AKF-A did not adopt the VSLA approach in 2009, at the point that this global shift was occurring. It did, however make changes to its model:

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1 Aga Khan Foundation, Afghanistan Job Opportunities Position Title : VSLA Pilot in Badakhshan: Evaluation and Documentation Duty Station : Kabul with field trips to Badakhshan Announcing Date : April 17, 2017 Closing Date : May 1, 2017 Vacancy No : CS/KBL/04/17/024 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. Rationale In 2006, the Aga Khan Foundation Afghanistan (AKF-A) embarked upon a comprehensive program to promote affordable financial services in rural areas through the promotion of self-help groups (SHGs). By 2009, AKF-A was actively engaged with over 500 SHGs in a savings plus approach aimed to cluster groups into federations and link them to external credit as well as a myriad of other service providers. SHGs are Self Help Groups which have been popularized in India, and which are designed to engage small groups in raising a revolving loan fund that can be leveraged with external borrowings. SHGs are meant to accumulate their revolving loan fund over many years, are typically comprised of members, and are often supported by a bookkeeper. In 2009 AKF Geneva introduced a new approach to savings groups designed to require less training input and maintenance. This was based on the Village Savings and Loan Association (VSLA) approach popularized in Africa, which had a number of features which differed from SHG. The most important feature of VSLA is the annual liquidation, which ensures transparency without external support. Other features are also interesting, but less important: VSLA follows a share-based approach which allows variable savings within limits (SHG members save equally), and VSLA loans are tied to a multiple of savings. AKF-A did not adopt the VSLA approach in 2009, at the point that this global shift was occurring. It did, however make changes to its model: Reducing the AKF intervention period from five years to three (although not to one year as in the VSLA model); Abandoning the intention to link groups to external funding; Adding emphasis on self-management by groups; Eventually adding a voluntary savings opportunity, to allow for some members to save more than the required savings amount as desired

2 The SHG program in Afghanistan with a current outreach of 54,000 members has been successful as an alternative to MFI (microfinance institutions) services, which so far have failed to reach remote AKF areas with products that are suited to AKF beneficiaries. But despite its success, the SHG approach tends toward long term dependence by groups on AKF and partners which may not be sustainable. The VSLA approach while not perfect is designed to avoid dependency of groups on donor-funded implementers, as well as on bookkeepers (which may be in some cases provided by programs, but are often also paid for by groups). VSLAs are also cheaper to train - engagement by the implementer is typically limited to a maximum of 9-12 months. Village Agents (member-trainers) are sometimes used to create a line of support to groups, but the approach itself is meant to enable groups to self-manage from year two, including keeping their records. The annual liquidation of the fund is the vital element of the VSLA model, as it helps to maintain transparency. For SHGs, which never liquidate their revolving fund, this transparency can typically only be achieved with an external bookkeeper. The share system of VSLA is optional, and less important than the annual liquidation. Shares (which allow for variation in savings between members, and do tend to increase savings rates) are not the most important feature of VSLA. What is really important from this study is to understand the implications of the annual shareout, and whether this is a feature that should at some point appear in the AKF program. The share system does not need to be adopted widely, and the equal savings approach which is currently found in the SHG model has the virtue of simplicity. The subjective of this study will be the VSLA piloting conducted under the Multi-Input Area Development Global Development Alliance (MIAD-GDA) project in Badakhshan region. Nusai district which is one of the most remote regions in Afghanistan. The VSLA model was actually developed for remote groups like those in Nusai, in a context where external support is financially unfeasible. AKF-A has mobilized and trained 120 VSLAs in Nusai, and examining for lessons relating to the reduction of AKF s continued input to savings group sustainability is very important. 1 This study will help inform discussions around whether to continue promoting the SHG approach in the future, or to shift toward the VSLA approach, or perhaps a hybrid of the two in which groups which practice equal savings adopt the practice of liquidating once per year, and also limiting loan sizes to a multiple of individual savings. Objective Beginning in September 2014, the Nusai pilot (and subsequent Maimai extension) had formed 110 VSLA groups as of January 2017, as part of a target of 120 groups by the end of MIAD GDA. At this stage it should be possible to draw conclusions about the merits of the VSLA approach in remote areas. As a comparison group, SHGs in Wakhan should be selected. The three research objectives of the study will be as follows, together with some specific research questions where indicated: Document the experience and impressions of participants; o What percentage of groups which have completed their first liquidation have continued to a second cycle? o For those groups which have continued to the second cycle, what percentage of the original members has chosen to continue? o For those groups which have continued, have they attracted new members which did not participate in the first cycle, and if so, how many? 1 It is important to note that whereas VSLAs are designed in such a way as to not require external support and therefore clustering, there is nothing about the model which prevents them from being clustered if there is a benefit to doing so. The difference is simply that the cluster will not be required to provide bookkeeping support.

