Cordaid is an internationally operating value-based emergency relief and development organisation, working in and on fragility. We stand with those who are hit hardest by poverty and conflict. We support them in their struggle to move beyond survival and to fully participate in equitable and resilient societies.

Website: https://www.cordaid.org/en/who-we-are/about-us/

TERMS OF REFERENCE FOR THE DEVELOPMENT OF AN ENVIRONMENT AND CLIMATE RESILIENCE POLICY AND MANUAL, AND CLIMATE RESILIENCE FINANCIAL PRODUCTS

Background

Cordaid Rwanda, in collaboration with the Rabo Foundation, is implementing a project “Strengthening Smallholders Farmers’ Resilience to Climate Change “to empower smallholder farmers in Rwanda to adapt to climate change by supporting four Microfinance Institutions (MFIs) in developing and offering climate-sensitive financial services. These services aim to increase smallholder farmers’ climate resilience through financial inclusion in the agriculture sector.

This project builds on Cordaid’s expertise in finance, value chain development, and market systems approaches. It collaborates with government initiatives to strengthen Rwanda’s financial market and climate finance offerings for smallholder farmers.

Key Expected Outcomes:

  • 5,000 smallholder farmers with improved access to climate finance.
  • 4 MFIs enabled to offer climate-sensitive and resilient financial services.
  • At least 2 MFIs institutionalize green finance in their systems.

UMUTANGUHA Finance Company PLC Background

UMUTANGUHA FINANCE COMPANY PLC, UFC PLC in acronyms, a company incorporated in Rwanda under the code No. 101310843, having its registered office in the City of Kigali, District of Nyarugenge, Nyamirambo Sector, KN2 Avenue, Building No. 177-in front of Kigali Pele stadium, 2nd floor; Email: info@ufinance.co.rw; Tel: +250-788387730; B. P :2998 KIGALI represented by Noel MUHAWENIMANA, Chief Executive Officer, Email: noel.muhawenimana@ufinance.co.rw; Telephone (+250)788301953 shall mean its affiliates, successors or assigns.

Purpose of the Assignment

Cordaid in collaboration with the UMUTANGUHA FINANCE COMPANY PLC invites qualified and interested consultants to respond to this call of proposal aimed at developing and refining climate-sensitive agri-finance products. The consultant will also review and integrate environmental and climate strategies in policies and manuals supporting the institution’s daily operations. The consultant will ensure these products meet the needs of smallholder farmers, align with the capabilities of partner MFIs, and enhance climate resilience in targeted value chains. Additionally, the consultant will provide training to MFI staff and integrate green finance into institutional operations. The consultant will refer to the recommendations from the needs assessment conducted in September 2024. Furthermore, the consultant will be assigned and work from UFC offices.

Objectives

  • Review and develop existing UFC manuals to integrate climate-sensitive guidelines.
  • Conduct a quick scan of UFC climate market need assessment for Agri finance product for building climate financing
  • Developed climate-sensitive financial products for the UFC based on the deep dive assessment, business case, and micro-score report recommendations.
  • Build capacity among UFC staff on climate sensitive financial product development and monitoring tools.
  • Support UFC to pilots by developing the pilot plan, key indicators, and pilot report
  • Adjust the financial products and business cases based on the pilot evaluation
  • Assist in integrating climate-resilient products into the UFC ‘ s operations and marketing strategies.

No

Objectives

Tasks

Deliverables

1

Review and develop UFC manuals to integrate climate-sensitive guidelines.
  • Evaluate current UFC operational manuals for gaps related to climate resilience.
  • Develop guidelines to integrate climate-sensitive practices within UFC operations.
  • Draft new manuals specifically for climate finance products.
  • Updated operational manuals with climate-resilient guidelines.
  • New manuals focused on climate finance for UFC staff and stakeholders.

