Consultancy Services for Fundraising Strategy for Financial Access and Inclusion in Agricultural and Green Growth Sector

Micro Enterprise Support Program Trust (MESPT) is a development organization focused on enhancing Agricultural Productivity, Food Safety, Agricultural Business Development, market linkages, increased Financial Access and Inclusion and Green Transformation within Agricultural sector. MESPT desires to contribute towards creation of green decent jobs and improve competitiveness and socio-economic sustainability among stakeholders and more so the smallholder farmers and SMEs.

The engagement of private sector towards achievement of the desired results within focus thematic areas continues to be critical and calling for concerted effort for support mechanisms. MESPT has taken this role to facilitate both forward and backward linkages and build sustainable partnership to sustainably support the eco-system.

Vision: “Build a more Prosperous Society”

Mission: To provide sustainable business development and financial services to small holder farmers and Agri-SME’s in Kenya.

Strategy for Financial Access and Inclusion

MESPT strategy for Financial Access and Inclusion is influenced by the following:

a) Changing contextual reality where limited financial investments are available for agricultural productivity, food safety, agricultural business development investments. There has been a growing miss-alignment of financing structure(s) and increased perception of associated risk. With global warming becoming a reality, we have witnessed growing investments in green transformation initiatives and investments.

b) MESPT contribution to green transformation agenda– Alignment to SDG 13 and National Government Green Economy Strategy and Implementation Plan (GESIP), Kenya Climate Smart Agriculture Strategy 2017-2026, Climate Change Act, 2016, National Climate Action Plan 2018-2022, National Climate Change Action Plan (NCCAP 2013-2017)

c) Sustainability- Social and Environmental sustainability, build resilience, social inclusion, and sustainable livelihoods.

Rationale

The financial sector continues to play a critical role in facilitating private sector investments through mobilization of savings and provision of credit facilities. With increased liberalization of the financial market, different players have had easy entry with very little supervision on their operations, especially the digital financial service providers.

The above has born high level of competition and drive to commercialization for profit seeking strategies. Due to the unique nature of agricultural sector, the financial service providers have continually deprived the sector financial investments sighting high risk, uncertainty, lack of markets, minimal margins, uncoordinated support system and lack of verifiable data for decision making. This has further contributed to development of unfavorable financial solutions in respect to high interest rates, miss-aligned structures, lack of long-term investments, lack of flexible and patient capital, and enhanced requirements making easy access impossible as well as enhancing exclusion among vulnerable groups such as women and youth.

It is in recognition of the above systemic challenges and desire to play a critical role in financial access and inclusion by working with Micro Finance Banks and Institutions, Savings and Credit Societies, Farmer Co-operatives and Small and Medium enterprises, that MESPT wishes to develop and implement a fund-raising strategy to enhance her capacity to provide affordable, flexible and patient capital.

Objective:

The purpose of this consultancy is to develop a Fundraising Strategy Document to be utilized by MESPT in resource mobilization to support its broad objective for financial access and inclusion in Agricultural and Green Growth sectors.

Specific Objectives:

• Assess, analyze and document MESPT internal environment by reviewing necessary documents and consulting with MESPT Board and Management team.
• Assess, analyze and document MESPT external environment including interviews with peers and development partners- European Union, DFID, USAID, IFC, EADB, IFund, Norfund and others.
• Synthesize the results in (1) and (2) above and

a) Identify existing strengths & barriers to successful fund-raising initiatives.

b) Identify any operational and structural challenges and propose remedies necessary for successful positioning of MESPT within the context of resource mobilization.

c) Review the Budgetary Framework to better understand how much is needed and for what result area;

d) Highlight challenges MESPT would face while undergoing the fundraise process.

e) Identify MESPT data management strengths and weaknesses.

• Conduct research on the fundraising landscape within East Africa & undertake a comprehensive analysis of potential global and local investors/donors to map the feasibility of securing multi-year and thematic funding.
• Map investor’s strategic areas of interest, funds available, grantees, funding windows, requirements and guidelines and interest in funding key result areas.
• Develop a database of funding opportunities of potential donors prioritized by activities and donor interests.
• Identify data management requirements of major funding partners and how it relates to MESPT operational structure.
• Recommend different fundraising structures that MESPT can consider during the fundraise process
• Highlight risks associated with each of the fundraise structures and mitigations to the same.
• To set broad fund-raising terms including solicitation disclosure statement, donor privacy, recognition/naming.
• A concise report of recommendations for future priority areas of focus for donor interventions. Specifications of requirements and frameworks to access these sources of funding
• Develop a fundraising strategy which includes:

a) Sources of funds the organization should prioritize, including potentially non-traditional ones;

b) Key relevant fundraising methods , structures and activities;

c) Internal structure required to achieve the fundraising strategy

d) Timelines and process expected and required for a successful fundraise.

e) Recommend strategic opportunities/tactics for attracting different types of funds.

