CONSULTANCY - TERMS OF REFERENCE: MAPPING OF FINANCIAL SERVICES FOR SHG AND BARRIERS FOR WOMEN TO ACCESS MICRO-FINANCE SERVICES IN SOMALIA

1. INTRODUCTION

Self Help Groups (SHGs) have become a viable economic and social model in Somalia to build resilient communities and contribute to durable solutions.

The SHG ecosystem in Somalia/Somaliland includes over 30 organizations working in this space through dozens of implementing organizations and multiple large networks. It is not possible to tally the total number of groups, as there is likely to be a significant amount of double counting. Nonetheless, there is an estimation of 3,000 groups with 57,000 members across the country[1].

Supporting SHGs has become an important component of work for Concern Worldwide (Concern) in Somalia and Somaliland. This is implemented under different programs and NGO Consortia.

In the scope of BRCiS-DFID programme, Concern Worldwide and The Share Trust conducted a stakeholder consultation in October 2018, bringing together the 30 organizations working with SHGs in Somalia. Building a sustainable ecosystem for SHGs to thrive was one of the priorities identified, requiring improved access to basic services and linkages with MFIs. The Consultation Report[2] identified as a key priority the need for more systematic thinking around the linkages with Micro-Finance Institutions (MFI) and associated pro-poor financial products to support groups’ sustainable growth and development of business activities.

In this context, this Terms of Reference (ToR) have been prepared to conduct a mapping of the financial ecosystem in Somalia, including the availability and typology of pro-poor financial products and to identify the barriers for women to access them in Somalia and Somaliland.

2. BACKGROUND

The scope of this study covers Concern Worldwide work in four consortiums: Building Resilient Communities in Somalia (BRCiS), Enhancing Integration of Displacement Affected Communities in Somalia (EIDACS), Somaliland Durable Solutions Consortium (SDSC) and Danwadaag Durable Solutions Consortium.

BRCiS DFID-funded SHARP programme (2018-2022), aims to support and accompany vulnerable Somali communities and systems on their path to restoring and strengthening their resilience to shocks and stresses. Supporting SHGs is an important component of the Consortium and Concern Worldwide. In the first phase of BRCiS programme, (2013-2017) Concern supported the formation of 66 SHGs in south and central Somalia. In this second phase, Concern plans to support the creation of 44 new SHGs and 2 Cluster Level Associations (CLA).

EIDACS and SDCS are two EUTF Durable Solutions (DS) Consortia with the objective to create a conducive environment for displacement-affected communities to reach durable solutions. Leaded by Concern, EIDACS has supported 30 SHGs in South West State of Somalia. While SDSC has supported 800 women in Somaliland with Concern as implementing partner.

Danwadaag is a DFID Durable Solutions Consortium with the objective of supporting (re)integration for displacement-affected communities (DAC). Under this Consortium, Concern is already supporting 30 SHGs in South West State (Baidoa and Afgoye).

Moreover, since 2017, Concern Worldwide has supported the formation of 24 SHG through SPHERES Irish Aid funded programmes, as well as the formation of 3 Cluster Level Associations in Mogadishu and 2 CLA in Somaliland.

The results of this study will provide inputs for the continuation of this support. While Danwadaag will provide a transition from EIDACS intervention, BRCiS is working closely with Danwadaag and SDSC to have a clear and strategic articulation of the complementarity, and synergies among programme interventions.

Self Help Groups

SHGs are groups of 10-20 women who meet periodically to work together and create change for themselves and for their communities. SHGs are created with the underlying assumption that when individuals join to take action toward overcoming obstacles and attaining social change, the result can be individual and/or collective empowerment. SHG members typically use strategies such as savings, loans, in-kind grants, or social involvement as instruments of empowerment.

The SHG model is low cost, grows organically, and scales exponentially. It offers a programmatic approach to fundamentally shift the way that we do aid, re-focusing our efforts on social capital, agency and aspiration and moving towards a Community driven model for building resilience.

