TERMS OF REFERENCE 1. BACKGROUND ECCSA. Demand Study for the Ethiopian Chamber of Commerce and Sectoral Associations (ECCSA) 1.1 Assignment background

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1 ECCSA TERMS OF REFERENCE Sida Demand Study for the Ethiopian Chamber of Commerce and Sectoral Associations (ECCSA) July and August BACKGROUND 1.1 Assignment background The Ethiopian Chamber of Commerce and Sectoral Associations (ECCSA) is an apex organisation of chambers and sectoral associations. It has 18 members, comprising nine regional associations, one national chamber of sectoral associations and six national sectoral associations. ECCSA became an official institution in 1947 and has since been recognised as the apex organisation which represents the Ethiopian private sector at a national level. For further information go to In 2003, to align with federal reorganisation, a new structure was established for national, regional and city based chambers. ECCSA became the national umbrella organisation, representing chambers and associations, rather than individual enterprises. These changes resulted from a recognition, by government, that the private sector should be strengthened to become a trusted partner in policy formulation and implementation. The business membership organisations (BMOs), comprising chambers and sectoral associations, became the primary conduit between the public and the private sector, facilitating mutual understanding and effective collaboration. Since 2003 the private sector has grown considerably and become more complex and demanding in the process. The BMOs are facing significant challenges responding to the rapidly changing needs of the private sector. Several limitations are now evident. These include capacity and competency weaknesses in the provision of research and development, and advocacy and lobbying services. In addition, the BMOs are not responsive to the wider need, within the private sector, for quality demand based services. This is resulting in a dissatisfaction among BMO members and, importantly, a limitation of potential revenues for the BMOs themselves. Recognising the challenges set out above, ECCSA, has asked for support from the Swedish International Development Agency (Sida) to better understand the latent demand for BMO services and the capacity of the BMOs to provide those services. The proposed demand study is intended to provide this better understanding and will lead to 1

2 a grant funding mechanism to support the development of demand driven services and associated strengthening of BMO capacity and capability. 1.2 Assignment context Sida has been supporting the Ethiopian chamber system since This support has been provided through the Private Sector Development Hub (the Hub). The Hub has been operating through ECCSA since 2012 when ECCSA was appointed by the government to facilitate national public private dialogue. The Hub s objective is to contribute to the economic development of Ethiopia by improving and modernising the entrepreneurial environment and to strengthen the capacity of the Ethiopian private sector to constructively contribute to the national dialogue of economic development. So far, support has been targeted at strengthening chamber advocacy and dialogue activities, in addition to supporting the implementation of private sector reforms. Although there have been successes, many challenges remain. There is a very apparent need to continue supporting and strengthening ECCSA s activities and initiatives. It has been determined that, prior to mobilising a fund to support the capacity of BMOs to deliver demand driven services, there is a need to examine the current capacity and membership service provision, among ECCSA members. 1.3 Current situation With the help of Sida, the Hub has been supporting the activities of the Ethiopian chamber system to improve the business enabling environment. This support has contributed to an enhanced capacity and competency in the areas of research, advocacy and policy influence, resulting in improved policy, legal and institutional arrangements. However, challenges remain on the path towards a more consolidated and sustainable platform for constructive advocacy. ECCSA will support its members to deliver demandled products and services for which users are able and willing to pay. Evidently, a prerequisite to success is a minimum level of capacity and competency within ECCSA member BMOs. In the above context, these terms of reference specifically address the need for a study which will enable stakeholders to better understand the nature of the demand for BMO services and the existing capacity and competency levels, within the ECCSA membership group, to deliver those services. 2. DESCRIPTION OF THE ASSIGNMENT 2.1 Objective of the assignment The objective of this assignment is to provide an evidence based report which will directly increase the knowledge and understanding of ECCSA, the Hub and Sida 2

