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Consultancy: Development of Malawi Micro, Small and Medium enterprise policy and strategy

10:15:00 AM

Reference: PX/MAA/0435
Location: Malawi
Duration: 125 Person Days
Closing Date: 21 Mar 2011

The COMMONWEALTH SECRETARIAT through the Commonwealth Fund for Technical Co-operation is providing technical assistance to the Government of Malawi (GoM) to develop a Micro, Small and Medium Enterprise (MSME) Policy and Strategy to improve MSME competitiveness and contribute to economic growth in line with the Malawi Growth and Development Strategy (MGDS).

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

Malawi is a small country with limited domestic demand. 80% of the population is rural and economic growth and poverty alleviation largely depends on the overall economic activity in rural areas. Trade could also be a key driver of growth in the private sector. However, at the present time, the private sector in Malawi is struggling to compete both domestically and internationally.

A poor macro-economic environment, and in particular high interest rates, has led to very low investment levels and declining competitiveness. The high transaction costs of doing business, particularly the high costs of transport, electricity, water and telecommunications all contribute to making Malawi a difficult place for the private sector to flourish.

The GoM is acting on the vision of transforming Malawi from a ‘predominantly consuming and importing country, into a predominantly producing and exporting one’. The project, will contribute positively to the MGDS which replaced the Malawi

Poverty Reduction Strategy and merges both the social sectors focus with the productive-sector focus of the MGDS. The MSME policy intends to set out GoM’s vision and plans for appropriating the economic and social benefits of viable MSMEs for national economic development. MSMEs are expected to contribute to outcomes such as improved competitiveness, international market access, increase in rural enterprise productivity and help to increase the contribution of the manufacturing sector to economic growth.

A SME policy exists since 1994 and a working definition of SME is used for public policy purposes. The policy has not been implemented as desired and there has been a proliferation of business development organisations funded by Donors, GoM and the private sector. Collaboration is difficult as there are competing and overlapping agency mandates which need to be realigned. The GoM has begun this process but remains concerned that under these conditions it would be difficult to deliver effective support to MSMEs.

The purpose of the project is a modern MSME policy fully supported and endorsed by policymakers and MSMEs that offers MSMEs tangible support for competing in a competitive global economy. Implementing the strategic plan based on this policy will result in:

  • Measurable increase in MSMEs contribution to economic growth and employment, as well as improvement in measures related to poverty alleviation through MSME development;
  • Consistent and coherent MSME policymaking that is efficient, based on principles that encourage and support MSME development and that is constantly renewed using the outcomes of an embedded monitoring and evaluation system; and
  • Strengthening of the business support infrastructure through investment in dedicated institutions for MSME development; and enforcing a framework that will guide and determine the roles of other relevant stakeholders in MSME 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 1994 SME policy needs to be updated and modernised in the context of the current business environment and the strategic guidance of the MGDS.

Specific issues to be addressed

A key focus of this project is the Ministry of Industry and Trade (MIT). The MIT will acquire the means to play a more significant role in supporting MSMEs to succeed and thereby contribute to economic development. The project will inculcate modern methods for reviewing MSME policy, and capacity to do this will be built in MIT. This is necessary as the MSME policy is dynamic and needs to be monitored and renewed constantly. Another key factor is to facilitate the involvement of all major stakeholders and ensure that the policy is widely known, supported and acted on. The design of the project should consider current practises for this type of work. Specific issues which need to be factored into the assignment and which are elements of the overall deliverables are noted below.

  • Conduct inception mission during which a Launch workshop will occur, 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 proposed policy is coherent and aligned to other related policy and strategy actions, and (3) Draft outline structure for the policy and strategy, highlighting some of the key issues and questions to be addressed.
  • Analytical work to produce a Report of the Status of Government Support for MSME Development in Malawi - Policies, Institutions and Programmes. The study will outline how MSMEs are currently being supported and the gaps that need to be filled if MSME development is to positively contribute to economic development. This will effectively be the Situation Analysis which will be used as the base document for further work.
  • Execute a Stakeholder Consultation Plan to ensure all stakeholder inputs can be taken into account in deliberations on the policy and strategy. Bidders are encouraged to consider using specific workgroups to generate technical outputs for specific sectors/issues. ComSec will support the winning bidder to finalise an appropriate methodology.
  • 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.
  • Provide support for 2 workshops in conjunction with the Comsec Adviser and Local Counterpart. These are a Project Launch Workshop and a National MSME Conference to consider the options identified in the Consultative Phase are reviewed, refined and agreed to by stakeholders.

Deliverables

E. QUALIFICATIONS FOR CONSULTANCY

The Consultant will be an individual, firm or other relevant institution legally registered in a Commonwealth Member Country. The Consultant will have experience in advising governments in designing major policies and strategies and other interventions that promote and stimulate economic growth and development through economic diversification, the enhancement of external trade & investment opportunities, improved enterprise competitiveness and strengthened regional linkages.

More specifically, the consultant will have:

  • Demonstrable experience in the development of policies and strategies aimed specifically at enhancing the competitiveness and viability of MSMEs operating across a number of economic sectors or sub-sectors;
  • Professional expertise in the design and delivery of MSME capacity building programmes, including provision of business development services, relevant to those sectors of particular importance to Malawi;
  • Worked with senior government officials across different Ministries as well as be committed to participatory approaches;
  • Fluency in the English language, possess strong drafting and presentation skills; and
  • Previous experience of working in Africa.

The Consultant 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.

F. LEVEL OF EFFORT, REPORTING AND PAYMENT TERMS

  • The Level of Effort (LOE) of this consultancy is estimated at 125 person days (25 weeks), commencing May 2011 to December 2011.[2].
  • Up to 75 days of this LoE is estimated to be in Malawi.
  • The indicative all inclusive fee for this assignment is £60,000[3], while consultancy related expenditure, such as Workshops and similar 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, 21 March 2011 and the Company must be in a position to deploy during May 2011.

H. CONTACT INFORMATION

Closing Date for Submission of Proposals: 21 March 2011

Submission of Proposals

Proposals should be submitted 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

[1] The website is http://www.thecommonwealth.org/ and the document is available in the ‘Resources’ section.

[2] Comsec will not liable for delays occurring due to unforeseen circumstances like natural disasters.

[3] Comsec bears no liability to pay any taxes, including VAT, on this contract.

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