TECHNICAL ASSISTANCE REQUEST. MicroLoan Foundation, Malawi

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1 TECHNICAL ASSISTANCE REQUEST FORM 2 TERMS OF REFERENCES MicroLoan Foundation, Malawi Priority 2 - MIS 1. TA BENEFICIARY DESCRIPTION TA NEEDS OBJECTIVES OF THE REQUESTED TA SUPPORT SERVICE PROVIDERS ASSIGNMENTS PLAN OF ACTIVITIES, EXPECTED REPORTS & DELIVERABLE, TIMELINE BUDGET PROFILE OF THE SERVICE PROVIDER PROCUREMENT PROCEDURE... 5

2 1. INTRODUCTION FEFISOL, Fund for Africa, was established to provide debt and equity financing to African MFIs and agriculture producer organizations (POs). The fund has the following strategic objectives: Financing Sub-Saharan Africa institutions (at least 75% of outstanding gross portfolio) Promoting financial-services access to rural populations and financing agriculture activities (MFIs providing services to rural populations and POs at least 50% of outstanding gross portfolio) Focusing on underserved MFIs, regions and countries (the Fund focuses on Tier 2 and Tier 3 MFIs, Tier 1 MFIs are limited to 4) Providing local currency debt financing (80% of gross loan portfolio to be denominated in local currency) Providing medium and long term financing to finance needed investments and allow additional leverage (30% of gross outstanding portfolio as equity and loans of up to 5 years to finance investment needs) Strengthening Tier 1 and Tier 2 MFIs equity base and providing active governance support and follow up when the Fund carries out an investment Combining financing with technical assistance to strengthen in particular Tier 2/3 MFIs and POs thus enabling sustained growth and reducing risks Selecting clients with strong economic and social development potential and promoting and following up on Social and Environmental (S&E) results. This includes the financing of Producers Organizations (POs) that produce and sell to Fair Trade and Organic markets. FEFISOL approved a medium-term loan for portfolio growth to Micro Loan Fondation disbursed in September TA BENEFICIARY DESCRIPTION Description of the TA beneficiary: short history, operating and financial performance, financial and other involvement of the Investee Company, prior and ongoing TA projects, etc.. MicroLoan Foundation has been providing business training and micro loans to rural women in Malawi for 10 years. The local operations across 18 branches cover a large proportion of the country and employ s more than 100 local staff. MicroLoan Foundation provides loans to support small businesses and farming activities in predominantly rural areas and has historically been entirely grant funded. As part of a wider strategy to reach sustainability MicroLoan Foundation took its first social investment loan in 2013 from FEFISOL. The table below outlines some of the key operational projections for the next 3 years, previously provided to FEFISOL Client numbers 27,339 36,086 43,316 No of loan disbursed 71,933 89, ,100 Total loan portfolio 825,719 1,386,084 2,005,501 Interest income 651,325 1,004,465 1,514,771 Operational Sustainability 79% 89% 106% The TA project outlined in this document would be MicroLoan Foundation s first TA assistance from FEFISOL and FEFISOL TA projects are currently the only live TA projects within the organisation. Technical Assistance Request - FORM 2 - TERMS OF REFERENCES 2/6

3 3. TA NEEDS Needs assessment: external context (administrative, politic, social, economic, technologic) and institutional shortcomings (organization, marketing, finance, human resources, technical) that may justify the proposed technical assistance project. MicroLoan Foundation has grown significantly over the past 5 years while the technical and IT infrastructure has not developed at the same pace. Furthermore, in 2013 MicroLoan Foundation became a non-deposit taking MFI regulated by the Reserve Bank of Malawi which requires the organization to comply with numerous policies including amendments to how interest on client loans is calculated. As a consequence of the above developments MicroLoan Foundation identified the critical need to upgrade its MIS system and begun the selection process with the assistance of an external IT company two years ago. Following on wide consultation, system demo s and a due diligence exercise the organization selected an MIS system developed by the Oxus Group known as Octopus as its preferred software solution. The system is supported by a team of developers based in Krygyzstan who will lead the implementation process. This investment will ultimately lead to significant operational and technical changes for MicroLoan Foundation which demands additional, expert support from a suitably qualified Technical Advisor both in the preparation for the implementation process as well as ongoing system changes and user training required subsequent to the installation. It is fundamental to MicroLoan achieving sustainability and to significantly growing the loan portfolio. The project started with the gap analysis exercise in June, the various internal project committees are in place and the data clean up work has begun on the ground. The current timetable is for the system development, customization, data migration and testing to be completed from Kyrgyzstan by the end September Once the above development work is complete the implementation and training at MLF Head Office in Malawi will start in October for final completion by end November OBJECTIVES OF THE REQUESTED TA SUPPORT Key Objectives & Outcomes The longer term project and organisational objectives are to: Improve MLF s compliance with RBM regulation through increased technical capacity Improve MLF s efficiency and accuracy in data management Improve MLF s operational efficiency through better processing of loan disbursements and repayments Build the internal staff capacity to manage the MIS system and provide ongoing training across the organisation. Technical Assistance Request - FORM 2 - TERMS OF REFERENCES 3/6

