Team Leader for the TA Package on SME Finance – First Edition (TAP SME1): Enhancing SME lending practices of REGMIFA’s investees

Background and Rationale:

In Africa, the SMEs are the backbone of the economy, accounting for most businesses across the region (up to 90% of the private sector in most countries) and provide the bulk of the jobs (an estimated 80%) across the continent. However, they continue to face serious challenges in accessing needed capital to finance their growth, create more jobs and generate economic growth. Hence, given their importance as a source of employment and economic growth, SMEs’ barriers to accessing financing become barriers to poverty reduction and economic growth. 

In the framework of REGMIFA's mission to foster economic development through innovative financial products and technical assistance support to its Partners Lending Institutions (PLI). Its mandate is to design and implement a Technical Assistance Package on SME Finance (TAP SME), which will be launched in different editions and intends to establish or to enhance the capabilities of the Partner Lending Institutions (“PLI”) to support and serve Small and Medium Enterprises in sub-Saharan countries that have joined the G20 Compact with Africa (CwA) or will join the CwA countries in the next four years. 

TAP SME sets the focus on technical assistance support on topics such as product development, SME methodology and related processes, legislation and compliance, risk management, impact measurement, ESMS, social performance management, client protection principles, and digitization of processes. This regional program will enable support to at least six financial institutions per year until 2024, initially in Burkina Faso, Senegal, and Ivory Coast, each benefiting from the support of a knowledgeable international and local expert team with varied skills sets (SME finance, legal and compliance/ESG, digital finance, MIS, risk management, impact measurement, SDG, etc.) over 6 to 12 months.

Objectives

Engage a Consulting Firm with the overall objective of helping up at least 6 REGMIFA PLIs to strengthen their institutional knowledge and capacity in SME finance, enhance portfolio growth and improve the PLI’s sustainability and profitability. The related objectives pursued are fourfold:

1. Strengthen the capacity to develop/implement or improve demand-oriented SME finance offering (products and solutions) of the beneficiary PLIs (either downscaling or upscaling their business models).
2. Drive scale and viability through a unique SME selling proposition customized to the target SME clients (agro-value chains, trade, services, manufacturing, FMCGs, etc.).
3. Support each PLI in its quest to serve new SME market segments profitably and safely through technology and digitalization.
4. Raise financial awareness and capability of the SME clients (ESG, financial education, business development services, etc.).

Ultimately, the achievements would contribute to a stronger and more sustainable SME ecosystem, access to more jobs and improved ESG practices. To achieve the overall objective, all activities will need to be tailored and carried out in coordination with the management of each PLI.