Request for Proposal: In-depth Assessment of the MSME Landscape in Fiji. Market Development Facility

Transcription

1 Request for Proposal: In-depth Assessment of the MSME Landscape in Fiji Location: Fiji and home base Duration: Up to a maximum of 27 working days Market Development Facility Adviser Remuneration Framework Classification: C3 The Market Development Facility (MDF) stimulates investment, business innovation and regulatory reform in order to create jobs for, and increase the income of, poor women and men in rural and urban areas in the Indo- Pacific region. MDF commenced operations in Fiji in 2011, expanded to Timor-Leste in 2012, to Pakistan in 2013, and to Papua New Guinea and Sri Lanka in MDF is funded by the Department of Foreign Affairs and Trade (DFAT) and is implemented by The Palladium Group. To achieve this goal, MDF implements a market systems development approach. This entails that MDF will enter into a wide variety of partnerships with strategic players in the private and public sector to enable them to undertake innovative activities, develop products and services, provide information, develop guidelines, regulations, or whatever is relevant yet currently absent for increasing competitiveness and growth. Partnerships will be based on the principles of sharing costs and responsibilities, with the clear understanding that MDF support will be shortlived and limited and that, from the start, it must be clear how the Partner will continue the activities after MDF support has come to an end. In phase 1, MDF worked with 63 micro, small, and medium enterprises (MSMEs) from the key economic drivers of the economy, tourism and exports (agriculture and non-agriculture). These partnerships have not only given us invaluable lessons on how to engage MSMEs effectively in Fiji but also have given us leads on how to expand our implementation footprint in Fiji in phase 2. To capitalise on the work done in Phase one, MDF Fiji is looking to expand to four, inter-connected, strategic engagement areas (SEAs): Exports (agricultural and non-agricultural); Tourism (including support services); Business Enabling Services & Infrastructure (BEI); and Business Incubation Systems (BIS). This restructuring of the Fiji portfolio has been informed by MDF s 6-years of experience and understanding of the Fijian economy. The program has also identified the limited participation of indigenous or I-Taukei and women-owned businesses in the SEAs as a key constraint to stimulating more inclusive growth in the country. The Request for Proposal (RFP) is to commission an in-depth assessment of the MSME landscape in Fiji. This research will enable MDF to improve our evidence base for what is the current environment and key challenges facing MSMEs in the country to identify prioritised areas of engagement for BIS in phase 2, including links to the other three SEAs of the program. Background The economy of Fiji has grown steadily, with an average growth of 3.7% over the past five years ( ), primarily on the back of tourism and exports. The total value of Fijian exports and tourist arrivals has risen steadily and still exhibits room for growth. MSMEs currently contribute 18% of Fiji s GDP and play a key role in the economy for employment creation, income generation, enhancement of rural economic activities, empowering youth and women, poverty alleviation, social justice, security and peace, and advancement of all communities. There are approximately 20,580 1 MSMEs which are formally registered and valued at around USD $833 million in FRCS, 2015 est.

