| Micro and small Enterprises (MSEs) play a key role in economic growth and equitable development in developing countries. Their contribution to employment generation, poverty reduction and wider distribution of wealth represents major sets of opportunities for most developing countries.
As it was clearly indicated in the Growth and Transformation Plan (GTP) of Ethiopia, the development of Micro and Small Scale Enterprises is a central focus of the industrial development strategy. In view of this, one of the primary tasks was to comprehensively overhaul the MSE development strategy based on the experience gained so far in Ethiopia and the experiences of other successful countries. Accordingly, a comprehensive strategy was devised and approved by the government in consultation with all relevant actors.
However, the potential role of MSEs is often not realized because of a set of problems commonly related to size. Individual MSEs experience difficulties in achieving economies of scale in purchase of inputs and are often unable to take advantages of market opportunities that require large production quantities, homogenous standards and regular supply.
On the other hand, it is clear that many of these obstacles are the result of the MSEs isolation rather than their size. Lack of inter-firm collaboration and absence of industry- institution linkages are some of the major impeding factors to sustainably expand their market share. Considering the relatively large number of MSEs in the country as well as the inadequate capacity of traditional delivery mechanisms, individual MSE oriented interventions have not only been cost efficient but also the impact has neither been significant nor sustainable. This has necessitated cluster development to be experimented and implemented in Ethiopia as a development tool for a comprehensive intervention for individual problems of the MSE sector. In line with this, the Ethiopian Government and other development partners, including UNIDO and the World Bank, have introduced cluster development approach as one of the MSE development and competitiveness tools.
Cluster development also refers to specific kind of Local Economic Development (LED) strategies which focus on encouraging and supporting sectoral and geographic agglomerations of inter-connected companies, services and institutions. The targeted sectors are those that are considered offering the most local economic development potential and addressing their problems through the cluster development approach is one of the components of the overall LED initiatives.
By introducing the cluster development approach, it is believed that positive changes in the MSE sector can be realized through promotion of networking and collaboration among actors in the sectors as well as conducive platform can be well created for the concerned efforts by institutions, business associations and governmental MSE support bodies.
Rationale for developing a Cluster Development Guideline/Framework
The following points justify for developing a Cluster Development Guideline/Framework:
- The Cluster Development approach is taken as a tool for poverty reduction and competitiveness by the Ethiopian Government and other development partners;
- There has not been central unifying principle for the Cluster Development.
- There is no existing National Cluster Development Framework that would provide long term guidance to planning, implementation, management/coordination efforts in the sector and promote national consensus on the application of cluster Development approach as a strategic tool for competitiveness and economic prosperity.
- Considering the importance of the cluster development, the Government of Ethiopia has allocated considerable amount of funds to the localities, which are mainly being utilized in construction of sheds/premises, provided to the MSEs, as an overall cluster development intervention.
- The ongoing government-led cluster development initiative is lacking governance mechanisms.
- The regions and localities have limited knowledge and understanding of the holistic approach of cluster development and steps to be followed and accordingly, have approached FeMSEDA to develop a national Cluster Development Framework/Guideline that will guide the establishment of SME clusters in their respective localities.
- The Framework is also expected to inform policy/decision makers and planners on the cluster development to be followed for the MSE/ private sector development.
The need for international consultancy firm:
Cluster Development approach as strategic development tool started in Ethiopia very recently, following UNIDOs’ intervention in 2005. UNIDO was able to provide only local-based and project specific short term training to Cluster Development Agents (CDAs). No higher learning institutions or research centers have developed local capacities in related disciplines. The need for the formulation of a comprehensive guideline and corresponding capacity constraint in the country to undertake this assignment necessitated the involvement of international consultancy firm in the formulation of Cluster Development guideline. In the context of Ethiopia, the international consultant is expected to bring international experiences and good practices that will help formulate a high standard Cluster Development Framework, following a consultative approach
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The international consultant will work closely with the national Cluster Development Specialist in this exercise. The international Consultant, in collaboration with the national expert, will undertake the following main tasks:
- Review relevant policy documents (GTP, MSME Strategy, UNDP-LED project document, Cluster initiatives of the government and development partners, and other related documents.
- Conduct field review (All the field review tasks will be conducted in Addis Ababa. (2 natural clusters: Merkato footwear and Gullelle Handloom) and 2 induced clusters: (Gundish Meda and Addisu Gebeya) will be covered. If there is need, a field visit to outside of Addis Ababa could be organized.
- Hold consultation with the key institutions, but not limited to FeMSEDA, Addis Ababa City MSE office, Addis MFI, MoFED, UNDP-LED Program Unit, UNIDO Regional Office, the World Bank, and the Chamber of Commerce
- Prepare a consolidated Inception Report
- Develop an user friendly draft framework/guideline for the cluster development
- Organize a validation workshop and get inputs from stakeholders
- Incorporate inputs and submit the final cluster development framework/guideline
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- Professionalism: Ability to identify key procedures and issues, conduct data collection, operational analyses and discussions with decision-makers to propose solutions to these issues. Ability to apply sound judgment in the context of assignments given, and work under pressure. Shows persistence and remains calm in stressful situations. Shows pride in work and achievements, demonstrates professional competence and mastery of the subject matter. Responds positively to feedback and different points of view. Conscientious and efficient in meeting commitments, observing deadlines and achieving results.
- Planning and Organizing: Develops clear goals that are consistent with the terms defined here. Identifies priority activities and assignments, and adjusts them as required. Allocates appropriate time and resources for completing work by foreseeing risks and developing contingency plans accordingly. Monitors and adjusts plans as necessary, and uses time effectively.
- Communications:Speaks and writes clearly and effectively; listens to others, correctly interprets messages from others and responds appropriately; asks questions to clarify, and exhibits interest in having two-way communication; tailors language, tone, style and format to match audience. Keeps confidential information undisclosed
- Accountability: Takes ownership of responsibilities and honors commitments. Delivers assigned tasks within prescribed time, cost and quality standards. Operates in compliance with organizational regulations and rules. Takes personal responsibility for his/her shortcomings
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Education:
- Masters’ Degree in economics, social sciences, or development related fields
Experience and Skills
- At least ten years demonstrated experience in planning, implementation and management of Cluster Development programmes at national and international levels.
- Extensive experience in assessment and evaluation of Cluster Development intervention and/ or approach at national and international levels
- Three to five years experience in providing high quality technical and advisory support to the governments in Cluster Development Policy, strategy and programme development.
- Experience in development of the cluster development Framework/Guideline would be an asset.
- Have excellent analytical skills and assessing the MSE and writing skills.
- Working experience and familiarity with the development efforts of the international development partners, especially UN agencies
- Sound understanding of the national and international development policies, strategies and programmes, and their implementation issues and challenges, especially in the area of MSME Development
- Exposure to or understanding of the Ethiopia’s socio-economic contexts would be an asset
- Full proficiency in using computer software, such as Microsoft offices and internet
Language Requirements:
- Full proficiency in both spoken and written English
Interested applicants are invited to submit their CV's online. Only short listed candidates will be contacted to submit technical and financial proposal.
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