Call for Proposals: Access to Finance for Afghans (AFiA) through Provision of Micro Loans

Goal

The goal of the assignment under this call for proposal is “to improve local economies through gender-responsive community-based livelihoods.”

Objective

The objective is “access to finance supported and sustained through subsidized micro loans and technical advisory”.

The specific activity results expected to be achieved are listed below:

• Technical appraisal of micro, small and medium enterprises including women-led businesses to assess their capacity to avail micro loans and provide them micro loans of up to $5,000 or equivalent in local currency, from resources of microfinance bank or microfinance institution, on subsidised loan fee, including opening of the bank accounts for MSMEs to ensure financial inclusion.
• Technical support in financial literacy, business management, financial management, sales, marketing, product development, packing and packaging to build capacity of enterprises and strengthen value-chains.

Budget Size and Duration

• Geographical Area 1 Central Highlands (Daikundi, Bamyan, Ghor), South-eastern (Paktia, Paktika, Khost), Western (Badghis, Herat, Farah).
  • Maximum budget for 12 months: USD 700,000
  • Proposals amounts should be in a range of minimum of USD 500,000 to a maximum of USD 700,000 only, for direct interventions in target districts.
• Geographical Area 2: Central (Wardak, Kabul, Kapisa), North (Jawzjan, Faryab, Balkh, Sar-e-Pul), and Northeast
  • Maximum budget for 12 months: USD 700,000
  • Proposals amounts should be in a range of minimum of USD 500,000 to a maximum of USD 700,000 only, for direct interventions in target districts.

Geographical Coverage

• Geographical Area 1: Central Highlands (Daikundi, Bamyan, Ghor), South-eastern (Paktia, Paktika, Khost), Western (Badghis, Herat, Farah).
• Geographical Area 2: Central (Wardak, Kabul, Kapisa), North (Jawzjan, Faryab, Balkh, Sar-e-Pul), and Northeast (Badakhshan, Takhar, Kunduz).

Eligibility Criteria

• Only one applicant (private entity). The joint/consortium applications will not be considered,
• The private entity is legally registered in compliance with registration requirements of Afghanistan.
• Minimum 3 years of experience in management and operations of microfinance in Afghanistan including assessment of businesses through technical appraisal, disbursement of micro loans and recovery.
• In case of microfinance banks or microfinance institutions, paid up capital according to the prescribed limit by DAB or reserve equivalent to amount projected.
• At least three years, post registration experience and must have last three years (2019-2020- 2021) of audited financials from accredited Chartered Accountants Firm. If an audited statement/report for 2022 is completed it shall be considered in the evaluation.
• The private entity shows basic financial stability in-country (core resources; funding trend for the current and prior two fiscal years) and has at least broad liquidity ratio 50% and quick liquidity ratio 75%.
• The private entity can easily receive funds. Have no-any major problems in the past in the receipt of funds,
• The private entity project log frame and work plans specify expected results and the activities to be carried out to achieve results, with a time frame and budget for the activities.
• The private entity carries out and document regular monitoring activities such as project review meetings, onsite project visits, etc.
• The organizational structure of the finance and programme management departments, and competency of staff, appropriate for the complexity and the scale of activities.
• The private entity has an accounting system that allows for proper recording of financial transactions from United Nations agencies, including allocation of expenditures in accordance with the respective components, disbursement categories and sources of funds.
• The private entity’s overall financial statements are audited regularly by an independent auditor in accordance with appropriate national or international audit standards.
• No major issues related to ineligible expenditure involving donor funds have been reported in the audit reports of the private entity over the past five years.
• All key staff positions are required to have the technical competencies and in addition to the qualification below:
  • Display cultural, gender, religion, race, nationality, and age sensitivity and adaptability.
  • Treats all people fairly and with impartiality.
  • Good communication skills including the ability to write concise and analytical reports in English.
  • Ability to work under pressure and meet deadlines.
  • Flexible and responsive to changes and unexpected demands.
  • Ability to work with people from different backgrounds to deliver quality products within a short timeframe; and
  • Client-oriented and open to feedback.
• In addition to the key personnel mentioned above, the selected organization will hire additionally required experts as per the proposed methodology.

For more information, visit UNDP.