The design of the EDP will likely be framed on the following:

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1 Aga Khan Foundation, Afghanistan Job Opportunities Position Title: National Consultant for Business Fact Sheets & SME Frame Work Study Duty Station: Specific Regions in Afghanistan: Takhar, Baghlan, Bamyan, Badakhshan, Kabul, Mazar, Kunduz and Herat with existing relevant SMEs. Announcing Date: August 15, 2016 Closing Date: August 30, 2016 Vacancy No: CS/KBL/05/16/021 The Aga Khan Foundation (AKF) is a non-denominational international development agency established in 1967 by His Highness the Aga Khan. Its mission is to develop and promote creative solutions to problems that impede social development, primarily in Asia and East Africa. Created as a private, non-profit foundation under Swiss law, it has branches and independent affiliates in 19 countries. AKF seeks to provide sustainable solutions to long-term problems of poverty, hunger, illiteracy, and ill health. In Afghanistan, AKF works with rural communities in mountainous, remote or resource poor areas to improve quality of life in the areas of natural resource management, market development, governance, education and health. The Aga Khan Foundation, Afghanistan (AKF (Afg)) is an agency of the Aga Khan Development Network (AKDN), a group of international, private, non-denominational development agencies working to improve living conditions and opportunities for people in some of the poorest parts of the developing world. The Network s organizations have individual mandates that range from the fields of health and education to architecture, rural development and promotion of private-sector enterprise and institutions that seek to empower communities and individuals, usually in disadvantaged circumstances, to improve living conditions and opportunities. I. Rationale The Aga Khan Development Network (AKDN) believes that catalyzing and accelerating small enterprise growth is critical to achieving broad and inclusive economic development, particularly in underserved rural and urban areas, such as in Afghanistan, that lack access to sufficient local and foreign investments. New strategies are required to unlock the growth potential of small and medium sized enterprises (SMEs) in such frontier markets. Based on ongoing AKDN interagency discussions, the AKDN is proposing the establishment of a new AKDN Enterprise Development Platform (EDP) to catalyze a stronger business ecosystem of financial and bespoke technical assistance services for early stage and growth oriented SMEs. One of the focus countries for the EDP will potentially be Afghanistan. Executed as a new legal entity that would have a specific mandate, the EDP would have a purpose built operating capacity and appropriate management competencies to address the missing middle, by supporting the development of selected growth oriented SMEs through the provision of longer term risk finance paired with tailored technical assistance (TA) and mentoring. The design of the EDP will likely be framed on the following: The core product would be patient capital invested in small but growth oriented firms: selected firms would likely need to be operational for 2-4 years with some track record of revenues and profitability. Investments in selected firms would be twinned with postinvestment TA, where appropriate, to address specific and pre-agreed business capacity improvements. Investment would be sector agnostic, although the EDP would exclude sectors which present ethical concerns, and businesses that do meet appropriate environmental and governance standards. Financing would be tailored in line with each selected SME s growth/expansion plans and cash flows and linked to achievement of milestones. Examples of financial instruments might

