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Developing MSME Policy & Strategy for Tonga and Setting up a Comprehensive Database

5:31:00 PM , , ,

Reference: XTON0507
Location: Tonga
Duration: 75 person days
Closing Date: 18 Jun 2012

Background

Drawing lessons from a Commonwealth Secretariat review in 2008, Ministry of Labour, Commerce and Industries, Kingdom of Tonga being the lead organisation for providing policy and strategic direction in the development of Micro, Small and Medium Enterprises (MSMEs) intends to address the existing gaps in the country’s business development services. Absence of a well laid out policy for MSMEs has been identified as a major lacuna, bridging which is acknowledged as imperative for sustainable development of MSMEs in Tonga.

Tonga is an archipelago, in the South Pacific Ocean, of 169 islands of which 36 are inhabited. The population of the island is 104,260 (2010. Source: World Bank). Over thirty two per cent (32.8%) of the population is under the age of 14 and 56% is under 25 years of age. The largest island – Tongatapu, on which the capital city Nuku’alofa is located, covers 257 sq. km and has 70.5% of the islands population.

Tonga is a young country, demographically speaking, which relies greatly on remittances from its own expatriate community working overseas. Though the current unemployment figures are comparatively low (1.1% of total labour force. Source: World Bank), for a country with a predominantly younger population, development of a viable MSME sector is of paramount importance especially in view of the sector’s potential for employment generation.

This project aims at assisting the country to develop its MSMEs through:

  • Developing a well-defined Policy framework for MSMEs ;
  • Feasible Strategy document translating the policy to action; and
  • Setting up a Comprehensive Database of Business Units and Business Support Service providers in Tonga.

Scope of work

We are looking for experienced consultant(s) to:

  • Develop Policy and Strategy Documents; which involves:
  • Conducting Situation Analysis of MSME sector in Tonga;
  • Developing a draft as well as final MSME Policy document and a Strategy Document.
  • Set up a Database of Business Units and Business Support Service Providers in Tonga and update existing MSME website currently hosted by other Ministries.

The consultant(s) is/are expected to work with the Tonga Ministry of Labour, Commerce and Industries to ensure that these tasks are successfully undertaken:

  • Situation Analysis of MSME Sector in Tonga:
  • The Situation Analysis is aimed at understanding the problems of prospects of MSME sector in Tonga which would serve as the basic premise on which the MSME Policy and the Strategy Documents are to be developed.
  • The Situation Analysis is expected to be conducted through conducting survey of the MSME Sector in Tonga, collection of necessary data to firm up the sector research and also by interacting with the stakeholders of MSME sector in the area.
  • Experience and knowledge of other countries in the region or elsewhere in respect of MSME sector, which the consultant(s) is/are expected to bring on board, shall also form part of the analysis.
  • MSME Policy Document:
  • Based on the findings of the Situation Analysis a draft MSME Policy Document has to be developed. The Situation Analysis shall set the premise for the Policy Document;
  • The draft Policy Document shall be submitted, through the Commonwealth Secretariat, to the stakeholders of MSME sector in Tonga via the Ministry of Labour, Commerce & Industries and shall be subjected to threadbare analysis in stakeholder meetings. The feedback/ comments/ suggestions received thereon shall be factored in to finalise the MSME Policy Document.
  • Strategy Document to translate the MSME policy into action: {Please refer 2. (i) (b), above}
  • A draft Strategic Plan Document aimed at translating the MSME Policy Document shall be developed concurrently along with the draft policy document;
  • The draft Strategic Plan shall also be submitted to stakeholders along with the draft Policy Document seeking feedback/comments/suggestions and; based on such inputs
  • The final Strategic Plan shall be prepared and submitted along with the Policy Document finalised similarly.
  • MSME Database:
  • Setting up a database of business units and business support providers in Tonga is envisaged as an offshoot of the Situation Analysis and Sector Research conducted for developing the MSME Policy and Strategy Documents;
  • The data collected while conducting the Situation Analysis through survey and research of the MSME Sector in Tonga shall form the inputs for the database to be developed;
  • Updating the MSME website currently being hosted by other ministries in Tonga using the data generated/ database developed is also to be undertaken as part of the activity.

Deliverables and timeframes

  • MSME Policy and Strategy Component:

The Consultant will be expected to produce the following deliverables:

  • a) Situation Analysis of MSME Sector in Tonga and Draft MSME Policy Document as well as Strategy Document

This component is expected to take six weeks from inception to the submission of the final report. The deliverables are as follows:

  • Inception report- One week after signing the contract
  • This report should contain a detailed work plan for Situational Analysis and Development of Policy and Strategy Documents
  • Draft MSME Policy Document –Within five weeks from submission of inception report. A detailed report documenting the activities and findings of the Situation Analysis shall be the basic document for the draft Policy Document
  • Draft Strategy Document – Concurrently with the draft Policy Document
  • Review and Feedback Meetings with stakeholders of MSME Sector in Tonga in respect of the Draft Policy and Strategy Documents –Four weeks from submission of Situation Analysis Report, Draft MSME Policy and Draft Strategic Plan Documents
  • Final MSME Policy Document and Final Strategy Document – Within five weeks from completion of stakeholder meetings
  • Database Component:

Since setting up of the MSME Database and updating the MSME Website are envisaged as corollary to the Situation Analysis and Survey of the MSME Sector, these outputs are expected to be delivered concurrently with the Final Policy and Strategy Documents.

  • Common to both the components:
  • Detailed Final Report(s) on Project Completion shall be submitted by the Consultant(s) within one week of the delivery of all the outputs of each of the components.

Required Experience / Qualifications

The required competencies for the Consultant(s) to undertake the activities under the project are as follows:

  • Minimum of a Master’s degree in Business Administration or Economics or their equivalents;
  • Minimum of 10 years consulting experience and/or working experience in a technical assistance delivery environment part of which should be in a developing country (preferably – relevant experience to a Pacific Island country like Tonga);
  • Experience in developing Policies and Strategies for development of Micro Small and Medium Enterprises in a developing country;
  • Experience in market survey, data collection design and development of databases with particular reference to business units and business support service providers.

How To Apply

Download the Terms of Reference

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