To deliver digital cash transfer to returned migrants and provide micro-loans to vulnerable potential and returned migrants in Uganda 85 views0 applications

Summary

Project Title

Better Regional Migration Management project (BRMM)

Project Objective

Enhanced measures for labour market integration for returnees and potential migrants through improved skills, financial inclusion, MSMEs growth and job creation

Terms of Reference Title

Provision of digital cash transfer to returned migrants and micro-loans to vulnerable potential and returned migrants in Uganda

Objectives of the Terms of Reference

400 returned migrants in Uganda are provided with immediate financial support through the provision of digital cash transfer intended to supplement their income for a defined period.

A revolving loanable fund amounting to 200,000USD is established and provided to potential and returned migrants, with the intention to support their income-generating activities.

Specific Objectives

These terms of reference are developed to select financial services providers (FSPs) to:

• Support 400 returned migrants to open a bank account.
• Provide digital cash transfer of USD 150 for each of the 400 returned migrants through their bank accounts
• Provide USD200,000 worth of micro-loans to potential and returned migrants in Uganda.

Locations

Greater Kampala Metropolitan areas

Timeframe

May 2024 – January 2025

Total cost born by financial service providers

USD 100,000 born by selected FSP

Funding Source

USD 160,000 born by the ILO BRMM project.

BRMM will fund USD 100,000, equivalent to 50% of the total USD 200,000 of micro-loans provided by the selected FSP to potential and returned migrants.

BRMM will also provide USD 60,000, equivalent to the total sum of cash grants to be provided through the selected FSPs digitally, to 400 returned migrants.

The ILO BRMM project is financed by of the Foreign, Commonwealth & Development Office of the United Kingdom’s government

u 1. Background

1.1 Context of potential and returned migrants in Uganda

Uganda is a country of origin for people in mixed migration flows, although to a lesser extent than some of its neighbours (RMMS, 2016b). High population growth, youth unemployment, low wages, and the demand for labour in destination countries are some of the important driving forces behind these flows (IOM, 2015, pp. 12–13). Most Ugandans migrate to neighbouring countries, especially Kenya, while a large diaspora is also found in Europe and North America. Ugandans are also the largest migrant community in South Sudan. Low skilled labour migration to Middle Eastern countries, often through private employment agencies (PEAs), is also common. Statistics from Uganda’s ministry of Gender, Labour and Social Development indicates that 2,000 citizens leave the country for domestic work in the Middle East each month and there are approximately 300 licensed private recruitment agencies that facilitate labour migration from Uganda, contributing significantly to the nation’s economy. According to the immigration department from Entebbe International Airport, more young women than men leave Uganda for jobs in the GCC; female workers are primarily employed in the domestic and hospitality sectors whereas men are often employed in the security, cleaning, construction, transportation, and hospitality sectors. As the emigration to GCC countries increases, Ugandan migrant workers, especially women, have been exposed to exploitation and human trafficking in these flows. Corresponding to this is an increase in volunteer and forced return. In 2019, approximately 251 human trafficking victims were exploited in Uganda, out of which almost 57% came from the DRC, 41% from Uganda, and 1.99% from other countries. Overall, 66% of the victims exploited in Uganda are women and 72% are minors. However, it is difficult to establish the actual number of victims of trafficking and returnees, as statistics in this regard is scarce. The ILO assessment of labour migration and mobility governance in the IGAD region: Country report Uganda, identified the insufficient sharing of data between government agencies, lack of data on returnees, and lack of data analysis for labour migration policy development hampers effective policymaking.

Forcibly returned migrants are often in a desperate state with no resources beyond the clothes on their backs and encounter severe medical conditions due to lack of access to health services before deportation, many also experience psychosocial problems. Women migrants are more vulnerable than men, experiencing health, social and economic challenges. Circumstances, such as COVID-19 pandemic, further inflates these challenges, as migrants are the first to be affected because of precarious and short-term contracts, lack of social protection and their vulnerable status in the sectors they are working in, usually low paid and informal.

