EXPRESSION OF INTEREST
ZDA/MSME/001/2021: REQUEST FOR EXPRESSION OF INTEREST FOR THE DEVELOPMENT OF THE GOVERNANCE CHARTER FOR THE PROPOSED TRADE AND INDUSTRIAL DEVELOPMENT FUND
1.0 BACKGROUND
The Zambia Development Agency (ZDA) is a Statutory Body under the Ministry of Commerce Trade and Industry (MCTI) charged with the mandate to promote trade and investment and facilitate enterprise development to enhance business competitiveness.
The ZDA with support from the Government of Finland through the Accelerated Growth for SMEs (AGS) Programme being implemented through the Ministry of Commerce, Trade and Industry (MCTI) seeks the services of a consultant to undertake the task of development of a governance charter for the proposed Trade and Industrial Development Fund (TIDF).
The imperative to operationalise the TIDF is premised on Government’s recognition that, while the economy has performed strongly over the last 10 years (with annual growth in GDP averaging 6%). The contribution of local business enterprises particularly Micro, Small and Medium Enterprises (MSMEs), smallholder farmers and cooperatives to economic growth has remained low.
One major constraint towards higher performance of local business enterprises has been limited access to affordable medium- and long-term business financing. It is estimated that less than 25% of MSMEs, smallholder farmers and cooperatives are able to access business finance from commercial banks and other non-banking financial institutions. Equally Micro Financing Institutions are too expensive with interest rates normally averaging 30% per month. There are few Development Finance Institutions in Zambia with a specific mandate to support Growth Oriented Enterprises with adequate portfolios to meet the huge demand for affordable medium and long term business finance. Additionally a significant number of local enterprises have a weak asset base to use as collateral to secure business financing. Further, the preconditions placed by development finance institutions to borrowers have proved to be an impediment to most of the local business enterprises.
Driven by its mandate to accelerate industrialization and diversification of the economy, the ZDA has extensively consulted with public and private investors with a view to attract investment to operationalize the TIDF. The consultative process has triggered traction to develop a Governance Charter that will be employed to operationalize the TIDF.
2.0 PRE - QUALIFICATION
The Agency is therefore inviting firms to express interest to develop a Governance Charter for the proposed Trade and Industrial Development Fund.
3.0 GOAL
The goal of the governance charter is to operationalize the Trade and industrial Development Fund for the Zambia Development Agency.
4.0 OBJECTIVE OF THE ASSIGNMENT
The specific objectives of the Assignment are as follows: • Documentation of local and international best practices in fund management;
• Develop a Development Fund Governance Charter, including financial products (debt, equity and mezzanine finance); provide a financial model for the fund and sustainability strategy – including exits from equity positions;
• Develop a fund capitalization strategy and model; • Identify staffing, technical and system requirements for ZDA to effectively manage the fund – or a suitable implementing partner to manage the fund on behalf of ZDA;
• Craft an operational manual that will be employed to drive the Development Fund; and
• Train the Board and Management of the Development Fund on how to use the operational manual.
5.0 SCOPE OF WORK
The scope of work is as follows:
• Draft a Governance Charter that will be employed to operationalize the Development Fund;
• Draft a Standard Operational Manual (SOP) for operationalization of the Development Fund; and • Draft a Fund Capitalization Model.
6.0 DURATION OF ASSIGNMENT
Eight (8) Weeks
7.0 QUALIFICATIONS/EXPERIENCE
The following are the minimum qualifications and experience requirements:
Corporate Competencies
• Registered legal entity with Patent and Company
Registration Agency (PACRA);
• Minimum 10 years of experience in carrying out similar assignments at Institutions in Zambia and/or other African countries; and
• Previous undertaking for similar assignments for reputable institutions. Task Team Leader
• A Masters Degree in Economics, Business Administration, Banking and Finance, Entrepreneurship and/or other relevant field; • Excellent writing and communication skills; • Minimum of 5 years’ experience in Development Finance, MSME Banking, and Fund Management; • Minimum 10 years of experience in MSME Development, Export Development, Import Substitution Development and leading teams in similar assignments;
• Ability to engage high level officials in the public, private, bilateral and multilateral sectors to secure buy in for strategy; and
• Ability and experience to deliver quality reports within the given time.
Team Members
• Minimum Masters Degree in Economics, Business Administration, Entrepreneurship and/or other relevant field;
• Hands on experience in Development Finance, MSME Development, MSME Banking and Fund Management; and
• Minimum 10 years’ of experience in similar works.
8.0 PROCUREMENT METHOD AND ELIGIBILITY
The Procurement method is Open National Selection. The firms once shortlisted will be issued with Requests for Proposals and evaluation of firms will be based on Quality Cost Based Selection (QCBS) method. In this vein, TECHNICAL AND FINANCIAL PROPOSALS MUST NOT BE SUBMITTED AT THIS STAGE.
9.0 SUBMISSION
Interested and eligible bidders may obtain further information from the Procurement Unit, Zambia Development Agency Offices, Privatisation House along Nasser Road, Lusaka. The telephone numbers are +260 211 222858 and +260 211 220177. The Expression of Interest documents sealed and clearly
marked: “ZDA/MSME/001/2021 – EXPRESSION OF INTEREST FOR THE DEVELOPMENT OF THE GOVERNANCE CHARTER FOR THE PROPOSED TRADE AND INDUSTRIAL DEVELOPMENT FUND” must be deposited in the Tender Box situated on the Ground floor of Privatisation House on or before 10:30 hours, 19th January, 2021. Interested firms must submit one (1) original and four (4) hard copies of the Expression of Interest Documents.
The Expressions of Interest submissions will be opened immediately thereafter in the Meeting Room situated on the Ground Floor, Privatisation House, Nasser Road, Lusaka in the presence of bidders or their representatives who choose to attend. HOWEVER, ELECTRONIC AND LATE SUBMISSIONS WILL NOT BE ACCEPTED.
Nyadiyondi Chinambu Moyo Manager – Procurement For/ Director General