Individual Contractor (IC) – MSME Support Expert

Background

CONTEXT/BACKGROUND

Over two years into the COVID-19 pandemic, economic recovery in the Middle East and North Africa (MENA) has generally been volatile and at low rates (in oil-importing countries). The performance of each of the region’s economies depends on its individual exposure to oil-price fluctuations, how well they were able to react to the pandemic effects, and to the more recent issues related to the war in Ukraine, in addition to other underlying challenges.

The Arab Region is also notable for a diverse range of development contexts including high, middle, low incomes and fragile crisis–affected countries and, although COVID - 19 presented great difficulties for all governments, the ability to respond, and consequently to recover, was markedly different. Regionally speaking, the area has suffered during the pandemic, with millions of full time equivalent jobs lost due to pandemic induced reductions in working hours between 2020 and 2021. In Lebanon, economic collapse has had a catastrophic impact on public utilities and people’s livelihoods. In Yemen and Syria, continued armed conflicts have combined with the pandemic to plunge the countries deeper into crisis.

Micro, Small and Medium Enterprises (MSMEs) are the backbone of the region’s economy with micro enterprises accounting for almost 90 percent of the region’s businesses, small enterprises for more than 9 percent and medium and large enterprises the rest. In addition, MSMEs contribute as much as 50 percent of employment and 40 percent of GDP in some countries of the region. Oil-exporting countries have the highest percentage of large firms given their large capital-intensive oil-extraction industries. Fragile and conflict-affected countries and oil-importing middle-income countries reportedly have the highest shares of microenterprises close to 92 percent, followed by oil-exporting.

Regarding informality, the informal sector makes up at least a third of Arab countries’ economies and employs a third of the labor force (Cammett et al. 2015) (Gatti et al. 2014). In the Arab region informal employment represents about 69 percent of total employment.

In addition, access to finance remains a major challenge for MSMEs in the region. IMF estimated in 2019 that the SMEs in the region have the largest gap in financial inclusion in the world (an average share in total bank lending of 3% in the GCC and 9% for non GCC Arab countries). This situation was even worsened by the COVID-19 pandemic and financial institutions feel less and less eager to finance SMEs because of tightening monetary policies and economic uncertainty in the region. In this context, innovative players like FinTechs could play a part to bridge the finance gap but it is still early ages (the Consultative Group to Assist the Poor (CGAP) estimates that only 5% of the FinTechs -around 20 players- in the Arab World finance SMEs). It is also possible to note that, aside from direct funding, some resilient MSMEs have already leveraged on digital tools to recover and better serve their clients (enrollment, customer management, payments, delivery of goods and service among others).

The region also has one of the lowest shares of women entrepreneurs who own or manage businesses (14 percent) compared to the world average of about 34 percent. This reflects the difficulties that women face in accessing productive resources, business support services and skill development opportunities

Despite the high importance and key role played by MSMEs in the Arab region’s economy and labour market, their potential has been undermined by structural, political and fiscal barriers that inhibit their development.

At the same time and according to the UNDP Strategic Plan 2022 – 2025 which describes how UNDP wants to work with the partners, one of its commitments is to help 100 million people around the world to escape multidimensional poverty applying a multidimensional and holistic approach. This commitment is realized through the implementation of several initiatives and programs aimed at supporting policies, enhancing business ecosystem, promoting MSMEs competitiveness.

In the Arab States Region, UNDP contributes to national strategies on entrepreneurship, by producing MSMEs surveys, local economic assessments, policy briefs and case studies to encourage policy makers, to identify, design and carry out relevant economic interventions.  Across the region, UNDP Country Offices have applied different methodologies and tools in support of existing businesses, startups, as well as they have generally fostered entrepreneurship programs.

In fragile contexts UNDP has played a leadership role—along with governments, private sector, civil society, other UN agencies, funds and programmes and multilateral organizations — strengthening livelihoods of millions of people affected by crisis, as well as catalyse structural transformation towards more inclusive and greener economies. By applying the Building Back Better approach, UNDP focuses on the root causes of crises and structural inequalities that hinder livelihood development, with a view to strengthening resilience.

This study is aimed at informing the Regional Hub for Arab States about the initiatives carried out by different institutions across the Arab Region for further programs and toolkits design in order to foster MSMEs competitiveness and economic recovery as well as build their resilience to future shocks and crisis.

