Request for Proposal

Terms of Reference
for
Consultancy

Date of issue: 8th March 2024

Project title: Market Study and Business Plan

Development – SME-Ecosystem
Deadline for submission of offers: 31st March 2024

Contracting authority: FCA Investments – Ethiopia Office

Kenya.Tender1@kirkonulkomaanapu.fi

1 Introduction & Background

FCAI is an impact investor, meaning that all our investment decisions are evaluated on their projected
impact together with the expected return. We are sector indifferent but seek to direct our investments
towards sectors that have maximum impact potential for similar levels of risk and return. These sectors
may include agriculture and food production, health care, water and sewerage, waste management,
education, small-scale industry, logistics, renewable energy, financial services for small entrepreneurs,
micro franchising, Finn-Tech, etc.

FCAI is 100% subsidiary of FCA, which is the largest Finnish international aid organisation. FCAI seeks to
build on the core competencies of FCA which has been in operation for 70 years and leverage these to
ensure that the investments we make are not only sustainable but that they have a significant positive
impact on the people in the countries we operate in.

For more information, please visit: www.fcainvestments.fi

1.1 Background of the requested services

FCA Investments (FCAI) is seeking a qualified consultant to conduct a comprehensive market

study and develop a business plan for our project concerning the Ethiopian Small and Medium
Enterprise (SME) ecosystem. The study aims to map the business environment, investment
climate, key actors, cultural aspects, and attitudes prevalent in Ethiopia.

2 Objectives of the requested services

 Conduct a market study to map the Ethiopian SME ecosystem, utilizing desk research, individual
interviews with key development actors/financiers, and government institutions in Addis Ababa
and other cities.
 Analyze quantitative and qualitative data and prepare a final document.
 Record identified key partners in a partner database.
  Research economic, technical, organizational, legal, and scheduling factors, vulnerabilities, and
obstacles related to the intended operations in Ethiopia through desk research, interviews, and
focus group discussions.
 Design and implement surveys, interviews, and focus group discussions.
 Conduct a desk search and a survey with at least 50 respondents.
 Conduct interviews with 25-30 key stakeholders.
 Moderate focus group discussions.
 Collect and analyze data to prepare a comprehensive feasibility study.
 Moderate and provide information about the Ethiopian context at the business model workshop.
 Compile a detailed business plan based on the gathered information.

3 Methodology

The consultant should employ a mix of qualitative and quantitative research methods, including desk
research, interviews, surveys, and focus group discussions. The methodology should be clearly outlined
in the related reports. It is mandatory that the consultant is present in the country and knowledgeable
about the context.

4 Reporting and deliverables

The consultant will report to the Project Manager at FCAI (based in the country) and provide regular
updates on progress. Drafts of the market study, partner database, feasibility study, and business plan
should be submitted for feedback at agreed-upon milestones.

4.1 Key Deliverables:

a) Report and a database of Ethiopian SME ecosystem’s three elements: -

i. The business environment and investment climate
ii. Interacting actors,
iii. Culture and attitudes

b) Feasibility study
c) Business plan
d) Report all activities in a final report (Fill in the related template)
e) Brief monthly reports that contain progress towards objectives, possible concerns, and risks to
successful project implementation and how many workdays (s)he has used.

5 Duration of contract

The consultant is expected to complete the tasks within 8 (eight) months, starting from 2nd of
May 2024. The final deliverables, including the market study, partner database, feasibility study,
and business plan, should be submitted no later than 31st of Dec. 2024.

6 Budget

The financial proposals shall not exceed the total budget limit of (€83,000). The payment will be
made in Ethiopian Birr based on the exchange rate at the time of payment and inclusive of any
related fees or changes. Submissions exceeding the budget limit will be excluded from
evaluation.

Applicants’ proposals must include a detailed and competitive budget inclusive of all fees, costs

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and taxes. The tax contributions of the consultant (e.g., withholding taxes) will be deducted from the
payment as per the local law.

7 Validity
Offers shall remain valid and open for acceptance for a period of 30 days after the closing date for the
submission.

Prior to the expiry of the original offer validity period, the Contracting Authority may ask candidates in
writing to extend this period. Candidates that agree to do so will not be permitted to modify their offers. If
they refuse, their participation in the process will be terminated.

8 Payment Modalities

Description Terms of Payment

Submission and approval of the inception report, 40% of contract sum
data
Completion of field work, submission, and approval 30% of contract sum
of the 2 nd draft report
Validation of report, submission, and approval of 30% of contract sum
final report

9 Administrative Compliance

For the Evaluation Process to commence the Prospective candidates will first be subjected to an
administrative compliance by the procurement Committee.

