Background Information and Rationale
DCA Kenya country programme has been providing business and entrepreneurship skills training to refugee and host population youth in Kakuma Refugee Camp and Kalobeyei Settlement since 2017, adopting a blended learning approach. From the project evaluation and learning from other existing entrepreneurship models, it is evident that lack of capital is the main impediment for young entrepreneurs to start, grow and expand their enterprises as the natural next step after skills development. To fill this gap, DCA aims to design and test a Youth Enterprise Fund (DCA YEF) that can receive individual donations and disburse loans as a sustainable capitalization model for youth entrepreneurs in Kakuma Refugee Camp and Kenya at large.
While loan repayments will be one way to replenish the fund, it is envisaged that individual donations will serve as another channel to finance and grow the fund. However, DCA acknowledges its current limitations to receive such individual donations only from Danish people and companies, but not from overseas (non-Danish), due to international taxation barriers and its internal systems and procedures. As such, our aim is for the DCA YEF to address two main problems; a) inadequate funding for youth entrepreneurs in our context b) the current inability of DCA to receive overseas individual donations for such support.
In this regards DCA Kenya is seeking the services of a consultant to:
a) Identify and conduct a comprehensive analysis of different models of capitalisation through revolving funds, including but not limited to those targeting refugee and host community populations.
b) Lead a participatory project design process, integrating recommendations from the analysis with context-specific considerations to develop the best-fit model for the DCA YEF in Kakuma and Kalobeyei.
c) Make further recommendations related to potential upscaling and further replication of the model across other DCA programmes.
Purpose of the assessment
The purpose of this assignment is to identify different models for establishing a YEF and recommend the best fit for DCA in terms of receiving donations, disbursing loans, managing the fund, creating partnerships and alignment with DCA internal procedures. The key objectives of the consultancy are to;
Assess and evaluate evidence and learning from similar funds, both in Kenya and elsewhere, and make recommendations for the DCA YEF based on data and best practices.
Identify different models for the DCA YEF and highlight their merits and demerits, risks and assumptions. Key considerations: compliance with DCA NGO registration in Kenya, tax implications, impact on the current market among others.
Recommend best fit within the context of Turkana and Kenya in general for DCA in terms of receiving donations, disbursing loans, revolving fund management mechanisms, partnerships and alignment to DCA internal procedures.
Based on the above, recommended best-fit model, develop roll-out costed plan for the DCA YEF considering the goal of scaling and replication to other countries, future opportunities and risks. Recommendations on the operationalization of the plan should also be included.
Scope of Work
The consultant will conduct a review of existing and potential models considering that the purpose of the DCA YEF will be two-fold: a) to accommodate overseas and local, individual donations and b) for disbursing loans to – and receiving repayments from - youth entrepreneurs. The consultant will propose different models for DCA, and their critical risks and assumptions. The consultant will eventually recommend the best-fit model for the DCA YEF and will engage an internal DCA project group (headquarters and different country office stakeholders) throughout the assignment duration and finally in a workshop towards the end of the consultancy.
Time Frame
This exercise will take at most fifteen (15) working days effective from 20th August 2020 inclusive of preparation time, information gathering, synthesis, report writing and workshop to review models and decide best fit for DCA.
Deliverables
This assignment will result in a best-fit model for the DCA YEF that can receive individual donations and disburse loans to youth entrepreneurs. The final report will also cover management, partnerships, and internal procedures required for such a fund in DCA, including a projection of upscaling and replication. The deliverables for this assignment will be;
• An inception report including the work plan, detailed methodology or approach for the review and synthesis of existing/potential models.
• Presentation of preliminary findings with appropriate models and key considerations for the DCA YEF.
• Hold a remote workshop with the project group to review the models.
• Final report on the best fit-model for DCA, highlighting the potential risks, including a costed workplan for roll-out. The model should be aligned to the CRRF (Comprehensive Refugee Response Framework) and KISEDP (Kalobeyei Integrated Socio-Economic Development Plan).
Methodology
• Review of existing models of funds (revolving loans, grants, etc.) dispersed in different organizations/ institutions and different countries, as well as different models for receiving grants and investments etc. from overseas individuals.