2 II. include equity financing, blended products (mezzanine financing, sub-ordinate or patient loans and royalty, etc.), and self-liquidating instruments. In term of equity type investments, the EDP would mostly take minority stakes in firms, but exercise strong influence and risk mitigation through structure of the financing instruments and technical assistance, and other appropriate investment terms and conditions. Investment would range between USD 100,000 to USD 750,000 (including any follow-on financing), with the EDP seeking repayments and exit within or over 5 to 10 years. As part of the AKDN EDP preparatory phase and to validate the design framework, AKF is commissioning various studies, which includes an initial SME Pipeline review. The purpose of this initial SME Pipeline review is to establish an illustrating set of businesses and define their specific financial and TA needs, helping inform the EDP design and its proposed investment thesis, criteria and likely instruments, while also contributing to the context / rational as part of early engagement of partners and donors who might be interested in this initiative. Objectives The purpose of this assignment is to strengthen and broaden the AKDN s initial SME Pipeline review in Afghanistan, and to develop a more robust understanding of the market place, future pipeline (sources and scope) and financial ecosystem for SMEs of relevance to a future EDP. This assessment also includes a high level mapping of appropriate business advisors and consultants that can provide relevant bespoke post investment TA as well as an overview of the key legal and regulatory issues related to setting up a locally based SME investment company that can offer flexible risk finance to SMEs. Specifically, this assignment has three objectives with distinct activities and deliverables, as outlined below. 1. Develop 20 SME Fact Sheets. Using an SME Fact Sheet Template (1 pager) and questionnaire (provided by AKF), the consultant will review at least 20 SMEs. This will involve collecting information and data from SME entrepreneurs / management in-person to prepare a complete and polished final product. Information required includes Key Performance Indicators (KPIs), historical financials (COGS, EBIT) and business plan projections (COGS, Gross Profit, Net Profit) considering any growth or expansion plans as well as information on market demand for core products / services and supply chain issues and risks, in summarized fashion. A core objective from this assignment is to have a common and consistent Fact Sheet for each SME, as a basis for an illustrative but relevant pipeline - to further refine and validate the EDP design, investment thesis, approach, instruments, and tailored post investment TA provision. 2. Overall observations from illustrative SME Pipeline. This short note (approx. 2 or 3 pages) will summarize the consultant s overall impressions from the illustrative SME pipeline review (i.e. from the portfolio of the 20 companies) in terms of what the consultant observed, what was learned, key issues or concerns, and important observations/themes arising, such as: industry/sectors diversification; stage of enterprises reviewed; TA and business support needs, post-investment; assessment of the entrepreneur and key decision makers; summarized assessment of which businesses have the greatest opportunity for success/growth; other observations. 3. Advance and finalize an SME Framework paper. As part of the preparatory phase research, the consultant will support AKF in preparing an SME Framework paper and power point deck that will include information on the national context of SMEs, the financial ecosystem for SMEs, the SME business and financing enabling environment (including policy and regulatory environment, and high level outline of relevant legal and regulation related to setting up an SME investment and financing company), and the market place of TA

3 services for SMEs in Afghanistan 1, including areas of AKF coverage. AKF will share an initial SME Framework template. The consultant s task will be to: a) Desk review, drawing on all globally and locally available resources (e.g. from Government, DFIs, academic institutions, private sector and other development organization) and; b) Key informant interviews in Afghanistan to deepen the level of local analysis on the relevant financial ecosystem, relevant legal/regulatory environment, and market place for SMEs. Expected final product will include a 20 page report with 3-4 page executive summary), a power point deck (10-20 slides) outlining key findings, plus annexes if and as appropriate (e.g. list of interviews conducted with contact details, organization, etc.) As part of this research, review and assessment, and in preparing the more detailed draft framework paper, the consultant should aim to validate and/or provide: III. A high level assessment of the Afghanistan economic and market environment (with opportunities and challenges) as relates to SMEs, as well as the enabling and policy environment for private enterprise and SME development and growth. A mapping/overview of the existing sources of SME financing, including SME bank finance, venture capital/private equity, impact investing, and any other forms of risk or long term financing that may be available locally and accessible to SMEs. In this regard, it would be useful, if the information is readily available, to outline the key requirements and terms and conditions for a typical growth oriented SME to access such financing. An overview of the legal environment and regulations pertaining to SME financing, with particular focus on requirements, implications and issues for a locally based investment company to provide long term financing (equity, debt, and other forms of mezzanine financing) to SMEs. A high level mapping of local business incubators and accelerators that support the development and growth of SMEs, as well an overview/mapping of the environment and provision of relevant locally available TA / business advisory services / consultant and mentoring services that could potentially support the EDP s post investment TA work. A high level assessment of the sources / channels to develop a relevant SME investment pipeline (potential partners including MFIs, banks, DFIs, accelerators, TA providers, INGOs, Chamber of Commerce, Industry Associations, etc). An outline of key risks, issues, opportunities, and challenges relevant to the EDP. Deliverables To achieve the above objectives, the following deliverables are required from the consultant: SME Fact Sheets for at least 20 SMEs, using the new Fact Sheet template and questionnaire. Include separately / annex additional data from questionnaires. Overall observations from illustrative SME Pipeline at roughly 2 to 3 pages will be a more open ended note summarizing any important observations from the consultant about the totality of the SME review process, in terms of trends, themes, opportunities, challenges, etc. SME Framework paper at a maximum of 20 pages (plus annexes as needed) with a 3-4 page executive summary, and a power point deck (10-20 slides) based on template and draft report provided by AKF, but ensuring to cover the scope outlined above 1 TA has become an essential tool for investing capital in SMEs (in developing economies). For example, a study by the World Resources Institute titled On the Frontiers of Finance, found that of the 18 emerging markets funds interviewed, each one offered TA in one form or another. Specifically, the range of support both pre-investment and post-investment that can be considered under the rubric of TA include: Financial literacy training; Resource planning and budgeting; Business plan development; Finance and accounting training; Marketing support and market assessment; Logistics planning and distribution; Strategic planning; Legal support; Operational and process improvement; Facilitating access to international supply chains/market partners; Information technology.

