Consultancy to Carry out Due Diligence and Asset Valuation for the Merger of Five... Tender

Procurement Summary

Country : Rwanda

Summary : Consultancy to Carry out Due Diligence and Asset Valuation for the Merger of Five (5) Non Umurenge Saccos Operating in Rulindo District

Deadline : 01 Dec 2023

Other Information

Notice Type : Tender

TOT Ref.No.: 92796151

Document Ref. No. :

Competition : ICB

Financier : Self Financed

Purchaser Ownership : Public

Tender Value : Refer Document

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Tender Details

Tenders are invited for Consultancy to Carry out Due Diligence and Asset Valuation for the Merger of Five (5) Non Umurenge Saccos Operating in Rulindo District

Location: Rulindo

Deadline: Friday, 01/12/2023 14:00

1. Background

German Sparkassenstiftung Eastern Africa (DSIK) is a German-based non-profit organization that is active in partnership projects in more than 50 countries worldwide. Among its key principles is the combination of local and international expertise to provide excellent technical advisory to its partner organizations. Among others, German Sparkassenstiftung works with the Ministry of Finance and Economic Planning (MINECOFIN), Ministry of Trade and Industry (MINICOM) and Rwanda Cooperative Agency (RCA). The partnership focusses mainly on the professionalization of the Microfinance sector including SACCOs. German Sparkassenstiftung-s project activities are refinanced by the German Federal Ministry of Economic Cooperation and Development (BMZ).

2. Context

There are five (5) non UMURENGE SACCOs (N-USACCOs) in Rulindo district, Northern Province, namely:

COOPEC CODEMARU located in BUSHOKI sector,
COOPEC CSTCR located in KINIHIRA sector,
COOPEC TRASO located in KINIHIRA sector, COOPEC CSPKI located in TUMBA sector, and
COOPEC ITI located in CYUNGO sector.
Of these five (5) SACCOs operating in Rulindo, CSTCR and COOPEC TRASO predominately serve tea farmers and tea factory workers respectively, while CODEMARU, CSPKI and COOPEC ITI are communitybased saving and credit cooperatives.

For the past years, the above mentioned SACCOs have faced various challenges, which include difficulties complying with the Central Bank-s prudential norms and further regulatory requirements, lack of an appropriate core banking software (CBS), limited financial capacity, increasing competition, limited products and services offered to their members.

The General assembly meetings of all 5 SACCOs approved their merger/amalgamation and form one strong SACCO. The General Assembly meetings elected an Adhoc Committee which is composed of representatives elected from the boards of directors of each of the five SACCOs to take part in the merging process. The merger of five non umurenge SACCOs will result into one strong SACCO while maintaining each SACCO-s office as branches. The merger will enhance the sustainability of the merged SACCO through improving its regulatory compliance and by providing high-quality customer services.

A technical committee composed of BNR, RCA, AMIR, Rulindo District and DSIK will accompany, support and guide the merging process.

It is in this framework that DSIK, on request from the Technical Committee, will support technically and financially the performance of the due diligence of each of the five (5) SACCOs. Including the valuation of each SACCO, the creation of consolidated financial statements of the new SACCO, the development of new policy and procedures manuals, as well as the business planning.

Additionally, as all the SACCOs have different CBS set ups and all five SACCOs will be migrated onto the same platform, it is important to conduct the IT due diligence.

In this respect, DSIK intends to recruit a strong and experienced consultancy/audit firm (referred as “Consultant” in this ToR) to conduct the financial and non-financial due diligence as well as an IT due diligence and development of business requirement documents of the core banking software (CBS) to be used by the new SACCO.

3. Scope of the consultancy service

Conduct the due diligence of each SACCO (both the financial and non-financial due diligence) and come up with a consolidated due diligence report for the new SACCO.
Conduct the IT due diligence and Business Requirement development.
The consultant-s work will mainly focus, but will not be limited to the following:

3.1 Due diligence

For the completeness of this assignment, the consultant will carry out a financial and non-financial due diligence.

3.1.1 Financial due diligence

The purpose of the financial due diligence is to evaluate the true situation of each SACCO-s assets, liabilities, and equity to determine the Net Book Value of each SACCO.

The scope of financial due diligence includes a detailed review and analysis of the following: assets, liabilities, shareholding structure and capital adequacy, off balance sheet, liquidity, cash flow, income & expenses, and business valuation (net worth).

Documents

 Tender Notice