OBJECTIVES OF THE ASSIGNMENT

The overall objective of this assignment is therefore to map the most relevant initiatives and programs that have been implemented over the past 10 years in the Arab Region by institutions in the public, private and international cooperation sectors. These are geared towards benefitting MSMEs with the final goal of strengthening livelihoods, growing resilience and fostering inclusive growth.

Duties and Responsibilities

SCOPE OF WORK, RESPONSIBILITIES AND DESCRIPTION OF THE PROPOSED WORK

The consultant will be responsible for conducting the research for institutions and initiatives mapping which have successfully provided support and services to bring innovation and increase the competitiveness and market opportunities of micro, small and medium businesses in the Arab States region. To do this, the consultant will:

• Develop a methodology and implementation plan for the study.
• In collaboration with UNDP, develop criteria for the identification of the initiatives to include in this mapping exercise.
• Elaborate the tools to gather relevant information with stakeholders and submit for review to UNDP team.
• Conduct desk research and map relevant institutions and initiatives in support to MSMEs in the Arab States Region.
• Conduct interviews with relevant stakeholders including UNDP COs teams, RBAS, national and local Government representatives, Donors, think tanks, Chambers of Commerce as well as other institutions from the public and private sector responsible for designing, implementing, monitoring and evaluate initiatives and programs in support to MSMEs (a final list will be approved by UNDP team in charge of supporting this consultancy)
• Highlight the main needs and challenges faced by MSMESs in the Arab States, highlighting the local, national or regional scales. In addition, the research will need to investigate how the identified initiatives respond to these, both at the process and impact levels.
• Interventions to be included within the mapping may belong to the following themes: business acceleration, entrepreneurship, digitization, promotion of innovation, formalization, access to finance, expansion and business transfer, training and human capital support, value chain, among others.

• Point out any common trends in the comparison between countries within the region should they appear during the development of the analysis.

• For the initiatives identified, categorized and systematized, the research should also reflect lessons learned from different countries that will represent input for future initiatives that the Regional Hub for Arab States and COs may undertake. In addition, future outlook based on global and regional trends should be included.
• Provide recommendations for following UNDP’s interventions in MSME support in line with the priorities of the UNDP Strategic Plan 2022-2025 and Global Gender Strategy 2022-2025.
• Present the report findings to all relevant stakeholders (UNDP and regional ones) for feedback.

METHODOLOGICAL APPROACHES

The very different contexts across countries in the Arab Region as well as different level of institutionalism and decentralization are elements that will have to be taken into account while conducting the analysis.

The consultant may further analyse the methodologies and tools used within the initiatives to support businesses, offering insights into commonalities and differences observed in the comparative exercise.

The methodology should: a) be conflict and gender sensitive, b) outline data gathering and analysis plan, c) incorporate risk mitigation plan, and d) be responsive to the context and the practical needs of the UNDP RBAS.

Taking this framework into consideration, the consultant is expected to undertake:

• Quantitative and qualitative analysis of data are expected to be undertaken, based on desk reviews and information shared by UNDP Country Offices, as well as national and local authorities, private sector organizations and other stakeholders;
• Desk review of documents that were produced based on existing analysis (from UNDP, UNCTAD, ITC, WFP, ILO, UNICEF, UNWOMEN, IFC, WB, etc) on MSMEs support programs;
• Key informant interviews—UN partners (at regional and national levels), other UN agencies (as mentioned in the previous point), IFIs (World Bank, IMF, IsDB, AfDB), INGOs, selected government counterparts, business associations, women’s organizations and others as deemed essential.

KEY DELIVERABLES

This assignment focuses on mapping the key players as well as the initiatives at a national and local level that work in support of or offer services to micro, small and medium businesses in the Arab States Region to foster competitiveness, market position and value chain integration for strengthening livelihoods and employment integration, including the most vulnerable, as women, youth and migrants.

EXPECTED OUTPUTS AND DELIVERABLES

Competencies

Corporate

• Demonstrates integrity and fairness, by modeling the UN/UNDP’s values and ethical standards;
• Displays cultural, gender, religion, race, nationality and age sensitivity and adaptability.

Functional

• Excellent analytical skills with ability to compile, analyse and interpret quantitative and qualitative data, prepare reports and draw conclusions and recommendations;
• Excellent technical writing and written communication skills, with analytic capacity and ability to synthesize relevant collected data and findings for the preparation of quality analysis for the project proposal;
• Knowledge of the composition and structure of the private sector in the Arab region with particular reference to predominant sectors, size, ownership, informality, etc.;
• Knowledge of the major challenges facing MSMEs around the world and with particular reference to the Arab region;
• Ability to write clear and concise technical reports;
• Knowledge of the main institutions in charge of providing services to MSMEs at a national and international level in the Arab States region;
• Ability to the use of computers and office software packages and handling of web-based management systems;
• Ability to use of georeferencing software;
• Builds strong relationships with clients, focuses on impact and result for the client and responds positively to feedback;
• Good team player with the ability to maintain good relationships.