Uganda has in place progressive policies that govern migration and labour migration as it has ratified the international conventions and frameworks that guard the rights of migrant workers, including the International Convention on the Protection of the Rights of All Migrant Workers and Members of Their Families, and the Supplementary Provisions of the ILO Migrant Workers Convention. At national level the Ugandan government has been working towards strengthening labour migration regulatory frameworks. Moreover, its national legal and regulatory frameworks dealing with labour migration include (1) the 2011 National Employment Policy for Uganda which emphasises labour migration to address the high unemployment among the youth and boost remittance to Uganda; (2) the Uganda’s Employment Act, 2006 details the rights of all workers in Uganda, including immigrants, and provides for the operations of labour recruitment agencies; (3) the Uganda Citizenship and Immigration Control (Amendment) Act 2009 specifies how a foreigner may get employment in Uganda; (4) under the Statutory Instrument 2005 No 62, the Government of Uganda issued the Recruitment of Ugandan Migrant Workers Abroad Regulations which governs the recruitment and employment of Ugandan migrant workers abroad; (5) the Prevention of Trafficking in Persons Act 2009 bans the recruitment, transportation and harbouring of persons overseas for employment, training or apprenticeship with the intention of trafficking; and (6) the 2006 Refugee Act allows families faced with forceful displacement the freedom of movement, right to work, start their own business and integrate into the country. Despite the availability of these frameworks, the Uganda labour migration legislation remains fragmented, and a clear strategy for return and reintegration for Uganda is absent.

The ILO assessment reported that migrant works arriving in Uganda do not receive on-arrival training from the government, they might receive some support from non-government organizations (NGOs) or International Organizations (IOs). It further recommends provision of on-arrival training or information to incoming migrant workers on their rights, obligations, and access to services, such as finance, education, and medical facilities and the development of a clear policy framework for reintegration that identifies needs and gaps and facilitates coordination between service providers and stakeholders. In this regard, the ILO is committed to provide comprehensive support to ensure the sustainable reintegration of returning migrants, from providing immediate assistance upon their return through cash transfers, to ensuring longer-term social and economic reintegration and empowerment through the promotion of self-employment and the sustainable transition to work.

1.2. The ILO Better Regional Migration Management project

With the financial support of the Foreign Commonwealth and Development Office of the United Kingdom, the ILO is implementing the second phase of the project entitled “Better Regional Migration Management” (BRMM), which will continue the work carried out under BRMM project phase I and will focus on strengthening the capacities of countries in East and Horn of Africa to govern labour migration by using evidence-based policies, enhancing migrant workers’ qualifications and skills, and actively engaging the social partners.

One of the areas of intervention of the BRMM phase II, is improving employment services for labour market integration of potential and returned migrants, with a focus on developing MSMEs and social finance, in Ethiopia, Kenya and Uganda. In this context, BRMM phase II project is looking to partner with a financial service provider to:

• Provide cash transfers for 400 returned migrant workers, in a vulnerable situation, in Greater Kampala Metropolitan areas, Uganda. The cash transfer will amount to USD 150 per returned migrant and will be provided to those undertaking an ILO skills development training programme (i.e. ILO Start and Improve Your Business programme). It will help them cover their daily allowance and transportation costs to attend the training.
• Extend access to micro-financing to returned migrants in Greater Kampala Metropolitan areas, Uganda to promote formal employment and reduce poverty, capitalizing upon their skills acquired abroad, through the establishment of a revolving loanable fund of USD200,000. This objective will also be complemented by the roll out of ILO skills development training programmes including ILO Start and Improve Your Business programmes, as mentioned above. These activities are meant to reinforce the entrepreneurial and business management skills of potential and returned migrants for a more integrated approach.

u 2. Objectives and expected results

2.1 Overall objectives

The overall objective of the ILO Better Regional Migration Management project component on labour market integration is to ensure that potential and returned migrants are provided with financial and non-financial services to promote sustainable livelihoods and reduce their vulnerability, in Greater Kampala Metropolitan areas.

