Consultancy services – Examining Rental Markets and Incentives for securing land tenure for Displacement Affected Communities in Afgooye district. At Norwegian Refugee Council

Examining Rental Markets and Incentives for securing land tenure for Displacement Affected Communities in Afgooye district.

Location: Afgooye district, Lower Shabelle, Somalia

Duration: 45 working days

Critical interface: ICLA PDM, and ICLA Project manager

Consultancy type Local context and urban specialists/companies

Background and Context

Somalia is one of the fastest urbanizing countries in the world, with an estimated 45% of the population living in urban areas. Based on a continuing urbanisation rate of more than 4%, the urban population of Somalia is due to exceed that of its rural population by 2026.[1] Of an estimated 2.7 million IDP population, approximately 80% reside in urban areas. Rapid urbanisation in Somalia is driven by a combination of factors that include climate shocks, violent conflict, land-grabbing, the return of former refugees, population growth, a lack of economic opportunities in rural areas, and the concentration of humanitarian resources in urban centres. The growth of cities such as Mogadishu, Baidoa and Kismayo is far greater than the government, local and international communities’ ability to provide adequate access to land, infrastructure, and services. As a result, IDPs are faced with forced evictions driven by improved conditions for the host communities. Furthermore, rapid, and unplanned urbanization may entrench the dynamics of clan and conflict in the evolving form of cities and risk perpetuating and increasing instability.[2]

Over 85% of informal settlements across Somalia are hosted predominantly on privately-owned land with a majority lacking formal tenure agreements.[3] Low-income groups and IDPs lack the networks, resources, and ability to navigate the systems that facilitate access to land, shelter, finance, and services. Entering informal rental arrangements leaves them at risk of sudden and forced evictions. Specifically, forced evictions remain a primary cause and a multiplier of the displacement crises affecting Somalia. This is exacerbated by challenges of land and lease documentation, and inequalities in housing standards as compared to host communities, with IDPs primarily residing in precarious makeshift shelters. Between 2018 and March 2023 for instance, over one million forced evictions have taken place in Somalia.[4]

The causes of forced evictions in Somalia revolve around a set of intertwined dynamics that encompass illegal occupation and squatting, unplanned and rapid urbanization, land grabs, development and infrastructure projects, urban redevelopment, property market forces often supported by state intervention, contested and multiple claims and natural hazards e.g. flood risk, potential flooding, and drought or famine.[5] Evictions take place at both settlement and household levels. Settlement-level removals are the most visible and are easier to track than household-level incidents, which can be more insidious, and less visible. Owing to a lack of access to financial resources, the majority of IDPs exchange humanitarian aid received in lieu of rental fees, inadvertently fuelling a problematic cycle of exploitation by landowners. This rental economy prompts some landowners to engage in the commercialization of evictions – evictions threatened or executed with a deliberate view to attracting humanitarian attention and/or assistance.

Similarly, land commodification has also translated into increased wealth for the few and increased vulnerability for informal dwellers.[6] In major urban centres such as Mogadishu and elsewhere, this has motivated so-called ‘gatekeepers’ to invest in IDP sites and related service delivery, for example, water provision, knowing that the surrounding land plots will rise in value. Once land prices reach a certain threshold, gatekeepers evict and relocate IDPs to an even more marginal location, pocketing the proceeds of the land sale.[7] The establishment of relief centres in the city outskirts has thus contributed to a spike in real estate prices. Not only are IDPs the victims of evictions driven by the increasing value of land, but an IDP settlement itself can increase the value of urban land. This occurs through the labour of IDPs and camp managers who clear bushes, cut roads and spur basic infrastructure development. In addition, they attract investments by humanitarian actors and businesses. It is often after these basic settlements have been connected to wider city and infrastructural networks that IDPs are evicted.[8]

