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Developing rural enterprises through strengthening the NBSSI Business Advice Centre

Reference: PX/GHA/0391
Location: Ghana
Duration: 75 consultants days
Closing Date: 7 Mar 2011

A. BACKGROUND

The COMMONWEALTH SECRETARIAT through the Commonwealth Fund for Technical Cooperation is providing technical assistance to the Government of Ghana (GoG) to strengthen the National Board for Small Scale Industries (NBSSI) Business Advisory Centres (BACs) in order to improve their impact on Micro and Small Enterprise (MSEs) in rural areas.

B. PROGRAMME OBJECTIVE

For background purposes we advise that the Commonwealth Secretariat Strategic Plan be consulted. The Plan is available on our website[1] and the SME work is part of the Economic Development Programme (Programme 6). This Programme will assist member states to take advantage of opportunities for economic growth and improve their ability to manage economic development in an equitable and sustainable manner. It specifically aims to strengthen policies and systems that support inclusive and sustainable economic growth in member states. This will allow Member states to attract capital flows and manage increased levels of investment, including for private sector development; and create the environment for Member countries to promote viable competitive enterprises that generate employment, income and reduce poverty.

The Secretariat’s capacity to provide cost-effective technical assistance and its role as a ’trusted partner’ and ‘honest broker’ in delivering policy analysis and advice are highly valued. Indicators particularly relevant to this project include (1) the quality of policy advice and support for creating an enabling environment for growth and stability; (2) higher survival rates of MSMEs and an increase in the contribution of MSME businesses to GDP; and (3) increased numbers of successful women in enterprise and greater and more equitable market access for women producers and entrepreneurs

C. PROJECT INFORMATION

Rural Enterprise Development differs from enterprise development in more urban areas. Many of these differences are rooted in the general development issues of the urban - rural divide with its skewed pattern of investments in favour of urban areas. However, some advantages exist. Most rural livelihoods will have some access to a natural capital base; and where traditional culture has not yet been destroyed, some aspects of social capital may be stronger than in urban situations. Another advantage comes from links with the urban areas where migrant relatives often provide remittances as capital for investment.

Unfortunately, the downside is significant. Rural environments are characterised by (1) both lower concentrations and poorer quality of supportive services, (2) poor physical capital assets, (3) remoteness from both the rural and urban markets and weak intra-rural trade, (4) less choice of suppliers and markets leading to exploitation and debt, (5) financial capital ‘drain’ as banks take more in savings than they give in loans leading to a rural subsidy of urban development and (6) global and national urban market pressures to lower the value of (essential) primary produce.

The Ghana experience with rural development has been varied. Successive attempts have been made to fast track the process but it has been dogged by limited financial, manpower and organisational resources. The second iteration of an IFAD funded rural enterprise project has begun and there is evidence that the investment is yielding results. One of the key pillars of the project is the need for the BACs to perform optimally. They have been the most visible success of the project to date and this project will focus on upgrading its training and advisory services.

The project addresses the objectives of NBSSI's Strategic Plan in the following way. The overarching objective as per the plan is to (a) develop a vibrant MSE sector at district (read rural) level. This will be achieved through the development of new products, technologies and processes; and linking with institutions that can support their product development in an ongoing way. In order to do this the project will also touch on (b) HR development by upgrading skills of NBSSI staff and (c) introducing an cvvvc bn\ M&E system to help NBSSI manage the rural enterprise programme.

The project activities will focus on BACs in rural towns, where there is sufficient local demand for products and services of rural producers; and on BACs in rural communities where there is a need to produce good quality products for a range of markets (local, district level and rural towns) in order to earn income. BACs outside of rural towns need skills to support rural businesses to spot new business opportunities, create business plans, establish ventures, support new growth and also effectively identify the growth-needs of existing enterprises and link them up to appropriate support.

IFAD estimates that 51% of Ghana's poor live in rural areas with limited access to basic social services, safe water, all-year roads, and electricity and telephone services. The country is unlikely to make headway if the rural setting is neglected and an urgent need exists to improve the quality of life in rural areas and encourage the diversification of the rural economy.

Ultimately, it is envisaged that NBSSI will add specialist business services to its current range of products and services specifically geared for rural enterprise development.

Additional Information

Information available to the successful Consultant will include internal project files containing the Project Appraisal, Logical Framework and Budgets. The Consultant will also work closely with the Adviser responsible for the project.

D. CONSULTANCY

Problem

The role of the BACs is central to the rural development effort in Ghana. They cover three distinct demographics, namely, in cities, in rural towns and those in rural areas. 110 BACs exist, with a plan to grow these to 178. Most of the growth is likely to be in rural areas and this project contributes an urgent solution to shaping a rural enterprise development strategy, new BDS and improved the capacity of NBSSI staff.

