A study on Re-thinking the displacement financing architecture in the Great Lakes region At Danish Refugee Council

Who is the Danish Refugee Council

Founded in 1956, the Danish Refugee Council (DRC) is a leading international NGO and one of the few with a specific expertise in forced displacement. Active in 40 countries with 9,000 employees and supported by 7,500 volunteers, DRC protects, advocates, and builds sustainable futures for refugees and other displacement affected people and communities. DRC works during displacement at all stages: In the acute crisis, in displacement, when settling and integrating in a new place, or upon return. DRC provides protection and life-saving humanitarian assistance; supports displaced persons in becoming self-reliant and included into hosting societies; and works with civil society and responsible authorities to promote protection of rights and peaceful coexistence.

In the Great Lakes, DRC is present in four of the five countries of the region. DRC Tanzania delivers integrated multi-sectoral assistance combining CCCM, livelihood programming, individual and community-based protection, general food distribution, as well environmental preservation and regeneration. In Burundi, DRC supports returnees in their reintegration efforts through the provision of protection-focused services in transit centers and areas of return. DRC also implements livelihoods, food security and climate resilience projects through agroecological-based resilience design in ecologically degraded zones of Burundi. In Uganda, DRC’s portfolio includes protection, cash-based assistance, rural infrastructure and water resource management programmes. DRC expanded cash-based assistance through the Uganda Cash Consortium (see below), which supports people of concern to meet their basic needs. Finally, DRC’s contribution to the development rural infrastructure and water resource management continues to be undertaken through the NURI programme funded by Danida. In the Democratic Republic of Congo, DRC is present in Ituri, North Kivu and Haut Uélé, implementing an integrated emergency response focusing on hard-to-reach areas and set-up to respond to the CODECO and ADF crises while building social cohesion.

Purpose of the consultancy

The search for durable solutions to the protracted displacement situation in the Great Lakes region is a key humanitarian and development concern. This is a regional and cross-border issue, with a strong political dimension, which demands a multi-sector response that goes beyond the humanitarian agenda.

Finding durable solutions to protracted displacement in the region is essential for its stability, but also requires engagement and coordination between humanitarian, development and peace-building actors (Triple Nexus), as well as the private sector. As the needs continue to grow, humanitarian financing must be completed by different funding streams – including innovative financing – in order to response to displacement challenges and needs at scale.

There has been numerous research about how the current financing architecture is not fit for purpose and the need for new approaches to address the growing scale, duration and impact of displacement on countries and communities. At the 2016 World Humanitarian Summit, donors and aid agencies signed up to a package of reforms to improve the efficiency and effectiveness of humanitarian financing launched through the Grand Bargain. Under the Inter-Agency Standing Committee (IASC) there continues to be related on-going work under their different Results Group, notably Result 4 (Humanitarian Development Collaboration) and Result 5 (Humanitarian Financing) to support further operationalising the nexus and its linkages to improved financing.

The 2018 Global Compact on Refugees (GCR) also underlined the importance of an internationally agreed, stronger, more predictable, and more equitable response to new and existing large refugee crises. At the heart of the GCR is the call for increased ‘responsibility-sharing’ with the aim to ease pressure on countries that welcome and host refugees. But as the Overseas Development Institute (ODI) has noted “the exhortation of ‘easing the pressure’ under the GCR largely comes down to a simple bargain between refugee-hosting states and donor countries: ‘you host, we fund’”. And yet the GCR does not contain a mechanism to ensure additional or more predictable funding including for hosting governments.

As the Organisation for Economic Co-operation and Development (OECD) noted “… the nature and quality of financing suits a pattern of displacement that no longer exists, if it ever did. Displacement trends require humanitarian, development and peace financing to work in complementary ways”. However, humanitarian and often predominately fragmented short-term project-based funding continues to dominate financing in forced displacement situations – the OECD found that in Africa just 14% of financing for refugee situations was development funding.

It is important to take stock, to review what exists, including the different financing instruments used to track the flow of aid, and to look at innovative yet feasible financing models outside of the displacement sector. Innovative financing models recently explored include Insurance and Insurance Linked Securities (ILS), Other Securitised Instruments including (Impact) Bonds, Credit Instruments, Debt Relief Instruments and Revolving Funds. In particular there are new debates emerging on innovative health financing for refugees including non-traditional applications of overseas development assistance, joint public-private mechanisms and flows that fundraise by tapping new and varied resources that deliver new financing solutions (blended finance). There is also the potential to learn from some of the innovative financing and risk-informed approaches to disaster risk financing in the humanitarian sector.

In order to re-think the displacement financing architecture and to be able to use different types of funding instruments to respond to different types of needs and challenges, the Regional Durable Solutions Secretariat for the Great Lakes (ReDSS Gl), is seeking to commission an operational study on the displacement financing architecture in the Great Lakes Region.

Background

The ReDSS Great Lakes is a coalition of 10 NGOs: ACTED, CARE international, Concern Worldwide, the Danish Refugee Council (DRC), International Rescue Committee (IRC), Mercy Corps, the Norwegian Refugee Council (NRC), Oxfam, Save the Children and World vision. The coalition is committed to do more and better together in the search for durable solutions. It is not an implementing agency but a coordination and information hub.

