TERMS OF REFERENCE MICROFINANCE PROJECT MANAGER FULL TIME EXPERT MAY 2018 APRIL 2020

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1 TERMS OF REFERENCE MICROFINANCE PROJECT MANAGER FULL TIME EXPERT MAY 2018 APRIL 2020

2 BACKGROUND Description of the Assignment Expertise France is the French public international cooperation agency. It designs and implements projects which aim to contribute to the balanced development of partner countries, in line with the Sustainable Development Goals (SDGs) of the 2030 Agenda. Expertise France has been working in Libya since 2014 through the project SLEIDSE ( which supports entrepreneurs and private sector operators to develop their business and improve their access to finance. Several activities are undertaken to ease the access to funds for Libyan SMEs and small entrepreneurs, including the reactivation of the national guarantee fund and the implementation of a Micro-Finance Institution (MFI). Thanks to the additional support of the Department for International Development of the United Kingdom, Expertise France will assist a Libyan financial institution to launch the very first MFI in Libya: Namaa. The ultimate aim of Namaa project is to provide access to finance to at least 2,500 micro-enterprises within 2 years with up to LYD 10 million to be distributed within the same period. Under this project, beneficiaries are expected to be in capacity to start and/or develop their own income generating activity and to improve their families living conditions. Locally, the project will be run by Assaray Bank that should be responsible for establishing two branches, one in Tripoli and one in Benghazi, to offer microfinance services in Libya. The establishment of the institution and its operating expenses are to be covered by Expertise France through the grant obtained by DFID over a period of two years. The Expert should follow up and provide guidance for the establishment of the branches, as well as, ensure that the branches are offering the services agreed in the contract between Assaray Bank and Expertise France. The expert will be also in charge of meeting the reporting requirements of the donor. The Libyan economy depends heavily on oil revenue and remains largely state controlled and regulated. This dependence makes the economy vulnerable to macroeconomic instability and associated problems because of volatility of the prices of oil. It is currently important to diversify the economy to avoid such problems in the long term. Background for the specific mission In addition, Libyan banks are facing a deep liquidity crisis and their loan activities remain at a very low level toward the private sector. Due to this situation, Libyan microentrepreneurs are not able to scale up their business nor they are able to start any type of small projects. Therefore, an alternative source of finance needed to be developed and this is going to be through providing microfinance services which has not been provided in accordance to the international standards previously in Libya. The microfinance institution identified to carry the implementation of the project is Assaray Bank, while, the technical assistance could be carried by Ethmar Microfinance Institution or an alternative specialized institution in order to ensure a smoother implementation of the project. 2

3 The Libyan microfinance scheme will rely on standard microcredit practices: progressive approach, small loan amounts and short repayment durations, methodologies based on social, cultural and community ties. The project will start from Tripoli and then expand to Benghazi. It will aim in priority women and youth and have an impact on business formalization. The scheme will also provide non-financial services to support client business development and build a close relationship securing high reimbursement rates. The non-financial services could be in the form of providing; individual business counselling services, regular visits to the microenterprise, training modules on business topics such as marketing, accounting, budget management, all of which will be customized and based on the needs identified. The loans to be distributed over a period of two years are to be covered by Assaray Bank, while, the grant obtained by DFID Programme will cover the fixed assets needed to establish the institution and the running expenses over the same period. The expert will be in charge of supporting the establishment of the Microfinance Institution in Libya which is to be run by Assaray Bank and shall be responsible for monitoring and evaluating its operations. The expert shall also have the following responsibilities: Main Tasks - Provide guidance to the overall project - Provide guidance on the structure of the branches - Provide guidance on the structure of the products - Identify international standards and different approaches that have the potential to aid in a smoother establishment of the branches - Help in establishing connections with relevant regional and international technical assistance bodies - Ongoing follow up with the local branches - Ensure that the activities of the local branches are in line with the strategic objectives of Namaa Project - Ensure equality in the distribution of loans - Monthly reporting on the above activities to Expertise France and to the DFID. Deliverables EXPERT PROFILE Profile - A monthly report of the activities - Quarterly narrative and financial report - At least a master degree in finance, micro-finance or international relations. - Minimum 5 years of professional experience in liaison with MFI preferably in a developing country - A sound understanding of international institutions processes and funding opportunities. - Excellent knowledge of financial markets - Sound knowledge of the Libyan context - Sound knowledge of SMEs and Entrepreneurs requirements - Excellent knowledge in Financing, Project management and financial risk 3

4 LOCATION AND DURATION Duration analysis - A general understanding of Islamic finance - Proficient with computer technology - Fluent in English, Arabic and French would be considered as an asset. Up to a maximum of 440 days Period Location Time sheet May 2018 to April 2020 Tunis with frequent trips to Libya (Tripoli and Benghazi). Traveling to Libya will be only possible when security conditions allow and in accordance with Expertise France security requirements. At the end of each month, the expert will present a timesheet which will be signed by the key expert. REPORTING The expert shall submit a monthly report. The report shall include, but not be limited to the following: Draft Report Language Aims of the mission Listing of (key) meetings and persons encountered Description of activities performed and results achieved Recommendations and/or remarks on the implementation of the activities, as well as an evaluation of the encountered activities Description of any difficulties encountered in performing the mission List of abbreviations The project status The report and annexes shall be delivered as electronic file(s) in MS Word and/or MS Excel (compatible with the older 2007 and 2010 versions of Word and Excel) The working language of the program and the language used in all reports and communications between the consultant and the team shall be English (UK spelling preferred) CONFIDENTIALITY The consultant hereby undertakes to maintain confidentiality and not to disclose any information during and after the completion of the assignment with respect to all business matters of which he learns during his time with the programme and the outputs that are developed. Permission must be obtained from the programme before any publication. 4

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