3 Examine the extent to which the VSLA model supports independent management and bookkeeping, versus the SHG model; o Did the VSLA groups struggle with the calculation of loan fees, or the on-time recovery of loans from borrowers? o How well have those groups which have liquidated their funds understood the calculations for each member s amount? Is it likely that these groups can manage the next liquidation without support from the program? o Describe the current state of bookkeeping in the SHG program, and compare the level of dependency on AKF-A in each program? Is there any evidence that the VSLA model reduces dependence on AKF-A? Determine the comparative cost, for AKF-A of implementing the VSLA approach versus the SHG approach (ignoring the eventual cost of clustering); o o How much has it cost for one year of VSLA training in comparison the total cost of three years of SHG training and support? What evidence is there that AKF can withdraw its support from the VSLAs after one year? Certain research questions will require the researcher to study comparison groups and members from the SHG program, in a context which is similar to that of Nusai. In addition to addressing the three research objectives, the researcher(s) will describe: The implementation process and any difficulties encountered; Any variations in the VSLA approach which may have been introduced by the project team; Staff impressions of the VSLA approach and the communities reaction to it, and whether there are notable differences with SHG in this regard. Main Duties and Responsibilities Lead the data collection, data analysis and report writing phases of the study based on the agreed terms of reference and proposal; Produce and share a presentation of preliminary findings after the completion of data collection; Perform other duties notes as objectives and deliverables of the study. Qualifications Required Masters in international development, business administration/management or economics or other related degree preferred (or equivalent in field experience); PhD preferred; 3-5 years of experience researching savings groups (VSLA, CBSG, SHG); Technical competency indicating previous experience in conducting field research/consultancies and generating quality reports on savings groups; Understanding of the social and cultural issues associated with developmental projects of this nature in Central Asia, particularly in Afghanistan; Fluency in English, knowledge of Dari is an asset; and, Preferably, previous working and/or research experience with AKDN agencies.

4 Deliverables Approved final research outline (1 page); PowerPoint Presentation of Preliminary Findings; First draft report; Final report (20-25 pages); Work location(s) Badakhshan, Afghanistan. Schedule (including number assignment days in Afghanistan, total assignment days, total payable days) The study starts in May 2017 and will be completed in July with up to 25 total assignment and payable days. Week Activity Responsible support May 1, 2017 Approved final research outline MERL Unit and HID May 1-15, 2017 Review of documents and tools MERL Unit and HID development May 15-30, 2017 Data collection in Badakhshan Badakhshan MERL and Badakhshan HID June 15, 2017 PowerPoint presentation of MERL Unit and HID preliminary findings July 5, 2017 First draft report MERL Unit and HID July 31, 2017 Final report MERL Unit and HID Additional Significant Information The followings need to be considered as anticipated limitations: Consideration of national holidays (Eid-al Fitr, Eid al Adha, and others) Security Access to locations Seasonality Incidents of force majeure

5 Application: Individuals or research institutions meeting the above requirements are requested to submit a technical and cost proposal to Jobs.afghanistan@akdn.org no later than May 1, 2017 or submit hard copy to AKF, National Programme Office House No 41 Street No. 2, Qala-e-Fatullah, Kabul, Afghanistan. The technical proposal shall be no longer than 10 pages in length. It shall contain the following sections: 1. Introduction, background, statement of purpose, succinct summary of proposal. 2. Outline 3. Detailed methodology. Description of the proposed methods to be employed in achieving the goals of the terms of reference (ToR). 4. CV of the consultant highlighting the required education, skills and experience including list of completed studies. 5. Detailed timeline 6. Budget Important Notes: 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.