ReDSS’ goal is to improve durable solutions programming and policies that increase the potential for displacement affected communities to integrate sustainability and to live safe, dignified and productive lives in the Great Lakes region. It has four pillars:

• Research, analysis and knowledge management: to increase the availability, accessibility and utilization of relevant and timely analysis on durable solutions;
• Program support, capacity development: to provide high quality support on program development and design; collective monitoring and learning that adds value to collective programming and durable solutions by ReDSS members and partners;
• Policy dialogue: to facilitate and undertake constructive and influential policy dialogue with key national and regional policy actors and processes in the Great Lakes region;
• Internal and external coordination: to act as an inclusive collaborative, coordinated hub for quality information, analysis and learning on durable solutions.

The ReDSS Great Lakes is currently financed by the EU Trust Fund for Africa.

Objective of the consultancy

The purpose of this consultancy is to conduct an operational study on the displacement financing architecture in the Great Lakes region, with the objectives to:

• Research and analyse current financing modalities that exist within and outside the displacement sector (in the Great Lakes region and globally);
• Explore through a series of country specific case studies (Burundi, DR Congo, Rwanda, Tanzania and Uganda), what are the current displacement financing modalities being used, in what context/sector and what is the political economy analysis related to aid financing between donors and the host country; and
• Recommend for each country appropriate financing modalities to address the specific displacement related needs and operational context, being through business cases for particular sectors or through developing new partnerships and instruments.

ReDSS GL envisions that the country level analyses, developed through multi-stakeholder consultative processes, will be used by donors, national governments and humanitarian and development partners to inform the use of different types of displacement financing models and partnerships to respond to specific displacement related vulnerabilities. It will also be a valuable tool, for ReDSS GL to have evidence to engage further with practitioners, donors and policy makers

Scope of work and Methodology

Phases of research/consultation

The research and consultation process will focus on two main phases:

1. Review and analyse of different financing modalities for displacement contexts During this first phase the consultant(s) will conduct an extensive desk review and engage with key stakeholders to review, map and analyse financing modalities for durable solutions for displacement-affected communities. It will be useful to group and compare the different types of financing to simplify the matrix. To ensure that the research can be operationalised, the consultant(s) will focus on particular key priorities such as access to services, financial inclusion, social protection and safety nets, graduation model and affordable housing and how they contribute/could contribute to strengthened protection, self-reliance and social cohesion of Burundian displacement-affected communities. This will consist of a thorough review of different existing and potential financing modalities across humanitarian and development approaches within and outside the forced displacement sector and analyse their potential benefits and various constraints (constraints to both their approach, applicability and benefits in displacement contexts/for displacement-affected communities).
2. Country specific cases (Burundi, DRC, Rwanda, Tanzania, Uganda) and identify innovative financing modalities Based on the first phase, specific issues will be identified in each of the target countries (Burundi, DRC, Rwanda, Tanzania, Uganda) together with stakeholders and authorities with the objective for the consultant(s) to develop specific country case studies. Those case studies will contain a thorough review of existing financing modalities and political economy analysis of aid financing in the countries. The case studies will interrogate these current financing modalities against overarching displacement (including the GCR and GRF pledges) objectives and suggest specific context-based financing models/modalities to be used for priority themes identified (i.e. access to services, financial inclusion, social protection and safety nets, graduation model and affordable housing).

Methodology

The methodology will be based on a participatory process including:

• Desk review of secondary data, including recent reports on financing modalities (humanitarian, development, displacement and other sectors) and exploring innovative financing modalities for displacement contexts.
• Key Informant Interviews (KIIs) with ReDSS GL staff (region and country level), ReDSS GL members and partners, humanitarian and development donors, ICGLR, UN agencies, MFIs, OECD, private sector actors, research institutes and other identified stakeholders.
• Country specific research through a series of additional KIIs (including with national and local authorities), stakeholder questionnaires, workshops (virtual/in person where feasible)

Deliverables

The Consultant will submit the following deliverables as mentioned in the TOR

Duration, timeline, and payment

The total expected duration to complete the assignment will be no more than 60 consultancy days within a span of no more than 4 months. Starting date will be jointly discussed with the selected consultant(s). The consultant(s) will report to the ReDSS Great Lakes Coordinator and be guided by a Technical Advisory Committee, made up of ReDSS members and key external stakeholders at regional and country level.

The consultant shall be prepared to complete the assignment no later than mid-March 2023.

DRC will make an initial payment of 30% of the professional fees costs upon signing of the contract and the remaining amount upon completion of the work including any agreed reimbursibles.

Proposed Composition of Team

• Project Director
• Project Manager
• Quality control
• National consultants

Eligibility, qualification, and experience required

Essential qualifications of the consultants:

• Master degree in international relations, development, political science and/or economics
• Minimum 10 years proven experience in conducting similar assignments
• Demonstrable experience related to forced migration, durable solutions and humanitarian/development financing
• Strong knowledge of the region and the socio-economic and political dynamics affecting it; more specifically on displacement trends and financing within the Great Lakes region
• Strong analytical and writing skills with proven experience in producing high quality research with ability to present complex information in a simple and accessible manner
• Fluency in written and spoken English
• Fluency in French

Technical supervision

The selected consultant/s will work under the supervision of Great Lakes Manager Thibault Van Damme with technical support and guidance from ReDSS members and partners.

Location and support

The study will cover the Great Lakes region. The Consultant will provide her/his own computer and mobile telephone.

Travel

There is a possibility for travel during the delivery of this work to facilitate workshops and meetings. The travel will be approved and facilitated by DRC according to the DRC laid down procedures working with the various country units as required.

PROPOSAL EVALUATION

A bid shall pass the administrative evaluation stage before being considered for technical and financial evaluation. Bids that are deemed administratively non-compliant may be rejected. Documents listed below shall be submitted with your bid.