Request for Proposal to develop a five-year strategic plan to Oromia Credit and Saving Share Company (OCSSCO) transitioning to Siinqii Bank

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BACKGROUND

For companies to grow and prosper, planning is an important process that guides from where the company is right now to where it wants to be in the future. The dynamism nature of the business environment is pausing business to step back and think strategically on how to cope up with the everchanging business dynamics and proactively surpass any hurdles that may encounter on the way. As competition in any business environment is becoming stiff, planning strategically is the key that will for sure help any business ensure their exitance and prosperity and hence companies must have strategic plan for each of their respective business that is realistic, measurable and achievable.

Strategic planning is important to an organization because it provides a sense of direction and outlines measurable goals. Strategic planning is a tool that is useful for guiding day-to-day decisions and also for evaluating progress and changing approaches when moving forward. In order to make the most of strategic planning, the company should give careful thought to the strategic objectives it outlines, and then back up these goals with realistic, thoroughly researched, quantifiable benchmarks for evaluating results.

The financial sector in Ethiopia is growing although as the pace that is not as expected. It is inevitable for the companies to develop and have a road map that clearly indicates and be measured for taking the company to the next level.  Financial institutions play a critical role in economic development and job creation. The most productive youth force is currently facing lack of access to finance which mainly is attributed not targeting the youth in their strategies.

BRIDGES PROGRAMME

First Consult (FC)/Development Alternative Inc (DAI) is contracted to provide management and technical support services to Mastercard Foundation under the BRIDGES programme to support the creation of close to 600,000 youth jobs (80% women) and 15,000 MSMEs, with 300,000 unemployed youth trained through supporting IP job creation initiative and market linkage between IPs and MSMEs.

The BRIDGES Programme will address two fundamental, immediate and complementary challenges to unlock the potential for job creation within IPs and their surrounding ecosystem. (1) Making the industrial workforce markets work, which through the Enterprise Partners Programme, First Consult/DAI have successfully piloted in a few industrial parks and is now ripe for scale-up. (2) Making the IP business linkages (MSME) markets work to enhance domestic manufacturing value-added (MVA) for every given dollar of export. This will be done by substituting the currently-heavy import-dependent operations – itself a constraint on the factories – via local suppliers (MSMEs) in a number of ways.

The Government of Ethiopia recognizes the critical role played by Micro and Small Enterprises (MSEs) in creating job opportunities especially for young people and women, as well as for boosting national income and wealth that is important in igniting industrial transformation and private sector development. This is also well articulated in the Growth and Transformation Plan which prioritizes and identifies the development of micro and small businesses as catalyst for promoting industrial development. However, issues such as A2F, premises, market and linkage issues remain a challenge. To address the aforementioned the A2F issue, BRIDGES Programme partners with many Financial Institutions (FIs) to ensure that FIs received the necessary Technical Assistances that will enable the FIs to cater the wider group of MSMEs that are youth focused. One of BRIDGES programme partner is Oromia Credit and Saving Share Company (OCSSCO) which now transitioning to Bank which BRIDGES aims to support the institution by providing technical assistances such as trainings, preparation of strategic plan, enterprise development etc that to enable MSME development, job creation and access to finance to the young men and women.

Oromia Credit and Saving Share Company (OCSSCO)

Oromia Credit and Saving Share Company (OCSSCO) within its 24 years of operation and services, had prepared four medium term (five years) Strategic Business Plan (SBP) documents to lead its growth through deliberate roadmap.

On 24th May 2021, OCSSCO was given permission to transform to Siinqee Bank to provide both the microfinance and banking services and is currently under licensing process. Therefore, it is mandatory to have appropriate Strategic Business Plan (SBP) to carry out the intended businesses through strategic roadmap.

For Siinqee Bank, the fundamental decision to develop new strategic plan were emanated from both from internal & external factors. The internal force was the demands of major re-examination of the current growth attained. For the last few four years, the existing growth or progress hasn’t been showing satisfactory progress. The existing growth is almost increasing at a minor progress with all aspects.

The other internal force is the acquisition of technology ‘core banking system’ which initiates the reappraisal of OCSSCO to transfer to banking business to carry out the business in modern way so as to be competent in the market and compatible with the fast-changing business environments.

The outside force was from the interest of regional and federal governments. The financial sector in Ethiopia is growing although as the pace that is not as expected. The interest of regional and federal governments to increase the number of financial institutions so as to realize the intended financial inclusion (the availability and equality of opportunities to access financial services by which individuals and businesses can access appropriate, affordable, and timely financial products and services) in the region and as well as in the country.