2 There is also a relative large number of MSMEs in the informal sector, but there is an absence of credible data to determine their contribution to the economy. With the Fiji economy forecasting further positive growth in the next few years, there is huge potential for the MSMEs sector to contribute more significantly to the GDP of the economy provided a more conducive environment is in place, as well as the local capacity is built to support their sustainable growth and development. In phase 1, MDF worked with a number of MSMEs to introduce innovative products and services into the tourism and export market systems. These innovative products and services have been important in generating, novel as well as additional economic transactions. New and ground-breaking conversations are also happening between local business actors which is leading to novel avenues for business growth. For example, the introduction of new agricultural inputs into the Fiji market by specialist product distribution companies is changing the way farmers access and use appropriate inputs for their farms. However, MDF also realizes the importance of an increase in the number of MSMEs that are viable and active in the market systems. While innovative products and services can make the economy do new things, a larger number of MSMEs operating sustainably in the economy is essential for long term and inclusive growth because they would ensure more broad-based job and income creation in the country. To better understand and support MSMEs (in exports and tourism), MDF over the last three years, has implemented the following initiatives: 1. MDF has worked with leading financial advisory firm Ernst and Young (EY) to help a large group of MSMEs to re-organise their financial management systems better as a way to scale up and secure commercial finance. MDF also worked with a leading financial consultant as well as the local ANZ bank to do the same. The purpose of both these initiatives was not only to get select MSMEs ready for commercial finance. It was also an effort to get financial advisory firms and commercial banks to understand what kind of MSMEs make up their potential client base in Fiji. Both these initiatives showed mixed results and generated a lot of lessons. The most important lesson was not that MSMEs lacked the information and capacity to grow sustainably and use resources available in Fiji to their advantage. The major lesson was that there are no advisory services that fit the needs of MSMEs and financial institutions have a very narrow view of MSMEs in Fiji which only includes the most prominent business houses. The fact that there are variations within MSMEs depending on ethnicity of owners, gender of owners, location of businesses, as well as other cultural aspects, was a novel finding for these finance institutions. 2. Based on the experiences of these two initiatives, MDF piloted a small MSME incubation program, specifically to provide business advisory services that take into account the Fiji context as well as find out a little bit more about what are the variations within MSMEs in Fiji. The findings from this pilot so far confirms our view that MSMEs in Fiji need to be looked at not just from a simple financial profile perspective (i.e. cashflow, revenue, sales data etc.) but also from the perspective of gender, ethnicity, governance structures, and locations of business. 3. Lastly, MDF has conducted two relevant studies: the Community Engagement Study to gain a deeper understanding on how MSMEs can engage communities commercially; and a Financial Mapping Exercise to look at what support and financial services were currently available to MSMEs in the country. This work has helped shape MDF understanding of MSMEs in Fiji, including some of the challenges faced by women and indigenous business, as well as key differences in MSMEs in the formal and informal sector in Fiji. Generic definitions of MSMEs need to be augmented with a more nuanced understanding of other key characteristics like cultural dynamics, natural resource ownership structures, Fijis geographical locations, gender disparity, age composition, formal and informal segments to name a few. The purpose of this study is to help us to better understand the current situation and challenges facing MSMEs, including for the different types/categories of MSMEs highlighted above. This study is designed to complement our practical learning from MDF phase 1 and help shape a more strategic focus on our work and partnerships in MDF Phase 2.

3 Objective The objective of this Study is to: Provide an up-to-date situational analysis of the MSME sector in Fiji and to gain a deeper understanding (sufficient resolution) of all the different categories of MSMEs that are present in Fiji and use the findings to develop a strategy for MSME growth in Fiji. The consultant will work closely with the team and provide the necessary information to develop a set of constraints, opportunities and strategies through a Report, to guide MDF on formulating its strategy to unlock MSME growth potential in Fiji. Research Questions The study will be based on three major research questions as below: 1. What is the MSME Landscape in Fiji? - Summary of MSME Sector in Fiji based on latest reports, statistics and local consultation. - What are the different MSME categories that exist in Fiji? What are their profiles (status of formalization, ethnicity, gender etc.)? - Per category of MSMEs, what are their approximate contributions to the economy and how are they distributed across the main growth areas within the economy? 2. Who are the key stakeholders that are involved in MSME growth and development? - In addition to the main MSME actors in the economy, who are the other potential or emerging key market players involved in Fijis MSME landscape? This includes but not limited to; faith based groups, provincial bodies, civil society organisations, finance companies, etc. - What are the relevant policies, legislations, incentives and other environmental aspects that governs MSME development in Fiji, in addition to those that apply to the new market actors? (as applicable). 3. Constraints, opportunities and strategy to address growth constraints? - What are the major constraints for MSME growth and more specifically, for each MSME category and profile identified under research question 1? - For each MSME categories and profiles, what is the growth trajectory and opportunities for unlocking growth (growth in value, variety, gender and ethnicity balance) for MSME in Fiji? - What are the gaps that exist in the market, in terms of products and services that would be needed by MSMEs to address the constraints and opportunities identified? Methodology To complete the assignment, the consultant needs to carefully design and execute the research to ensure, that the findings provide as much insight as possible, to support MDF Fiji s strategic development on MSME growth. The consultant will work in close collaboration with the MDF Fiji team, to design and finalise the research plan, questionnaires and the field plan to ensure that the interviews conducted provide as much insight as possible. The consultant(s)/firm is expected to further develop this section in their proposal and include a description and justification for analytical framework(s) and or tools that will be used. MDF envisions a research effort with focus group discussions, key informant interviews, stakeholder consultations, and other appropriate tools to define, analyse and thereby, provide the necessary data, that impede the growth of MSMEs in Fiji. The study needs to be collaboratively developed with inputs from MDF s resources.