Those who fail to qualify in the administrative compliance stage will automatically be disqualified and will
not proceed to the Evaluation stage.

Interested candidates are requested to submit their documents as follows:

a. Individual applicants/ Candidates

 Valid Tax compliance Certificate
 Up to date Curriculum Vitae
 Individual Portfolio

b. Firms/ Companies
 Up to date Company Profile
 Valid Trading License/ Business Permit
 Company Registration certificates
 TIN Certificate and other Valid Tax compliance Certificates
 Up to date curriculum Vitae of the Lead Consultant(s) and the support team where applicable.

10 Required Expertise and Qualifications

 The consultant should have:

 Demonstrated experience in conducting market studies and developing business plans,
especially in the context of SME ecosystems.
 In-depth knowledge of the Ethiopian business environment.

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  Strong analytical and research skills.
 Excellent communication and report writing skills.
 Fluent in both English and Amharic
must also include:
i. At least three professional references and their full contacts,
ii. Up to 3 examples of previous similar consultancy (from recent evaluation work)
iii. Up to 3 recommendations from previous contract providers and full contact details
of the referees.

11 Contract Award Criteria

The offers will be evaluated according to the contract award criteria below:

# Description Weight Scoring Methodology

1 Skills and expertise (qualification /
expertise, relevant thematic knowledge,
education level, and others as relevant)
30% Bsc. Degree and somewhat relevant
education and knowledge lowest.
Bsc. Degree and very relevant education
or Masters’ Degree and somewhat relevant
education and knowledge – scores 0.7.
Masters’ Degree and very relevant
education and knowledge – highest

Information from the CVs will be used as

the basis for the scoring.
2 Consultant Experience in dealing 40% 5 Years’ Experience – scores 0.5
with/leading similar projects -5-7 Years’ Experience - scores 0.7
Over 7 Years’ Experience 1.0

Information from the CVs will be used as

the basis for the scoring.
3 Financial Proposal 30% Lowest bid receives highest score. Other
candidates’ scores are calculated
proportionally based on the lowest bid.

11.1 Evaluation Process

The evaluation process is managed by FCAI’s Procurement Committee.
Candidates will be first evaluated according to the requirements in section 09 Administrative
compliance and 10 - Required Expertise and Qualifications. Candidates who are eligible will be
allowed to proceed to the evaluation phase and their offers will be evaluated according to the contract
award criteria in section 11.

12 Questions
Candidates are not allowed to approach the Contracting Authority for verbal clarification.
Any prospective candidate seeking to arrange individual meetings with either the Contracting Authority
and/or any other organisation with which the Contracting Authority is associated or linked will be excluded
from the process.

Candidates may submit questions in writing through the email Kenya.Tender1@kirkonulkomaanapu.fi in

section 15 latest three days before the deadline.

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13 Terms of contract

 Confidentiality – Final product of this evaluation is a property of FCA/FCAI.

 The Consultant is responsible for payment of all social costs, other employment related
costs and insurance contributions and for all other liabilities of a statutory nature.
 FCAI/FCA will cover costs related to traveling (e.g., transportation, per diems, security
costs, if need be, accommodation)
 The Consultant and the enumerators will have to abide by FCA Code of Conduct, Child
Safeguarding policy and any other relevant policies.
 The Consultant will provide a debriefing session to wide audience including Helsinki
based FCAI staff on the main findings and recommendations.
 The ownership and copyright(s) of the end term report and any other produced material will
remain with FCAI.
 The Contracting authority may for its own convenience and without charge or liability cancel the
process at any stage.

14 Documents comprising this procurement

The candidate(s) shall complete and submit the following documents with the offer:

 Technical proposal (in English language) detailing the consultant’s understanding of the task,
proposed methodologies, expected activities and deliverables, proposed workplan, and the
composition of the consultancy team to be engaged.
Applicants must also include:
iv. At least three professional references and their full contacts,
v. Up to 3 examples of previous similar consultancy (from recent evaluation work)
vi. Up to 3 recommendations from previous contract providers and full contact details
of the referees.
 Financial proposal detailing the costs in Euros that the consultant expects to be required to
complete the assignment. The consultant is expected to account for all logistics and travel
costs associated with the assignment.

 Administrative Compliance documents (refer to section 9).

15 Application procedure

Submission of Proposals

Interested consultants are to submit their administrative compliance documents, technical

and financial proposals in a single consolidated document through the email below by 31 st
March 2024 to Kenya.Tender1@kirkonulkomaanapu.fi .

In case of any technical difficulties, please contact Kenya.Tender1@kirkonulkomaanapu.fi.

Incomplete, or partial bids will be rejected.

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