Terms of Reference for Consultant Required for Phase II Development of FTA Financial Profiling Tool
About Fairtrade Africa
Fairtrade connects consumers and producers to improve livelihoods through trade.
It is an established route through which farmers and workers in developing countries are empowered to access markets, secure more value for their produce and build more sustainable livelihoods with less environmental impact.
Fairtrade Africa (FTA) is a member of Fairtrade International and is the independent non-profit producer network representing all Fairtrade certified producers in Africa. Fairtrade Africa is owned by its members, who are African producer organizations, certified against international Fairtrade standards.
The Secretariat of FTA based in Nairobi working with the regional offices, identifies opportunities for improvement in producer enterprises, designs and implements producer support services to achieve these improvements.
Context and background
It is commonly accepted that small scale producers accelerate local economic progress and pulls developing communities out of poverty.
Accordingly “They occupy a vitally important part of global value chains which is increasing each year as large multinationals refine sourcing and introduce ethical and sustainable policies to their businesses (Dalberg, 2012)”.
Yet many of these small scale businesses, operating as producer organisations, cannot access the finance they need to grow.
They are seen as too much of a risk for commercial banks and investors and are too large to qualify for commercial finance schemes.
Described as the ‘missing middle’ these small scale businesses need support to access financial institutions and social lenders who have the right kind of requirements that can assist small scale producer growth needs.
Consultancy Title: Financial Profiling Tool Consultant
Team: Monitoring and Evaluation
Location: Nairobi, Kenya
Fairtrade Africa Purpose: To improve the socio-economic conditions of African producers through increased access to better trading conditions.
Post holder reports to: Executive Director of Fairtrade Africa (for African context) and to FTA M&E manager
Staff reporting to this post: None
Consultancy fee: USD 400 per day
4 weeks- starting September 9th and concluding October 4th 2013
The FTA financial profiling tool will provide producer organizations with a financial rating score and a sub set of scores on a range of organizational capacity areas.
These variables will facilitate financial institutions in identification of viable producer organizations and also enable capacity building service providers deliver specific technical assistance support.
The tool will also act as a valuable monitoring tool in assessing the progress of producer organizations in developing various different areas of their organizational capacity over time.
Purpose, Scope and Objectives of the Project
In 2012 FTA collaborated with KPMG London to develop a financial profiling and rating system for Fairtrade Africa (FTA) that could be used by FTA small producer organizations to rate their organisational capabilities and financing viability.
With this rating FTA can determine the current financials of member organizations and provide technical assistance to improve their financial maturity and access to finance.
Externally the rating and various reports can be made available to potential financial lenders and investors to allow them to make preliminary assessment of which FTA producer organizations meet their lending or investment criteria.
Initial testing of the tool was done across East, West and Southern Africa.
The tool has been further tested on a sample of 100 producer organizations of different sizes and product categories across Africa as part of a joint project alongside Shared Interest to improve financial capacity and financial access for selected producer organizations in Kenya, Tanzania, Uganda, Ghana and Cote d’Ivoire.
The financial profiling tool formed part of the baseline assessment.
The purpose of this consultancy would be to take the results of assessment to:
- Review the quality of the data accumulated from the tool and make recommendations on how the tool structure, reporting, and assessment criteria can be improved
- To make adjustments or recommendations on how to improve the financial profiling tool assessment criteria, data collection process and database where required
- Working with FTA organise the sharing of these results to the producer organisations, financial institutions and social lenders:
- To attract financial support to producer organizations from potential financial lenders
- To get feedback on the value of the tool for social lenders and financial institutions, particularly in East and West Africa
- To get feedback on how the tool could be made more relevant for financial institutions and social lenders
- Identify potential partnerships for increasing the outreach, functionality and utilisation of the tool within Africa
- Research on similar tools or approaches to identify best practice that will be recommended to ensure that the tool has sustainable business model allowing it to be competitive, cost effective and scalable in the market.
Key Outputs of the Consultancy
The Consultant will prepare a detailed work plan for approval indicating delivery of the following key outputs including:
1. Recommendations and prototype of improved financial profiling tool and
2. Recommendations and prototype of improved storage system
3. Partnerships secured between FTA and financial institutions and social lenders
4. A final report containing feedback from financial institutions and social lenders and recommendations for improving the tool
5. A report and final presentation showing how the tool can be implemented using viable business models, a set of recommended next steps for Fairtrade Africa in implementing the business model.
To do this the consultant will work closely with Fairtrade Africa’s monitoring and evaluation manager and Executive Director.
Knowledge and Experience
This assignment is best suited for a team with complementing and diverse skills.
The Team Leader and other team members will be required to provide a competency matrix that illustrate their individual roles and how they fulfill the requirements below
- Graduate Degree in finance, accounting, business administration or relevant subject
- At least 3-5 years of working in the financial sector within Africa or similar experience with a social lender with a good understanding of the current lending environment across Africa
- Excellent knowledge of the lending requirement of financial institutions and social lenders across Africa
- Excellent knowledge of the assessment process required by financial institutions and social lenders across Africa
- Proven experience of building and maintaining relationships with external partners, particularly financial institutions and social lenders
- Experience working with cooperatives or producer associations in Africa
- Proven experience of developing strategies for capacity improvement programmes
- Competence in relevant IT packages including database development and information storage solutions egg. MS Office
- Experience in research methodologies including using web based tools for data gathering and analysis
- Excellent verbal and written communication in English. French will be an added advantage
- Commitment to Fairtrade and ethical standards
- Self-motivated with the ability to work independently
- Able to take the initiative to drive work forward and to lead
- Ability to motivate others and to recruit their support
- Excellent conceptual and analytical skills and effective negotiator with the ability to positively influence project partners.
- Ability to negotiate with, and influence senior level counterparts in financial institutions
- Strong attention to detail and deadlines, the ability to balance multiple, complex, competing and Demanding responsibilities while under pressure.
- Strong negotiation, advocacy and communication including excellent presentation skills;
Please provide consultants’ competencies and proof thereof (including company profile, consultants’ CVs, copies of previous work earlier designed for similar projects) and a covering letter including your availability for the consultancy by Friday 30th August 2013 at 17.00pm CET to email@example.com
If you have any queries, please e-mail or call +254202721930 and ask to speak to a member of the HR team.