Leadership

• Demonstrated ability to think strategically and to provide credible leadership;
• Ability to conceptualize and convey strategic vision from the spectrum of development experience;

Managing Relationships

• Demonstrated ability to develop and maintain strategic partnerships;
• Demonstrated well developed people management and organizational management skills;
• Excellent negotiating and networking skills with strong partnerships in academia, technical organizations and as a recognized expert in the practice area.

Managing Complexity

• Ability to address global development issues;
• Demonstrated substantive leadership and ability to integrate knowledge with broader strategic, policy and operational objectives.

Knowledge Management and Learning

• Ability to strongly promote and build knowledge products;
• Seeks and applies knowledge, information and best practices from within and outside of UNDP;
• Demonstrates a strong capacity for innovation and creativity in providing policy advice and direction.

Judgment/Decision-Making

• Mature judgment and initiative;
• Proven ability to provide strategic direction to the project implementation process;
• Independent judgment and discretion in advising on handling major policy issues and challenges, uses diplomacy and tact to achieve result.

Required Skills and Experience

Education:

• Master’s Degree or equivalent in Economics, Finance, Business and Management, Development, Public Policy or any other related field;

Work experience:

• Minimum 10 years of relevant experience at the international level in research involving MSME analysis and support;
• Demonstrated experience in programs and projects management with a focus on MSMEs support;
• Demonstrated experience of undertaking research on impacts of global or regional impacts on national economies;
• Strong expertise in development programming, with a focus on socioeconomic issues;
• Substantive knowledge of and professional experience in the Arab States region is preferable.

Language Requirements:

• Language fluency in both written and oral English is required. knowledge of French and/or Arabic would be an advantage.

INSTITUTIONAL ARRANGEMENT

• The individual is required to exhibit his or her full-time commitment with UNDP’s Regional Bureau for Arab States (RBAS);
• S/He shall perform tasks under the general guidance and the direct supervision of the Regional Lead Economist at UNDP-RBAS Regional Hub in Amman (Jordan) with the support of the Inclusive Growth Team. These colleagues will work with the substantive support by relevant Regional Hub’s Teams, including Governance, Energy, Gender, SDG Integration, and Innovation.
• The supervision will include approvals/acceptance of the outputs and deliverables as identified in the previous sections;
• The individual is required to maintain close communication with UNDP-RBAS on regular and needed basis at any period throughout the assignment in order to monitor progress. In the event of any delay, s/he will inform UNDP promptly so that decisions and remedial action may be taken accordingly. Delays that would affect the flow of the collaborative work and the delivery of outputs on schedule will lead to termination of contract; and
• Should UNDP deem it necessary, it reserves the right to commission additional inputs, reviews or revisions, as needed to ensure the quality and relevance of the work.

DURATION OF THE WORK

The duration of the assignment is expected to be (57) working day(s) extended over a period of (3) calendar month(s) from contract signature date.

DUTY STATION

Home-based assignment.

TRAVEL PLAN

If any unforeseen travel outside the consultant home-based city is requested by UNDP and not required by the Terms of References (ToR), such travel shall be covered by UNDP in line with applicable rules and regulations and upon prior written agreement. In such cases, the consultant shall receive living allowances not exceeding  the United Nations (UN) Daily Subsistence Allowance (DSA) rate for such other location(s).

SCOPE OF PRICE PROPOSAL AND SCHEDULE OF PAYMENTS

Interested candidates should provide lump sum fees for requested services with detailed breakdown.This amount must be “all-inclusive”. Please note that the terms “all-inclusive” implies that all costs (professional fees, travel costs, living allowances, communications, consumables, etc.) that could possibly be incurred are already factored into the final amounts submitted in the proposal. Also, please note that the contract price will be Deliverables/Outputs based - not fixed - subject to change in the cost components.

