Development Alternatives, Inc (DAI) has posted 4 jobs
xpert for Assessment of policy, process and procedure of disposal of repossessed assets by Development Bank of Ethiopia Overview Development banks are a form of government intervention in the financial system, with the aim of addressing market failures in the provision of finance. They provide finance to those market segments that are not well served by the financial system. Being supported by the government, with the vision to provide countercyclical funding, assisting firms at exactly the time that private banks are forced to curtail their lending. The success of these development banks in western markets encouraged emerging countries to establish their own national development banks. The Development Bank of Ethiopia is a specialized financial institution established to promote the national development agenda through development finance supporting viable projects from the priority areas of the Government by mobilizing funds from domestic and foreign sources while ensuring its sustainability. Established in 1909, DBE’s retail network consists of 110 branches. Supervised by the Public Enterprises Holding and Administration Agency, Development Bank of Ethiopia mainly engaged in medium to long-term project finance business. As such Development Bank of Ethiopia, has played a prominent role in at least five crucial roles in the country’s development process: (i) counteracting the pro-cyclical behaviour of private financing; (ii) promoting innovation and structural transformation, which are inherent to dynamic economic growth; (iii) enhancing financial inclusion; (iv) supporting the financing of infrastructure investment, which is also crucial for economic growth; and (v) supporting the provision of public goods. DBE has done so taking risk capital in specific projects associated with its development mandates, with the purpose of promoting development in the industrial, commercial agriculture, mining and energy ,Agro-processing or other economic sectors. This activity has not been without risk however. Similar to national development banks, DBE has an unenviable role – it operates as financial institution within the constraints imposed by the implementation of government policy while managing risk. DBE has accumulated in its balance sheet assets significant portfolio of non-performing loans (NPLs).Significant share of such loans are corporate loans among which are loans to companies operating in key sectors. NPLs had increased significantly in the past decade mainly due to a combination of factors including poor supervision and governance, aggressive lending and acquisition strategies, loose credit underwriting policies, high exposure to sectors that were most impacted by the economic and political financial turbulence and lax credit controls, pushing highly-leveraged borrowers into financial difficulties and leading to a large number of defaults. In recent years, the Bank has put significant resources and effort into action to deal with its NPLs. It also has increased its repossession of firms with non-performing loans (NPLs). The Bank is now looking to initiate recovery process in a fair, transparent and organized manner while deriving the best value. In this effort, DBE is reviewing its internal policies, procedures and process to ensure recovery is done in accordance to international best practice. On the other hand, DAI Europe, together with consortium partners, is managing Enterprise Partners (EP) which aim to support and transform the private sector and Ethiopia’s continued economic growth over seven years. EP is utilising the Making Markets Work for the Poor approach (M4P) and has two main pillars to achieve the goal of integrating the poor, and especially women, in sustainable economic enterprises that create jobs and improve incomes. The EP pillars are: (1) The Agro-Industrial Group is expected to achieve the outcome of increasing returns on investment (productivity) and investment levels in the identified sectors of cotton/textiles, livestock/leather and horticulture, in order to achieve the impact of creating jobs and raising household incomes. Additionally this pillar will incorporate the promotion of climate change awareness and addressing women’s economic empowerment (2) The Finance Group supports the industrialization of the economy, with an aim to achieve the outcome of increasing investment and job creation in the Ethiopian economy, particularly for women. Given the private sector is critical to economic growth and poverty reduction, DBE and EP have come together to resolve some of the challenges faced in order to secure jobs and income for the poor while ensuring the sustenance of private sector businesses, which will become the engine of economic growth Objectives The main objective of this assignment is to review legal, financial and operational aspects of Bank selling repossessed assets and provide recommendation and revise the Bank’s Handbook based on best practice and within the framework of country policy and laws. The assignment links directly to restructuring firms and thereby resulting job retention and poverty reduction. Clients and Beneficiaries The client for this assignment and main beneficiary is Development Bank of Ethiopia. Other potential beneficiaries are the private companies as well as government agencies connected to DBE and the labour market (workers). The Consultant will coordinate the assignment workplan and liaise closely with the Investment Sector Lead of Enterprise Partners, Ms. Rahel Kidane. The Consultant will report to Head of NPL Management Directorate at DBE, Mr. Taye Jiru. This assignment provides expert external assistance and does not replace the work of DBE civil servants. Scope The scope of the assignment is broadly limited by the information provided from Development Bank of Ethiopia. In conducting this review, the Consultant will: Review all the governing policies of DBE as it relates to deposition and management of repossessed assets of the Bank in the light of proclamation, directives and circulars on the Ethiopian Banking laws. Highlight potential perverse outcomes of the current regulation and specific Asset Disposal and management handbook; Review legal and regulatory framework for liquidation of repossessed assets by the Bank; Review current Asset Disposal and Recovery Handbook of the Bank; Review internal process and procedure of distressed asset route to recovery and compare against best practice and international practice; Review the current asked prices for those repossessed assets and the valuation method used to derive prices and compare against best practice and current bank operation practice; Provide gap analysis with international practices; Provide Cross-Country reference and Case Studies against practice, procedures and process; Analyse the impact of policies, process and procedure on price of the assets and ability to dispose those assets; Conduct in-depth review of or internal policy and process; Undertake a comparative study on bank policy in other emerging countries; Hold international consultation on draft findings and recommendation Method Location. This project is in Addis