Securing Land Tenure for Displacement-Affected Communities in Somalia

There are many forms of tenure arrangements in Somalia, ranging from full ownership and formal rental agreements to emergency housing and informal occupation of land. For most host community members, the main ways of accessing land and property are through inheritance, purchase, and formal rental arrangements. This is not the case for the country’s 3.8 million IDPs, the majority of whom have self-settled in over 3,300 IDP sites across the country. In some instances, host communities let the IDPs use the land for free, while in most some rental fee is charged. To facilitate more durable solutions, local governments have tried to allocate land for IDPs, and there have been some efforts to give IDPs ownership of that land with either temporary or permanent title deeds. In a context involving various vested interests, the range of motivations for allowing displaced people to settle on land can vary significantly. These motivations reportedly range from entirely charitable/religious to opportunistic and potentially exploitative or profiteering reasons.

1. Research objectives

The main objectives of this study are twofold:

1. Objective 1: Exploring the incentives’ structure (financial/social/cultural/religious/political) about securing land tenure for displaced communities in Afgooye: to delve into the complex and diverse set of incentives influencing the acquisition of land for displaced communities in Somalia. By conducting this exploration, we aim to shed light on the intricate dynamics at play and leverage the findings to shape future approaches taken by durable solutions partners in supporting government officials and engaging in negotiations with relevant actors. Currently, there exists a significant gap in our understanding of the multifaceted incentives that drive land tenure security for displaced communities. The identified incentives can serve as influential factors in designing effective and sustainable solutions for land tenure challenges faced by displaced communities. Through on-the-ground investigations, interviews, and data collection, and engagement with a wide range of stakeholders, including private landowners, community members, local authorities, traditional leaders, religious figures, political representatives, private sector actors, we will gather in-depth information on how to incentivize various stakeholders to secure land tenure for displaced communities. The outcomes of this analysis will serve multiple purposes. Firstly, they will contribute to our internal knowledge base, enhancing our understanding of the complex interplay between incentives and land tenure security. Key locations to be assessed include Afgooye town, Mareerey, Lafoole, and Afgooye corridor.
2. Objective 2: Exploring the informal rental markets: provide an in-depth analysis of the informal rental market dynamics, rental housing costs, characteristics, and conditions, as well as the balance between supply and demand in the informal rental markets in Afgooye district and its surroundings. Findings are intended to inform the design and scaling up of rental interventions for DACs across these locations. The analysis will further quantify and assess the status and profile of the rental housing markets across Afgooye town, Mareerey, Lafoole, and Afgooye corridor. It will include a specific focus on informal rental markets (distinguishing between informal IDP settlements and urban poor) and will aim to understand how to incentivize and scale up the development of a vibrant private rental market, with housing that is adequate and affordable, particularly for DACs. While the study will focus mainly on the informal rental market, where some data exists the study will include a collation on data on the formal rental market.
3. Inform design and development of contextualized integrated rental solutions for Afgooye town, Mareerey, Lafoole and Afgooye corridor; the assessment findings will inform the development of a comprehensive rental market strategy for Afgooye, focused on establishing a viable financing model for the rental subsidy scheme. This strategy will encompass an integrated assistance package designed to equip beneficiaries with the necessary skills and resources to independently manage their tenancy obligations upon the existence of the program. Central to this approach is the integration of customized livelihood development initiatives, facilitating a pathway for participants to actively engage in substantial recovery and long-term sustainable solution efforts.
4. Scope of Work and research questions

Objective 1: Specific objectives for the incentive structure analysis include:

• To delve into the complex and diverse set of incentives influencing the acquisition of land for displaced communities in Somalia.
• Understand the incentives or costs of doing business with various stakeholders to secure land for displaced communities i.e financial, political, social etc.
• Understand how to leverage various stakeholders to actively secure land for displaced communities.
• Develop innovative incentive schemes for piloting in multiple locations.