The contractor will be paid an all-inclusive Deliverables/Outputs based lump sum amounts over the assignment period, subject to the submission of Certification of Payment (CoP) duly certified or an invoice and confirmation of satisfactory performance of achieved work (deliverables/outputs) in line with the schedule of payments table hereunder:

RECOMMENDED PRESENTATION OF OFFER

Interested individual consultants must submit documents under point 1, 2, & 3 to demonstrate their qualifications. Candidates that fail to submit these documents, the application will not be considered.

1. Personal CV or P11: indicating all past experience from similar projects, as well as the contact details (email and telephone number) of the Candidate and at least three (3) professional references;
2. Technical Proposal: Outlining the methodology and overall understating of the assignment’s content and scope of work required to achieve desired outcomes;
3. Duly accomplished Letter of Confirmation of Interest and Availability using the template provided by UNDP;
4. Financial Proposal* When the financial proposal is requested it should indicates the all-inclusive Deliverables/Outputs based total contract price, supported by a breakdown of costs, as per template provided. The terms “all-inclusive” implies that all costs (professional fees, travel costs, living allowances, communications, consumables, etc.) that could possibly be incurred are already factored into the final amounts submitted in the proposal. If an Offeror is employed by an organization/company/institution, and he/she expects his/her employer to charge a management fee in the process of releasing him/her to UNDP under Reimbursable Loan Agreement (RLA), the Offeror must indicate at this point, and ensure that all such costs are duly incorporated in the financial proposal submitted to UNDP.

* Please do not submit financial proposal in this stage. Financial proposal shall be requested from Candidates who are considered technically responsive.

Interested candidates can find Procurement Notice, Letter of Confirmation of Interest and Availability and P11 templates on the following link: http://procurement-notices.undp.org/.

Interested candidates shall submit required documents to Job Advertisement Website (https://jobs.undp.org/cj_view_jobs.cfm) as one document not later than 05 November 2022.

CRITERIA FOR SELECTION OF THE BEST OFFERS

This selection criteria will follow the Combined Scoring method – where the qualifications and methodology will be weighted a max. of 70%, and combined with the price offer which will be weighted a max of 30%; using the following evaluation criteria and methodology:

Step I: Screening and desk review:

Individual consultants will be evaluated based on the following methodology.

Applications will be first screened and only candidates meeting the following minimum requirements will progress to the pool for shortlisting:

• Criteria A: Master’s Degree or equivalent in Economics, Finance, Business and Management, Development, Public Policy or any other related field;
• Criteria B: Minimum 10 years of relevant experience at the international level in research involving MSME analysis and support;
• Criteria G: Language fluency in both written and oral English language;

Step II: : 

Shortlisted candidates will undergo a technical evaluation which will include desk review for shortlisted candidates as per above criteria, and submission of a technical proposal to tackle the assignment.

Technical evaluation Criteria max 100 points (Weighted 70):

• Criteria A: Master’s Degree or equivalent in Economics, Finance, Business and Management, Development, Public Policy or any other related field (20 points);
• Criteria B: Minimum 10 years of relevant experience at the international level in research involving MSME analysis and support (20 points);
• Criteria C: Demonstrated experience in programs and projects management with a focus on MSMEs support (10 points);
• Criteria D: Demonstrated experience of undertaking research on impacts of global or regional impacts on national economies (10 points);
• Criteria E: Strong expertise in development programming, with a focus on socioeconomic issues (15 points);
• Criteria F: Substantive knowledge of and professional experience in the Arab States region (5 points);
• Criteria G: Language fluency in both written and oral English language (5 points);
• Criteria H: Knowledge of written and oral French and/or Arabic is an advantage (5 points);
• Criteria I: Technical Proposal (10 points).

Shortlisted candidates will be assessed and scored against the following evaluation criteria:

Financial Criteria - 30% of total evaluation

For those offers considered in the financial evaluation, the lowest price offer will receive 30 points. The other offers will receive points in relation to the lowest offer, based on the following formula: (PI / Pn) * 30 where Pn is the financial offer being evaluated and Pl is the lowest financial offer received.

Step III: Final evaluation

The final evaluation will combine the scores of the desk review and the financial proposal with the following weights assigned to each:

Individual consultants will be evaluated based on the cumulative analysis methodology (weighted scoring method), where the award of the contract will be made to the individual consultant whose offer has been evaluated and determined as:

• Responsive/compliant/acceptable; and
• Having received the highest score out of a pre-determined set of technical and financial criteria specific to the solicitation.

Technical Criteria weight: [70%]

Financial Criteria weight: [30%]

Only Individual Consultants obtaining a minimum of 49 points (70%) on the Technical Evaluation would be considered for the Financial Evaluation.