4 The consultant(s)/firm will draft an appropriate methodology for the qualitative study and develop data collection tools and questionnaires for key informant interviews and focus group discussion with market actors that will be used to conduct the market assessment. The study will be undertaken together with the MDF team. The assignment may follow the steps outlined below or a variation thereof whilst ensuring the purpose of the study is met. The consultant(s)/firm will coordinate with the BIS Team to develop a better understanding of the collaborative evaluation/research plan (to be proposed in the technical proposal), clearly chalking out and understanding each party s roles and responsibilities for the duration of the study. The consultant(s)/firm will guide the BIS Team to collaboratively conduct an extensive desk research using published and unpublished sources, MDFs own internal documents (to be shared after contract signing) alongside undertaking key informant interviews to collect relevant information to develop an inception report detailing out the methodology of the study further which should lead to the narrowing down or shortlisting of the key MSME category and profiles to be analysed in depth under this study. The consultant(s)/firm will partake in primary data collection in Fiji to analyse the shortlisted MSME categories and profiles to fill out any gaps in the literature review, validate findings and correct any mismatches. The consultant(s)/firm will share preliminary findings from the primary investigation and correspondingly assist in the development and finalization of the report of the study in concern. MDF will provide the following support, during the assignment. Logistical support (per diems, accommodation and incidental costs, transport) and resources support (BIS Team members) will assist in collecting primary data and secondary +research. For this, the consultant is expected to follow the steps outlined below: Steps Deliverables/Output Days 1. Meet the MDF team and design a Research Plan. 2. Conduct initial review of previous studies and work being done by respective agencies in Fiji on MSMEs, including how the sector is defined. Meeting with key informants/stakeholders. Meeting with MDF Team Research Plan Review secondary research and past studies, including MDF reports and assessments. Interview/Meeting Schedule. Key Evaluation Questions. Meeting minutes of each meeting. Inception/ preliminary report. Presentation to the research team. 3. Research & Field Planning. Detailed field plan, including sampling plan and interview guides. Briefing of the research team on the field plan. 4. Undertake extensive field Daily Field Work Summary Report. work, as outlined in the field plan. 5. Present key findings and submit draft report. 6. Conduct a workshop with key stakeholders to share and validate findings. Consultant will prepare the draft report in line with the agreed outline discussed with MDF. Preliminary findings from the analysis will be shared with MDF and DFAT over a PowerPoint presentation, and in line with the agreed outline of the draft report. Organise a validation workshop with the assistance of the MDF team to share and validate preliminary findings with key stakeholders. +1 day +5 days + 2 days +10 days +5 days + 2 days

5 Submit a workshop summary report. MDF will review and submit feedback to the consultant, including the feedback from the workshop. 7. Finalise Report Consultant submits Final Report which will incorporate comments from MDF. Total Days +2 days +27 days It is expected that the study will commence in mid-february 2018 and be completed by end of March Special Instructions It is envisaged that this assignment will take approximately 27 working days, plus 2 days international travel as necessary. The allocation of the number of days between the steps is indicative and can be changed if needed, with prior approval from the MDF team. The scope of work for the study will be mostly in Viti-levu and Vanua-levu. The consultant(s)/firm is to regularly inform the MDF team on the progress of the work. The consultant(s)/firm must consider the following documents as part of the secondary literature research: - MDF Community Engagement Study - MDF Fiji Finance Product and Services Mapping Study - Ministry of Industry, Trade & Tourism Reports on MSMEs. - Reports by the Reserve Bank of Fiji. - Key documents from ADB, IFC and other key development partners. Education, Skills, Knowledge & Experience Essential Post graduate in development studies, economics and social sciences from a reputed institute. Sound understanding of the MSME context in Fiji or similar developing countries. More than 7 years of experience working with international donor-funded projects, on relevant programs on private sector development and economic growth. Excellent written and verbal communications skills in English including ability to produce concise, readable and analytical reports. Strong applied research and analysis skills is essential, with the ability to analyze different markets and trends. Experience in dealing and or conducting similar research on MSMEs. Experience in facilitating and moderating a validation workshop would be an added advantage. Desired Experience in conducting Private sector development /Market systems development assessments. Community engagement experience in the Pacific. Designing Solutions For women Queries and Application Process Consultant(s) or Firms will be required to submit a technical and financial proposal in separate s to MDF- Recruit@thepalladiumgroup.com on or before the 7th of January Potential bidders may direct their questions via Malcolm.Bossley-MDF@thepalladiumgroup.com copying Sangita.Kumar- MDF@thepalladiumgroup.com to gain further clarifications about the scope of work and/or the overall assignment

