Consultant for Training on Product Development, Micro Enterprise Support Programme Trust (MESPT)

I. INTRODUCTION
Micro Enterprise Support Programme 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 Agri-based SMEs.

Promotion of financial access and inclusion within Agricultural and Green Growth sectors is a critical strategic pillar. Participation of private sector towards achievement of the desired results within focus strategic pilar continues to be critical and calls for concerted effort for support mechanisms. MESPT has taken facilitative role for both forward and backward linkages and build partnership to sustainably support the financial eco-system.

In light of the above, MESPT has developed a new strategy for financial access and inclusion. This new strategy calls for new approaches and tools towards credit underwriting, identification of new target clients, engagement of expanded delivery channels, demands for high environmental and social impact and emphasis on sustainability. This has influenced the need to develop internal capacity for product development.

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.

II. RATIONALE
Agriculture Lending
Agriculture is one of the key drivers of economic growth in Kenya accounting for 33% of GDP in 2019 and 75% of the population earning all or part of their income from the sector1. The sector directly employs more than 40% of the total population of which more than 70% are in rural areas. It also accounts for 65% of export earnings.

Despite its economic significance, the agricultural sector still struggles to attract funding due to real and perceived risks and competing returns in alternative sectors.
Agriculture lending in Kenya is dominated by commercial banks, microfinance banks (MFBs); credit-only MFIs and Saccos as well as state-owned credit providers such as the Agriculture Finance Corporation (AFC) and the Industry and Commerce Development Corporation (ICDC).
The main financing mechanisms at the production level of the value chain include aggregator credit; input supplier credit; lead firm finance; and warehouse receipt financing.
Key challenges within the non-conventional financial sector in effectively delivering Agricultural Financing includes limited internal capacity to develop flexible and responsive solutions fit for the target clients and perceived high risk associated to Agri-businesses.
It is against this background that MESPT has established product development committee and wishes to enhance its internal capacity by undertaking this assignment.

SME Finance Lending
The Micro and Small Enterprises Act (2012) defines Micro and Small Enterprises (MSEs) in Kenya in terms of annual turnover and employee headcount. The Act defines a microenterprise’s turnover does not exceed KES 500,000; its total employee headcount is below 10 people. A small enterprises annual turnover ranges between KES 500,000 – KES 5,000,000 while that of a medium enterprises range between KES 5 – 20 million. In terms of headcount, the latter two groups of enterprises have 10 – 50 and 50 – 99 employees, respectively2.
According to the 2016 National SME Survey (involving 50,043 enterprises and 14,000 households), there were approximately 1.6 million licensed and 5.4 million unlicensed MSMEs operating in the country.
According to survey report on MSMEs access to bank credit report of 2020 by CBK, the agriculture and financial services sectors had the lowest credit allocation from commercial banks at 3.7 percent and 1.9 percent respectively. The report further concludes that there is relatively narrow range of credit facilities utilized by MSMEs, centering largely on short-term term loans and overdrafts. This may largely be accessible to medium enterprises and thus excludes micro and small enterprises. These type of credit facilities may not be appropriate for long-term business developmental needs and do not support growth.

The report acknowledges existence of alternative financing instruments for MSMEs such as contract financing, performance bonds, invoice discounting, credit guarantees, letters of credit and warehouse receipts there Thus, there is need to broaden the finance options available and accessible to MSMEs to improve the MSMEs’ capital structure and investment capacity, and reduce their reliance and vulnerability that tend to emanate from the typical credit facilities.

It is against this background that MESPT has identified a need to enhance its internal capacity to support in development of relevant financial products to support Agricultural Enterprise Development.

Renewable energy and adaptive finance trends and opportunities
The United Nations sustainable development goal (SDG 13) on climate action, seeks to combat climate change and its impacts through policy, education, and investment to support solutions that will slow down and possibly reverse climate change. The focus on SDG 13 has led to greater attention being paid to the green economy to promote wider sustainable development. This calls for increased investments into adaptive technologies and practices to contribute towards sustainable development and growth.

Easing the terms of access to finance is crucial for adoption of greener technologies and investment in sustainable business practices. It is also crucial for supporting emerging entrepreneurs and their contribution to domestic green innovations. Financial constraints are especially high for capital-intensive sub-sectors associated with infrastructure. Moreover, new entrants into the innovation process or the green services economy are disadvantaged since they
have no history of success and often only limited access to internal finance. Furthermore, in the case of green technology transfer, technological and market uncertainty are particularly high, raising risks. Renewable energy initiatives coupled with energy-efficient technologies are a low hanging fruit in financing opportunities in Kenya.

Development of relevant and flexible financing solution coupled with promotional activities will go a long way to supporting the financial market players in identifying and financing emerging opportunities for sustainable growth. MESPT credit function requires a dynamic well skilled team to scan the market and develop fitting solutions to serve the sector.

