Consultant - Financial Services Impact Assessment

Deadline to apply: April 1st, 2015

Program: Revitalizing Agricultural Incomes and New Markets (RAIN) Program

Program Duration: October 2011 – September 2015

Donor: United States Department of Agriculture (USDA)

Location: Uganda, Acholi Sub Region, Lamwo District

Proposed Study Timeline: April 2015 (30 days)

Background

Mercy Corps, an international relief and development agency that exists to alleviate suffering, poverty and oppression by helping people build secure, productive and just communities, has been running programs in Uganda since 2006. With support from the United States Department of Agriculture (USDA), Mercy Corps has been implementing a four year agriculture-focused market development program called Revitalizing Agricultural Incomes and New markets (RAIN) in Acholi region of Northern Uganda. The program was initially implemented in Lamwo district with expansion at later stage to Kitgum, Pader and Agago districts. The goal of the RAIN program is to stimulate economic prosperity and food security in Northern Uganda by improving the performance of the agricultural sector. The program has three strategic objectives:

1 Increase agricultural productivity and profitability of small holder farmers 2 Improve agribusiness and trade performance in key input and output markets 3 Expand access to rural financial services

The program targets 50,000 small holder farmers, 140 agribusinesses in the agriculture input and output sectors, five financial institutions, 500 Village Saving and Loan Associations (VSLAs), and four radio stations. The program uses a Market Systems Development (MSD)/Making Markets work for the Poor (M4P) approach working in partnership with a range of market players in the supporting functions and rules and regulations of the targeted markets. The key commodities RAIN targeted include, but are not limited to, sesame, cassava, beans, rice, maize, sorghum and ground nuts.

Financial Services is one of the key pillars of the RAIN program. The sector works to improve access to and usage of financial services for small holder farmers (Objective # I) and agribusinesses (Objective # II). During program inception in 2012, Mercy Corps commissioned an external evaluation to assess the landscape of the financial services market in Acholi region. The study looked at coverage, demand side and supply side constraints of access to finance in target districts of Kitgum, Pader, Agago and Lamwo. In-house assessment/performance rating of VSLAs has been undertaken to gauge their level and inform interventions including linkages with financial institutions. The information has been shared with a range of financial institutions.

The program works with a range of financial institutions with a focus building institutional capacity though trainings, support to improve systems and structures; equipping/logistics support and branch expansion; product development/modification; support outreach strategies in the form of consumer education and financial literacy; partial loan guarantee mechanisms; facilitating linkages; and market research and information sharing among others. The program established formal partnership and has been working with three financial institutions including a bank and two Saving and Credit Cooperatives (SACCOs) in the region. Value chain and supply chain financing are aspects that the program promoted through established network of business actors in the input and output sectors.

Mercy Corps Uganda, under the RAIN program is planning to conduct a financial services impact study in order to assess progress towards improved access to financial services and products for small holder farmers, VSLAs, and agribusinesses in the program target districts. Mercy Corps is hence looking an international consultant to lead this process.

Objectives of the assessment

1 Assess program attributed access to financial services by rural households and agribusinesses and its impact on household’s income and business performance as well as unintended impacts. 2 Program attributable changes in the business behavior, attitudes, and operational efficiency of the targeted financial institutions most importantly SACCOs and any overall systemic changes for financial services including potential crowding in 3 Assess the cost effectiveness (value for money) of the financial services sector under the program and assess the effectiveness, impact and lessons from specific models the program promoted

Methodology

The study will cover Lamwo, Kitgum, Pader and Agago districts in Acholi sub region. The consultant will work closely with the RAIN program team in redefining the study scope, tools development, identifying sources of information, defining data needs, and data collection using a MSD/systemic change lens. The study is expected to be a learning process with active involvement of relevant RAIN team members including financial services, M&E and sector leaders. The study will engage financial institutions (partnering with RAIN program), clients (VSLA groups, farmers and agribusinesses) and other relevant stakeholders.

The evaluation will employ both qualitative and quantitative methods. Review and analysis of secondary data from RAIN program and financial institutions will be complemented by a small scale beneficiary based survey in the program operational areas. Focus group discussions, key informant interviews with management of FIs, executive members of the board of SACCOs, District Commercial officers and private sector partner and interviews with financial institutions’ staff and management. The consultant is expected to consolidate and present the proposed methodologies and tools to Mercy Corps team for validation and approval prior to field work.

The consultant is also expected to investigate for potential program unsupported crowding in of financial institutions and copy cats in the operational areas of the program partner financial institutions.

Existing Sources of Program Information

• Project documents


• Financial access study document


• Financial services other sectors results chains (theories of change) and strategies


• VSLA assessment reports


• RAIN baseline and mid-term evaluation reports


• Assessment data, case studies and reports


• Biannual reports


• Program detailed implementation plan


• M&E frameworks and monitoring database


• Reports/data from partner financial institutions

Specific Tasks

The consultant will do the following:

• Review and comment on the TOR using a MSD/systemic change lens.


• Compile and review background documents


• Conduct interviews with key Mercy Corps Uganda senior management team and field team to get better understanding of the country strategy in general and financial services sector under RAIN program in particular


• Lead inception meeting with the RAIN team to clarify theory of change for the financial services sector and jointly redefine the study scope including tools development, sources and types of information, plans for data collection and analysis, and develop clear work plan


• Analysis of existing program data and data from the financial institutions


• Data collection through FGDs, interviews and survey questionnaire


• Analysis and presentation of preliminary findings to the MC team in the field and Kampala


• Preparation and submission of draft and final study report in both hard and soft copies using agreed up on template to Mercy Corps

Time allocation for the study will be as follows: inception and design phase (5 days), field data collection analysis and preliminary findings presentation (12 days) and report writing (8 days).

Key Deliverables and reporting

The consultant will provide the following

• Refined study plan


• Data collection tools


• Study report written in English and that encompasses background, methodology, findings, recommendations, and relevant annexes.


• Electronic file of the cleaned qualitative and quantitative data

Period and Place of Consultancy:

The assignment is planned expected to take 25 days and will be carried out in the month of April 2015. It will also involve meeting financial institutions and a range of business actors that are working with the program and located outside of the target districts.

Consultant reports to:

The consultant reports to the RAIN Program Chief of Party and works closely with the Monitoring, Evaluation and Learning (MEL) Manager and Financial Services Specialist.

Consultant Profile

The successful consultant will have following qualifications.

• Demonstrated knowledge of rural financial services backed by experience in familiarity with Ugandan financial services market and agribusiness sector


• Demonstrated understanding of market systems development/M4P approach


• Advanced academic qualification in finance, business administration, economics, economic development


• Experience conducting similar studies


• Experience in program evaluation


• Familiarity with the study area including the local economy and existing financial service systems


• Excellent analytical, research, writing and communication skills; strong visual presentation skills preferred.


• Language skills: professional capacity in English

Applicants must submit the following documentation: technical and financial proposal that defines among others understanding of the terms of reference, methodologies, and costing of planned activities, examples of similar assignments, curriculum vitae, and expected consultant fees on a per day basis and terms of payment.