The specific objectives of this assignment will be to:

• Open bank accounts for at least 400 clients, all of which being returned migrants.
• Provide a cash transfer digitally to 400 clients, all of which being returned migrants; and
• Establish a revolving loanable fund amounting to USD 200,000 and expand access to credit for clients, i.e. potential and returned migrants

2.2 Target beneficiaries

Intended beneficiaries

The provision of digital cash transfer will target the most vulnerable returned migrants undertaking an ILO skills development training programme (i.e. ILO Start and Improve Your Business programme) and the micro-loans will target the most vulnerable potential and returned migrants, where priority will be given to beneficiaries that have received a service by the BRMM phase II project. The selection of these final beneficiaries will be spearheaded by the Ministry of Gender, Labour and Social Development (MGLSD), in collaboration with the FSP and ILO BRMM Project.

• The selected FSP will need to provide a digital cash transfer of USD 150 for each of the 400 returned migrants, which will entail a total of USD 60,000.
• The selected FSP will need to provide a total of USD 200,000 worth of micro-loans to potential and returned migrants.

Direct recipients

The direct recipients of this activity will be the selected FSP, which will receive a total of USD 160,000, including a loanable fund of USD 100,000 to de-risk its provision of micro-loans to the targeted potential and returned migrants and USD 60,000 to be exclusively disbursed digitally as cash transfer to the above-mentioned 400 targeted beneficiaries.

The selected FSP will be required to provide both micro-loans and digital cash transfer as mentioned above in Greater Kampala Metropolitan areas.

2.3 Expected results

The expected results of this assignment will be:

• 400 clients (returned migrants) from Greater Kampala Metropolitan areas have opened a bank account with the selected FSP.
• 400 clients (returned migrants) from Greater Kampala Metropolitan areas are provided with a cash transfer digitally of USD150 each, in line with the ILO BRMM project criteria and the ILO and UKFCDO principles and standards.
• The revolving loanable fund amounting to USD200,000 is disbursed to clients (potential and returned migrants) in Greater Kampala Metropolitan areas based on available loan products that fits best the interest of beneficiaries or a loan product that is adapted to the needs of returned migrants.

2.4 Implementation strategy

The intervention logic is based on the integrated and sequenced approach to promote the long-term sustainable reintegration of potential and returned migrants into the labour market through skills development and access to finance. In addition to extending and harnessing partnerships, the ILO will work with MGLSD and the selected financial services providers, namely in Greater Kampala Metropolitan areas, to identify the beneficiaries, and follow the provision of the digital cash transfer and micro-loans.

Social assistance through digital cash transfer: The importance of digital cash transfer in the humanitarian-development nexus has been highlighted as important. However, this needs to be complemented by mid or long-term socio-economic support and prospects for financial inclusion, which is the approach of this support. Given that returned migrants have lost jobs and income in destination countries, it is critical to palliate this loss and catalyze their settlement and reintegration into the community back home

Access to finance and business development services: Access to finance is crucial for potential and returned migrants economic empowerment and sustainable reintegration. By facilitating access to finance through the development of a dedicated loanable fund for potential and returned migrants, beneficiaries would be supported to venture into business start-up as a way to secure sustainable incomes.

Within the overall framework of the BRMM phase II project, the ILO will partner with an additional implementing partner to provide an integrated economic empowerment support to potential and returned migrants in Greater Kampala Metropolitan areas. Within this support, the entrepreneurship skills of 400 returned migrants will be strengthened based on the ILO SIYB training tools. From the trained 400 beneficiaries, 80% will be assisted in establishing a business.

Based on selection criteria agreed by the implementing partner, ILO and District Community development offices, 400 beneficiaries undergoing the training will benefit from the digital cash transfer. Accordingly, the selected implementing partner and financial service provider will provide orientation to the 400 returnees on the support to be provided and will open a bank account with the FSP. To receive the cash transfer amounting to USD150, targeted beneficiaries will be required to apply and attend in full the SIYB training. 50% will be provided upon registration to the training and the remaining 50% will be provided after the completion of the training. The cash transfer will all be operated by the selected FSP through digital transfers to the targeted beneficiaries’ bank accounts.

