Request for Application (RFA)-C301

Expand mobile money agents and customers in the Oromia region East and West Harerge Zone

1. Background: -

RAISE -DFS (Resilience and Income for Smallholders in Ethiopia through Digital Financial
Services) is a 3-year financial inclusion project funded by Jersey Overseas Aid. Through RAISE-
DFS, Mercy Corps will catalyze a transformation in digital and Sharia-compliant financial services
in the lowlands of Ethiopia. The central methodology underpinning the RAISE-DFS project will be a
Market Systems Development (MSD) approach. This means that Mercy Corps’ role will be as a
facilitator, focusing on catalyzing sustainable and systemic change in the operations and business
practices of Financial Institutions (FIs) that result in the delivery of improved products and services
for vulnerable populations, in particular women. By using an MSD approach, Mercy Corps will
ensure that these changes in business practices will be owned and driven by the FIs themselves,
including a substantial financial investment using their capital, so that the new products and services
will continue to be provided by the FIs after RAISE-DFS ends to make financial services and
products accessible to unserved community members, particularly for rural women.

The Overall Objective of the project is “Increased incomes and enhanced resilience for rural
households in the lowlands of Ethiopia, through increased savings, investment in agricultural
productivity, and diversified business opportunities.” Therefore, to achieve the overall objective
of the project three outcomes should be accomplished and here are stated as follows: -

Outcome 1: - Financial institutions (FIs) develop the systems and capacities to deliver inclusive and
resilient Sharia-compliant and digital financial services.

Outcome 2: - Rural HHs and market actors in agricultural value chains use appropriate and
affordable credit and savings products and services.

Outcome 3: - Rural HHs have the means, skills, and confidence to access, use, and benefit from DFS
and Sharia-compliant services.

2. Objective of Call for Applications

The objective of this call for applications is to: - Create access to financial services for vulnerable
women, youth, and men in the Oromia East & west Harerge zone, with a particular focus on
expanding mobile money agents and customers. Thus, Mercy Corps invites applicants from existing
MFIs, banks, digital financial service providers, mobile money operators, and others who are
interested in strengthening the expansion of stand-alone and embedded financial services for
vulnerable women, youth, and men located in the Oromia region East & West Harerge Zones. Hence,
applicants should consider addressing the target groups living in either of the following four
woredas: -
 a. Babile woreda
b. Gursum woreda
c. Mieso woreda
d. Bordede woreda

3. Criteria for application

The applicants must fulfill the following ELIGIBILITY criteria: -
 Registered business entities (from the above-mentioned institutions) under Ethiopian law
with recently renewed business licenses from the relevant authorities.
 Financial institutions who can present Audited financial statements for a minimum of three
years.
 Financial institutions established with a Shariah advisory committee, having appropriate
Shariah-compliant products, and delivering IFB (Interest Free Banking) banking services at
least on a window basis.
 Financial institutions that have better outreach /No of branches/ in Oromia region East and
West Harerge zones.
 Financial institutions that have appropriate digital finance products & services for
households and market actors, at least including money transfers, cash withdrawals, buying
commodities, bill payments, and airtime. In addition, financial institutions already introduced
digital loan products have an extra advantage.
 Financial institution that is committed /interested/ in working with vulnerable populations
including women and youths.
 Financial institutions verified financial and other needed resources/capacities (land, human,
technical) to leverage the implementation of the proposed activities. A minimum of 50% of
in-kind or cash contribution of total investment will be required.

Following the rigorous review of the applications based on the criteria, partnership agreements
will be set up with selected business enterprises.

