Entrepreneurship Development and Institutional Building in Swaziland

Reference: X/SWA/028
Location: Swaziland
Duration: Part I: FINCORP 9 person weeks/45 person days
Closing Date: 14 Oct 2012

Project Objectives

The Commonwealth Secretariat through its Special Advisory Services Division (SASD) wishes to engage Consulting Firm(s) or a team of individual Consultants to provide technical assistance to Swaziland Development Finance Corporation (FINCORP).
Swaziland Development Finance Corporation (FINCORP)
FINCORP was established by Government of Swaziland in 1995 with the main objective of economically developing the Swazi people through the provision of accessible financial services. Government owns 80% of FINCORP and it has a capital base of US$17 million and a total loan portfolio of US$63 Million. The Corporation operates in all the districts of Swaziland. FINCORP provides the following services:
Currently FINCORP offers multiple financial services which include business credit, leasing facilities, insurance and money transfers. FINCORP currently has six main distinct departments namely Business Loans Department, Agricultural Loans Department, Finance Department, Personnel Department, Legal Affairs Department and Information Technology Department. In addition there is a stand-alone subsidiary company, FIRST FINANCE, offering micro-loans. FINCORP currently employs 51 staff and at least 50 per cent represent Credit Officers who manage the loan portfolio which is considered to be the core business for the institution.
The assistance will include review of current procedures and systems in product offering, loan processing, business processes, risk management and use of business development services. The assistance will also include development of a Business Development Services support programme.

Scope of Work

Tasks to be accomplished:
Part I: Support to Swaziland Development Finance Corporation (FINCORP)
FINCORP currently offers multiple financial services and loan products. Over the sixteen years of existence, FINCORP has enjoyed rapid growth in scale and scope of its service offering. Going into the future and with new challenges emerging, there is a need to relook at FINCORP’s future sustainability. This includes Business Process Re-engineering (BPR) by reviewing and enhancing present product offering, loan processing and tracking systems. This calls for thorough understanding of FINCORP’s existing process flows, software support, robustness of database etc.  It will be critical that the BPR should address all areas of the organisation’s work flows.  Secondly, there is need to development of an effective Risk Management Strategy: It is expected that FINCORP will have a policy document on risk management that will eventually be approved by their board of directors. The policy should address all major risks including credit, market and operational risks.
Terms of Reference will be:

• Undertake a Business Process Re-engineering by reviewing, identifying gaps and enhancing present FINCORP product offering, loan processing and tracking system;
• Review the current business processes and risk management system in relation to market risks in Swaziland, identify main gaps and make recommendations on improvements required by giving appropriate and relevant options and its related implications;
• Review the current role played by Business Development Service Providers in FINCORP lending processes;
• Review current systems and procedures in loans that require collateral and those that do not require collateral including challenges and successes of each and recommend possible role(s) of BDS providers for both types of loans;
• Review and recommend options for collaboration between FINCORP and EBDC in terms of training and development of BDS providers, and provision of BDS services especially for non-collaterised loans;
• Develop a Business Development Services strategy and support programme to assist FINCORP to strengthen its effectiveness on product delivery and grow its non-collateral lending programme. This must be done in consultation with EBDC, ComSec and other relevant stakeholders.
• Recommend possible collaboration between FINCORP and EBDC, and other MSME support institutions such as Small Enterprise Development Corporation and operating NGOs, in training and use of BDS providers; and
• Organise at least 3 workshops for FINCORP staff and stakeholders to discuss, and finalise the findings and recommendations. 

Key Deliverables

• Detailed report on Business Processing Re-Engineering and an implementation Action Plan
• Detailed report containing a Risk Management Strategy and an implementation Action Plan
• Business Development Services strategy and support programme

Minimum Qualifications

Firms registered in any member country and/or individual consultants who are Commonwealth nationals should possess the following:

• At least 10 years’ experience advising governments and non-government bodies in development of MSME strategies,
• At least 5 years’ experience in designing programmes on business development services and network development.
• At least 10 years’ experience and very good working technical knowledge in SME financial services, banking  and other financial products and services
• Working knowledge of Swaziland or Southern Africa will be an added advantage

Budget

The budget for this consultancy is at an all-inclusive fees of £20,000 (includes professional fees, international air travel, subsistence allowance, incidental expenses and other consultant’s project related costs). The budget does not include local workshop training costs which will be borne by the Commonwealth Secretariat.

Further Information

How to Apply

Full details of Entrepreneurship Development and Institutional Building project in Swaziland