Objective 2: Specific objectives for the rental market analysis include:

• To provide an in-depth overview of the informal rental market, understand the costs (and determinants of the costs), characteristics and availability of informal rental properties and how these differ across locations (a focus on distinguishing between IDP informal settlements and urban poor)
• To compile any existing data on the formal rental market
• To evaluate the levels of access and adequacy of informal rental properties in the assessed locations, and how barriers to access differ by demographic profiles.
• To understand the important needs, priorities, and preferences of IDP households with regards to engaging in the informal rental market
• To identify the common practices of security of tenure in formal and informal rental agreements, the associated challenges, and dispute and eviction risks
• To explore the relationship dynamics of IDP and urban poor tenants and rental service providers, evaluate willingness of rental service providers to lease to IDPs.
• To explore landlord and tenant experiences of renting across the various locations.
• To identify potential conflicts around access to affordable housing between host community and IDP populations.
• To identify any changes in rental market capacity and dynamics and in the cost and availability of informal rental property across the various locations over time.

Objective 3: Inform design and development of contextualized integrated rental solutions for Afgooye town, Mareerey, Lafoole and Afgooye corridor.

• To design and develop Rental subsidy models that could piloted in Afgooye
• Design methodology for rental market assessments that can later be replicated.
• To prepare contextualized tools for the assessment and for future use.
• Provide programmatic recommendations on appropriate incentive schemes that could be implemented.

Study Timelines Deliverables

A tentative schedule of deliverables is delineated below. However, in their detailed proposals the consultants should provide dates that they can meet; reasonable adjustments will be accommodated.

Task/Output to be submitted to NRC for clearance and Length of time

1. Signing of contract
2. Draft Inception report (with literature review, proposed methodology, survey instruments, workplan) –Two weeks after contract signing
3. Final Inception report – One month after the contract signing.
4. Submission of first draft report – 2-4 weeks after contract signing
5. Submission of second draft report which incorporates NRC comments – Three weeks after receiving NRC comments
6. Draft PowerPoint deck – One week after submitting the second draft report
7. Final PowerPoint deck – One week after receiving comments on the draft
8. Draft report written in English that meets the requirements outlined below;

• One (1) electronic file of the clean (final) qualitative and quantitative data collected.
• Final report the final report should be jargon free, clear and simply written.
• The main body of the report should not exceed 30 pages and should include an executive summary, brief background and recommendations.
• Recommendations and findings should be backed up with relevant data, with reference to the data source and need to be specific.

9. Submission of final report and final presentation – TBD – after stakeholder presentation has taken place.

3. Professional Qualifications

The consulting firm should meet the following qualifications in their team:

Role, Qualification and Experience

1. Team Leader

• Have completed a postgraduate degree, is knowledgeable in the Somalia housing markets and IDP settlements issues.
• At least 5 years of documented experience in affordable housing-related work/ urban specialists/have housing land and property expertise. They should have worked in developing countries in urban development, Experience in similar studies in the African context is an added advantage.
• Must have strong networks including in Afgooye, BRA, and IDP Camp leaders and managers.

2. Urban Planner/Specialist /context expert

• Have completed a postgraduate degree in urban planning, urban development.
• At least 5 years of working experience in urban planning with broad-based experience across various urban and housing contexts in African cities. Experience in housing development especially rental or low-income housing would be an added advantage.

3. Community Engagement/Social Development Expert

• Have completed a postgraduate degree in social studies, human and community development studies, and psychology from a recognized university.
• At least 5 years of professional working experience in stakeholder and community engagement programs such as inclusive urban development, and participatory and pro-poor planning.

4. Previous Experience in leading HLP research and assessments

• Have led a previous minimum of one housing, and land property research and assessment. Conducted, led or participated in the design and successful completion of previous similar rental subsidy assessments is added value attracting further consideration.
• Have led a previous minimum of one housing, and land property research and assessment. Conducted, led or participated in the design and successful completion of previous similar rental subsidy assessments is added value attracting further consideration.

