Provision Of Business Development Services (BDS) Consultancy – RFP 317781 At Danish Refugee Council

Terms of Reference (TOR)

Partnership in Provision of Business Development Services (BDS) for Refugees and Host Community Entrepreneurs under the Area Based Livelihoods Initiative II Garissa-Building Opportunities for Refugees and Host Community Self-Reliance Project

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.

DRC has been present in Kenya since 2005 working with the displaced, offering support in areas of protection, livelihoods and armed violence reduction. The areas of operation include Dadaab and Kakuma refugee camps (including Kalobeyei Integrated Settlement), as well as with urban refugees in Nairobi and Mandera.

Background

The Dadaab private sector is characterized by a missing middle, with firms being largely limited in both their ability to grow from being small enterprises into medium and large ones, and their capacity to generate productive jobs. Access to finance for micro, small and medium enterprises (MSMEs)also remains challenging. The MSME in Dadaab thrive in a rather thin business ecosystem with most financial institutions considering the risk profile of most firms to be very high.

In this context, Danish Refugee Council is implementing the ABLI G II project for 2.5 years, targeting displacement affected persons in Fafi and Dadaab Sub-Counties of Garissa county in Kenya, funded by European Commission. The project is a scale up of ABLI G phase 1 which was successfully completed in December 2023, funded by the EUTF. The new phase which commenced in January 2024, seeks to expand private sector partnership while adapting a market systems approach. From lessons learnt in phase 1, access to finance and MSME development needs to be sustainable. Business development training was seen as critical to success and also scaling onwards with other potential MSME’s. Phase I ABLI Project also recommended establishing linkages with private sector actors, building skills of VSLA’s and increasing access to formal financial inclusion. In the current action we are exploring mapping and increasing linkage to financial service providers and BDS providers.

Many Small and Medium Enterprises (SMEs) that provide critical productive goods and services are informal and non-investment ready. At the same time, there are significant demand and supply side constraints with Business Development Services (BDS), required to build business capacity. SMEs do not create demand for BDS and correspondingly there is usually little supply of quality BDS that takes a mentoring approach.

PURPOSE OF THE CONSULTANCY

The purpose of the BDS consultancy is to strengthen the business capacity of MSMEs partnering with ABLI G II project and market systems. The consultant will initially work with each identified MSMEs to assess and decide where the focus of business capacity building should be. Together with the MSME, a business capacity strengthening plan will be developed by the consultant, with clear activities, deliverables, and allocated timeframe (days). The focus of the business capacity strengthening must be led by the identified MSMEs and implemented at a time convenient to the MSME and delivered cognizant of their business demands, using a business mentoring approach. The consultant will further: identify pathways for connecting the MSMEs to other financial service providers products/services including Sharia compliant financial products offered by a Financial Service Provider (FSP) e.g. KCB Bank and in consultation with ABLI G II project develop training manuals based on the product/service that is relevant for refugee and host communities from various backgrounds to support seamless BDS support of MSMEs.

Scope of the BDS Consultancy and Methodology

The partner will be required to prepare a detailed methodology and work plan indicating how the objectives of the project will be achieved, and the support required from DRC Kenya:

• Demonstrate innovative and reliable solutions put in place to meet last mile challenges in far-to-reach areas and financial inclusivity,
• The vendor must demonstrate that s/he has handled a project with 3 organizations the size of DRC Kenya.

1. Target: 350 MSMEs receive Business development services including training and business mentorship and consulting services, access to credit based on their business plan, alongside mentorship support as well as business registration support including: access to IDs and KRA pins. The consultant will provide approximately 200 days of BDS to 350 MSMEs over a period of 7 months, beginning January 2025, to August 2025

Key tasks / deliverables

The BDS Consultant(s) will:

• Facilitate each MSME to develop a business plan
• Facilitate each identified MSME to complete a Business Model Canvas (BMC), to explore their business and identify business capacity gaps and areas for strengthening.
• Using the BMC, agree and document an individual BDS plan with each MSME, with specific and agreed activities, deliverables, and timeframe (days) for BDS. These plans will be reviewed and approved by the ABLI G II Financial Inclusion Team Leader prior to implementation.
• Delivery of business capacity building technical advisory services for identified MSME(s) as per BDS plan using a mentoring approach.
• Participate in ABLI G organized learning and adaptive management sessions with MSMEs to align BDS to MSMEs business performance.
• A brief quarterly report on workplan progress against plans and BDS hours delivered for each identified MSME (dates and hours), opportunities and constraints issued to each MSME and DRC/ABLI G
• Conduct MSMEs’ business performance evaluation to understand the changes made because of the BDS provided to MSMEs by the BDS partner
• A final narrative report to include the BMC and detailing progress on each MSMEs workplan, total number of days of BDS delivered, key achievements, constraints, and opportunities and details of changes in business capacity because of the BDS.

