National Consultant - Assessment of existing business development and financial services for returnees in Addis Ababa and Amhara Region Vacancy in Ethiopia
Assessment of existing business development and financial services for returnees in Addis Ababa city administration and Amhara Regional Government, Ethiopia
- Background and justification
The COVID-19 pandemic has moved rapidly beyond an international health pandemic to heralding a global socio-economic crisis. It is having an unprecedented impact on all countries, both in terms of prompting the scaling of public and private health preparedness, response and protection of vulnerable populations and in terms of requiring mitigation of broader social and economic impacts. Migrant workers are often the hardest hit when economic crisis occur, because of precarious and short-term contracts, lack of social protection and their vulnerable status in the sectors they are working in, usually low paid and informal. In most migrant hosting countries, with increasing lockdowns and businesses closing, layoffs are targeting migrant workers. As a result, Ethiopia has received around 62,000 returned migrants between beginning of April 2020 to end of June 2021 from neighbouring countries and the Middle East.
Mass deportations deteriorate the despairing situation of migrants and is posing enormous challenges to the Ethiopian Government who are making efforts to create safe environment to receive their returning nationals and to support their socio-economic reintegration. Migrants returning home, especially in such unexpected circumstances of COVID-19, often face a number of challenges, in particular lack of decent livelihood opportunities and stigmatization. Many returnees come back empty handed, as their earnings were used for consumption and remittances to their families. Moreover, as the return was unexpected, unplanned and sudden, some even was returned with unpaid wages and benefits. Their return has also affected their entire family as the remittance they use to send have stopped with their return, in addition, the returnee themselves is additional burden in the scarce resources available for the household. COVID-19 induced returns have also had an impact on the country’s economy, due to loss of remittances as well as additional pressure on the already strained labour market of the country.
The Government of Ethiopia (GoE) and partners are providing emergency support and managing COVID-19 quarantine centers but face multiple challenges in providing subsequent social and economic reintegration support services to returnees. ILO assessments (2014, 2018) indicated that challenges hindering returned migrants’ reintegration include lack of jobs/employment; lack of financial support to initiate micro or small enterprises (92%); lack of training (58.7%); lack of business development services (28.4%); lack of access to government services (41.2%). Furthermore, the assessments found that returnees faced vulnerabilities such as food insecurity due to inadequate or absent income and to the unavailability of social security and support upon return. These are critical areas that ILO support will address in close collaboration with the government, social partners and other organizations.
Within the context of the current crisis, the question of return and reintegration of migrants is at the forefront of the Ethiopian political discourse, as it is a concern in regards to containing the spread of the virus as well as supporting their nationals to access employment back in Ethiopia. In order to support the Government of Ethiopia, the ILO through its FCDO funded project on Better Regional Migration Management is planning to provide comprehensive support to ensure successful reintegration of returning migrants– from providing immediate assistance upon their return home through cash transfers, to ensuring longer-term economic reintegration empowerment.
An integral part of the project is the roll-out of ILO’s entrepreneurship training programme, the Start and Improve Your Business (SIYB) programme, reinforce entrepreneurial and business management skills of returnees. The intervention also plans to assess the need to implement a newly designed training product for entrepreneurs planning to start a food processing business. The aim of the training is to provide entrepreneurs with knowledge and skills to increase their chances of successful start-up. The ILO’s Generate Your Business Idea (GYB) and Start Your Business package (SYB) training package already include extensive content on business management topics – such as HR, marketing, finance, and business planning topics - which is already used to train food processing entrepreneurs. The new training package will add material (modules/sections) which will be used in combination with the SIYB package, by adding industry-specific considerations, namely food safety, food quality, food product design and food processing.
To roll out the SIYB programme with returnees, the ILO is looking to partner with selected private or public organizations in Ethiopia in order to build their capacity to offer SIYB trainings sustainably. For that, the ILO seeks the services of an experienced national consultant to do a market assessment of the business development services (BDS) and entrepreneurship training market in Addis Ababa city administration and Amhara Regional Government, Ethiopia. The market assessment is done to get an overview of the different public and private organizations and institutions that ILO could partner with to roll out the SIYB programme for the target group, and understand the need and demand for business management training amongst the target group in the two regions in Ethiopia.
