Request for Proposal – REACT Round 3 Tanzania Business Models Performance Assessment, June 2022

1.0 The AECF

The AECF is a leading development finance organization that unlocks the potential of the private sector to positively impact lives of rural and marginalized communities in Africa by supporting businesses to innovate, create jobs and leverage investments. Launched in 2008, AECF has invested in businesses across 26 Sub Saharan countries, in more than 40 value chains. AECF focuses on agribusiness, renewable energy, and climate adaptation technology sectors, while addressing the crosscutting themes of gender, youth, and fragile contexts with the aim of reducing rural poverty, promoting resilient communities, and creating jobs.

 

2.0 Brief Overview of REACT Round 3

Background

The Renewable Energy and Adaptation to Climate Technologies Round 3 (REACT R3) funding window was launched in 2014 with support from the Foreign, Commonwealth and Development Office (FCDO) and the Swedish International Development Cooperation Agency (Sida). The competition was open to business ideas in the East African Community (EAC) based on low cost, clean energy; and solutions that help smallholder farmers adapt to climate change. Its goal was to contribute to reducing rural poverty in Sub-Saharan Africa and its purpose was to catalyse private sector investment and innovation in low cost, clean energy, and climate change technologies.

There are three categories of business ideas that REACT R3 considered:

  • Increased access to low cost, clean energy for rural businesses and households. This includes cost-effective renewable power, commercially viable renewable fuels and other clean energy alternatives.
  • Products and services that help rural people and smallholder farmers adapt to climate change;
  • Financial services that increase access to finance for low cost, clean energy and climate-resilient technologies or catalyse financial solutions.

REACT R3 funded a total of twenty projects spread across Kenya, Tanzania, Uganda, and Rwanda. A total of nine companies were funded in Tanzania.

The REACT R3 Tanzania component recorded an overall impact of 7,000 households benefiting (either as consumers of their products and services or as suppliers to the companies) with 439 jobs created and over US$ 12m leveraged in co-financing. In terms of its environmental impact, over 1.1 MWp of clean electricity capacity has been installed. The REACT R3 programme is partially closed with the Tanzania component remaining open to manage 2 active companies in the minigrid sector whose implementation was delayed.

 

3.0 The Purpose

The assignment will study REACT Tanzania R3 projects (9 projects) by assessing their business models, technologies deployed, achievements, challenges, financing, and lessons learnt.

  1. Thoughtfully and comprehensively examine the projects funded under REACT R3 Tanzania allowing a clear and meaningful analysis of what worked well (or not).
  2. Assess the achievements of the programme against its stated objectives and identify significant factors that have facilitated or impeded the delivery of results.
  3. Provide recommendations and lessons learned that can be applied to improve the performance of future climate mitigation and adaptation programmes in Tanzania.

 

4.0 Scope of Work

The key objectives of the study will be to

  • Review business models for 9 projects to establish which one works and those that failed including the reason and suggest what could be done best to improve the performance.
  • Assess which of the projects have been most effective, analyse factors that contributed to the success or failure of the projects and how these can be avoided or dealt with in the future to improve the performance of similar projects.
  • Interview selected investees from successful and failed projects to get their insight on what contributed to the success or failure of the respective projects and recommend how that could be enhanced or avoided to improve the project’s performance.
  • Explore the climate mitigation and adaptation co-benefits achieved through the REACT R3 portfolio of projects in Tanzania.
  • Interview a few selected stakeholders in the renewable sector such as TANESCO, EWURA and TAREA to get their perspective on the challenges that impede the developers of mini-grids in Tanzania.
  • Recommend to the AECF and its partners on how to design a successful similar programme in the future.

 

5.0 Methodology

This will be primarily a desktop-based review of background documents (project documents, project monitoring data, progress reports and field visit reports etc).

The consultant is expected to conduct online key informant interviews with programme staff, investees, Sida Tanzania, and relevant government officials with a limited option of face-to-face interviews where necessary. The consultant will develop relevant tools and approaches to gain a deeper understanding of the outcomes and impact of the projects.

 

6.0 Deliverables

The consultant is expected to lead, accomplish, and submit the following deliverables within the agreed timeframe and budget.

