Terms of Reference (TOR) for Managing Revolving Investment Fund for Youth Agribusiness and Smallholder Farmers

Terms of Reference (TOR) for Managing Revolving Investment Fund for Youth Agribusiness and Smallholder Farmers  

1.    Context and rationale  1.1 About SOS Children’s Villages SOS Children’s Villages works for children and young people in 138 countries and territories, working in more than 2000 programme locations worldwide. We work together with a single vision: every child belongs to a family and grows with love, respect and security. SOS Children’s Villages in Somaliland is part of SOS Children’s Villages International, the umbrella organization to which all SOS Children’s Villages including SOS Children’s Villages in Somaliland Association is affiliated. SOS Children’s Villages in Somaliland is a Non-Governmental Organization (NGO) not for profit, non-sectarian and non-partisan and has existed since 1999. SOS Children’s Villages in Somaliland is committed to the welfare of children who lost parental care or at risk of losing parental care – often ensuring that children grow up in a loving family environment, and to strengthening families and communities as a preventive measure in the fight against child abandonment and social neglect, and upholds child protection policy as part of their commitment to the protection of children and youth from abuse. Uniquely, we provide long-term, family-like care for children who have lost parental care (alternative care service), and we work with vulnerable families and communities to help strengthen them and prevent family separation (family strengthening service, FS) and other community empowerment programs (The Next Economy (Youth), Urban and Smart Farming Humanitarian Action). 

2. Project Description

SOS CHILDREN’S VILLAGES In Somaliland has been implementing a three-year green project that empowers youth and smallholders since September 2023 in the Maroodijeh and Awdal Regions. The project equips young people (agricultural background and experience) and smallholder farmers (existing small farmers) with agri-entrepreneurship skills and climate-smart urban farming technologies and strengthens the agribusiness sector's market value chain. Urban and Climate Smart Agriculture (Green Project) enabling young people and smallholder farmers in Marodijeh and Awdal regions to create decent green jobs and become climate-resilience. To achieve this, SOS Children’s Villages in Somaliland works with stakeholders, including Harhub, the Ministry of Agriculture Developments, and regional authorities, to increase the capacity of youth and small-holder farmers on climate-smart farming techniques (crops and animal fodder), entrepreneurship skills, and understanding local market value chain opportunities. To increase productivity and income and build climate-shock-resilient businesses for 100 smallholder farmers. To establish a project enterprise investment fund to increase access to finance for youth agro-entrepreneurs and smallholder farms.

3. Overall Objective

The overall objective of the call is to seek partnership with a local bank to manage project investment fund for investing project youth agribusiness start-ups and smallholder farmers in Maroodi-Jeh and Awadal regions to facilitate and help them to access to a joint-investment fund from the SOS Children’s Village in Somaliland and the selected local bank.

            4. Instruction to application

  The interesting applicants (banks or micro-financial institutions) are welcome to submit their technical proposal for managing the project revolving investment fund  in Maroodijeh and Awdal Regions (. This call is open to all Banks/micro-financial institutions operating in Somaliland who are legally constituted and can provide the requested services. The technical proposal  and all supporting documents must be submitted in English.

 4.1. Format for Technical Proposal

The following points to be followed to all applicants (Banks/MFI) with Lengthy of the concept note should be 1-4 pages

The Components of a Technical Proposal 

1. Introduction 
The introduction is a brief profile of the organisation submitting the technical proposal.  It states the organisation's background, purpose, attributes and qualifications for implementing the proposed service.    

2. Service Description 
The statement describes the available services the proposed partnership intends to offer to the youth agri-startups and smallholder farmers.   

Implementation Methodology 
The methodology section, or program plan, explains in detail how the organisation/company intends to accomplish the stated service provision.  In other words, this section discusses in detail the project activities that will be carried out during the project, how, by whom, and when.  

Monitoring & Evaluation 
The section describes how the progress and success of the project will be monitored and measured.  It will specify how regular progress reports will be submitted as well as outline the content of such progress reports.  

Matching funding
In this case, SOS Children’s Village in Somaliland requires the interested applicants to bring their match-funding part. For instance, if SOS Somaliland brings one hundred thousand dollar (100,000 USD), the applicant should match equal amount.

Bank/MFI Investment Criteria: the applicant should indicate well the investment criteria for selecting  the start-up and SMEs according to their policy or investment guideline.

Bank/MFI Service Charge Fee: The interested applicant should indicate their service charge options, for instance, there is a special rate arrangement, normal fixed or hybrid option.

Loan Duration/grass period: In this case, SOS CV and selected bank/MFI will invest in agriculture sector and this sector has its own challenges and it need special attention. Due to please indicate loan duration and gracing period respectively.

Loan Default Management: In this case, SOS CV wants to propose the copy mechanisms or strategies that bank/MFI will use to manage the defaulted loan by using do-no-harm principal.

Appendixes 
A proposal should be concise.  Appendixes provide the opportunity to include additional supportive information without making the text of the proposal long and disjointed.  Such attachments might include the results of a preliminary needs assessment survey, the organisation's annual report, and staff biographies. 

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To facilitate the submission of proposals/concept note the submission duly stamped and signed can be done electronically in PDF format and sent [email protected]   Only Electronic submissions will be accepted. The titles of submitted documents should clearly state “Technical and Financial proposal’’ Please make sure that the technical and financial proposals are handed in separately (financial proposal to be sealed in a closed envelope or a separate PDF file in case of electronic submission. During the process of evaluation, technical bids will be opened and evaluated first. The financial part of this proposal, which are shortlisted after evaluation of the technical proposal, will be opened in a second step.

5.2 Deadline for submission

The proposal must be received by latest on June 26th, 2024 by the end of the day. Proposals received after the deadline will not be considered.