6 The technical proposal should adhere to the guideline as described in Annex A. The financial proposal should clearly indicate the cost. Selection Criteria The proposals shall be evaluated on the following criteria Understanding of the assignment - 20% Methodology proposed - 20% Experience of the firm and Experience and relevance of the team/consultant(s) - 20% Overall Financial - 20% Interview outcome - 20% Terms of Payment Two payments will be disbursed, the first payment will be made against deliverables one and two, and the second payment against deliverables three to seven. and e. (refer to The invoices will have to be supplemented by timesheets of the consultant(s). Annex A Instructions for the Preparation of Technical Proposals Technical proposals shall be ed in a separate from the financial proposal, and shall be clearly labelled as Fiji - BIS Technical Proposal in the subject line. Proposals shall be written in English, single-spaced, and use 12-point Arial font. The technical proposal shall not exceed 15 pages and shall include the sections listed below: - Cover Letter Not to exceed 1 page. A cover letter shall be included with the proposal on the Offeror s company letterhead with a duly authorized signature. The cover letter shall include the following item: a. The Offeror will certify a validity period of 90 calendar days for the prices provided. - Table of Contents Not to exceed 1 page. The table of contents shall highlight the core/principal section of the proposal. - Organizational /Consultant(s) Overview - Not to exceed 1 page. The organizational overview will not be scored, but will demonstrate the Offeror s eligibility for the assignment. It will include: i) The date the Offeror was registered and its activities since. ii) The Offeror s past and current clients and funders, especially experience in market assessments and work in the Pacific region (if any). iii) The services the Offeror provides, especially in market assessment and developing strategies-it is strongly desired that Offerors will have experience in such development of strategies.

7 - Technical Approach - Not to exceed 8 pages. The offeror s technical approach will specifically respond to the scope of work as stated in the terms of reference. The Technical Plan must be organized by the headers underlined below: i) Brief Understanding of Assignment The Offeror will explain its understanding of the purpose, goal of the survey, methodologies and tools to guide the process and complete the deliverables. ii) Implementation Plan The Offeror will explain the steps it will take to accomplish the assignment. iii) Resources for the Assignment It is the Offeror s responsibility to ensure it has adequate resources to satisfactorily complete the assignment and finalize deliverables. The Offeror must explain its staffing plan for this assignment, and indicate the percentage of time for each personnel that will be dedicated to this assignment. - Consultant(s) Profile - Not to exceed 1 page. i) CV(s) of Key Personnel (need to be in annex not included in page number) The Offeror will provide CVs (limited to five pages each). Each CV must showcase how the candidate meets or exceeds the qualifications required to execute the assignment as described in the terms of reference. The CVs must include up to three references, with name, title, organization, address, and how the reference knows the proposed candidate. - Experience (relevant) Not to exceed 3 pages. For each of the projects above, provide the legal name and address of the organization for which services were performed, the duration of the work and the value of the contract, description of any problems encountered and how it was resolved, and a current and contact phone number of a responsible and knowledgeable representative of the organization. For descriptions of work performed, provide examples of: - Demonstrated experience in undertaking market assessments for different MSME categories and profiles. - Demonstrated experience working on collecting information from high level stakeholders. - Demonstrated experience of working in as per the requirements as outlined in the terms of reference.

8 Annex B Instructions for the Preparation of Financial Proposals Financial proposals shall be ed in a separate from the technical proposal, and shall be clearly labelled as Fiji - BIS Financial Proposal in the subject line. The following template a variation which clearly states units/days, unit/day rates and respective totals and the grand total. NOTE: All per diems and accommodations and incidentals will be covered as per DFAT guidelines in Fiji. SI Details Unit/Days Unit/Day Rates Amount in AUD 1 Consultant A X XX XXXX 2 Consultant B X XX XXXX 3 Consultant C X XX XXXX.... X XX XXXX.... X XX XXXX.. Grand Total XXXXXX