4. Potential activities that could be supported by the Mercy Corps RAISE-DFS project.
Proposed activities should be based on a sustainable business model. The applicant is responsible for
organizing and managing activities with technical and/or financial support from Mercy Corps. The
ultimate result (deliverables) from the activities will be measured by: -
 # of agents recruited.
 # of female agents recruited.
 # of agents who received capacity-building training.
 # of female agents who received capacity building.
 # of wallet accounts/savings accounts/ opened and awareness created.
 # of wallet accounts /saving accounts/ opened to target vulnerable groups. (Rural women’s,
unreached pastoral community).
 Total amount of wallet account /savings mobilized/.
 Total amount of female wallet accounts/savings mobilized/.

Examples of activities that could be supported include but are not limited to, the following: -

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 Agent Recruitment and Training: Recruit and train agents to act as representatives of the financial
institution, ensuring they are equipped with the necessary knowledge and skills to provide quality
service to customers.
Marketing and Promotion: Develop marketing strategies to raise awareness about agency banking
services among target customers, highlighting the convenience and accessibility of the services.
Customized Products and Services: Tailored existing digital finance products and services, to meet
the specific needs of customers in the target markets, considering factors such as income levels,
literacy levels, and digital access.
Improve Shariah Advisory Committee skills and capacity: - Strengthen the capacity of the Sharia
Advisory Committee to be actively involved in the supervision and guidance of Shariah-compliant
digital financial services.

Risk Management: Develop risk management protocols to mitigate potential risks associated with
agency banking operations, such as fraud, cybersecurity threats, and operational disruptions.
Customer Education: Provide comprehensive education and training to customers on how to use
agency banking services effectively and securely, including financial literacy training.
Expand agency banking customers and mobile money users/MoMo/: - By implementing
strategically designed activities, financial institutions should expand their mobile banking customer
base and increase mobile money users, which drives digital transformation and financial inclusion
within vulnerable communities.
Increase the number of female agents: - Female agents can help improve access to financial
services for women, who may feel more comfortable conducting transactions with someone of the
same gender, especially in culturally sensitive or conservative societies. increasing the number of
female agents in a financial institution not only benefits the institution, by expanding its customer
base and market reach but also contributes to broader social goals of gender equality, financial
inclusion, and economic empowerment.
Create access to agency banking services in potential VSLA (Village Savings and Loan
Associations) Group locations: - Establish agents where MFI/banks limited access and potential
VSLA groups are largely found. It is crucial to enable VSLA groups to link with formal financial
institutions and access financial institution products and services easily.
Monitoring and Evaluation: Implement monitoring and evaluation mechanisms to track the
performance and impact of agency banking services, allowing for adjustments and improvements as
needed.
The above lists are not exhaustive hence the applicants are welcome to propose any other innovative
activities that will contribute to fulfilling the intended goal. Hence, the lists are simply to provide
examples of company initiatives that could be supported by Mercy Corps. Any additional ideas or
combinations of ideas or activities are encouraged, and all ideas will be considered if they are aligned
with the main objective of this call.

5. Maximum amount of award and cost share requirements

- The financial institution will take a significant share. Grantee expected to contribute equal amount of
Mercy Corps program contribution (i.e., 50 % of the total investment costs); and
- The business enterprise that leverages/is willing to cost share above the minimum contribution (50%)
will be encouraged and prioritized during the selection process.

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6. Areas not eligible for funding

- Financial support for working capital costs e.g., rent, regular employee salaries for existing/new
permanent staff, and other operational costs of the business such as transportation and related.
- Financial support for the purchase of the items deemed as restricted items by the European
Union/EU/. Restricted items include motor vehicles, used machinery and equipment, and other USG
surplus machinery and equipment.

7. Application Collection and review process

MERCY CORPS expects to receive proposals/applications from the entities that meet the above criteria,
through the Mercy Corps Office in Dire Dawa/Addis Ababa by no later than April 24, 2024. Upon receiving
the applications, Mercy Corps will evaluate the proposals using the criteria outlined in Table 1.