Specific issues to be addressed

In designing an appropriate methodology keep in mind that NBSSI needs to develop new competencies in specialist BDS. Specifically, what is needed is a BDS for Market Access for rural enterprises; and a Product Development BDS to help firms develop new and innovative products. The investment is essentially for capacity building of NBSSI staff and systems. At the end of the day, NBSSI needs to have the capability to help create markets for products to address the challenge of consistent and adequate demand for products; and skills to engage rural firms in new product development to address the challenges of developing profitable products within the cost structures and constraints imposed by rural business environments.

Specific issues which need to be factored into the assignment and which are elements of the overall deliverables are noted below.

* Conduct inception mission and provide feedback not later than 3 weeks after mobilisation. Issues to be addressed include, (1) timetable for implementation, stakeholder consultation plan and endorsement and validation activities to be undertaken; (2) coherence strategy which will report on steps to ensure that the Rural Enterprise Development Strategy is coherent and aligned to other related policy and strategy actions, and (3) Draft outline structure for the strategy, highlighting some of the key issues and questions to be addressed.

* Analytical work to include a proper market assessment using appropriate methods to determine the need and suggested solutions for new BDS products and services. Included in this could be a small survey, interviews with industry experts, focus group sessions with SMEs, etc.

· Conceive and develop new BDS for Market Access and New Product Development based on analysis and research conducted during the analytical phase. This will include the specific BDS measures for monitoring and evaluating the performance of the BDS.

* Consult with SMEs through their relevant business Associations to ensure that their views are accommodated and acted on.

* Consult with Women’s Empowerment Groups and Institutions to ensure that gender issues are adequately dealt with and specific challenges of woman owned enterprises are incorporated in all outputs.

* Develop Capacity Building training materials for NBSSI staff.

· Oversee the delivery of various BDS training course to at least 60 NBSSI front line staff; and ensure they have achieved required level of competency.

* Provide support for 2 workshops in conjunction with the Comsec Adviser and Local Counterpart. These are a Project Inception workshop and a Strategy Workshop

Deliverables

· Rural Enterprise Development Strategy and Action Plan

· Training Course Manuals and Guidelines for new BDS for Market Access and New Product Development

· Report on the Training of NBSSI staff on new BDS for Market Access and New Product Development

· Report on implementation of the Monitoring & Evaluation recommendations

· Final Project Report

E. QUALIFICATIONS FOR CONSULTANCY

The Commonwealth Secretariat is inviting bids from companies who are legally registered in a Commonwealth Member Country. The Statement of Capability should indicate the firm’s experience in designing, implementing and evaluating MSME development programmes at a National and Regional Level.

The Company may wish to engage the services of a Local Consultant but would be entirely responsible for the identification, recruitment and remuneration of such Local Consultant(s), although the selection would need to be cleared beforehand by Comsec.

In addition to demonstrating all round capability in key areas such as MSME programme design, business development services and MSME finance, we require demonstrated specific work experience in supporting Rural Enterprise Development programmes in the public and private sector. The evaluation criteria are based on the following:

* MSME national programme design and management,
* MSME rural enterprise development experience,
* Evidence of developing Marketing and New Product Development BDS for MSMEs,
* Demonstrated evidence of developing and delivering organisational development initiatives, including monitoring and evaluation initiatives, for Business Support Organisations; and
* Cross-cultural work experience.

F. LEVEL OF EFFORT, REPORTING AND PAYMENT TERMS

* The Level of Effort (LOE) of this consultancy is estimated at 75 person days (15 weeks), commencing April 2011 to December 2011.[2].
* Up to 56 days of this LoE is estimated to be in Ghana.
* The indicative all inclusive fee for this assignment is £41,000[3], while consultancy related expenditure, such as workshops and training expenses, will be provided by ComSec.

G. PROPOSAL

The proposal should comprise of the following:

* A Statement of Capability,
* Resumes of the key staff allocated to the project,
* A document detailing the methodology, work programme and milestones (this will be finalised with the Commonwealth Secretariat prior to commencement)
* A financial plan for the execution of the project.

The proposal needs to be received by Monday, 7 March 2011 and the Company must be in a position to deploy during May 2011.

H. CONTACT INFORMATION

Submission of Proposals

Please submit your proposal to Miss Ishbel Allotey via email / post / fax at:

Miss Ishbel Allotey
HR (CFTC)
Commonwealth Secretariat
Pall Mall
London, SW1Y 5HX, UK
Email: i.allotey@commonwealth.int

Fax: + 44 20 7747 6520

Closing Date for Submission of Proposals: 7 March 2011