  • An inception report outlining approach, data sources, methodology, tools to be deployed and stakeholder engagement processes.
  • A comprehensive report on the study findings and recommendations for future interventions and an external facing 3–5-page summary document
  • A PowerPoint presentation to the stakeholders on the findings of the study

 

7.0 Qualifications

  • A master’s in Development Finance, Economics, statistics, monitoring and evaluation, Engineering, or related fields.
  • At least 8-10 years relevant experience in development and management of renewable energy projects and/programmes, data analysis and stakeholder consultations.
  • Extensive experience in Tanzania.
  • In depth knowledge of Minigrids and the renewable energy sector in Tanzania.
  • Experience with working with AECF investments in Tanzania has an added advantage

 

8.0 Duration of the service

The task should not take more than 1 month and is expected to commence in July 2022. This assignment can be conducted by a team of experts or an individual expert.

9.0       Proposal submission

Interested and qualified (individual or institutional) consultants are invited to submit their proposal(s) comprising the following:

  • An understanding of the consultancy requirements.
  • Methodology and work plan for performing the assignment.
  • Detailed reference list indicating the scope and magnitude of similar assignments.
  • Relevant services undertaken in the past five (5) years.
  • Letters of references from previous companies/assignments
  • Registration and other relevant statutory documents (this applies to Institutional consultants).
  • The financial proposal clearly showing the budgeted cost for the work to be conducted by the consultant under the scope of work above.

10.0     Pricing

AECF is obliged by the Kenyan tax authorities to withhold taxes on service contract fees as well as ensure VAT, at 14%, is charged where applicable. Applicants are advised to ensure that they have a clear understanding of their tax position with regards to provisions of Kenya tax legislation when developing their proposals.

 

11.0     Evaluation Criteria

An evaluation committee will be formed by the AECF which will include employees. All members will be bound by the same standards of confidentiality. Bidders should ensure that they fully respond to all criteria to be comprehensively evaluated. In deciding the final selection of qualified bidder, the technical quality of the proposal will be given a weighting of 70% based on the evaluation criteria below. Only the financial proposal of those bidders who qualify technically will be reviewed. The financial proposal will be allocated a weighting of 30% and the proposals will be ranked in terms of total points scored.

Evaluation Criteria Marks
Understanding of the Terms of Reference 5
Methodology and work – plan for performing the assignment

Demonstrated capacity to deliver the task(s) within a realistic timeline, based on the consultancy days designated per task.

30
Demonstration of years of experience in similar work 20
Detailed reference list indicating the scope and magnitude of similar assignments,

Signed Letters of reference from past customers or associates to the lead consultant or the consulting organization.

15
Financial proposal; clarity, relevance, reality to market of value/ value for money of cost for the assignment (inclusive of any applicable tax). 30
TOTAL SCORE 100

 

12.0     Disclaimer

AECF reserves the right to determine the structure of the process, number of short-listed participants, the right to withdraw from the proposal process, the right to change this timetable at any time without notice and reserves the right to withdraw this tender at any time, without prior notice and without liability to compensate and/or reimburse any party.

AECF invites qualified consultants/firms to send a proposal to aecfprocurement@aecfafrica.org , clearly marked “TERMS OF REFERENCE FOR REACT ROUND 3 TANZANIA BUSINESS MODELS PERFORMANCE ASSESSMENT” to be received no later than 24th June 2022 by 5.00 pm East Africa Time (GMT +3) addressed to: The AECF, Procurement Department. All clarifications and or questions should be sent to aecfprocurement@aecfafrica.org

 by 15th June 2022 and feedback will be shared by 17th June 2022.

 

About AECF

The Africa Enterprise Challenge Fund (AECF) is a leading development finance organisation that supports businesses to innovate, create jobs and leverage investments in order to create resilience and sustainable incomes in rural and marginalised communities in Africa. Launched in 2008, AECF has invested in 292 businesses across more than 40 value chains and 26 countries in sub-Saharan Africa. We focus specifically on agribusiness, renewable energy and climate technologies, while also addressing the cross-cutting themes of gender, youth and fragile contexts. In just over a decade, we have impacted more than 27.7 million lives, created close to 24,000 jobs, and leveraged over US $740 million in matching funds. AECF is headquartered in Kenya, with offices in Côte d’Ivoire and Tanzania.