Terms of Reference

Project/Consultancy Facilitate international exposure visit & training for Siinqee Bank managment on
Title digital financial services (DFS)

Background:

Access to formal financial services in Ethiopia lags far behind neighboring countries such as Kenya and Uganda. In the
lowlands of Ethiopia financial inclusion is below the national average, and this is a key driver of vulnerability and
poverty, as it contributes to low rates of savings, limited investment in agricultural productivity or diversified livelihoods,
and underdeveloped agricultural value chains that offer limited livelihood opportunities for vulnerable rural households.
In the lowlands the vast geographies and dispersed populations means physical branch services struggle to reach a large
portion of rural populations, and digital financial services are currently limited to mobile money services that do not
adequately meet the needs of households to save and access credit.

Through RAISE-DFS project, Mercy Corps will catalyze a transformation in digital financial services in the lowlands of
Ethiopia. The central methodology underpinning the RAISE-DFS project will be a Market Systems Development (MSD)
approach. This means that Mercy Corps’ role will be as a facilitator, focusing on catalyzing sustainable and systemic
change in the operations and business practices of Financial Institutions (FIs) that result in the delivery of improved
products and services for vulnerable populations and in particular women. By using an MSD approach, Mercy Corps will
ensure that these changes in business practices will be owned and driven by the FIs themselves, including a substantial
financial investment using their own capital, so that the new products and services will continue to be provided by the FIs
after RAISE-DFS ends.

Outcomes of RAISE DFS project:

1. Financial institutions (FIs) develop the systems and capacities to deliver inclusive and resilient sharia-compliant
and digital financial services
2. Rural HHs and market actors in agricultural value chains use appropriate and affordable credit and savings
products and services
3. Rural HHs have the means, skills, and confidence to access, use and benefit from DFS and Sharia-compliant
services

Purpose / Project Description:

The overall objective of the assignment is to facilitate international exposure visit & training for Siinqee Bank managment
on digital financial services best practices in countries which have robust DFS industry preferably in Kenya. The Siinqee
Bank leadership will have an international practical experience and knowledge on DFS will motivate them to bring the
experience to their institution and expand DFS products and services including and mobile money.
Objectives of the assignment:

The overall objective of the assignment is to facilitate training and international exposure visit on DFS to enhance
practical experiences of Siinqee Bank management. The training & exposure visit participants will be eleven.

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Activities of the TA assignment:

 Identify suitable country with robust DFS experience. It is preferred the selected country possess similar
economic and social context.
 Identify and establish relationship with financial institutions, mobile money service providers and fintech
companies in the host country. Arrange institutions and places to visit, develop schedules and experience sharing
areas.
 In collaboration with the host financial institutions/mobile money service providers select and arrange DFS
experts to provide training and arranging discussions and meetings with management of respective banks.
 Conduct training need assesment, identify relevant DFS training topics including digital transformation, agent
network management, product design and customization, and digital credit.
 Arrange accommodation and land travel in the host country.
 Develop detailed exposure visit & training schedules.
 Provide training materials, presentations, and training certificate upon completion of the visit/training.

Deliverables: training need assesment, training outline and exposure visit plan, raining and exposure visit report; and
facilitate development of action plan by participants on the d esired outcomes - what changes do we want to see in the
participants.

Timeframe / Schedule: The exposure visit/training is expected to be conducted in December 2022. The exposure
visit/training should not be more than a week.

Overview of Siinqee Bank

Siinqee Bank is the transformation of Oromia Credit and Saving Share Company (OCSSCO) which had served being as
microfinance institution since August 4/1997. The transformation process was started on March 16/2021 based on the
NBE Directive No. SBB/74/2020 to relicense the eligible MFIs of the country as a bank and the decision of the General
Assembly passed to transform OCSSCO to a bank. Siinqee Bank had obtained license from National Bank of Ethiopia on
October 8, 2021, to carry out both the microfinance activities and banking business. Siinqee Bank is the first relicensed
Microfinance Institution in the country by fulfilling the requirement set by National Bank of Ethiopia.

Siinqee Bank has subscribed capital of Birr 15 billion and the paid-up capital of Birr 7 billion. The total assets of the bank
reached ETB 21.1 billion. Siinqee bank has over 1 million borrowers with outstanding loan portfolio of ETB 16.6 billion
as of June 30, 2022.

The Bank’s total deposit balance is ETB 10.27 billion, serving 5.1 million total number of depositors in 406 branches.

Consultant Profile

 Demonstrated experience in digital transformation strategy development for financial institutions, strategic and
business planning, and financial product development required.
 Solid experience and knowledge with best practices of digitalized financial systems and core-banking systems.
 Robust is experienced in project management, development, and facilitation of planning sessions with senior leaders,
directors, and management. Prior experience in arranging international exposure/training visits on DFS is preferred.

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 Working knowledge of Ethiopian and East African microfinance and banking sector.

Instructions for the Technical and Financial Proposal

Technical and Financial Proposal Standard Forms shall be used for the preparation of the Proposal according to the
instructions provided in the bidding documents of the Request for Proposal (RFP).
The potential TA Operator should prepare a budget based on the proposed methodology and resources required for the
assignment. It shall indicate the full fees requested together with per diems and transport cost. The USD is the currency to
be used in the financial proposal and the currency in which the contract will be paid.

The Consultant(s) will report to:

Tamrat Abera, RAISE-DFS Program Manager, Mercy Corps
Needs and deliverables may change throughout the course of the TA. It is expected that the consultant be able to adjust as
needed in coordination with the RAISE- DFS program team.
All deliverables must be approved by
Edwin Kuria, Mercy Corps Director of Programs
to be considered final.

Criteria for Selection

Qualified Individual Consultants are expected to submit both Technical and Financial Proposals. Consultants will be
evaluated based on Cumulative Analysis as per the following scenario.
a. Technical Criteria Weight is 70%
 Understanding the scope of work and comprehensiveness of the methodology/approach; and the workplan (20%)
 Digital financial service (DFS) consultancy or strategy formulation experience (30%).
 Context understanding, and prior experience of similar assignments related DFS trainings/exposure visit (20%)
b. Financial Criteria Weight is 30%
Tender details:

The consultant or firm should submit a proposal including the proposed methodology and approach, relevant experience
and references and financial proposal. The consultant(s) should propose the number of days required for each of the
deliverables in these Terms of Reference.

Eligible companies/firms should submit the following:

⮚ Statement of interest, proposed methodology and work plan.
⮚ Copies of renewed business registration certificates.
⮚ Financial proposal with breakdown of costs (including all related costs) in USD mentioning the terms of payment.
⮚ Technical and financial proposal separately and in a sealed envelope; to Mercy Corps Ethiopia head office,
P.O.Box: 14319, Addis Ababa or Electronic copy can be sent to [email protected]
⮚ The applicant must score 45% (out of 70%) for technical evaluation to be eligible for financial evaluation.
⮚ Failure to comply with any of the conditions indicated above will result in automatic rejection.
⮚ Application deadline is 25th November 2022 at 17.00 East Africa Time and proposals sent after this date may not
be considered.
⮚ Mercy Corps reserves the right to reject the bid fully or partially.
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