In addition, the following qualifications should be met within the team:

• At least 3 years of expertise in field research, particularly qualitative methodology and data analysis; field research in urban areas is essential.
• At least 3 years of expertise in quantitative research, particularly in analyzing survey data from statistical sources.
• Experience with report writing for development partners and/or Government.
• Experience and understanding of the Somali/ Horn of Africa context.
• The consultant/ firm is registered in Somalia and specializes in conducting qualitative and quantitative research.
• The consultant can demonstrate the ability to field experienced teams to conduct face-to-face interviews on sensitive subject matter, in a timely and organised fashion.
• The consultant is able to use to a high-level, data entry and data analysing software such as CS Pro and SPSS, and be able to provide visual graphics of data, such as charts produced in Microsoft Excel. Experience in graphic design will be an advantage, but not required.
• The consultant has a good track record of working with international organizations such as international NGOs or the UN in Somalia; in particular, a good track record in previous work with NRC is required.
• A demonstrated track record of carrying out a similar type of assessment (sample to be attached when applying).
• Excellent analytical and writing skills.
• Familiarity with the socio-political and humanitarian trends in Somalia.

Application procedures and requirements

The consultant/consulting firm interested is expected to provide the following documentation:

• A cover letter introducing the consultant. In the case of a firm, the cover letter should introduce the team composition and specify the role to be played by each team member.
• Proof of registration from the country of origin as a limited liability company sole trader/self-employed and tax compliance certificate.
• A technical proposal of not more than 10 pages outlining how to execute the task with a clear framework, methodology, and timelines. The proposed methodology should demonstrate a clear understanding of the ToR.
• Resume of the consultant, or each team member for firms
• Evidence of experience conducting similar assignments including HLP
• Proposed budget/ the financial proposals indicating consultancy fee and all other auxiliary costs in USD.
• Other supporting documents including company registration and tax compliance certificate.

Evaluation of Bid

The Norwegian Refugee Council shall examine the legal documentation and other information submitted by Bidders to verify eligibility and then will review and score bids according to the following criteria.

Score criteria

Completion and inclusion of requested information and supporting documents (Administrative compliance) to be submitted with the application

• Copy of company registration – Proof of registration from the country of origin as a limited liability company sole trader/self-employed – 5 points
• Copy of tax registration – 5 points

NB: Pass marks to proceed to technical evaluation is 5 points

Total score criteria (Administrative compliance)- 10

Technical supporting documents

• A cover letter introducing the consultant. The cover letter should introduce the team composition and specify the role to be played by each team member. – 5 Points
• A technical proposal of not more than 10 pages outlining how to execute the task with a clear framework, methodology, and timelines. The proposed methodology should demonstrate a clear understanding of the ToR. (Technical evaluation). 30 points
• Previous experiences in similar works/services – Evidence of having led a previous minimum of one housing, and land property research and assessment. Conducted, led, or participated in the design and successful completion of previous similar rental subsidy assessments is added value attracting further consideration in the context of Somalia (Samples of similar work) is required (Technical evaluation). 15 Points
• Resume of each team member (Schedules (Key Personnel and Activity schedule) 10 points

Total score criteria (Technical evaluation) 60 points

Financial supporting documents

Price in comparison to NRC estimated rate – Proposed budget indicating consultancy fee, logistics cost and all other auxiliary costs in USD (Financial evaluation) 30 points

Total score criteria (Financial evaluation) 30 points

Grand total score (Administrative compliance, Technical and Financial evaluation) 100 points

[1] Durable Solutions Initiative (2019). Towards sustainable urban development in Somalia and IDP durable solutions at scale https://www.globalprotectioncluster.org/wp-content/uploads/UN-Somali-DSI-Towards-Sustainable.pdf

[2] https://unsom.unmissions.org/sites/default/files/un_somali_dsi_towards_sustainable_0.pdf

[3] https://reliefweb.int/report/somalia/cccm-cluster-somalia-strategy-january-2023

[4] https://evictions.nrcsystems.net/evictions.php

[5] https://www.nrc.no/globalassets/pdf/reports/i-want-my-land/i-want-my-land—full-report.pdf