• Develop an implementation framework for the fundraising strategy. The strategy should be within a results-based management framework of core indicators to guide and ensure effective monitoring
• Develop financial projections for implementation of the strategy.
• A comprehensive “ GO or NO GO” checklist/matrix that will inform MESPT on funding opportunities, donor engagement/demands and strategic position

Expected Output

a) A comprehensive resource mobilization strategy that includes

• An overview of the fundraising landscape in East Africa,
• Determination of the fundraise quantum required by MESPT over the next 5 years,
• Fundraising strategies that MESPT may adopt,
• Challenges experienced in the fundraise process,
• Risks associated with fundraise and respective mitigation strategies,
• A well outlined time-bound action plan to systematically raise funds for MESPT;

b) An annex that maps different prospective investors with their respective investment criteria including but not limited to; investment quantum, sectors of interest, geographical areas of focus;

c) An annex that outlines a series of fundraising materials that need to be produced to raise MESPT profile and secure funding.

Deliverables

The consultant(s) will be expected to produce the following deliverables:

• An inception report before the commencement of the assignment detailing the approach, methodology and general concept to the process
• Fundraising Strategy Report

Assignment Timelines

The assignment will commence immediately after signing the contract with MESPT. The assignment will be carried out in a maximum of 20 working days. During implementation of this assignment, periodic briefing to MESPT Management and/or Board may be required.

Expected Profile (Qualification & Competencies) Of the Consultant or Consulting Team

Education: Holder of at least a master’s degree in the social sciences, economics, finance, Business Administration, strategic management, development studies or any other equivalent professional courses.

b) Experience:

• Demonstrable prior experience in conducting business development and fundraising consultancy in the financial sector (provide 3 references of such consultancies in the last 5 years);
•  At least 5 years’ experience in producing and implementing successful fundraising strategies with a minimum of $1M; (provide 3 reference entities where this has successfully been achieved)
• Excellent leadership, organizational and time management skills
• Excellent communication skills including in presentations, report writing and research
• Excellent spoken and written English
• Good judgment, pays attention to nuance and detail, takes initiative, high sense of responsibility, tact and discretion, with sensitivity to different cultures.

Technical and Financial Eligibility and Selection Criteria

a) The technical evaluation will be based on the following criteria:

• Qualification and experience profile of the consultant relevant to this assignment.
• Understanding of the assignment
• Quality and relevance of referenced past assignment carried out by the consultant and/or team (Not less than 5 Years of experience in related assignments and at least 3 samples of related assignments with assignment value of not less than $1M)
• Actionable approach & methodology: Synopsis of the key issues and Actionable approach

Payment Plan

The Individual consultants are requested to quote a fee that will cover all their costs including transport, accommodation where applicable and other incidentals.

The payment plan to the Individual will be as follows: –

a) 30% upon signing of the contract

b) 30% upon production of draft strategy

c) 40% upon submission and presentation of final strategy to Board of Trustees.

Institutional Arrangement

The Consultant will work under the direct supervision of the Credit & Business Development Manager in consultation with the CEO and the Head of Finance and Administration. During his/her assignment, the consultant will be provided with all necessary information and field visits guidance/support where necessary. However, he/she or the representatives will NOT be provided with Transport to the field by MESPT, and therefore shall make his/her own arrangement for the same.

MESPT in consultation with the consultant will facilitate a staff and Board of Trustees meetings where applicable.

Proposal Content and Application Documentation

a). Proposal /Application Documentation requirements

The following documents are expected to form part of the proposal:

• A covering letter explaining how their experience addresses the requirements of the TOR
• CV(s) of consultant(s) involved in the exercise
• Provide detailed personal profile(s)/consultant CV(s)
• A copy of valid KRA Tax compliance Certificate (individual)
• Provide detailed proposal with a detailed Work plan demonstrating the number of man-days to be employed and budget for this work
• Five (5) samples of previous work

b). Proposal content

Individual consultants that wish to signify their interest in undertaking the prescribed work are to email and/or send us hard copies of a Technical Proposal not exceeding 10 pages (sealed in an envelope) that should include:

• Interpretation of the TORs understanding
• Methodology to be used in undertaking the assignment
• Time and activity schedule
• Organizational and Personnel Capacity Statement
• Relevant experience related to the assignment
• Recommendation letters by other firms you have carried out similar assignments
• Curriculum Vitae of the team that will carry out the assignment
• Information on any representative of your team, or any member of your team, which may give rise to a direct or indirect conflict of interest, including identifying other current contractual works being conducted for MESPT .
• Financial proposal for the work.