3 stakeholders on the nature of private sector demand for BMO services and the capacity and competency of ECCSA BMO members to develop, manage and deliver those services. This will inform the scope and direction of the grant fund mechanism, to be managed by the Hub, which is specifically targeted at strengthening the capacity and competency of ECCSA members. 2.2 Expected results The assignment will be expected to deliver the following five results 1. A clear, evidence based, assessment of the demand for generic services for which businesses (BMO members) are able and willing to pay. (Phase 1) 2. A clear, evidence based, assessment of the capacity and competency of ECCSA members to develop and deliver the generic demand driven services for their members, including an assessment of those members with most capacity and competency (stronger) and those with least (weaker). (Phase 1) 3. An assessment of the gap between demand and capacity/competency for the stronger and for the weaker organisations as well as recommendations on how to address these gaps through the proposed PSD Hub grant fund mechanism (Phase 1) 4. An overview of potential PSD Hub interventions in the wider BMO system which will strengthen the capacity of the media in Ethiopia to support effective advocacy and lobbying on behalf of the private sector (in particular for businesses who are members of the ECCSA network) (Phase 2) 5. An overview of the demand from ECCSA members and others (including the public sector) for non-generic services where there is a clear ability and willingness to pay. (Phase 2). 2.3 Planned phasing of activities The assignment will include the following three distinct phases of activities 1. Inception Phase (One Week) The first week of the assignment will comprise a review of existing documentation relating to the demand and supply of value based services within the Ethiopian BMO system. This documentation will include the following June 2014, baseline study of ECCSA organisations Organisation information on ECCSA members, including organisation charts, employee numbers and governance structures Financial information, including revenues and costs and fees generated as a percentage of total costs Members information, including total membership, fee paying members, size (revenues, employees), scope (geographic coverage) and scale (capital) of members Services and potential services (demand)*, including level of effort targeted at delivering services, primary income generating services and potential to develop and deliver different and new services 3

4 Market information, including the total number of registered businesses and the main sectors and industries in the catchment area ECCSA will provide some of this organisational, financial, membership and market information to the consultants at the outset of the assignment. *Potential services in demand might include, for example: networking events; information of market access and suppliers; publications; start up advice (organisational, financial and legal); training courses; mentoring and coaching support; research and development services; technology transfer services; business incubation; services targeted at women entrepreneurs; access to appropriate financial services; investor and member matching services; strategy and business planning services; public-private advocacy and lobbying services; media signposting; member advertising and public relations services; inward investment (FDI) and export promotion services; services related to sector and industry clustering; and services targeted at making markets work for the poor. The Inception phase will also comprise the following Interview planning, work planning, questionnaire development, Development of structured interview questions Planning structured interviews, focus group and workshops Scheduling of structured interviews The logistics, and securing attendees, for the focus group and workshop events. Drafting of an outline structure for the phase 1 report. These activities will culminate in a short inception report and a presentation to stakeholders, which should be planned for the end of week one of the assignment. 2. Phase 1 (Four Weeks) This will comprise the following activities. The circulation and completion of questionnaires, the completion of face to face and phone based structured interviews. The consultants will ensure that all 18 ECCSA member organisations are contacted during the questionnaire and structured interview process. Where possible, from each organisation, two staff (dealing directly with members and member services), and one member for the governing board, should be contacted. The consultants should aim for 40 percent of those contacted to be interviewed face to face and the residual BMO representatives to be interviewed remotely (by telephone). Face to face interviews should include some representation from BMOs located outside Addis Ababa. The aim will be to better understand the demand for BMO services and the capacity and competency of BMOs to deliver those services. Accordingly, the focus of these activities should be on the quality of existing membership services (which users are able and willing to pay for), demands for alternative or new services and the inherent capacity - for example: staffing levels; skill levels; appropriateness of organisation structure, service level compared to demand; and product quality compared to demand - to develop 4