The process of evaluating the proposals will be:

- Initial Application Screening: A committee established by Mercy Corps will screen, score, and
rank applications received. Only applications from applicants meeting the ELIGIBILITY criteria will
be screened. The ELIGIBLE applications will be scored using the criteria presented in Table 1
(below); as needed Mercy Corps will consult government agencies to get consent on the selected
applicants mainly on their experience of operating in the area and commitments.
- Application Assessment: Best-ranked projects will be additionally assessed by evaluation
committee members of the Mercy Corps team via on-site verification of the application and the
applicant's due diligence check. Areas that need to be emphasized will be dependent on the type
and nature of the Submitted Concept note.
- Final selection. Budget negotiation and agreement terms

- The Mercy Corps committee will, upon receiving the completed assessments (business plans),
conduct the final scoring and ranking of proposals and make recommendations for support.

Table 1. Score Sheet for Expand mobile money agents and customers in the Oromia region East and
West Harerge Zone

Description of evaluation areas

S/NO Score points

1 Strategic alignment of the proposed business plan to the objective of

expanding mobile money agents and customers in the Oromia region
East and West Harerge zone (50 points)

1.1
Number of new digital and non-digital saving accounts to be opened
targeting vulnerable communities (women and youth) (15 points maximum)

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1.2
Number of digital and non-digital loans provided to vulnerable communities
and market actors to engage in pastoral and agro-pastoral activities. (20
point maximum)

1.3
Number of people receiving awareness on Sharia-compliant digital financial
service products and services using several communication channels such as
physical, electronic, or social media (5 point maximum)

1.4
Number of people receiving digital and financial literacy training (5 points)

1.5
Shariah Advisory committee structured at center and regional presence (5
points Maximum)

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The applicant's Technical and Financial Capacity to expand financial
services for vulnerable people in Oromia region East and West Harerge
Zone (40 points)

2.1
Audited financial statements presented for three consecutive fiscal years (15
points)

2.2
Demonstrated experience in the area and on proposed activities as
mentioned in the proposal (10 points)

2.3
Applicant understands and can implement this project as explained in the
proposal; (5 points maximum)

2.4.
Cost Share: Applicant expected to contribute a minimum of 50% of the total
project investment cost but the maximum point for cost share will be
dependent on the maximum amount of an applicant submitted cost share (10
points maximum)

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Gender Considerations (10 points)

3.1
Experience and interest of the institution to work with women group and
women individual clients (10 points maximum)

Total Score

8. The application process

Table 2: The table below shows the process timeframe for this Call for Applications.

Date Item Details

All are welcome to learn about the opportunity to ask questions and
discuss the details of RFA through a virtual platform.
April 15-2024 Information Meeting
Tentative schedule: April 15, 2024.

contact person: Abiy Habtamu: - Tel 0911-40-03-04

Interested applicants should submit a completed application, with all

April 24 -2024 Applications due
relevant documentation, by no later than this date.

This is the expected date for completion of the eligibility and

evaluation process, which will be conducted by Mercy Corps
selection committees. The evaluation process may include an
interview with the applicant. Before final selection or rejection, the
April 25-26 - Evaluation of Mercy Corps team may conduct negotiations with the applicant to
2024 applications adjust/improve the application to align with Mercy Corps objectives
more closely. This will also include a Financial Review, which may
also be subject to negotiation/revisions. Moreover, the support letter
from the applicant's main business located area respective
government partners will be required as a supporting document

Notification of
April 27-30, The Mercy Corps Team will issue notifications of acceptance or non-
acceptance / non-
2024 acceptance to all applicants.
acceptance

May 15, 2024 Expected date for the Following a negotiation process, final agreements between the
signing of the selected applicants and Mercy Corps will be signed, and project

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 Subaward agreement implementation will begin.

9. Preparation of Applications
The application template is provided below and must be completed by the date listed above. Completed
applications will be accepted in English no more than 15 pages in length (not including cover page, budget,
proof of registration, or other required attachments).
A soft copy of the application will be emailed to interested applicants on request.
Mercy Corps will evaluate all Applications based on the criteria described above. All applicants that meet
the criteria will be considered, however Mercy Corps reserves the right to not accept any applicants if none
are qualified.

