Terms of Reference for Enhancing Financial Inclusion Through Fintech Partnerships and Innovative Credit Scoring Mechanisms

Terms of Reference

Enhancing financial inclusion through Fintech partnerships and innovative credit scoring mechanisms

1. Background

Promoting Smallholder Agro-Export Competitiveness (PSAC) Project is a key initiative funded by the International Fund for Agricultural Development (IFAD), with co-financing from the Government of Rwanda, the Government of Spain, CORDAID, and Heifer International. Implemented by the Ministry of Agriculture and Animal Resources (MINAGRI) and led by the National Agriculture Export Board (NAEB), the project aims to improve the income and livelihoods of rural communities by strengthening inclusive and sustainable agro-export value chains in coffee, tea, and horticulture.

A significant challenge facing smallholder farmers, particularly women and youth in informal savings groups, is their limited access to financial services. Many farmers lack formal credit histories, making it difficult for them to access loans and other financial products. Additionally, reliance on cash transactions introduces inefficiencies and risks, restricting economic growth and financial security.

To address these challenges, integrating digital loan origination solutions and leveraging innovative Fintech platforms presents a promising opportunity. By adopting digital platforms for transactions and utilizing alternative credit-scoring mechanisms, Fintech solutions can empower farmers to build credible credit profiles. This would enhance their ability to access loans, insurance, and other financial products, which are essential for expanding their businesses and improving financial resilience.

The initiative focuses on 14 districts around the country: Ruhango, Nyanza, Huye, Nyaruguru, Nyamagabe, Rusizi, Nyamasheke, Karongi, Rutsiro, Nyabihu, Musanze, Rulindo, Bugesera, and Rwamagana where 108 cooperatives and 47 farmer groups are benefiting from the project interventions. These districts represent the primary intervention areas where the PSAC project aims to reinforce ongoing efforts to transition subsistence farming into sustainable, market-oriented agricultural businesses. The integration of Fintech solutions will play a critical role in this transformation, providing smallholder farmers, farmer groups and cooperatives with new opportunities to access essential financial services, scale their operations, and build long-term resilience. Through this partnership, CORDAID seeks to engage a Fintech company to enhance financial inclusion by providing a digital loan origination solution. This solution will enable unbanked farmers to establish credit histories, access critical financial products, and ultimately grow their businesses within the agro-export value chains.

2. Objectives of the assignment

The primary objective of this assignment is to support financial inclusion through digital loan origination platforms and credit scoring interventions, enabling farmers and smallholders to build credible credit profiles via online transactions. The initiative focuses on extending proven Fintech solutions to the targeted groups, enhancing their financial operations and improving their financial security. The specific objective of the assignment are as follows:

1. Facilitate the integration of digital loan origination solutions, enabling farmers to access financial products such as loans by utilizing digital credit profiles, thereby creating a streamlined pathway for financial inclusion. The goal is to onboard a minimum of 500 smallholder coffee farmers from targeted farmer groups and cooperatives across the intervention area onto a digital platform, allowing them to access loans for their production purpose.
2. Enable farmers to build reliable credit histories using digital platforms for online transactions, farmers can establish a trustworthy record of their financial behavior, improving their access to credit and other financial services. This will target 500 coffee farmers regularly using digital platforms to build their credit history.
3. Optimize the use of data and digital loan origination systems to enhance credit scoring. This will allow targeted beneficiaries to access their financial data and use their profiles to gain access to other financial services, ultimately supporting their long-term financial stability

3. Scope of work, deliverables and timelines

Reporting and Supervision

The service provider will report to Cordaid and provide regular monthly updates.

Required Expertise and Qualifications

The ideal fintech company should possess the following:

• Proven experience in digital financial services, digital loan origination solutions, and financial inclusion projects.
• Strong expertise in alternative credit-scoring models and financial technology solutions.
• Experience working with smallholder farmers, farmer groups, cooperatives, women, and youth in financial empowerment programs.
• Prior experience operating in Rwanda.
• Legal authorization to work in Rwanda.
• Fluency in English and Kinyarwanda.

Payment Modalities

Payments will be made in RWF according to the following schedule:

• 40% upon submission and approval of the inception report.
• 10% upon completion of the coffee value chain analysis report, staff training on the dashboard, and facilitation of digital loan origination
• 50% upon successful completion of all remaining activities

Submission Guidelines

Interested applicants should submit the following:

• Administrative document for eligibility: Company registration certificate and tax clearances
• A technical proposal outlining their approach, methodology, work plan and team composition with their CVs, degrees and work certificates.
• A financial proposal detailing all associated costs submitted separately
• Examples of similar past projects demonstrate the company’s relevant experience.

Proposals should be submitted to apollinaire.nshimiyimana@cordaid.org, with copy to info@coraid.org,  by 28th March  2025.

Evaluation Criteria

Proposals will be evaluated based on:

• Eligibility criteria
• Technical approach and methodology (40%)
• Relevant experience and qualifications (30%)
• Cost-effectiveness (20%)
• Innovation and value-added services (10%)

Cordaid reserves the right to request additional information or clarifications from applicants during the evaluation process.

Confidentiality and Proprietary Rights

The selected service provider shall not disclose proprietary or confidential information without prior written consent. All training materials and reports developed during the assignment will remain the property of the project.

Rights of Withdrawal

Cordaid reserves the right to withdraw from negotiations or cancel the assignment under the following circumstances:

• If a satisfactory agreement cannot be reached with the selected service provider regarding the terms, conditions, or scope of work outlined in this Terms of Reference.
• If there are significant changes in project funding, scope, or timeline that impact the feasibility of this assignment.
• If the selected service provider is found to have provided false or misleading information during the proposal or negotiation process.
• If, during negotiations, it becomes evident that the service provider cannot meet essential requirements or quality standards for this assignment.
• If external factors or force majeure events significantly impact the project or Cordaid’s ability to proceed with the assignment.

In the event of withdrawal or cancellation, Cordaid will provide written notice to the affected party(ies) explaining the reason for the decision. Cordaid shall not be liable for any costs or damages incurred by applicants or the selected service provider as a result of such withdrawal or cancellation.

Patrick BIRASA

Country Manager

Cordaid Rwanda