weighted Award

a) Technical Proposal –80

i) An understanding of the consultancy requirements;

· Demonstrate understanding of the assignment -5

· An in-depth understanding of PAYG Model-15

ii) Methodology and work-plan for performing the assignment:

Demonstrate capacity to deliver the task(s) within a realistic timeline, based on the consultancy days designated per task-25

iii) Relevant services undertaken by the bidder in the past engagements: Demonstrate relevant experience-20

iv) Detailed reference list indicating the scope and magnitude of similar assignments:

· Letters of reference from past customers or associates to the lead consultant or the consulting organization-10

· Registration and other relevant statutory documents (applies to institutional consultants)-5

b) Financial Proposal: Clarity, relevance, reality to market value/ value for money of cost for the assignment (inclusive of any applicable tax)-20

10.0 Disclaimer

AECF reserves the right to determine the structure of the process, number of short-listed participants, the right to withdraw from the proposal process, the right to change this timetable at any time without notice and reserves the right to withdraw this tender at any time, without prior notice and without liability to compensate and/or reimburse any party.

To be considered, your proposal reference “Business Strategy and Financial modelling Consultant-FINCOOP Ltd-” must be addressed to procurement@aecfafrica.org and received by Sunday, 26th May 2019 5:00 PM EAT.

HOW TO APPLY:

To be considered, your proposal reference “Business Strategy and Financial modelling Consultant-FINCOOP Ltd-” must be addressed to procurement@aecfafrica.org and received by Sunday, 26th May 2019 5:00 PM EAT. You can also download the vacancy through our website here.

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