5 and deliver better existing, alternative and new services which address demand (see examples above). Focus group meeting(s) and /or workshop(s) with groups who represent a cross section of ECCSA members. The aim of these events will be to drill down and explore further the findings from the questionnaire and structured interview process in order that conclusions can be drawn, from the assignment and that recommendations can be developed in the final report. This implies that the focus will be directed towards the BMO organisational capacity and the external business environment, which is generating the demand for services. In these group meetings, the gap between demand and supply can be explored with a view to identifying in which service / product areas the gap is least wide and, accordingly, where there can be a quick and less complicated response to plug the gap. The outputs from these facilitated events should also include some understanding of the role, and limitations, of the media in augmenting BMO advocacy and lobbying. The outputs should also enable the consultants to group BMOs with an existing capacity to address (with minimum intervention) the generic demand for services, as well as those with less capacity (that may require more extensive support). Additionally, at the end of phase 1, the consultants should be in a position to list other services (beyond generic) for which there is a demand and for which businesses are able and willing to pay, including direct public services such as FDI support and export related advice. Any follow up work to ensure that the draft final phase 1 report is evidence based and provides specific and clear information on findings, draws relevant conclusions and recommends workable solutions. At the end of phase 1 (week five) the consultants will be expected to present the results from phase 1 into a summary report which will include process undertaken, findings identified, conclusions drawn and recommendations for action. A presentation, summarising the salient points in the final assignment report, will be prepared and presented to stakeholders in the final week of the assignment. As a guide, the criteria that could determine what an appropriate capacity and competency would look like, for a BMO, could include the following. An agreed, realistic, communicated and understood strategy with time bound key indicators of performance An assessment of how much has been delivered against the strategy plan An effective and efficient financial management and internal audit system The presence of a member acquisition and retention plan supported by a member database Effective and regular communication activities, including publications and events to raise awareness and transfer information and knowledge Appropriately skilled and experienced staff who have built credible relations with members Evidence of services and products which elicit a financial return from users and an understanding, from staff, how these can evolve to meet future demand A market facing organisation structure and culture 5

6 A governance structure which comprises a significant depth and breadth of business experience and skills A cost conscious and lean organisation Strong organisational leadership with well communicated values, mission, vision and objectives A consistent internal focus on developing and delivering better economically viable services An understanding of market demand and, equally, an understanding of how that demand can be addressed Signs that the organisation promotes learning and embeds knowledge and lessons learned A robust connectedness to, and understanding of, the local business operating environment and the political economy Systems in place which generate, exploit and use knowledge An indication of the number of members have paid for services as a percentage of the total number of registered businesses, that have been operating for more than 36 months, in the catchment area The size, scope, scale and dynamism of the economy in the catchment area A balanced approach which considers both members and public stakeholders Some exposure, or potential for exposure, to international good practice on responding to new and evolving client demands and effectively pricing services and products. 3. Phase 2 (Two Weeks) Phase 2 is expected to start after approval of Phase 1 deliverables, and of PSD Hub inception phase deliverables dependent upon inputs from Phase 1. Phase 2 is thus subject to related approvals, with expected implementation in September A detailed description and work plan of phase 2 activities will be agreed during the presentation and discussion on phase 1 findings, conclusions and recommendations. However, it is likely that phase 2 activities will include a cursory investigation into potential support, within the wider BMO system, of the Ethiopian media and what interventions will be required to improve its performance in advocating for the ECCSA network of organisations and their members. Phase 2 is also likely to include activities which will lead to recommendations on the strengthening of those ECCSA members that have been identified, in phase 1, as having weaker capacity/competency to deliver a set of generic services. In particular, phase 2 is likely to involve recommendations on how to address these needs through the proposed PSD Hub grant fund. Based largely on the outputs from phase 1, it is probable that activities in phase 2 will include further exploration of, and reporting on, nongeneric demand for services from BMO members who are able and willing to pay for those services. At the end of phase 2 (week seven) the consultants will be expected to combine and aggregate the results from phases 1 & 2 into an final assignment report which will include process undertaken, findings identified, conclusions drawn and recommendations for action. A presentation, summarising the salient 6