Upon completion of their training, targeted beneficiaries will be referred to micro-loan products, meeting their needs, and enabling them to apply, in view of obtaining a loan enabling them to start their own income-generating activity in the form of a small business. These beneficiaries will be provided priority, however, at the end the FSP will be selecting its clients using its own due diligence process. The ILO and the selected FSP will work with MGLSD and the abovementioned implementing partner to support returnees in developing individualised business plans, provide follow-up and mentoring support and facilitate access to other business development services.

To achieve the abovementioned implementation plan, the ILO will provide a total of USD 60,000 worth of cash to be transferred digitally to the selected FSP for 400 returned migrants (USD 150 per beneficiary). The ILO will also be providing a loanable fund of USD 100,000 to the selected FSP, which will then need to match it with USD 100,000 from their own funds. The objective is for the ILO to de-risk the selected FSP’s provision of micro-loans to the identified target group perceived as risky.

The selected FSP will receive a first instalment of USD50,000, which it would need to match on a one-to-one matching basis, to provide a total of USD100,000 worth of micro-loans to targeted beneficiaries. Once the first batch of loans is fully disbursed and the ILO receives a written commitment from the selected financial services providers to continue to provide micro-loans to potential and returned migrants in Greater Kampala Metropolitan areas, then the second and final instalment of USD50,000 will be paid by the ILO. The total loan amount that a beneficiary will receive will be based on the business plan to be submitted by the potential and returned migrants and to be evaluated by the selected FSP.

The loanable fund of the selected FSP will be directly managed by the FSP in close collaboration with ILO and MGLSD. A technical committee will be established which will support in reviewing the performance of the fund, identify major challenges and recommend possible strategies for the future. It will also be in charge of providing strategic guidance in the implementation of the project. The technical committee will be composed of experts from MGLSD, the selected FSP and the ILO. Members of the technical committee at the district level will engage and work closely to increase the knowledge and awareness of potential and returned migrants about the selected FSP’s new loan and digital cash transfer products, as well as advising and assisting potential and returned migrants in their loan application process. Monthly progress meetings will be held with the technical committee to exchange information on the progress, challenges and strategic issues in the implementation. Nonetheless, the discretion on the final decision regarding approval and collection of loans will remain with the selected FSP, using their usual processes and criteria for loan allocation.

Loan sizes and repayment periods will be determined by the selected FSP and based on clients’ applications and the cash flow projections articulated in the product development strategy. The interest rate chargeable from beneficiaries of the fund will be similar to their usual interest rate for individual enterprise and group loans. This will enable the organizations to generate a reasonable return to maintain the fund and capital growth to reach more potential and returned migrants in the future on the one hand and develop a sense of responsibility and the timely repayment of loans by potential and returned migrants on the other hand. In cases where potential and returned migrants are unwilling to take loans for religious reasons, the selected FSP will charge interest rate as administrative costs and give opportunities for potential and returned migrants to benefit from ‘Islamic banking’ products that are being piloted. In addition, the selected FSP will give priority and pay particular attention to address the needs and interests of women as well as disabled potential and returned migrants while implementing the project. The FSP will also closely follow up on the repayment of loans and take appropriate measures in cases of defaults. Other stakeholders, particularly members of the project technical committee, will also play their role in fulfilling their responsibilities as described below to ensure the sustainable reintegration of returned migrants, and the labour market integration of potential migrants.

The ILO will work together along with its national partners including MGLSD to ensure accountability and transparency in the delivery of service. MGLSD and ILO will closely follow up on the implementation of the digital cash transfer and the provision of micro-loans. They will all ensure that guiding principles of the ILO such as value for money, equity and participation are understood and exercised in the selection and deliverance of the service for the target group.