• Meetings with different and relevant experts and institutions on different funds models to share their knowledge, perspectives and experiences.
• Close engagement with the project group to validate and test ideas and models to share their knowledge and perspectives.
• Interviews with key persons at DCA Headquarters in Copenhagen to align with internal procedures, principles and processes
• Hold a remote project group workshop to identify the best-fit model for DCA
Yet, the envisaged methodology above should not limit the interpretation of the ToR. The consultant can propose a methodology relevant for this assignment.
Desired Qualifications
- Education: A multi-disciplinary consultant(s) with a master’s degree in a relevant discipline in Youth Entrepreneurship, Business Management, Business Administration, Organizational Development, or any field related to Social Sciences (or equivalent).
- Experience: At least 5 years’ experience in conducting consultancies and research in financial and business models in humanitarian and/or development sector.
- Expertise: Proven expertise in undertaking multi-programme/country review and analysis, management systems, and developing loan schemes/revolving funds models is essential. Proven expertise/experience in innovative project design, organizational development, change management, or institutional mapping is an added advantage.
- Proven project design/development experience, multi-stakeholder engagement, leading design sprints, and leading design workshops – experience doing so remotely through the use Zoom, Teams, Adobe Connect, MURAL or other digital workspaces to promote active collaboration remotely highly beneficial.
- Excellent communication, analytical and process moderation skills and able to interact with participants across contexts.
Suggested timeline
The envisaged assessment period is 15 days during the month of August 2020 and September 2020 distributed around time for preparation, start-up meeting with intended user, field work, travel, and report writing.
Reports
The final assessment report shall be delivered on or before 5th September 2020, and a specified format will be shared with the successful bidder. Failure to comply with this format is considered breach of these Terms of Reference.
Throughout the assessment process, DCA should be updated every 3 days on the progress – through an online meeting. This will then be documented post the online meeting an email or half a page would suffice as the progress report supplemented by field notes as relevant.
General terms and conditions of consultancy
· Professional fee: The consultant(s) will be paid professional fees in accordance with this TOR and within DCA’s approved rates, which will cover all costs of the consultant including travels, food, accommodation, etc.
· 5% withholding income tax payable to the Government of Kenya (GoK) shall be deducted from the consultants’ fees during payment when relevant.
· A contract will be signed by the consultant(s) prior to commencement of this consultancy which will detail additional terms and conditions of service, aspects on inputs and deliverables.
· Full term of consultancy: document review, field work small groups consultation, workshop and report writing should not exceed 20 days.
Other specifics on who makes decisions on what and what resources does DCA mobilise to support the assessment, e.g. logistical support will be contained in the consultancy contract.
Budget and Payment
· The consultant(s) will receive remuneration under the following terms of payment, which will be based on the output of the work and not on the duration that it might take:
· This task is projected to fall within 15 consultancy days
· 30 % of the total consultancy value (including withholding tax) shall be paid upon signing of the contractual agreement.
· The remaining 70% (including withholding tax) shall be paid after a final satisfactory report and other outputs are submitted and satisfactorily signed off by DCA.
Expression of interest and proposal
All expressions of interest should include:
Technical Proposal:
Brief explanation about the consultants (s) with evidence of previous experience in this kind of work; profile of the consultancy firm to be involved in undertaking the consultancy; understanding of the TOR, the task to be accomplished as well as draft consultancy framework and plan and at least three referees.
Financial Proposal:
The financial proposal should provide cost estimates for services rendered including daily consultancy fees related to the consultants excluding accommodation and living costs; transport cost, stationeries, and supplies needed for data collection; costs related to persons that will participate from partners and government officers.
Expression of Interest:
Interested consulting firms should submit, by email, a technical and financial proposal for this consultancy by 9th August 2020.
This task is expected to take place within the month of August and September 2020.
How to apply:
HOW TO APPLY:
Contact persons:
In case of any questions, or need for clarification, please write to:
Patrick Kibuku, Head of Program: patrick.kenya@dca.dk
All applications to be send to this email address not later than 9thAugust 2020: gewa@dca.dk **