7 points in the final assignment report, will be prepared and presented to stakeholders in the final week of the assignment. 3. PROFILE OF THE CONSULTANTS 3.1 Consultancy organisation The successful consultancy organisation will have a history of quality work, related directly to the Ethiopian private sector and should have had exposure to the role of BMOs in Ethiopia and the policy dialogue relationship between the private and public sectors in Ethiopia. It will be expected to support the its consultants with the necessary equipment, materials and guidance to ensure a successful assignment and it should appoint a senior member of the organisation to act as client liaison on quality assurance and the overall progress and performance of the assignment. The cost of this person s time should be integrated into the fees of the consultants (see below) 3.2 Assignment personnel Two consultants will be required for this assignment. A team leader who has significant and proven experience in economic and private sector development in Ethiopia, augmented with a university degree in economics, business or a related discipline. The second consultant will have a research background with a good understanding of the private sector and the BMO environment in Ethiopia. Both consultants will be expected to be readily available to mobilise quickly and to operate efficiently. Both will have experience and technical skills in questionnaire design and delivery, structured interview development and delivery, as well as the facilitation of focus group meetings and workshops. They will also be good communicators and have the necessary empathy and understanding to ensure quality, relevant responses from the BMOs. Both consultants will be expected to have a high level of English language written skills, and should have proven experience of writing convincing, wellargued and persuasive reports and delivering well-articulated presentations. 4. ORGANISATION OF THE ASSIGNMENT 4.1 Communications, reporting and outputs of the assignment Oversight and start up meeting. Assignment plans, progress and performance will be overseen jointly by ECCSA (including the Hub) and Sida. The two appointed consultants will be expected to attend a start-up meeting with representatives from both organisations. At this meeting, issues arising from the proposal, information sources, logistics, outputs, outcomes, reporting and timing will be confirmed and agreed. The ECCSA representative(s) will hand over information to the consultants at this meeting. This information will support inception phase activities. 7

8 Inception phase report. The development and submission of an inception report and the delivery of a presentation, to include final draft questionnaire, templates for structured interviews and focus groups / workshops, a work plan and programme for the assignment, including interviewees and focus group / workshop attendees and an outline structure for the assignment report. Report for Phase 1. Reporting on phase 1 activities, findings, conclusions and recommendations will involve the submission of a draft phase 1 report and the delivery of a presentation. These activities will take place during week five of the assignment. The consultants will be expected to make any amendments (based on stakeholder feedback) to the draft phase 1 report and resubmit within three working days of receiving stakeholder feedback. Phase 2 Start Up Meeting. Within one week of receiving approval of the Phase 1 report and related PSD Hub inception phase deliverables, there will be a short start-up meeting for phase 2 activities. This discussion will be largely based on the phase 1 presentation and feedback. Indicative activities for phase 2 are set out in section 2.3 above. Final Assignment Report. Within two weeks of the Start Up Meeting of phase 2 activities (week seven of total assigned working weeks), the consultants will be expected to submit a final assignment report which combines and aggregates the phase 1 report with the findings, conclusions and recommendations from phase 2. The consultants will be expected to present the final report to stakeholders within a maximum of three weeks from received approval of the Phase 1 report and related PSD Hub inception phase deliverables. This approval is expected to be given by September 9, thus the Final Assignment Report is expected to be ready and presented by September Location of the assignment The location of the assignment is Ethiopia. The bulk of the assignment will be undertaken in Addis Ababa but it is expected that the consultants will travel to interview representatives from a small selection of regionally based BMOs. A maximum of eight days has been budgeted for overnight travel outside Addis Ababa 4.3 Inputs and timeframe The table below illustrates the planned total input days (55) and the planned contract duration (seven weeks). The contract will be completed by Wednesday 31 August 2016 ACTIVITIES W1 W2 W3 W4 W5 W6 W7 DAYS Inception Phase plus Report and Presentation 08 Phase 1 Questionnaire, Interviews & Workshops 32 Phase 1 Report and Presentation 03 Phase 2 Additional Fieldwork 10 Final Assignment Report and Presentation 02 TOTAL INPUT DAYS 55 8