Expected Deliverables

Develop an Implementation Plan (Inception Report) that outlines the general approach to the assignment, schedule of activities and their deliverables. This should also outline the possible risks and their mitigation measures.

Develop a detailed implementation manual including the aforementioned components at a minimum

Deliver training and advisory services to 350 MSMEs

Following BDS delivery model proposal approval until the end of the contract

Submit monthly/quarterly reports on the delivery of training and advisory to MSMEs

Prepare a final report and 10 case studies to showcase the impact of the interventions (and shed light on the processes and key lessons for dissemination).

Budget and Resources

The consultant is expected to provide approximately 4 times coaching days per business/ of BDS to 350 MSMEs over the period, January 2025, and August 2025. The consultant(s) are expected to be experienced in providing tailored BDS to MSMEs. MSMEs will be located in Dadaab refugee camps (Ifo, Ifo 2, Dagahaley and Hagadera) which are in Fafi and Dadaab sub-counties of Garissa County in Kenya. DRC would like the consultant to calculate the daily rate for BDS services to include all costs. The bidding requires CVs of the specific consultant(s) who will provide the BDS services, these consultants may not be replaced without the written approval from DRC.

Duration, Timeline, and Payment

The project is expected to last for 7 months, with final report to be provided within 30 days of finalization of BDS provision and community engagement.

Deliverable

Upon signing of the contract and delivery of an agreed Implementation Plan (Inception Report) and a detailed implementation manual including the aforementioned components at a minimum (components 1&2 in the expected deliverables).

Upon provison of BDS to 250 of the target MSMEs expected to happen after 6 months of implementation.

Upon DRC Kenya approval of the final report

Proposed Composition of Team

• Project Manager
• Trainer (s)
• Technicians

Eligibility, Qualification, and Experience Required

1. The successful candidate(s) must be able to work independently to deliver the required outputs, working with a variety of internal and external stakeholders. Qualifications will include:

• A minimum bachelors degree in development studies/social sciences or related field from a recognized university
• A demonstrated minimum of 5 years of similar experience in BDS provision
• Hands-on experience, knowledge, and skill in: BDS provision, Working with start-ups and MSMEs.
• Experience and familiarity with challenges facing start-ups and enterprises, and barriers to formalization and growth in a displacement affected persons context.
• Demonstrated experience and understanding of displacement-affected communities and their financial needs.
• Excellent analytical, technical, and conceptual knowledge of business management, as well as a strong grasp of business management principles and practices
• Regional existence (in the project implementing woredas) and a team that is familiar with local contexts and can communicate in the local languages of the region.
• The capacity to conduct BDS for more than 350 SMEs within 7months, with the potential to implement simultaneous BDS in different woredas, is a plus.

Technical supervision

The selected consultant will work under the supervision of: Project Manager-ABLIG II

Location and support

The assignment shall be conducted in Dadaab Refugee Complex and the surrounding host communities

The consultant will provide his/her own computer and mobile phone.

Travel

The partner/company representatives shall be required to travel around Dadaab refugee camps; Dagahaley, Ifo, Ifo 2 and Hgadera and hosting communities. The partner company’s consultants will therefore be expected to arrange transportation, accommodation, insurance, food and make adequate provision for this in the Financial Proposal.

Evaluation of bids

All bidders will be scored on a scale from 1 – 10 for each of the below criteria and will be assessed for profile and qualifications (document 1), technical approach (document 2), and similar experience (document 3). Bids will be scored according to the criteria below for the initial screening.

DRC will conduct reference checks from at least 2 previous works as an additional mandatory requirement prior to contracting.

Please find complete bidding document in the following link: RFP 317781 PROVISION OF BUSINESS DEVELOPMENT SERVICES (BDS) CONSULTANCY