4 IV. Consultation between Consultant and AKF / AKDN To ensure effective communication and interaction over the course of this assignment, in order to achieve the above objectives, the following consultative process is proposed between the consultant and AKF: Pre-assignment discussion, with AKF/AKDN in-person, to discuss the Terms of Reference, scope of work, templates, tools and other documents shared by AKF. This will provide an opportunity for the consultant to share initial feedback, ask questions, and clarify and confirm the proposed focus, timeline and agenda for completing the work. Mid-assignment check-in, with AKF/AKDN in-person, which could be timed shortly after completion of research and interviews and the submission of any initial deliverable(s) (e.g. development of half of the SME Fact Sheets). This meeting is an opportunity for the consultant to share initial feedback and progress against the TOR (verbal report), to propose revisions to the agenda/scope, to adapt / refine the agenda or deliverables (to be jointly agreed with AKF) based on the initial analysis and work, and discuss and resolve any other questions or issues that arise. Debrief discussion, with AKF/AKDN in person, to discuss the final submitted deliverables. This is an opportunity for the consultant to share an overview of his/her deliverables and conclusions, and to clarify any issues or limitations, as well as for AKF/AKDN to ask questions and provide feedback on the deliverables and/or request any amendments / additions / changes in line with the TOR. The consultant or AKF/AKDN can / should (as this is regarded as an iterative and interactive process) at any time propose and arrange a check-in call, Skype or in person meeting during the assignment, as needed to effectively achieve the deliverables and to ensure an interactive process in undertaking this assignment. V. Level of Effort Deliverables Tasks # of Days (Estimated) SME Fact Sheets x 15 In-person interviews with entrepreneurs 12 (min) / management to collect needed data & information New Fact Sheet preparation 3 Overall observations from illustrative SME Pipeline SME Framework / Ecosystem Paper and Power Point Deck Consultation between Consultant and AKF / AKDN Prepare a short written note 1 Review AKF draft and propose edits 2 based on desk review Key informant interviews 8 Report preparation / revisions 3 Pre-assignment meeting 2 Mid-assignment 2 Debrief at end of assignment 2 Total LoE 35

5 VI. Consultant s profile The National consultant will have a background in management consulting (with a focus in business analysis and strategy), entrepreneurship, supply chain management, SME management and financing, venture capital, or another relevant field. The consultant have to be based in Kabul/ Afghanistan. AKF/AKDN will provide the consultant with logistical support (including transportation and accommodation), translation services (as needed) and relevant reports and analysis. AKF/AKDN senior management will also provide the consultant with ongoing guidance and advice. As part of this assignment, the consultant and AKF/AKDN will avoid raising expectations among enterprises with regard to future financing or TA or plans to launch the EDP. This is an exploratory phase only and no commitments or suggestions of this nature should be made at this stage. Expression of Interest Applicants meeting the above requirements are requested to submit a cover letter, one or two recently developed training materials along with their CV and the names of three references electronically to jobs.afghanistan@akdn.org, no later than August 26 th, 2016 or submit hard copy to AKF, National Programme Office House No 41 Street No. 2, Qala-e-Fatullah, Kabul, Afghanistan Important Notes: This consultancy opportunity is open for an Afghanistan based individual consultant or consulting company. Please quote the Vacancy Number as the Subject of the when sending your application. Supporting documents, e.g. diplomas, recommendation letters, identification card(s) etc., are not required at this stage, therefore not to be sent along with the application. Only short listed candidates will be contacted for further assessment. Aga Khan Foundation Afghanistan is an equal opportunities employer. Women are encouraged to apply. Aga Khan Foundation Afghanistan recruitment and selection procedures reflect our commitment to the safeguarding of children from abuse.

Announcing Date : October 2 nd, 2016 Closing Date : October 9 th, 2016

Aga Khan Foundation, Afghanistan Job Opportunities Position Title : Baseline Study Consultant AWEP Duty Station : Work remotely Announcing Date : October 2 nd, 2016 Closing Date : October 9 th, 2016 Vacancy