2.5 Scope of work and methodology

Based on the above-mentioned information, the ILO is seeking for an FSP, who may be a bank, microfinance institution or a cooperative to lead the identification, appraisal and provision of credit, as well as the delivery of digital cash transfer to potential and returned migrants. The scope of work entails outreach in Greater Kampala Metropolitan areas.

In close coordination with the ILO, the selected FSP will work on focus groups discussions, visits to clients, neighbourhoods, agencies and community platforms to design the two financial products mentioned above to serve potential and returned migrants, building on its own previous experience with cash transfers and micro-financing to vulnerable communities. Accordingly, FSPs will present a plan including the following data related to new products:

• Prototype digital cash transfers: Approach and methods to deliver cash transfers digitally to returned migrants.
• Prototype loans: Loan terms and Conditions and Procedures (including guarantee requirements)
• Financial projection for funds

Activities to be performed by the selected FSP

Provision of cash transfers: The selected FSP will use ILO contribution of USD 60,000 to exclusively provide cash transfers to 400 returned migrants. Returned migrants will be required to undergo an ILO Start and Improve Your Business training course of 8 days, delivered using ILO’s methodology and national trainers in Uganda, to access the cash transfer. The cash transfer will be of USD 150 for each returned migrant and will help cover their daily allowance and transportation costs to attend the training(s).

Access to micro-financing: The selected FSP will use the ILO contribution of USD 100,000 to provide loans exclusively and will commit to provide loans for at least twice this amount for a total amount for the Fund of at least USD 200,000 (two hundred thousand USD). Returned migrants that took an ILO Start and Improve Your Business training course, using ILO’s methodology and national trainers in Uganda, will be given priority.

The main tasks of the selected FSP are listed below:

1. Conduct a rapid market research to understand the needs of the target group and design appropriate loan and cash transfer products:

In close consultation with the ILO, the selected FSP should conduct focus group discussions, visits to clients, neighbourhoods, secondary data collection through agencies, NGOs and community platforms to design/adapt the related products (loan and cash transfer) to serve potential and returned migrants. The selected FSP should already have experience serving vulnerable communities, hence it will build on its own experience and suggest amendments of its processes to expand access to credit and provide cash transfers to returned migrants. The outcomes of the market research and product prototypes will be shared and discussed with the ILO for approval on the proposed product profiles and criteria of the selection of clients to be served.

• Regarding the access to credit component, the selected FSP will also present a projection for the use of the USD200,000, including USD 100,000 deposited in the Fund by the ILO, and the matched USD100,000 provided through its own funds. The new/adapted product characteristics should be relayed along with the loan targets for their respective branch staff.
• Regarding the digital cash transfers component, the selected FSP will also present a digital cash transfer product prototype to disburse USD60,000 which will be contributed from the ILO. The new/adapted product characteristics should be relayed along with the digital cash transfers targets for their respective branch staff.

1. Promote the newly designed loan product, receive applications and filter/appraise applicants:

This activity consists in designing a marketing campaign, including the use of social media outlets, promotion within the selected FSP branches, loan officers and clients, target community networks, among others, to outreach to interested applicants and filter/enroll clients for access to credit. The ILO BRMM project will also be able to communicate a list of trainees already trained or enlisted in trainings in the ILO methodologies of SIYB. Clients whose profile and needs meet that of the product provided by the FSP will be referred to by the ILO BRMM project, for the FSP to appraise them and assess their eligibility to access credit. Once applications are identified/referred, the FSP staff will undertake their usual duties of appraising the loan applicant and assessing their eligibility, following the best practices of loan appraisals and in line with the adapted lending methodology.