2. The assignment
The main objective of this assignment is, therefore, to conduct an assessment to gather information on existing public and private providers of both financial and business development services in the two regions in Ethiopia; their capacity, current offer and accessibility of returnees to said services. The report should identify potential service providers for the ILO to partner with to enhance the offer of both financial and non-financial services.
The assessment should include an estimate of the market size and demand and supply conditions. Furthermore, it is expected that the market assessment will produce information about the literacy levels of the ultimate target population and measure capabilities at the enterprise as well as at the level of (public and private) support institutions to work with the SIYB programme. The assessment should, where possible, disaggregate all data by sex, and it should explicitly identify any significant differences between the situations of female and male entrepreneurs, and their respective needs and access to/use of services.
The following areas should be covered:
2.1 General economic situation, growth prospects and information about the returnees and MSME sector
The national consultant should provide an initial overview that contains key information about the current state of the economy in Ethiopia and the specific situation of returnees and their inclusion in the labour market. This should rely on secondary information sources and key informant interviews and should cover:
- An overview of key value chains of the food processing sector in the local and national economy.
- An analysis of the role and situation of returnees, micro and small enterprises, including specific strengths and weaknesses of the food processing sector. The sector analysis should explore the existing business linkages and employment opportunities for returnees.
- Existing and planned donor and agency/institutional interventions in the field of private sector development and job creation in the food processing sector.
2.2 Supply side
The Supply side assessment will produce an in-depth understanding of existing financial and business development support services both on the public as well as the private side.
Financial and business development services:
The assessment will analyse the functioning of the business service and entrepreneurship training market and information on the existing public and private service providers. The assessment should provide insights into the current capacity and sustainability of providers, their income sources and payment for services. The assessment will result in a list of existing public and private service providers in both regions and collect information on these service providers as follows:
Organizations: What organizations/providers/programs are providing services? Do they have
a mandate and experience in micro and small enterprise development?
credibility and reputation among micro and small enterprises in their geographical area of intervention?
the necessary means (financial and logistic) to carry out SIYB programmes?
a sound foundation to enhance the sustainability of their SIYB programme in the future?
consideration for returnees as viable clients?
What organizations/providers/companies/programs are not providing services to returnees but could be? Do they have:
- incentives to deliver SIYB trainings to returnees (for example, this could also include the delivery of training as a corporate social responsibility strategy)?
- the necessary means (financial and logistic) to carry out SIYB programmes?
- a sound foundation to enhance the sustainability of their SIYB programme in the future?
consideration for returnees as viable clients?
Market Size: what type of services (training, coaching, other services) are currently provided by these public and private institutions? The report must include specific information about training services, their outreach quality, prices and funding mechanisms as far as possible.
Target Group: What type of returnee-led businesses or small businesses and sectors (manufacturing, trade, food processing services, etc) do existing providers target?
Training curricula: What types of trainings are currently provided and what topics are covered?
Capacity: How many employees work for the providers? How many trainers, consultants and coaches are in their employ?
Trainers: What is the qualification (education level, experience with business start-ups) of trainers employed by these service providers? How committed motivated and active are they?
Prices: Are fees charged for services and training?
Promotion: What ways of promotion are service providers using to reach out to potential clients?
Even though the analysis should be on the general business development service provision, particular attention should be given at those services catered or targeted at tha food processing sector.
2.3 Demand side
To better understand the demand side of business services the assessment will take into account existing secondary data and will conduct primary qualitative research. The research aims to get a clear picture of the current demand for enterprise support services by returnee micro and small entrepreneurs as well as potential start-up entrepreneurs. The research will include investigations into:
- Capacity and challenges of returnee-led MSMEs to effectively manage their businesses (in particular capacity to correctly calculate costs, revenues, profit and productivity)
Awareness of financial and business development services, with a particular focus on:
Awareness of the Services: in areas where services are available, how do returnees know about offered services?
Awareness of Providers: Does the target group know about the providers of business and financial services?
Awareness of Need: Does the target group feel any need for entrepreneurship training? Are they interested in loans and other financial products?
Previous Attendance/Experience of Entrepreneurship Training: What are reasons for attendance / non-attendance?
Self-reported Impact/Perception of Entrepreneurship Training: If target group had access to training previously, has it had any impact on their capability to run their business? If yes what type of impact, if no, why not?
Services and payments: Is the target group willing to pay for services that can potentially help them to better manage their farms? What specific services are they currently paying for?