9 5. ADMINISTRATION 5.1 Reports and presentations The Inception Phase Report should be no more than 15 pages long, including the specific requirements, as set out in section 4.1 above. The Inception Presentation should be developed to last for no more than 20 minutes, allowing for subsequent discussion. The draft Phase 1 Report should be no more than 40 pages long, excluding any annexes. The phase 1 presentation should be developed to last for no more than 45 minutes, allowing for subsequent discussion and agreement on next steps. The draft Final Report should be no more than 50 pages long, excluding any annexes. The final presentation should be developed to last for no more than 45 minutes, allowing for subsequent discussion and agreement on amendments to the final assignment report. 5.2 Costs Reimbursable costs will include any travel associated with the assignment. The daily allowance, only applicable when traveling from outside the consultants home city or town, will be 4,311 Ethiopian Birr per day. This allowance includes all meals, localised travel and accommodation. It is planned that the total number of travel days (outside Addis Ababa) will be eight days. 5.3 Assignment oversight and counterparts The assignment will be overseen and supervised by representatives from ECCSA, the Hub and Sida. Contractual responsibilities rest with ECCSA in Addis Ababa. Contact details are provided in section 6.3 of these terms. To provide support and guidance to the consultants, ECCSA will provide a senior member of staff as a counterpart for the duration of the assignment. 6. PROPOSAL Interested consultancy organisations are now requested to submit a technical and financial proposal which is no longer than 15 pages. 6.1 Structure and content of the proposal The technical element for the proposal should include an introduction, of no more than four pages, that demonstrates relevant firm experience and understanding of the challenges of BMOs and the private sector in Ethiopia. The technical proposal should 9

10 include a commentary, of no more than three pages, on the approach which has been suggested in ToR. The technical proposal should include a biography, of no more than one page, on the proposed senior liaison manager (quality assurance, progress and performance) and two CVs, of no more than three pages each, relating to the two proposed consultants for the assignment. The technical proposal should include two relevant company references. 6.2 Evaluation of the proposal The technical proposal will comprise 80% of the evaluation score. Technical evaluation criteria are as follows. Relevant experience, as set out in the CV of Consultant 1 35% Relevant experience, as set out in the CVs of the STTAs 35% Relevant experience of the consultancy organisation 15% Commentary on the Terms of reference 15% The financial proposal should clearly set out daily fee rates for each of the two consultants and any associated costs. Each CV provided should indicate a daily fee price and the number of input days to be provided by each consultant in each of the three phases of the assignment. The financial proposal should aggregate the fees into a total fee for the assignment. This will be evaluated on the basis of value for money and will account for 20% of the evaluation marks. Please note that the financial evaluation will be based on the total cost (fees and incidental costs) of the two consultants, based on a maximum input of 55 days over seven weeks and based on a maximum of eight days per diem allowance for travel, food and accommodation outside Addis Ababa. 6.3 Logistics for the proposal A. The original and two copies of the technical and financial proposal should be sent, by courier, to T h e PSD Hub office in t h e Ethiopian Chamber of Commerce and Sectoral Associations at the following address: P.O. Box 517, Addis Ababa, Ethiopia. In addition, an electronic version of the technical and financial proposal should be sent, via to ethchamb@ethionet.et;hariaw@ethiopianchamber.com; asterm@ethiopianchamber.com; and mastu3mark@gmail.com B. Proposals (electronic and paper original and copies) should be submitted, as above, by 12h00 local time on Wednesday 22 June, C. Please address any queries or requests for clarification to Aster Mihret, ethchamb@ethionet.et;hariaw@ethiopianchamber.com; asterm@ethiopianchamber.com, and mastu3mark@gmail.com by 17h00 local time on Wednesday 14 June and responses will be circulated by 15h00 local time on Thursday 15 June, D. The evaluation of proposals and contracting process will be completed by 27 June and the tentative project start date will be Monday, 11 July

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