4 The consultant s key objectives are to: To provide pre implementation support on the ground to ensure all the necessary infrastructure is in place and ready for the implementation team To work with and support the implementation team To provide ongoing post implementation support and training on the ground ensuring all users are adequately competent and the system is working as expected Key performance indicators. CLIENT Performance quantitative indicators of the TA project Accurate processing of loan applications at head office Improved accuracy of loan book and operational data and reports Number of staff trained - All key head office users fully trained and competent with the system - All Senior Managers and Branch Managers trained to use and access data and reports Performance qualitative Indicators of the TA project MIS users satisfied with their understanding of the system and the assistance received during the project Realization Indicators of the TA project End ,5 days of 80% 100% Target as of December 2014 Source of information 2 days MLF mgmt accounts 100% Positive feedback MIS in full use, report Operationalization of new MIS post installation complete Necessary operational changes made to Changes maximise effectiveness and suitability of MIS itemised All relevant staff sufficiently trained in the use Training sessions completed and maintenance of the MIS (all finance and and staff pass assessment data capture staff) 5. SERVICE PROVIDERS ASSIGNMENTS MLF Branch Manager Reports and MIS Reports MLF Staff Feedback Forms TA Report TA Report TA Report Support preparation for installation of new MIS including cleaning HQ data and reconciling with branch data: to be on the ground for 2 3 weeks before we start the Octopus implementation doing the advance preparation ensuring the hardware is in place, configured, data moved from the old to new server, backup systems tested / working, data migration done, training the IT Officer and coordination with Octopus and the Head of Finance. Identify potential areas which will require change during/as a result of the installation; work with the Octopus team preparing for implementation to support those changes. Following implementation and the departure of the Octopus team, ensure the MLF staff are effective and efficient in using the new MIS; take a floor walking capacity providing supervision to data entry and IT. Technical Assistance Request - FORM 2 - TERMS OF REFERENCES 4/6

5 Provide recommendations on additional areas for operational efficiency once the MIS is fully operational and staff are able to work independently (eg use of tablets, decentralisation, branch connectivity, SPM) Training: ongoing user training as required and specific system maintenance training for the IT Officer and MIS Manager Assist in the recruitment of a full time MIS Manager. 6. PLAN OF ACTIVITIES, EXPECTED REPORTS & DELIVERABLE, TIMELINE September 2014: Arrival in Malawi, familiarisation with operations and preparation of database and other related activities. November 2014: Depart Malawi following the completion of the onsite installation and post implementation user training December 2014: Return to Malawi. Provide update report on implementation, improvements realised and remaining challenges January 2015: Provide recommendations/implement operational changes to further improve efficiency January 2015: Provide final report on the achievement of key targets. 7. BUDGET The maximum amount for the assignment will be of EUR. 8. PROFILE OF THE SERVICE PROVIDER The service provider should; Be very familiar with the demands and challenges of implementing new MIS and in particular within the challenging working environments in African countries. Have a good understanding of the operational and technical challenges faced by MFIs. Have a high level of technical skill in project management and IT skills in database management, SQL programming, user interface and training. Have experience managing and implementing new MIS in organisations and preferably within an MFI Have a proven experience in providing training and coaching to MFIs. Knowledge of Octopus will be an advantage. 9. PROCUREMENT PROCEDURE This will be a negotiated procedure without publication. Three proposals will be reviewed by a Tender Evaluation Committee. The selection procedure will entail: Submission of a technical and financial proposal by service provider before 15 th August 2014 Selection of proposals within 10 days from submission Negotiation and signature of the contract between the service provider and SIDI (French company shareholder of FEFISOL that has been mandated to manage FEFISOL s TA facility) Technical Assistance Request - FORM 2 - TERMS OF REFERENCES 5/6

6 The service provider will be paid 40% of agreed budget at the time of the contract signature and 60% upon receipt of final report. The service provider s proposal will be analyzed according to: Qualifications Track record / passed IT & MIS experience Methodology and planning Budget (quality/price ratio) Experience working in Africa Project management experience and ability to work within a team Send the application form in annex 1 (Fefisol TA facility-form 4) before 14 th September 2014 to: MLF: Lance Steward : lance.stewart@microloanfoundation.org.uk SIDI: j.szantyr@sidi.fr FEFISOL TA Officer a.i; : c.bellin-schulz@sidi.fr Technical Assistance Request - FORM 2 - TERMS OF REFERENCES 6/6

RMF is scheduled to operate for three years, from January December 2017.

RMF is scheduled to operate for three years, from January December 2017. Responsible Microfinance Facility Funded by the Agence Française de Développement and Managed by the Social Performance Task Force, in collaboration with the Smart Campaign Frequently Asked Questions 1.