Expert Consultant To Develop Institutionalization Plan for Gargaara Company Limited (Individual Consultant)

1.  Background: The Federal Government of Somalia has received financing from the World Bank (WB) to implement the Somalia Capacity Enhancement, Livelihoods, and Entrepreneurship Initiative through the Digital Uplift Program (SCALED-UP). The biggest component of SCALED-UP, accounting for 40 percent of its total allocated funds, aims to increase access to finance for Somali Micro, Small, and Medium Enterprises (MSMEs) by setting-up Gargaara as the first Somali apex MSME Financing Facility. Gargaara was established and operationalized in 2019, and since then, Gargaara has become a significant player in the Somali financial sector, partnering with seven commercial banks and one MFI that on-lend its financing. To date these participating financial institutions (PFIs) have accessed and on-lent US$ 12.5 million to 276 MSMEs in the agriculture, energy, fishery, and livestock sectors. Given this track record mobilizing financing for MSMEs in Somalia, Gargaara was also able to sign a US$19 million partnership with Germany’s Kreditanstalt für Wiederaufbau (KfW) in April 2023.

However, a series of issues related to the sustainability of Gargaara still need to be addressed. SCALED-UP design anticipated the newly established MSME financing facility to be a freestanding autonomous apex institution with its own record of accomplishment, board of directors, and management. Furthermore, while the entity was to be initially publicly funded using IDA financing it was structured to operate through private sector management and governance principles, and to allow a transition toward private sector majority shareholding over time. The project design also envisioned a capitalization of the entity. Currently, the Ministry of Finance (MoF) is financing Gargaara’s operations through SCALED-UP, and steps to achieve its full institutionalization as an independent entity have not been completed. Meanwhile, gaps remain in the country’s current regulatory framework for the supervision of an apex financial institution. In this context, given its oversight and regulatory role over Gargaara, the MoF is seeking to hire Expert consultant to develop institutionalization plan (Individual Consultant)

2 Responsibilities: The consultant will advise MoF on; 1. Development of an options paper and an

actionable plan for Gargaara’s institutionalization and capitalization. The options paper should include: review of relevant Somali legal and regulatory frameworks; review of legal commitments and financing arrangements under SCALED-UP and relevance for the assignment; Recommendations for institutionalization and capitalization of Gargaara. 2. Strengthening of Gargaara’s governance arrangements through advising MoF on how to: define and implement reporting instruments to be used by Gargaara’s; Board set-up a transparent system to appoint/re-appoint, incentivize, and evaluate members of the Board; improve Gargaara’s Board technical capacity and performance related to stewardship of the institution. All other specific tasks detailed in the Terms of Reference (TOR) for the assignment that can be found at the following website: https://mof.gov.so/publications/tor-expert-consultant-develop-

institutionalization-plan-gargaara

3.  Duration: The proposed duration for the assignment is Forty-Five Days (45) calendar Days.

3.  Selection Criteria: The selection shall be based on qualification, experience and skills of the candidate and followed by an interview. The qualifications, experience and competencies include:

•               At a minimum, a Master´s degree in finance, economics, business, or law, and at least 15 years of work experience.

•               At least 10 years of experience in finance, economics, business administration and specifically in the field of corporate and SOE governance, and SOE reforms is required. Experience with business and asset valuation, financial modeling, and accounting of public companies would be a plus. Relevant knowledge of legal, regulatory, and institutional frameworks relating to the assignment (especially in Somalia or similar countries) and experience supporting and drafting legal documents like decree laws, laws, regulations etc. will be desirable.

•               Expertise with similar projects in similar countries would be an advantage.

•               Ability and willingness to travel to Somalia will be a plus.

4.  The Ministry of Ministry of Finance now invites eligible consulting (“Consultants”) to indicate their interest in providing the above-mentioned Services. Interested Consultants should provide information demonstrating that they have the required qualifications and relevant experience to perform the Services and furnish the Curriculum Vitae (CV).

5.  Attention of interested Consultants is drawn to section III, para 3.14,3.16 & 3.17 of the World

Bank’s Procurement Regulations for IPF Borrowers: Procurement in Investment Projects Financing Goods, Works, Non -Consulting and Consulting Services dated in September 2023 (“Procurement Regulations”), setting forth the World Bank’s policy on conflict of interest.

7.  A Consultant will be selected in accordance with the Individual Consultant method set out in the World Bank Procurement Regulations.

7.  Interested Consultant may obtain further information (in person or by e-mail) at the address below during office hours from 8.00 a.m.– 4.00 p.m. Saturday to Thursday except on public holidays.

8.  Deadline for submission: Expressions of interest should be delivered in a written form to the address below (in person, or by e-mail) by 4th May 2024 4:00PM

Attention

Project Coordinator, SCALED-UP Project

Ministry of Finance, Federal Government of Somalia, Shangani District, Mogadishu, Somalia

Email Address: [email protected]

Cc: [email protected]