2

Conduct a quick scan of UFC climate market need assessment for Agri finance product for building climate financing
  • Review the existing business case considering new climate finance products.
  • Conduct cost and benefits analysis, considering UFC capacity and market demand.
  • Presentation of the product design to the selected UFC staff for review and comments.
  • Integrate findings to enhance the business case for each product.
  • Revised business case document with detailed benefit and cost analysis for climate finance products.
  • Report detailing actions and recommendations from the presentation and list of participants, including sales and credit Staff (loan officers, branch managers, Credit analysts, Business officers, marketing officers, and agri-unit)

3

Developed climate resilient financial products for the UFC based on the recommendations from the deep dive assessment, business case, and micro-score report recommendations
  • Analyse Micro-score and deep dive assessment recommendations specific to the UFC and other relevant documents.
  • Collaborate with the UFC to design climate-resilient product features.
  • Refine financial products based on feedback and field testing.
  • At least 2 finalized climate finance products, each tailored to the identified needs of UFC.

4

Capacity building among UFC staff on product development and monitoring tools.
  • Organize consultations with UFC’ s Board of Directors and management on product development.
  • Develop training materials on climate finance tools and monitoring techniques.
  • Conduct training sessions for loan officers and staff.
  • Report with insights from board members.
  • Approval of pilot-ready climate-resilient products (1 per value chain)
  • Training sessions delivered and documented for UFC staff on climate financing, developed products and monitoring tools.

5

Support UFC to pilot by developing the pilot plan, key indicators, and pilot report
  • Collaborate with UFC to design a pilot plan, defining goals and success metrics.
  • Develop key performance indicators (KPIs) for product evaluation.
  • Pilot plan document with specified KPIs.
  • Initial pilot report detailing pilot methodology, findings, and recommendations from the pilot.

6

Adjust the financial products and business cases based on the pilot evaluation
  • Gather and analyze pilot data to assess product performance.
  • Identify necessary adjustments to improve product viability and effectiveness.
  • Update the business case and product features based on pilot findings.
  • Adjusted climate finance products and revised business case reflecting pilot insights.

7

Assist in integrating climate-resilient products into the UFC ‘s operations and marketing strategies.
  • Develop an integration plan with step-by-step guidance for UFC adoption.
  • Work with UFC to align marketing strategies with climate finance offerings.
  • Create promotional materials to increase awareness among customers.
  • Comprehensive integration plan for UFC, including operations and marketing guidelines.
  • Marketing for climate-resilient products, tailored to the UFC clients.

Timeline
The assignment is expected to last 4 months.

Qualifications and Experience

The ideal consultant team should possess a combination of the following qualifications and experience:

  • Should have a master’s degree in Agriculture sciences, Economics, Finance, Investment, Business administration, or Rural Development.
  • At least one member of the team is an accredited assessor of client protection principles and participated in the implementation of the client protection agenda in Rwanda.
  • At least 7 years of relevant, practical experience with agriculture-based value chain development, and demonstrated experience in climate-related agriculture/value chain financing programs/projects, climate finance product development, and microfinance operations.
  • Experience and proven technical knowledge in designing value chain financing products and services.
  • Proven knowledge and experience in the green financing sector in the Sub-Saharan region
  • Experiences with similar assignments
  • Expertise, familiarity, and knowledge of gender and social inclusion.

Budget

The proposed budget for the entire activity is 10,000,000 RWF (Ten million Rwandan Francs) only and should cover all expenses incurred by the consultant, including the daily rate, travel, accommodation, and other related costs. The payment modality will be based on agreed deliverables, timelines, and associated costs.

Submission of Proposals

Interested consultant firms are invited to submit their proposals, including a detailed CV, relevant work certificates, a proposed methodology for undertaking the tasks outlined in these terms of reference, a company registration certificate, and a financial offer by January 24, 2025, to apollinaire.nshimiyimana@cordaid.org 

Evaluation Criteria

  • Proposals will be evaluated based on the consultant’s qualifications and experience, proposed methodology, the work plan’s clarity and feasibility, and the proposed budget’s cost-effectiveness.
  • Shortlisted candidates may be invited for an interview or additional discussions to assess their suitability for the consultancy further.

Confidentiality

All information shared during the consultancy, including client data and project-related documents, will be treated as confidential and used solely to fulfill the consultancy objectives.

Contractual Arrangements

The selected consultant will be required to enter a formal contract with CORDAID with obligation to report progress to both Cordaid and UMUTANGUHA FINANCE COMPANY PLC. The contract will outline the terms and conditions of the consultancy, including deliverables, payment schedule, and intellectual property rights.

Approved by

BIRASA Patrick

Country Manager

 

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