OBJECTIVE         

The objective of this assignment is to assist one of the BRIDGES programme partners Oromia Credit and Saving Share Company (OCSSCO) now transitioning to Siinqii Bank develop its first five years Strategic Plan (2022-2026). The main objective for supporting OCSSCO is mainly facilitate MSME development, job creation and creating access to finance access to finance. OCSSCO is under the process of transitioning to Siinqii Bank and the new strategic business plan must take in to account both the MFI and Bank operations of the institution.

SCOPES

The scope of the study is expected to conduct all pertinent assessments both internal and external environments. Internally, it should try to assess all internal stakeholders, fundamental Issues (Mission, Vision and Values), institutional profile, governance, the current organizational structure, each working units at all layers. Externally, it should conduct survey on global economy and banking industry, nationally, macro and micro-environments analysis, competition & competitors’, collaborators, market and marketing and customers’ analysis in general.

SPECIFIC TASK

The firm will be responsible:

  1. Review the existing Strategic plan (OCSSCO 4th SBP), vision and mission statements, values and develop SBP which integrates microfinance services and banking business);
  2. Undertake stakeholder analysis and other analysis listed under scope of the intended SBP;
  3. Through a consultative process and application of an appropriate tool of analysis, identify focus areas and develop strategic objectives and key result areas for the same;
  4. Review the institutional capacity, organizational set-up, financial and administrative systems against the TA mandate and the identified strategic objectives and key result areas; and make recommendations, if any;
  5. Activities in the development of a five-years Strategic Plan with emphasis on roles and responsibilities
  • Review all relevant primary data supportive to the strategic plan development;
  • Conduct deep environmental scanning to identify themes and key issues that will become strategic drivers for the next five years;
  • Indicative contents may include in executive summary, SWOT, KPIs, Target Customers and products, Industry Analysis, Marketing and new product development plans, HR and development plans, Operation plans, Financial projections, Technology (core-banking, E-payment), Indicators and time frame.
  1. Propose appropriate strategies for achieving the strategic objectives and key results;
  2. Develop a Results and Resources Framework for the plan period;
  3. Hold stakeholder meeting(s) to validate the draft Strategic Plan;
  4. Finally, based on findings of each phase, the consultants will triangulate information from the various strategy development processes and presentation with wider stakeholders and prepare the final draft.
  5. Finalize Strategic plan and submit
  6. Any other tasks to be determined;

DELIVERABLES

The following reports will be required as deliverables:

  1. An inception report that outlines how it will accomplish the consultancy objective, specific methodology and work plan, Staffing and management, work plan: detailed timeline of activities and meetings, outline of the table of content, deliverables.
  2. Draft report The report is expected to address the specific deliverables in specific activity section. Presentation is required at this stage.
  3. Final report
  4. Power point presentation out of the final report

QUALIFICATION

Firm experience of at least 10 years, that specialized in providing strategic consulting services especially to the financial sector players.

This advisory service requires three consultants for successful delivery of the 5 years strategic plan. The following qualifications are required:

  • One key senior expert with management, finance and or economics background with more than 10 years of high-level advisory experience preferably with financial sector background (Minimum Master Degree)
  • One Senior consultant with MFI expertise and a background of advisory services to MFIs and or previous working experience (Minimum Master Degree)
  • One data analyst as a support for data analytics

WORKING ARRANGEMENT

Siinqee Bank will assign Senior Personnel to assist the development process and for any information. The MFI senior management will be involved through out the process of the engagement.

Documents

In response to this TOR, qualified companies should submit both technical (maximum 10 pages, CVs could be annexed) and financial proposals (Maximum 3 pages) in the following structure:

Technical Proposal Structure

  1. Organization Track Record and Relevant Experience
  2. Description of Technical Approach, Methodology, and Work Plan for Performing the Assignment
  • Team Composition, Assignment, and Key Experts CV’s

Financial Proposal

The firm should submit the total budget in the proposal with detail breakdown including applicable government taxes. All costs should be stated in ETB. Professional fees should be delineated to person-days.

Clarification/ Contact person

For any clarification, please contact Henok Tenna at htenna@firstconsultet.com or telephone +251 912 038 560

Submission of the proposal

The Offer or shall prepare both the “Technical” and “Financial” Proposal to the following email address bids4@firstconsultet.com

Deadline for submission of proposals

Applicants should email their proposal (technical and financial) to bids4@firstconsultet.com with the relevant information detailed in technical and financial section of a proposal. The subject of the email should say Strategic Planning Development, BRIDGES Project. Proposals must be received no later than 5 PM on 03 October 2021.

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