III. OBJECTIVE OF THE ASSIGNMENT
The objective of this consultancy is to impart product development principles with clear case studies to enhance MESPT internal capacity to respond to ever dynamic client needs.

IV. METHODOLOGY
It is recommended that for maximum value generation for this assignment, the consultant will adopt participatory approach, practical case studies, that includes interviews with Board of Trustees, Senior Management, Credit Technical team and (if necessary) review of Navision ERP system, processes and relevant documents.

V. KEY DELIVERABLES
i. Content development for training MESPT Managers and Staff on principles of product development, product cost and revenue analysis, product piloting, branding and marketing and rollout strategies including sharing successful case studies. The consultants shall be required to share the content with MESPT through Credit Manager seven days before the training dates.
ii. Conduct a five day training for MESPT Managers and staff.
iii. Undertake training evaluation and analysis and share with MESPT via M&E Manager including all original participants feedback forms.
iv. Write and submit training report within three days of conclusion of the training to MESPT Credit Manager in soft and hard copies (2)

VI. Assignment Timelines
The assignment will be undertaken in the mot h of April 2022 and will take 5 man days excluding preparatory and report writing period.

VII. Consultant Requirements
a) In-depth knowledge and experience in Agricultural and Green finance space of not less than 5 years
b) Demonstrable evidence of previous works done in training on product development within financial services sector and development of financial products especially credit facilities focusing on Agricultural and Green financing.

c) Master’s degree in relevant field- (Agricultural Economics, Business Management, Strategy development).
d) Certification on any of the following fields: Microfinance finance, Agricultural finance, Climate/Green finance, Development finance, financial inclusion, Enterprise development and/or Agricultural Value Chain Development.
e) In-depth knowledge and experience in design, development, and analysis financial products.
f) 3 References for similar assignment for the past 5 years, with contact details.

VIII. Institutional Arrangement
The individual Consultant will work under the direct supervision of the Credit & Business Development Manager to adapt and deliver the consultancy appropriately to meet MESPT expectations. During his/her assignment, the consultant will be provided with all necessary information.

IX. Documentation Requirements
1. A covering letter explaining how your experience addresses the requirements of the TOR
2. CV(s) of consultant(s) involved in the exercise
3. Provide a copy of certificate of registration and KRA Pin Certificate where applicable
4. A copy of valid KRA Tax compliance Certificate-individual
5. Evidence of 3 references of relevant past works, scope, role and contact for the last 5 years
6. Write and submit training reports, including evaluation forms and summaries, participants feedback.

X. Submission Procedure
This consultancy is for individual consultants. The individuals that wish to signify their interest in undertaking the prescribed work are to share the following documents to tender@mespt.org by 28th February 2022 at 12.00pm
i. Cover Letter
ii. Proposal including interpretation of the ToR and delivery methodology
iii. Resume for the lead consultant with relevant experiences
iv. References of similar work done for the past 5 years with contact details.

v. Expected course outline
vi. Financial/Budget break down inclusive of all taxes not exceeding 1 page
While submitting your application be sure your email subject line is “MESPT PRODUCT DEVELOPMENT TRAINING”

XI. Technical and financial evaluation

a) Technical Evaluation: (Maximum Score 80 Points)
Proposal evaluation will be based on the following criteria

b) Financial evaluation (20 marks)
The overall weights for the evaluation of the technical and Financial will be 80:20 respectively. MESPT reserves the right to select and negotiate with the successful bidder. The financial proposal must reflect the cost per man day, number of man days for each activity and number and level of human resource per activity. All quotation must be inclusive of applicable taxes (VAT, WHT etc.

c) Qualification Criteria
Only candidates who pass the technical assessment process will be qualified for financial proposal score. The successful candidate will achieve the highest aggregate score (technical and financial points).

Payment Plan
The payment plan to the Consultant will be as follows: –
i. 30% of agreed cumulative budget upon signing of the contract and submission of inception report
ii. Final 70% of agreed cumulative upon satisfactory completion of the training and submission of relevant report(s)

Conditions
i. MESPT reserves the right to accept or reject any proposal.
ii. Any canvassing will lead to automatic cancellation of the submitted proposal.

XII. SUBMISSION OF PROPOSALS
The Financial Proposal and the Technical Proposal files MUST BE COMPLETELY SEPARATE and emailed through tender@mespt.org and clearly named as either “TECHNICAL PROPOSAL” or “FINANCIAL PROPOSAL”. The subject of the email should clearly capture the description.
The file with the “FINANCIAL PROPOSAL” must be encrypted with a password so that it cannot be opened nor viewed until the Proposal has been found to pass the technical evaluation stage.
Once a Proposal has been found to be responsive by passing the technical evaluation stage, MESPT shall request via email the Proposer to submit the password to open the Financial Interested applicants should send their proposals to tender@mespt.org by 28th February 2022 at 12.00 Hours. Kindly send your clarifications to procuremenrt@mespt.org by 21st February 2022 at 12.00Hours… https://mespt.org/download/consultant-for-training-on-product-development/#