SHGs are having a significant impact on a range of poverty outcomes. They play a key role in facilitating social outcomes for group members. Moreover, there is a strong indication that participation in groups is having a strong impact on resilience outcomes.[3]

In order to continue strengthening these groups and provide more durable and sustainable solutions, further steps need to be taken towards strengthening their enabling environment, i.e. by linking these groups to adequate markets and support their access to independent financial services

3. OBJECTIVE AND QUESTIONS

The objective of the study is to inform programme and advocacy strategies that contribute to strengthen and scale-up the SHG ecosystem in Somalia through improved access to pro-poor microfinance services.

This will be achieved understanding the existing financial services available, formal and informal, in rural and urban areas; building relations with them and advocating for tailored services adapted to the profile of women involved in SHGs.

More specifically the study aims to answer the following specific questions:

SPECIFIC QUESTIONS

• What pro-poor financial products are available for SHG women members in the target areas? (Both formal and informal in urban and rural settings).

• What are the barriers and risks to access micro-finance (both formal and informal and urban/rural contexts).

-What are the lessons learned and success stories from SHGs and cluster level associations (CLA) accessing micro-finance to grow their collective businesses (both formal/informal).

-What are the factors that make women/groups succeed in accessing micro-finance?

-How can SHG/CLA be supported in taking informed decisions considering opportunities as well as risks (debt)

-What facilitation and advocacy role could the NGO and donor community play to improve access to pro-poor micro-finance products?

1. SCOPE OF THE STUDY

The programs and geographical areas covered by this study include:

• BRCIS: Mogadishu, rural areas of Afgoye, rural areas of Belet Hawa and rural areas of Borama

• EIDACS: Baidoa urban area and Afgoye both rural and urban areas, including IDP sites.

• Danwadaag: Baidoa urban area Afgoye both rural and urban areas, including IDP sites.

• SDCS: Hargeisa urban IDPs sites.

• SPHERES: Rural areas in Gabiley and Borama districts of Somaliland’s Awdal region

5. METHODOLOGY

The consultant will propose a relevant methodology of data collection and data analysis to answer the specific study questions (Section 3). The methodology will combine both quantitative and qualitative data and triangulate information from different sources to bolster the credibility and validity of the results. This will include SHG members, financial service providers, relevant government agencies and international and national NGOs supporting SHGs, among others.

The methodology proposed will include a desk review of secondary data sources such as project documents, reports, case studies and external evaluations, as well as primary quantitative and qualitative data collection.

6. WORKPLAN AND TIME SCHEDULE

The studywill be conducted in 38 working days including the inception phase and desk review, field data collection, data analysis, report drafting and validation. The assignment is expected to commence on 17^th January 2020 with the final study report expected by the 10^th March.

TASKS

TIMELINE[4]**

Publication of ToR

23 December

Reception of offers

8 January

Contract start date

17 January

Tranche 1: inception report –desk review and methodology ( 25% )

22 January

Tranche 2: Mapping of the MFI and products + documentation of case studies/lessons

20 February

Tranche 3: Output for SHG + strategic recommendations for Concern

5 March

Draft report for review and comments

5 March

Final report

10 March

7. EXPECTED DELIVERABLES

The External Consultant is expect to include the following deliverables in the final report:

1. Desk review of relevant documentation and study

2. Mapping and analysis of the Micro Finance Institutions (MFI), pro-poor products (rural and urban, formal and informal) and the enabling environment (government policy and regulations, etc.) in the geographical areas specified in section 4.

3. Identification of the capacities of the target beneficiaries to fulfil the requirements of the MFIs and associated risks.

4. Documentation of experiences and lessons learned on SHG and CLA access to micro-finance products (not limited to Concern-supported SHG; other NGOs can be approached as KII to learn from their experiences)

5. Provide applicable recommendations for SHG and CLA. This deliverable will be designed as a guidance tool to be used by SHG/CLA groups, to assist them in identifying available options and to assist them in decision-making based on risk analysis.

6. Provide applicable recommendations for Concern to design new interventions and advocacy initiatives, aiming to improve the sustainability of the SHG ecosystem and the access to pro-poor micro-finance products.

8. RESPONSIBILITY AND AUTHORITY

Concern Worldwide Somalia will establish a “Study Consultancy Team” to validate different stages of the study process and support the necessary logistics in the field. Concern Worldwide -Somalia Resilience Programme Coordinator will be the focal point for the External Consultant and the responsible for the overall coordination of all the study tasks with the Consultant. In addition, the following members of Concern Worldwide - Somalia will provide all the necessary technical support required throughout the evaluation process: Program Director, Somaliland Area Manager, Durable Solutions Coordinator and EIDACS Consortium Coordinator. The consultant will be ultimately accountable to Concern Worldwide -Somalia Country Director or his/her designate.