Particular attention should be given to returnees working in the food processing sector.
2.4 Relevant actors
Instruments to obtain the above information shall consist of (but not be restricted to) the following:
- Interviews with private support service providers including freelance trainers, private training institutes, lead agri-food firms, incubators and co-working spaces, and other business development service providers. These will partly be identified by the demand side study as often private providers operate under the official “radar screen”
- Interviews with public service providers including public training institutes, incubators, universities, etc.
- Interviews with banks, microfinance institutions and other non-financial service providers
- Interviews with government institutions at the national, entity and local level that provide enterprise support services
- Interviews with business associations, associations of financial service providers, and other umbrella organizations
- Interviews with international agencies and international and national NGOs providing enterprise and returnee support services
- Interviews with Chambers/Associations or other related institutions focused on the sectors that returnees are in.
- Interviews with returnee-led micro, small and medium enterprises
The ILO is expecting to receive an assessment report of a maximum length of 25 pages excluding annexes, that summarizes and analyses the information collected as listed above.
All documents have to be submitted in English.
The national consultant is expected to deliver the following outputs:
Output 1: Work plan with list of organizations to be interviewed and interview questions, no later than 15 August 2021
Output 2: Final report summarizing all findings and recommendations, including Annex with contacts of persons/organizations interviewed, to the satisfaction of ILO, no later than 31 August 2021.
4. Confidentiality Statement
All data and information received from ILO for this assignment are to be treated confidentially and are only to be used in connection with the execution of these Terms of Reference (TOR). All intellectual property rights arising from the execution of these ToRs are assigned to the ILO. The contents of written materials obtained and used in this assignment may not be disclosed to any third parties without the expressed advance written authorization of the ILO.
Number of working days: 19
Secondary research conducted 3 days
Design instruments and establish research appointments 3 days
Conduct research 9 days
Systematise and drafting the report 3 days
Incorporation of ILO comments and delivery of final report 1
Total days 19
Start date: 01 September 2021
Draft submission: 25th September 2021
Final submission: 30th September 2021
The national consultant will report to the Entrepreneurship Team based in the ILO Headquarters in Geneva, Switzerland and the Chief Technical Advisor in ILO Addis Ababa Office.
7. Justification and experience
The profile of the selected national consultant should meet the following requirements:
The national consultant should have experience in private sector development.
Experience working on developing business linkages, organizing entrepreneurship training, value chain development and awareness campaigns.
Proven expertise in conducting surveys, and assessments in relevant areas.
Experience undertaking similar projects and assignments in Ethiopia.
She/he should have the ability to write reports, communication and coordination skills, and ability to facilitate focus group discussions in the English language.
8. Selection criteria
- Expertise/Qualification with a maximum mark: 30
The individual consultant should have at least three years of experience in private sector development with maximum mark: 10
Experience developing business linkages, organizing entrepreneurship training, value chain development and awareness campaigns with maximum mark: 10
Proven expertise in conducting surveys, and assessments in relevant areas with maximum mark: 5
Experience undertaking similar projects and assignments in Ethiopia with maximum mark: 5
- Proposed approach to deliver the ToR’s scope of work with maximum points: 70
Applicant demonstrates (via submitted technical proposal) their expertise. The technical proposal includes a realistic action/work plan with a maximum mark: 40
Quality of the sample report suggests that the applicant(s) possess the required level of knowledge, analytical skill and ability to write the final report of the activities with maximum mark: 30
Total for Both Section A (30 Points) and Section B (70 Points) : 100
Minimum Acceptable Score for the Proposal to be considered for financial evaluation: 50
The bidding consultant should provide Curriculum Vitae, and proven technical expertise.
The CVs have to pinpoint relevant past experience in the area, highlight comparative advantages
Technical proposal indicating clear work plan
The interested individual consultants are requested to provide a separate financial offer that is deliverable based AND includes ONLY professional fees related to the activity.
Proposals to be sent in English Language
The national consultant will be paid a total of 19 days of work. The payment schedule is as follows:
Payment 1 of 5 working days, after delivery of output 1.
Payment 2 of 13 working days after delivery of the final report to the satisfaction of the ILO.
How to apply:
All of the above to be submitted to ADDIS_PROCUREMENT, ADDIS_PROCUREMENT@ilo.org no later than 20 August 2021, 10am Addis Ababa time.