Submission process
Interested applicants should submit a hard copy and soft copy of the Application and required documentation
as follows:

● By 5 pm on 24 April 2024.

● Soft copy email to tenders@mercycorps.org

● Please also be sure to include all the requested documents listed in the Application Form template
below.
10. Conditions
Issuance of this solicitation in no way constitutes a commitment by Mercy Corps to execute any
agreement or to pay any costs incurred by any applicant in submitting an application.
Please note that Mercy Corps will fully respect the confidentiality of all companies involved in the
program. If selected, Mercy Corps will establish an agreement with the regional aggregator that describes the
objective of collaboration and clearly defines each party’s respective responsibilities, roles, and obligations.
Successful applicants must be willing to share information with Mercy Corps regarding their performance,
and Mercy Corps will conduct interviews with clients/customers to gather information on impact and to
monitor progress.

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 AWARD APPLICATION FORM

Please enter the relevant information for the Call for Applications being applied for.

Call for Applications (RFA)-C301

Ref #

Call for Applications

Title Expand mobile money agents and customers in the Oromia region East and West
Harerge Zone

Please ensure you complete all sections and attach all required documentation. The Application Form should
be no more than 15 pages in length (not including additional supporting documentation and budget).

1. Applicants contact details (contact person)

Name of point of
1.1 contact for the
applicant

Position of point of
1.2 contact within the
business / institution

1.3 Address

1.4 Phone number

Email address
1.5
(optional)

2. Business / institution information

Name of the business /
2.1
institution

2.2 Year of establishment

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 Description of current
business / institution
2.3
structure and main
business activities

Number of full-time
2.4 staff / part-time
staff/owner of business

Current Financial
2.5
capital of the enterprise

Mission / Objective of
2.6
business / institution

Has your organization

received any financial /
technical assistance
from international
2.7
organizations or NGOs
(if yes, please describe
the content of the
assistance)

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3. Proposed business idea/ activities
3.1. Brief description of proposed business activities, and why it is viable in the current market context.

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3.2. Explain why the proposed activity/business requires support from Mercy Corps

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3.3. Proposed location of activities and target groups disaggregated by sex and age groups (including
number of individual and group suppliers)

3.4. Expected impact of the proposed business activity on the target groups listed in the Call for
Applications (please include economic or social benefits, number of individuals/households benefiting,
and the planned embedded services)

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3.5. Proposed list of activities needed to deliver planned business.

3.6. Describe how the business will be sustainable (Clearly indicate the type of new and/or existing
functions and how the institution will continue to own it and to pay for it now and in the future?)

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3.7. Describe how your track record and experience will enable you to implement the innovation /
activities successfully

4. Budget Summary

Estimated cost of the entire

4.1
business/activities (ETB)

Total request for financing from Mercy

4.2
Corps (ETB and %)

Total financing covered by the applicant

4.3
(ETB and %)

Describe other sources of financing (e.g.,

4.4
bank loan, family loan, own capital)

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5. Supporting documentation
(If they are not available, please provide the equivalent information.)

● Company Profile (if available)

● Copy of renewed business registration documents/license

● Copy of tax registration

● Copy of financial reports for the last two years, including any audit report (if available)

● Support letter from regional/zonal/woreda government office indicating current operation status and
reputation of the enterprise.

● Please include details of the budget, as shown in Annex 1

I HEREBY CERTIFY THAT THE INFORMATION PRESENTED IN THE CONCEPT NOTE IS

ACCURATE AND COMPLETE.

Date_______________________________

Name _____________________________

Title ______________________________

Signature_________________________

ANNEX 1 – Budget Template

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Please include a budget detailing the costs of the proposed innovation/activities, in the format below.

Mercy
Corps Applicant
Item and Description Quantity Unit cost Total Cost Share (%) Share (%)

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