Review of GVEP’s Activities Relating to Helping Microbusinesses to Access Finance

GVEP International
 
Review of GVEP’s Activities Relating to Helping Microbusinesses to Access Finance

This
is a request for proposals in relation to the above review and the
general terms of reference set out in section 1 (Introduction and
general terms of reference). 

We will provide more detailed terms of reference to the Consultant selected for this review.

1. Introduction and general terms of reference

GVEP
seeks to enable market based solutions to energy access problems
through the provision of free services to businesses (funded by donors.)

 

We invite the Consultant to:

(a)
review certain aspects of our work in which we try to assist rural
microbusinesses to access local debt finance by using loan guarantees to
facilitate that access; and

(b) provide recommendations on possible improvements.

We
require the Consultant to review our model and activities undertaken in
relation to access to finance for small and micro enterprises under:

(a)
one of our current key programmes called CARE2 (“Capital Access for
Renewable Energy Enterprises”), which is funded by the Swedish
government (the “CARE2 Programme”); and

(b) an earlier key
programme called DEEP (“Developing Energy Enterprises Programme”), which
was funded by the European Union and the Dutch Government (the “DEEP
Programme”).

We will provide to the Consultant further written details of each programme in due course.

Our
activities under each of the CARE2 Programme and DEEP Programme are
based on a broadly similar model with the following core parts:

(a)
providing rural/near urban micro entrepreneurs (“EPs”) with mentoring
and basic business advisory services (business and technical),
supplemented by business development services;

(b) providing
access to financial institutions (“FIs”) who have indicated they are
willing to provide small loans to EPs we introduce.  We facilitate those
loans by a partial and silent credit risk guarantee we make available
to a FI (a “loan guarantee”).  The loan guarantee is collateralised by
cash deposits we make at a FI, which cash we obtain from a reserve or
fund made up of various donors’ contributions (the “small loan guarantee
fund” or “SLGF”);

(c) providing training and capacity
building/advisory services to the FIs who are or might be interested in
lending to the EPs; and

(d) monitoring and evaluation of the EPs
and their business, including monitoring of payments due by the EPs to
FIs under relevant loan agreements.

Some of our working assumptions for this model under each of the CARE2 Programme and DEEP Programme are that:

(a) lack of access to capital is a constraint on EPs seeking to establish or expand an energy business; and

(b)
GVEP can facilitate access to finance by identifying creditworthy EPs
and introducing them to willing FIs with a silent partial credit
guarantee helping to secure the engagement of a FI.

The objectives for the Consultant’s report are:
(a)  a review and analysis of the successes and challenges of the above model and activities;

(b) a review and analysis of the assumptions underpinning our model;

(c) providing recommendations for improvement of our model and our activities; and

(d)
where appropriate suggesting new models that we could employ to improve
our work in relation to facilitating access to finance for our clients.

2. Methodology

The
Consultant will be expected initially to analyse all available
background documents including the inception report, annual programme
reports, research reports, and findings of a mid-term review carried out
in 2013.

Additional analysis of data required to enable the
Consultant to complete the review will be discussed and GVEP will
provide the data and the analysis.

The Consultant will be provided with support by CARE2 staff to arrange logistics and help with collecting data.

The
Consultant will be expected to visit our office in Kenya.  During the
visit the Consultant will interview relevant GVEP staff, in particular
those from the Capital Access team that are charged with direct
responsibility for the Activities, in order to assess the Activities in
the context of the general terms of reference set out in this request
and the more detailed terms of reference that we will supply to the
selected Consultant.

In sum, the Consultant will be expected to
use their professional judgement and experience to provide an assessment
of the Activities, identify challenges and lessons learned (and provide
options and recommendations to consider for the future.

3.  Outputs / Reporting

The
Consultant should produce a draft report and share it with GVEP for
review, and then a final draft of the report produced incorporating any
agreed changes.

The report should not exceed 30 pages excluding appendices and shall include an Executive Summary.

4. Qualifications

The Consultant is expected to have the following:

  • significant
    prior experience of evaluating development projects focused on
    microfinance, access to finance or the impact on businesses of finance
  • ability to plan an effective evaluation process applying qualitative and quantitative methods
  • ability
    to elicit reliable information from a range of stakeholders (somehow
    tacit knowledge), and to summarise and communicate this accurately
  • ability to manipulate and interpret data in Excel
  • knowledge of the renewable energy access sector
  • understanding of the informal sector – in particular micro businesses
  • understanding of the banking sector in the region – in particular lending to small or micro businesses
  • experience of working in or evaluating projects in East Africa
  • a knowledge of business development and market enabling approaches.
5. Time Schedule

The indicative time schedule is as follows:

  • Reading and analysing background documents: 4 days.
  • Visit to Kenya HQ: 7 days.
  • Writing the draft report: 5 days.
  • Submitting draft for review and revising to include comments/produce final report: 4 days
  • Total: 20 days
The time schedule is dependent on available flight tickets, if flights are required. 

The final report should be delivered on or before close of business (UK time) on 27th March.

6. Budget

The budget available for this assignment is £10,000. This includes all costs and VAT.

7. Request for proposals

Consultants
interested in being considered for this assignment should submit a
short proposal outlining how methodologically they would approach the
assignment within the budget and timescale. 

The applicant should also provide details of previous relevant experience, and an itemised budget.

Please send proposals to info@gvepinternational.org  and to Wakar.Kalhoro@gvepinternational.org
 quoting “Application for reporting on access to finance activities” in the subject line.

The deadline for submission is midnight (UK time zone) 27th February, 2016.

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