Technical Advisory Firm Tender, Ethiopia - 87654987

Procurement Summary

Country : Ethiopia

Summary : Technical Advisory Firm

Deadline : 28 Aug 2023

Other Information

Notice Type : Tender

TOT Ref.No.: 87654987

Document Ref. No. : 0002003091

Competition : ICB

Financier : International Bank for Reconstruction and Development (IBRD)

Purchaser Ownership : Public

Tender Value : Refer Document

Purchaser's Detail

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Tender Details

Tenders are invited for Technical Advisory Firm to support Ethiopian MFIs to reduce collateral requirements in SME lending.

Program ContextThe World Bank-s Innovations in Financing Women Entrepreneurs (IFWE) is an initiative to pilot; evaluate and lay the groundwork for the scale- up of new approaches to empowering Ethiopia-s women entrepreneurs; including ones that make it easier for female entrepreneurs to access the credit they need. Access to finance is a challenge for SMEs in Ethiopia. Most lending is done based on the applicant-s ability to provide collateral. And the procedures through which customers apply for loans and credit officers assess risk and institutions make lending determinations can be cumbersome and time-consuming. We believe there is scope for more efficient; data- and evidence-driven processes to (i) help MFIs/banks better manage lending risk; (ii) allow more deserving SMEs who currently have difficulty accessing credit to secure loans; (iii) help close gender gaps in access to SME finance; and (iv) reduce the sector-s over-reliance on collateral. The particular focus of this contract is to support three pilots - two focused on cashflow-based lending; and one focused on repeat borrower assessment. Each of the three pilots will involve working intensively with an Ethiopian bank or MFI that has been selected by the World Bank. This work is a continuation of previous work. AssignmentThe firm will support this work by providing technical assistance to participating select Ethiopian financial institutions throughout the project cycle. Key aspects of the technical assistance include:1. Assisting the institutions in developing a plan to use cashflow-data or repeat borrower data as part of their risk assessment.2. Assisting the institutions in realizing that plan; including:a. Securing the buy-in of the relevant stakeholders within the partner financial institutions.b. Designing new or improved tools for cashflow data collection; in consultation with the partner financial institutions. c. Designing a procedure / policy for loan application assessments of repeat borrowers.d. Developing supporting documentation to guide staff in using these tools and implementing these new procedures. e. Identify and address any institutional policies and procedures that must be addressed in order for these new tools to truly impact how loan eligibility is determined. f. Develop training materials and perform the training of trainers.3. Accompany the implementation; assisting the financial institutions in resolving any challenges that arise. 4. Achieving reduced collateral requirements within at least some of the financial institutions- loan products for MSMEs. 5. Achieving the operationalization at some scale of the new innovative approaches to MSME lending within the partner financial institutions. Selection CriteriaInterested firms are invited to provide information demonstrating that they have the relevant skills and experience to perform these services. The shortlisting criteria include: (i) Substantial experience with international best practices for MFIs in credit risk assessment for MSME lending (ii) A proven track record of supporting MFIs and banks in revising their lending methodology and credit risk assessment; (iii) Substantial expertise in cashflow-based lending to MSMEs; (iv) Prior experience in assessing credit risk of repeat borrowers; (v) Prior experience working with an MFI or bank to reduce fixed collateral requirements; (vi) Substantial prior experience in Africa; including some prior experience in Ethiopia; (vii) Having at least one Ethiopia-based team member; (vii) the capacity and legal ability to carry out advisory work for financial institutions in Ethiopia.

Issue Date and Time: Aug 21, 2023 13:04
Closing Date and Time: Aug 28, 2023 23:59

Documents

 Tender Notice