1. Utilize ILO funds (USD100,000) to exclusively disburse loans to eligible clients in line with the agreed conditions and parameters:

The selected FSP commits to disburse USD200,000 worth of loans to eligible clients (potential and returned migrants). The FSP will use the grant provided by the ILO (USD100,000) to only disburse loans to approved clients (potential and returned migrants of Uganda). It commits to also match the ILO contribution by adding USD100,000 to the fund to be disbursed exclusively as loans to eligible clients. The FSP will provide after the loan continuous mentoring support, alongside referrals to business development support services for potential and returned migrants. The FSP undertakes to continue to offer loans to clients from the same target groups and the same geographical areas (Greater Kampala Metropolitan areas) after the end of the assignment with the ILO for a period of 5 years and report on a biannual basis on the disbursement of the revolving loan based on the FSPs reporting templates. During this period, the ILO will not be held responsible for the losses incurred in the loans.

1. Ensure that all the 400 beneficiaries of the cash transfer open bank accounts:

The selected FSP commits to ensuring that the 400 returned migrants from Greater Kampala Metropolitan areas benefitting from the cash transfer open bank accounts with the selected FSP, in line with the ILO standards and conditions and with the FSPs conditions.

1. Utilize ILO funds (USD 60,000) to exclusively disburse digital cash transfers to 400 clients in line with the agreed conditions and parameters:

The selected FSP commits to exclusively use ILO’s grant contribution of USD 60,000 for the disbursement of cash transfers to 400 clients (returned migrants), identified by sub-regional gender, labour and social development offices in collaboration with ILO and its implementing partner and based on the selection criteria agreed jointly. Beneficiaries of the cash transfer should already have a bank account with the selected FSP as mentioned above and be from Greater Kampala Metropolitan areas. The selected FSP will disburse the total amount of the cash transfer (USD150) to beneficiaries, i.e. returned migrants, that have registered and completed the ILO skills development programme (e.g. ILO SIYB). All cash transfers disbursed by the selected FSP should respect the ILO standards and principles.

1. Follow-up, documentation and reporting:

The selected FSP will use its Management Information System as well as its monitoring and evaluation system to record all loan applicants and beneficiaries of the cash transfer. The FSP will collect all needed documentation/information about their profiles. The reporting documents required to be submitted by the FSP will include the following:

• Report on the selected loan product prototype including Loan Terms and Conditions as well as financial projections for the evolution of the Fund, to be submitted after the rapid market research and based on the beneficiaries needs assessment.
• Report on the selected cash transfers product prototypes including their Terms and Conditions.
• Excel list of disbursed loans using ILO template (gender, age, status, loan amount, target group, duration, loan type, economic sector, jobs created/sustained, etc.), to be submitted along with financial report as per the agreed reporting timeframe.
• Excel list of cash transfers received using ILO template (gender, age, status, target group, socio-economic characteristics, etc.), along with financial report as per the agreed reporting timeframe.
• Progress and final reports, including financial report and case studies, to document the progress of the assignment, to be submitted as per the agreed reporting timeframe.

2.6 Deliverables

The selected FSP will be required to deliver the following outputs for this assignment:

• Output 1: A comprehensive and updated work plan for the delivery of this intervention, in which all activities need to be scheduled (15 days following the signing of the agreement).
• **Output 2:**Report on the selected loan product prototype including Loan Terms and Conditions as well as financial projections for the evolution of the Fund (one month following the signing of the agreement).
• Output 3: Report on the selected cash transfers product prototypes including their Terms and Conditions, to be submitted after the market research and based on the needs assessment (one month following the signing of the agreement).
• Output 4: List of clients (potential and returned migrants from Nairobi and Mombasa counties) who received loans using ILO’s grant and the selected FSP’s matching fund including information such as their name, ID number, gender, age, status, course completed, date, among other socio-economic characteristics and disbursements amounts. (list provided along with progress reports and final report)
• Output 5: List of 400 clients (returned migrants from Greater Kampala Metropolitan areas) who opened a bank account with the selected FSP and who received cash transfers (USD 150 each in one instalment as described above) from the ILO’s grant and through the FSP cash transfer product for beneficiaries. This list should include sex-disaggregated data on each beneficiary including information such as their name, ID number, gender, age, status, course completed, date, among other socio-economic characteristics. (list provided along with progress reports and final report)
• **Output 6:**Progress narrative reports on the progress of the assignment. This will be accompanied by financial reports and excel sheets as detailed in output 5 and 6. (three and six months following the signing of the agreement)
• Output 7: 2 comprehensive final reports accompanied by a comprehensive final financial report and excel sheets as detailed in output 5 and 6. One final report will be on the loan delivery outcomes and lessons learned for further expansion of the intervention, while the second final report will be on the delivery of cash transfers and should be submitted 15 days after the completion of the cash transfer programme. (9 months following the signing of the agreement).
• Output 8: Biannual report (every 6 months) on the provision of the established USD200,000 revolving loanable fund for potential and returned migrants is submitted for the next 5 years upon completion of the project based on the FSP’s reporting template.

