Request for Application (RFA) to Identify Local Service Providers to Sustainably Improve Services of Rural Savings and Credit Cooperatives (RuSACCOs)

Program Description

Background: RTI International (RTI) is managing the market systems development component of the 5-year USAID-funded Ethiopia, Poverty Reduced Sustainably in an Environment of Resilient and Vibrant Economy (PReSERVE). PReSERVE is an integrated activity to improve food security of vulnerable households in targeted Productive Safety Net Program (PSNP) communities in the Amhara Region and contribute to a sustained reduction in rural poverty. The market systems development component of PReSERVE must bring vital market access and growth to four designated livelihoods deepening woredas (Lay Gayint, Tach Gayint, Simada, Sahala). 

Access to finance is a critical constraint to improved agricultural productivity, resilience, and overall economic growth. Rural Savings and Credit Cooperatives (RuSACCOs) exist at the kebele level but have limited capacity to provide sufficient credit and assist rural businesses. Their linkages to Village Economic and Social Associations (VESAs) and other financial institutions such as commercial banks and Micro Finance Institutions (MFIs) are weak.

To address this, the PRSERVE project is assisting vulnerable target groups to form VESAs, strengthening the capacity of RuSACCOs, and creating linkages with MFIs so that, target groups have improved access to credit and business advisory services to grow their business activities, expand their financial services, and increasingly participate in the market economy. 

Objective: The overall objective of this RFA is to identify local service provider(s) that strengthen the organizational and business capacities of project targeted 29 RuSACCOs operating in Lay Gayint and Tach Gayint woredas so that they become independent, strong, and sustainable rural financial institutions particularly for food insecure and ultra-poor PSNP target communities through training and mentoring. In addition, the LSP will build productive linkages between RuSACCOs, other financial institutions and target groups organized within VESAs. By working through LSPs, PReSERVE intends to build sustainable support structures and services that will continue beyond the life of the project.

For more detail click here: https://www.ethiojobs.net/docs/PRESERVE_RFA_01.docx

Location: Amhara region South Gondar zone (Tach Gayint, and Lay Gayint) Woredas. 

Outputs:

• 29 RuSACCOs assisted with managerial and business advisory abilities. The successful applicant will provide concrete suggestions of how this will be achieved including a breakdown of input resources required, anticipated timelines for completion, and how RuSACCOs will be supported following the conclusion of the PReSERVE project.
• At least 29 RuSACCO leaders/staff trained in topics to be determined in consultation with PReSERVE leadership, candidates should propose topics within the application for consideration. At minimum, this is anticipated to include: leadership best practices, financial management, financial bookkeeping, cooperative business management, loan management, business planning, communication and outreach, membership growth strategies, MFI identification, grant writing and submission workshops, and transition best practices.
• At least 29 RuSACCO leaders/staff regularly mentored on specified operations and services on a weekly basis. Mentorship should include formal and informal contact opportunities via in-person or virtual if applicable, phone, and/or email. Mentorship should also provide leaders dedicated person(s) to serve as focal persons for questions.  including (need to define mentoring in terms on number and types of contacts)
• At least two facilitators assigned/hired to provide the regular mentorship and other business development services as well as for the reporting of activities and progress for each of the two woredas.
• At least 29 RuSACCOs have established strong and sustainable organizational structures and business management systems and transformed into independent rural financial services providers for smallholders and resources poor communities.
• At least 29 of RuSACCOs linked to VESAs established by PReSERVE. As VESAs may still be under development, successful applications will have a methodology in place for identification of existing VESAs and be willing to increase collaboration with PReSERVE staff members to improve and deepen VESA and RUSACCO relationships.
• At least 6,500 VESA members assisted to join in 29 RuSACCOs and be able to access business loans and other services from the RuSACCOs.
• At least 10 RuSACCOs linked to MFIs or other financial institutions to access more loanable capital. Successful applicants will name potential MFI or financial institutions partners within their applications and include any relevant disclosure of relationships within the application.
• Improved sectorial system strengthening (Agriculture, cooperative, Livestock and women and youth offices) to provide sustainable support of RuSACCOs