Ababa, Ethiopia Desk research: desk review of policies, proclamations, directives and circulars and other relevant documents to be provided by EP/DBE. Management Interview: Interviews with key management team and departmental heads; Interview of key stakeholders. Interview with regulatory authorities of DBE, if any. Case studies. At least three (3) National Development Banks in emerging markets, preferably at least one in Africa must be presented. Management and stakeholder Presentation identifying of the limitations and gaps of current approach, policy, practice and process highlight fact-based practice selected from international elements and case studies; Amended Handbook (hence “the Report”) for final approval by the board. Amendment to current DBE handbook on Management and Disposal of Repossessed Assets. Amended Handbook to contain appendices of gap analysis, relevant case studies and best practice. Board Presentation: Final report, clear guideline and recommendation including recommendations necessary to address to situation. Presentation to include Recommendation in the following areas: § Result of Gap analysis § Recommended changes in the Asset Disposal handbook § Recommended valuation/appraisal techniques, tools, process and practices § Recommended (best suited) selling options, models, tools and process for DBE to recover value § Application of one example (from selected current repossessed assets) § Most suitable selling process (tender and auction models) § Scenario in which Bank to consider Debt-to-Equity swap § Guideline to select the best partner to support the selling process The assignment is expected to be completed in 40 business days. The final report is to be submitted within (30) Thirty days from the assignment’s commencement day.Method Delivery Plan: including proposed timeline and anticipated initial kick-off meetings. It should also include proposed revisions to these ToRs, reflecting discussions with DBE and EP during the kick-off meeting; such revisions to be reviewed and approved by EP. Draft and final reports: Revision of Asset Disposal and Recovery Handbook. In addition, the report should include best practice and process and case studies will be attached to the Handbook as appendices. It should also include finding of gap analysis and summary of laws and policies governing DBE. The Draft Report will be submitted by the consultant to EP as well as DBE for review and quality assurance (QA), and consultant will address the all DBE and EP comments. DBE management team then submit the Draft presentation to chairman of the Board or advisor to the board for final input. If any changes required, Consultant will address comments and changes for final delivery of the presentation and handbook.Tentative Work-Plan & Schedule Week 1: Inception with DBE and EP to refine scope; submit revised ToR and complete delivery plan; Desk review of regulatory framework of banks including review of current manuals; Week 2: Management and stakeholder consultation; Week 3: Workshop to present preliminary findings and recommendation; Week 4: Circulate Draft Report based on comment and feedbacks; Week 5: Finalize and submit Report and Board Presentation Maximum duration of six weeks. Dissemination DBE and EP may share any deliverables and the report with other Development Partners, particularly those active in Ethiopia including DFID. The final report (or any part thereof) may be published on the DBE, EP and DFID websites.Competencies Required Minimum of a Post Graduate Degree in International Economics, Finance or Business areas; Minimum of 10 years Banking Regulation experience; Practical experience in working within emerging markets banking environment; Strong analytical skills; Excellent interpersonal skills and ability to work with others Professional Background Knowledge, Skills & Abilities Minimum of six years’ experience working in investment banking or distressed asset management environment with a strong knowledge of the international financial sector; Familiarity with the end-to-end execution process, complex transactions, performing financial and valuation analyses, and utilizing financial services industry databases and tools; Knowledge and expertise of distressed asset sale process Attention to details, focus on excellence, and great communicator, whether presenting to clients or senior executives Able to develop creative solutions to meet client needs and identify cross-product opportunities Advanced written and oral communication skills Excellent attention to detail and organizational skills Ability to accurately and productively handle multiple tasks during time sensitive situations Exceptional interpersonal, leadership, and relationship building skills Ability and willingness to work extended hours or weekends to meet deadlines when appropriateBudget to follow The cost of this assignment is funded from EP as well as DBE budget. Hotel expense will be covered by DBE, while Consultancy payment, transportation and allowance funded by EP. Last date for submission of applications is 2nd March 2019.
DAI was founded in 1970 by three graduates of Harvard University’s Kennedy School of Government intent on providing a more dynamic and effective brand of development assistance. This entrepreneurial approach would look beyond traditional philanthropy to embrace the virtues of the private sector, and build a company that delivers social and economic development on a competitive, cost-effective, best-value basis—a social enterprise that is self-sustaining because it is profitable.
Employee-owned DAI is now a global development company with a record of delivering results in 160 countries. But it remains today what it was as a start-up: innovative, alert, self-critical, and forward-looking—and driven by a powerful sense of corporate purpose. Our mission remains essentially unchanged from the days of the founders.
A Consistent Mission
DAI’s mission is to make a lasting difference in the world by helping people improve their lives. We envision a world in which communities and societies become more prosperous, fairer and better governed, safer, healthier, and environmentally more sustainable.
Incorporated in 1970 as Development Alternatives, Inc., DAI made its earliest mark through a series of analytical studies. In 1973, we won a contract to analyze 36 U.S. Agency for International Development (USAID) projects in Latin America and Africa.
The resulting study, Strategies for Small Farmer Development, cemented the firm’s growing reputation, and we built on this momentum to seek more substantial assignments implementing projects in the field. Our first major project was to revitalize the agricultural economy in the North Shaba region of Zaire. Other implementation initiatives in rural and agricultural development followed in Sudan and elsewhere.
Among a new generation of DAI employees joining the firm in the 1980s was current CEO Jim Boomgard, a Ph.D. agricultural economist who played a key role in developing an approach to small business promotion in developing countries and managed a landmark multicountry study called Growth and Equity through Micro-enterprise Investments and Institutions (GEMINI).