2.7 Sustainability

In order to ensure the sustainability of this initiative, the ILO BRMM project will be implemented in close collaboration and partnership with various stakeholders in Uganda, especially concerned government offices at various levels. Stakeholders will extensively participate in the design, implementation, monitoring and evaluation of this project. In doing so, the project will be mainstreamed in the regular monitoring radar of respective offices which will help to sustain the action in the absence of any external actor.

During implementation, the ILO and its partners will closely monitor the implementation status of the project through regular field missions and evaluation meetings. All stakeholders will meet every regularly to review performance, identify challenges and advise on the way forward to improve performance and increase reach out of the project.

2.8 Eligibility

The eligible applicants should be FSPs following the below requirements:

• Be a Bank, Micro Finance Institution (MFI) or Savings and Credit Cooperative Society (SACCOS).
• Have office presence or operations in Greater Kampala Metropolitan areas or have a demonstrated and documented plan to extend services and operations to the target districts either directly or through an agent.
• Interested or already offering inclusive financial services to vulnerable groups in the country, including returned migrants.
• Interested in matching the fund of USD10,000
• Having been in existence for at least 5 years.
• Be profitable

The ILO invites technical proposal from qualified organizations/entities having relevant experience in managing microfinance services for vulnerable communities a as stipulated in these Terms of Reference. Technically responsive and financially viable organizations/entities will be selected following ILO’s procurement rules and procedures.

Cumulative evaluation methods, based on criteria stipulated in 3.1, will be used for this procurement exercise and the contract will be awarded to the candidate with the highest score in cumulative analysis considering the technical evaluation and interview.

2.9 Supervision and logistical arrangements

All activities within the scope of these Terms of Reference will be carried out under the overall supervision of the Chief Technical Adviser of the ILO BRMM project in ILO Country Office for Ethiopia, with the technical support from the Technical Officer in Financial Inclusion and Financial Education and the Senior Technical Specialist in Financial Inclusion, from the ILO Social Finance Programme in ILO-Geneva.

Deliverables shall be submitted in line with the requirements explained in these Terms of Reference in a timely manner, in concordance with the planned deadlines between the ILO and the selected FSP. All deliverables of these Terms of Reference are subject to the approval of the ILO.

2.10 Timeline

This assignment should be implemented for a period of 9 months, from May 2024 to January 2025.

The selected FSP is responsible for informing the ILO BRMM project in advance in case of unforeseen delays.

2.11 Payment schedule

BL 02.04.05 – Provide capacity building and technical assistance to financial services providers to improve the management of their microfinance activities and to create new and/or adapt existing financial products relevant to new markets (USD 100,000)

BL 02.04.07 -Support relevant institutions in Ethiopia & Kenya, to provide cash transfers through financial institutions, cooperatives or mobile money operators for return migrant worker (USD 60,000)

The disbursement of the fund will be as follows:

First payment: USD 30,000 shall be made upon completion of output 1 and submission of comprehensive and updated work plan for the delivery of this intervention, in which all activities need to be scheduled.

Second payment: USD80,000 shall be made upon completion of output 2, 3 and 5 and submission of progress report as stated in output 6, which details the utilization of the fund disbursed by ILO (USD30,000). The FSP has provided cash transfer during this period to at least 200 returned migrants and also opened a bank account. Hence, the FSP will submit the list of potential and returned migrants who benefitted from the cash transfer within the reporting period, as per output 6.

