Country: Ethiopia
Closing date: 14 Apr 2018
- Background
There are 35 Microfinance Institutions (MFIs) operating in Ethiopia, serving over 5 million loan clients and manage 17 million saving accounts. The MFIs focus on clients at the ‘Base of the Pyramid’ and make significant contribution toward economic growth and financial inclusion. To increase their outreach further and improve their performance, the MFIs face challenges and have capacity gaps in the areas of governance, deposit mobilization, product innovation, IT/MIS, amongst others. There are several donor funded projects supporting the MFIs in meeting their capacity building needs, however, it is not enough, nor sustainable. The MFIs rarely invest in capacity building, mainly due to limited awareness, a weak understanding of the value propositions for investing in capacity building, and a distorted TA market with cost free provisions.
Achieving optimal outreach and impact with financial and operational self-sufficiency is a challenge for most of the MFIs operating in the country, considering the suitable macro-economic environment and opportunities for the expansion of microfinance services. It is essential for MFIs to start investing in developing their capacity in order to remain competitive and agile institutions.
To encourage MFIs to invest in capacity building, there is a need to present a strong business case in relation to institutional transformation, enriched bottom lines, realize growth targets (institutional & national), etc. In addition, there is a need for a Training and Development Needs Analysis Tool that would help MFIs to define their training and development needs, learning objectives and desired outcomes in order to focus on the appropriate performance behaviours. The MFIs should be in a position to define learning gaps, understand ways to effectively utilize their scarce capacity building budgets for the intended learning objectives and to measure post-learning outcomes vis-a-vis organizational mission and goals.
The initiative to develop a sustainable capacity building market for MFIs is a partnership between the Association of Ethiopian Microfinance Institutions (AEMFI), lead technical partners and Enterprise Partners (EP).
Association of Ethiopian Microfinance Institutions
AEMFI is a non-profit membership organization registered by the Ministry of Justice of the Federal Government of Ethiopia (1999). Its objectives are to serve as a platform for knowledge and information sharing, represent the Ethiopian microfinance institutions in national and international platforms, and building the capacity of its members. Regionally, AEMFI is one of the strongest of the country level networks in Africa. AEMFI has established a training and research centre, Ethiopian Inclusive Finance Training and Research Institute (EIFTRI), to fill the capacity gaps of MFIs, with a focus on training and research works that would help the microfinance industry grow and spread inclusive finance. For more information, visit: http://www.aemfi-ethiopia.org/
Enterprise Partners
EP is a 7-year (2013-2020) wealth creation programme funded by DFID with the aim to support the private sector and Ethiopia’s economic growth, inclusive of women and the environment. By applying the Making Markets Work for the Poor (M4P) approach for sustainable results, it aims to facilitate market development in order to spur innovation and investment that creates jobs and increases incomes for the poor. It does so with a combination of technical assistance and market facilitation in resolving market failures. EP is being implemented in a consortium led by DAI Europe, and includes First Consult, Enclude and ITAD. For more information, visit: http:// www.enterprisepartners.org /
2. Objectiveof the Assignment
The objective of the assignment is to develop a business case for MFIs to invest in developing the capacity of their staff and improve their processes and systems. In addition, the consultant should develop tool(s) for the MFIs that would help them assess their training and development needs, in a way to create demand. LOE: 20 days.
3. Specific Tasks
The consultant is expected to bring his/her international experience, judgement and best industry knowledge to complete the following activities:
- Review MFIs capacity building strategies, practices, gaps and growth targets.
- Review national financial inclusion strategy and the Government of Ethiopia’s Growth and Transformation Plan II growth targets set for MFIs.
- Meet with relevant stakeholders, including the National Bank of Ethiopia (NBE), AEMFI, Ethiopian Bankers Association, MFIs, Commercial Bank of Ethiopia, and others.
- Assess available capacity building financing options and associated pros and cons.
- Assess MFIs readiness regarding capacity building investment and transforming themselves.
- Review other industry practice, especially from banks, to draw key learnings and experiences, as well as best practices of other countries.
- Identify current capacity building investment gaps and establish the way forward, based on the study outcomes & international best practices.
- Develop and present a strong capacity building investment business case for MFIs and other key stakeholders to enhance their awareness about importance of capacity building investment.
- Develop a Training and Development Needs Analysis Tool that would help MFIs to define their training and development needs, learning objectives and desired outcomes in order to focus on the appropriate performance behaviors.
- Develop a Post-Learning Outcomes Measurement Tool that would help MFIs assess learning investment effectiveness and linking with organizational mission and goals.
- Coach and support AEMFI and the NBE to better advocate and monitor MFIs capacity building investment practices.
4. Time frame
Period of assignment: April & May 2018.**5. Working arrangement**
The Consultant will report and work closely with AEMFI, the lead technical partner and implementer of this assignment. Accordingly, AEMFI will closely supervise and lead the consultant’s work, and facilitate awareness creation forums for the stakeholders. The final output requires approval from EP and AEMFI.
EP should be informed of all the communications and the deliverables. The process of developing the business case, tools, and monitoring guide should be engaging and flexible to accommodate feedback from key stakeholders.
The Consultant will be working at the AEMFI offices in Addis Ababa during the assignment.
6. CONSULTANT REQUIREMENTS
Senior-Level consultant who has experience in the financial sector capacity building market and related research tasks, developing business cases for investing in capacity building and learning journey map.
- University degree or higher, in business, economics, finance, marketing or related discipline.
- In-depth knowledge of financial sector (preferably MFI sector) capacity development.
- Knowledge of international best practice in capacity building programme management and strategy development.
- Minimum 15 years or more in financial sector capacity development; including leadership, related research and developing business cases.
- Experience in developing a practical training and development needs analysis tools for financial institutions.
- Very good understanding of the microfinance industry, capacity building market and other market players. An existing network with those that are active in the capacity building market in the region is an asset.
- Good knowledge of the financial sector in Ethiopia or experience in other African countries is an asset.
- Good understanding of Making Markets Work for the Poor (M4P) approach is an asset.
- Passion and commitment to work as a team and building the capacity of the technical implementing team.
- Additional competencies required include:
- Fluent in spoken and written English
- Excellent writing and presentation skills
- Strong analytic skill
- Ability to work under pressure and meet tight deadlines
- Excellent interpersonal skills and ability to work with others.
Last date for submission of applications in 14th April 2018.
How to apply:
To apply, please follow the link below:
https://chm.tbe.taleo.net/chm04/ats/careers/requisition.jsp?org=DAINC&cws=1&rid=3591