Terms of Reference
Consultancy for development of a diaspora business programme in Jigjiga Ethiopia.
1. Who we are
Danish Refugee Council (DRC) is a private, independent, humanitarian organisation working on all aspects of displacement in more than 40 countries throughout the world. The mandate of DRC is to protect refugees and internally displaced persons (IDPs) against persecution and to promote durable solutions to the problems of forced displacement – based on humanitarian principles and human rights.
As part of DRC’s activities in displacement-affected countries around the world, partnering with diaspora to support their constructive engagement in former home countries, has become an increasingly important component of DRC’s programming.
Since 2010, DRC’s Diaspora Programme (DP) has worked with diasporas in Denmark and Europe to enhance their role as constructive agents of change. Examples of activities include management of a fund in support of diaspora-led projects in Somalia and Afghanistan; support to Syrian diaspora networks to meet, exchange and coordinate in view of the changing situation in Syria; coordination and awareness raising between the “traditional” humanitarian system and diaspora emergency actors; support to Afghan diaspora to provide protection information to potential migrants and migrants on the way.
2. Background
Most recently has DRCs office in Ethiopia obtained a grant from the EU which includes a component on diaspora investments in the Somali Region of Ethiopia. The action is called “Strengthened Socio-Economic Development and Better Employment Opportunities for Refugees and host Communities in the Jigjiga Area (Ethiopia)” and supports the Government of Ethiopia’s pledge to the Comprehensive Refugee Response Framework (CRRF) reflected in its recent (January 2019) revision of the legal framework granting refugees access to paid employment in Ethiopia.
One of the components of the EU funded action consists of encouraging existing diaspora investments/businesses to further expand and new diaspora investments / businesses to start up – all with a view to improving employment opportunities in the Jigjiga Area of Ethiopia.
3. Objectives of the consultancy
The objectives of this consultancy are to establish the baseline for the “Diaspora component” and to produce the analysis and recommendations for DRC to define its approach to improving employment and livelihood opportunities in the Jigjiga area of Ethiopia through engagement with existing or new Somali and Ethiopian diaspora business actors[1].
More specifically the consultancy must produce:
A literature review of existing research and trends on Somali diaspora business engagement.
A baseline mapping
Map existing engagement and investments from diaspora business actors in the target area and document the local employment this has generated.
Lessons learned from diaspora engagement
Document the lessons learned by existing diaspora business actors and capture their recommendations for the type of support new investors could benefit from.
Outline the business environment including business opportunities /challenges
- Assess the legal requirements and authorities’ practices related to diaspora investments
- Identify other initiatives that the project should relate to.
- Establish a rough outline of business opportunities/challenges in the area.
Provide recommendations for DRCs programming to support diaspora investments for increased local employment in Jigjiga.
Based on consultations the consultant should formulate recommendations on identify existing diaspora business actors with the potential to increase their recruit refugees, and the consultant should identify potential new diaspora business investors for the Jigjiga area of Ethiopia.
4. Consultancy duties and responsibilities
The consultant will carry out the following activities:
Literature review:
a. Identify relevant literature and trends relating to diaspora business engagement with a focus on Somalia.
Baseline mapping
a. Identify and map existing diaspora business actors that have engaged in the Jigjiga area over the last 10 years. This should include a typology of the way they have engaged (investments, by presence, partnerships, etc.)
b. Document number of positions that have been created from diaspora investments. This should include a break down , and how many of these that have been occupied by Ethiopian nationals, refugees, men, women etc.
Lessons learned from diaspora business engagement
a. Carry out stakeholder consultations through Focus Group Discussions (FGDs) and individual interviews with at least 80% of diaspora business actors having engaged in Jigjiga during the last 10 years, and other relevant stakeholders (chamber of commerce, authorities, international organisations etc.). The interviews should serve to document:
- Successes from diaspora business engagement in Jigjiga – and why they were successful.
- Unsuccessful diaspora business engagement in Jigjiga – and why they were unsuccessful.
- Main challenges experienced by diaspora business actors related to availability of capital and other challenges during their engagement.
- Challenges around recruitment of refugees.
- Diaspora business actors’ recommendations for the type of support needed to expand existing activities and for new entrepreneurs to establish themselves in the area.
- Identify Ethiopian / Somali diaspora communities that could be potential partners in expanding or starting up activities in Jigjiga – given the right incentives.
Outline the business environment including business opportunities /challenges
This outline should include other relevant aspects not covered under the lessons learned, including, but not limited to:
- Assessment of the legal requirements and authorities’ practices related to diaspora investments,
- Identification of other initiatives that the project should relate to – and how,
- Outline high growth sectors in the area and potential return on investment,
- Identification of business sectors that are likely to offer employment opportunities to refugees,
- Barriers faced by refugees to benefit from employment opportunities,
- Barriers faced by employers to recruit refugees.
Recommendations
Based on all above provide a set of recommendations for how best to support diaspora business engagement in a way that will lead to increased refugee employment in the Jigjiga area.
5. Deliverables by the consultant
The consultant is expected to deliver the following outputs as part of this assignment:
- An overview of existing relevant literature and trends on diaspora business engagement in relation to the Somali Region of Ethiopia /Somalia. (Maximum 5 pages)
- A baseline mapping (Maximum 10 pages) of existing diaspora investments/engagement in the Jigjiga area that have started up within the last 10 years including the following information (and more where relevant):
- Types and numbers of businesses with diaspora investment / engagement.
- Approximate amounts invested (if possible).
- Constellation of investors – individual or multiple investors in the same investment
- Partnerships / relations with local businesses.
- Location of Ethiopian / Somali diaspora communities that have invested or engaged in businesses in Jigjiga – and that could further invest/engage in businesses in Jigjiga.
- Number and categories of staff (skilled, unskilled, Ethiopian, Somali, men, women, etc.) employed in companies with diaspora investment/engagement.
- A report of no more than 20 pages should be produced based on literature review, focus group interviews and other interviews documenting:
- Successful diaspora investments in the Jigjiga area – and what made the investment successful.
- Unsuccessful diaspora investments in the Jigjiga area – and what made the investment unsuccessful.
- Description of main challenges experienced in starting up or expanding the businesses in the Jigjiga area.
- Challenges experienced by diaspora business actors in relation to recruitment of refugees in Jigjiga.
- Recommendations from existing business owners for initiatives that could be of interest to new diaspora investors.
- Ideas from existing business owners for types of support that could expand existing businesses.
- Location and contacts of Ethiopian / Somali diaspora communities with potential to invest in the Jigjiga area.
Furthermore, the report should contain:
- Assessment of the legal requirements and authorities’ practices related to diaspora investments in Ethiopia / Jigjiga area,
- Identification of other initiatives that the project should relate to – and how,
- Outline high growth sectors in the area and potential return on investment,
- Identification of business sectors that are likely to offer employment opportunities to refugees,
- Barriers faced by refugees to benefit from employment opportunities,
- Recommendations for how best to support diaspora business engagement in a way that will lead to increased refugee employment in the Jigjiga area
For the baseline mapping and local consultations, the consultant is expected to work from DRCs bases in Ethiopia – Addis Ababa and Jigjiga.
More Information
- Job City Addis Ababa, Jigjiga