Third payment: USD42,000 shall be made upon submission of a report detailing the utilization of the fund disbursed by ILO (USD80,0000) as stated in output 6. The report will also include proof that it matched USD50,000 from their own funds and disbursed USD100,000. The FSP will also provide a list of potential and returned migrants from Nairobi and Mombassa Counties who received loans using ILO’s grant and the Financial Service Provider (FSP) matching fund (as per output 4); and also, the list of the remaining 200 clients that benefitted from the cash transfer within the reporting period (as per output 5).

Final payment: USD8,000 (equivalent to 5% of the agreement sum) shall be made upon submission of 2 comprehensive final reports as indicated in output 7 and a compiled list of all clients who received loans using ILO’s grant and FSP matching fund and a list of clients that benefitted from the cash transfer throughout the project period (as per output 4 and 5). The FSP will also provide proof that it matched the remaining amount of USD50,000 from their own funds and disbursed the remaining USD100,000.

u 3. Requirements for application to the call for proposals

Interested financial services providers are required to submit their applications, which will include a technical proposal to apply using the format below.

3.1 Technical Proposal

FSPs should submit their technical proposal application as per the instructions provided in the bidding documents.

The technical proposal should be prepared in accordance with this ToR. In particular, the technical proposal is expected to be submitted by the FSP using the following structure:

• Organization’s profile demonstrating the required capacity as well as the organization’s local presence and activities in Greater Kampala Metropolitan areas, summarizing the FSP’s experience including information on active loan portfolio, portfolio quality including PAR and write off, number of staff, branches in Greater Kampala Metropolitan areas, Operational and financial sustainability indicators, and efficiency indicators.
• Portfolio report and financial ratios (Active portfolio, repayment percentage, PAR, aging, etc.)
• Detailed description of relevant past works and assignments related to financial inclusion, loan and cash transfer products, financial education, with particular focus on MFIs outreach to vulnerable communities in Greater Kampala Metropolitan areas.
• Summary of the proposed methodology, implementation plan and M&E plan.
• Detailed work plan with a timetable related to the different activities.
• CVs of Team leader and staff involved in the implementation demonstrating their capacity to conduct the assignment.
• Foreseen challenges during the implementation of the project and mitigation methods.

The Technical Proposal will be evaluated in accordance with the following criteria, as indicated below.

Description of Technical Evaluation

Score

Relevant Experience of the FSP in loan provision to vulnerable communities.

10%

Portfolio quality, financial ratios and sustainability indicators.

10%

Relevant Experience of the FSP in the delivery of cash transfers to vulnerable communities.

20%

Strong field presence in Greater Kampala Metropolitan areas

15%

Outreach strategy and plan (disbursement plan, product design, training delivery, value add by the organization, etc.)

20%

Human Resources proposed for the assignment (qualification and experience) + detailed CVs

15%

Previous experience working with the international bilateral donors

10%

Maximum points

100%

Only bids which achieve a minimum score of 70 % in their technical offer will be considered for interview.

The technical offer will be weighted 70% the interview 30%.

The interview will evaluate the applicant’s availability and willingness to provide the two products and also assess the applicant’s pitch of the cash transfer and micro-loan service products.

• 1. Application submission

Interested applicants that meet the eligibility requirements should submit their detailed technical proposal to [email protected].

The deadline for submission is 13 May 2024.

Only successful FSP applications will be contacted for an interaction/interview.

[1] Ugandan Women Pay the Price of Exploitation | Institute for War and Peace Reporting (iwpr.net)

[2] wcms_743324.pdf (ilo.org)

[3] Grand Bargain subgroup on linking cash and social protection, “Linking humanitarian cash and social protection for an effective cash response to the Covid-19 Pandemic”, May 2020. The ILO is a member of the subgroup and has signed-up to the Grand Bargain.