Entrepreneurship Development and Institutional Building in Swaziland

Introduction and Project Objectives

The Commonwealth Secretariat through its Special Advisory Services Division (SASD) wishes to engage Consulting Firm(s) or a team of individual Consultants to provide technical assistance to Swaziland Development Finance Corporation (FINCORP) and Junior Achievement Worldwide Swaziland.

Swaziland Development Finance Corporation (FINCORP)

FINCORP was established by Government of Swaziland in 1995 with the main objective of economically developing the Swazi people through the provision of accessible financial services. Government owns 80 per cent of FINCORP and it has a capital base of US$17 million and a total loan portfolio of US$63 Million. The Corporation operates in all the districts of Swaziland. 

Currently FINCORP offers multiple financial services which include business credit, leasing facilities, insurance and money transfers. FINCORP has six main distinct departments: Business Loans Department, Agricultural Loans Department, Finance Department, Personnel Department, Legal Affairs Department and Information Technology Department. In addition there is a stand-alone subsidiary company, FIRST FINANCE, offering micro-loans. FINCORP currently employs 51 staff. At least 50 per cent of the staff are Credit Officers who manage the loan portfolio which is considered to be the institution's core business.

The assistance will include review of current procedures and systems in product offering, loan processing, business processes, risk management and use of business development services. It also include development of a Business Development Services support programme.

Junior Achievement (Worldwide) Swaziland

Junior Achievement (Worldwide) Swaziland is a Not for Profit organization empowering young people at high school and at tertiary levels with entrepreneurship, work readiness and financial literacy skills. JA Swaziland is affiliated to Junior Achievement Worldwide, a global movement offering entrepreneurship programmes to young people in 123 countries worldwide. Unemployment in Swaziland is placed at approximately 40 per cent affecting mostly youth who form approximately 43 per cent of the population. Current urban and rural structures allow for very minimal participation of the youth in economic, social and political arena.

The technical assistance will include the development of JA’s implementation framework and strategy and development of a youth enterprise support programme.  Part of the technical assistance will support the 11 week programme that sees high school students form  mini companies, including completing a feasibility study, developing a business plan, produce and/or provide a good or service, and finally liquidating the company and paying out dividends. More than 60% of the participating schools are located in the rural areas where poverty levels are extremely high and over 50% of the population is comprised of young girls. JA delivers the programmes through volunteer Business Development Service providers.

In 2010/11 CFTC provided technical assistance to the University of Swaziland by supporting the development of a strategic plan for the Entrepreneurship and Business Development Centre. As a follow up, the technical assistance will be provided to JA Swaziland and FINCORP in partnership with the Entrepreneurship and Business Development Centre.

Scope of Work

Part I: Support to Swaziland Development Finance Corporation (FINCORP)

FINCORP currently offers multiple financial services and loan products. Over the sixteen years of existence, FINCORP has enjoyed rapid growth in scale and scope of its service offering. Going into the future and with new challenges emerging, there is a need to relook at FINCORP’s future sustainability. This includes Business Process Re-engineering (BPR) by reviewing and enhancing present product offering, loan processing and tracking systems. This calls for thorough understanding of FINCORP’s existing process flows, software support, robustness of database etc. It will be critical that the BPR should address all areas of the organisation’s work flows.  Secondly, there is need to development of an effective Risk Management Strategy: It is expected that FINCORP will have a policy document on risk management that will eventually be approved by their board of directors. The policy should address all major risks including credit, market and operational risks.

Terms of Reference:

• Undertake a Business Process Re-engineering by reviewing, identifying gaps and enhancing present FINCORP product offering, loan processing and tracking system;
• Review the current business processes and risk management system in relation to market risks in Swaziland, identify main gaps and make recommendations on improvements required by giving appropriate and relevant options and its related implications;>
• Review the current role played by Business Development Service Providers in FINCORP lending processes;
• Review current systems and procedures in loans that require collateral and those that do not require collateral including challenges and successes of each and recommend possible role(s) of BDS providers for both types of loans;
• Review and recommend options for collaboration between FINCORP and EBDC in terms of training and development of BDS providers, and provision of BDS services especially for non-collaterised loans;
• Develop a Business Development Services strategy and support programme to assist FINCORP to strengthen its effectiveness on product delivery and grow its non-collateral lending programme. This must be done in consultation with EBDC, ComSec and other relevant stakeholders.
• Recommend possible collaboration between FINCORP and EBDC, and other MSME support institutions such as Small Enterprise Development Corporation and operating NGOs, in training and use of BDS providers; and
• Organise at least 3 workshops for FINCORP staff and stakeholders to discuss, and finalise the findings and recommendations.
  

Key Deliverables

• Detailed report on Business Processing Re-Engineering and an Action Plan to implement the same
• Detailed report containing a Risk Management Strategy and Action Plan to implement the same
• Business Development Services strategy and support programme

Time Frame

This activity will require a maximum of 9 person weeks (45 person days) and the presentation of the findings should be completed by no later than 31 May 2013.

Minimum Qualifications

Firms registered in member country and/or individual consultants who are Commonwealth nationals should possess:

• At least 10 years’ experience advising governments and non-government bodies in development of MSME strategies,
• At least 5 years’ experience in designing programmes on business development services and network development.
• At least 10 years’ experience and very good working technical knowledge in SME financial services, banking and other financial products and services
• Working knowledge of Swaziland or Southern Africa will be an added advantage

Part II: Junior Achievement (Worldwide) Swaziland

Specific tasks:

• Review JA Swaziland’s documentation, design an appropriate questionnaire, carry out survey and review and analyse the data collected to identify programme impact. Following this review, undertake appropriate stakeholder consultation on JA Swaziland programmes on the way forward;
• Review current JA framework and programmes, its successes and challenges;
• Design and recommend a new framework and programme, which should include a sustainability plan and a monitoring and evaluation component;
• Review and compile information on 2 to 3 examples of incubator programmes implemented in a developing country relevant to the JA programme;
• Analyse relevance and recommend feasible options of incubator programme(s) for JA and EBDC including how the programme could be funded;
• In consultation with EBDC and other stakeholders, undertake a needs assessment of capacity building requirements for JA;
• Design and deliver a capacity building programme to JA staff and BDS providers in collaboration with EBDC, and ComSec;
• Identify key stakeholders and other potential beneficiaries, and organise small group forums to market JA Swaziland and solicit funding and other resources to support the approved recommended programme(s);
• Design and implement one pilot programme

Deliverables 

The main outputs under this component will include:

• Situation Analysis Report
• A Youth Enterprise Strategy and support programme including
• Implementation framework and sustainability plan (including a monitoring and evaluation component);
• Partnership programme (including funding strategy)
• Pilot Incubator programme
  

Time Frame

The time duration for this project component is a maximum of 8 person weeks (40 person days) and should be completed by no later than 31 May 2013.

Minimum Qualifications

Firms registered in any member country and/or individual consultants who are Commonwealth nationals should possess the following:


• At least 10 years’ experience advising governments and non government bodies in development of MSME strategies,
• At least 5 years’ experience and working knowledge in designing programmes on youth enterprise development
• At least 5 years’ experience in designing programmes on business development services and network development.
• Working knowledge of Swaziland or Southern Africa will be an added advantage

Invitation to tender