Concern Worldwide Somalia will be responsible for:

• Recruiting the External Consultant and finalize the Consultancy agreement

• Guiding and coordinating the External Consultant throughout all the phases of the study

• Sharing all necessary documents with the Consultant to prepare the Inception Report and throughout all the phases of the study

• Providing inputs to the External Consultant and validate the Inception report

• Informing the Study Audience and ensure their involvement in the evaluation; help in setting specific dates for the evaluation field schedule

The Consultant will be responsible for:

• Keeping close communication, coordination and reporting with Concern Worldwide

• Developing the approach and methodology for this study

• Providing the expected deliveries included in these Terms of Reference (in English Language)

• Developing the field work schedule in consultation with Concern Worldwide

• Complying with the agreed Work Plan and inform of any modifications

• Providing regular field briefing to the Concern Worldwide on the progress and any challenges from the field

• Following Concern Worldwide staff expenses procedures

• Obtaining and cover insurance for the full period of the Consultancy

• Following Concern Worldwide Security Rules and Procedures

• The Consultant is expected to organize and cover all the field expenses, including flights, hiring of vehicles or accommodation

9. LIMITATIONS

Security may limit access to potential target areas, target beneficiaries and information. Especially, travel to Mogadishu and field locations in Somalia may be subject to short notice cancellation or adjustments based on Concern’s assessment of the security situation. Any field movement will require clearance from Concern Worldwide Security Team based on the analysis of the security context at the time of the visit.

10. QUALIFICATIONS OF THE LEAD-CONSULTANT

Master’s degree preferred, PhD in a relevant field such as Economics, Business Administration and/or Development.

1. At least 5 years “hands on experience” in developing and implementing promotion of self-help groups, market linkages and financial inclusion

2. Practical experience in the design of initiatives for linking poor marginalised communities to markets and financial service providers

3. Documented experience in similar study pieces using quantitative and qualitative study methods.

4. Good interpersonal and people management skills and demonstrated ability to work effectively and harmoniously with government officials and key stakeholders.

5. Experience conducting applied study in Somalia/Somaliland or in the Horn of Africa region is an asset.

The independent consultant or consultancy firm will be the sole responsible for the deliverable of the terms agreed in the contract. The selection, recruitment and oversight of field staff conducting data collection in the target geographical areas will be the responsibility of the consultancy firm or independent consultant.

[1] Self Help Groups and Resilience in Somalia: Supporting and Strengthening the SHG Ecosystem. Consultation Report by Courtney Cabot Venton for Concern Worldwide Somalia, Jan 2019.

[2] Self Help Groups and Resilience in Somalia: Supporting and Strengthening the SHG Ecosystem. Consultation Report by Courtney Cabot Venton for Concern Worldwide Somalia, Jan 2019.

[3] [3]*Self Help Groups and Resilience in Somalia: Supporting and Strengthening the SHG Ecosystem.* Consultation Report by Courtney Cabot Venton for Concern Worldwide Somalia, Jan 2019.

[4] These dates are tentative and subject to the date of signature of the contract and availability of the Consultant

11. APLICATION PROCESS AND REQUIREMENTS

Qualified and interested parties will submit the following:

• Expression of Interest

• A detailed technical proposal clearly demonstrating a thorough understanding of this ToR and including, but not limited to, the following:

• Consultant/Company Profile

• Description of the study approach and methodology proposed.

• Demonstrated previous experience in similar assignments and qualifications outlined in this ToR (with submission of two most relevant reports).

• Proposed timeframe detailing activities and work plan.

• Team composition and level of effort of each proposed team member (include CVs of each team member).

• References

• A financial proposal with a detailed breakdown of costs for the study quoted in United States dollars.

All applications should be sent electronically to: paz.lopez@concern.net, CC andrea.solomon@concern.net with subject line: Application consultancy Mapping financial services SHG Somalia. The Submission of technical and financial proposals closes on 8^th January 2019.