Financial Services Consultant 

Developing Environmental Strategy for Sustainable Forestry Value Chain Development.

TERMS OF REFERENCE 

1. Background/ Context 

Inkunga Finance PLC, strategically located in the heart of Karongi District, Western Province, has emerged as a pivotal microfinance institution dedicated to empowering small and medium-sized entrepreneurs. Our overarching mission is to deliver unparalleled financial services that not only boost socio-economic growth within our community but also foster sustainability and self-sufficiency. Committed to catalyzing positive change, we continuously strive to expand our impact across various sectors.

In 2021, Inkunga Finance PLC observed a notable growth in demand for financing within the forest sector. Recognizing the profound potential of forestry activities to enhance landscapes, restore ecosystems, conserve biodiversity, and uplift rural livelihoods while contributing to environmental protection, our institution embarked on a transformative journey. As a socially responsible financial services provider, we aim to strengthen our social and environmental footprint by tailoring our products and services to meet the needs of micro and small enterprises (MSEs). The forest value chain, in particular, presents significant opportunities for achieving our objectives both in the short and long term.

While Inkunga Finance PLC already serves clients engaged in the forest value chain, we are eager to intensify our financing activities within this line. These activities encompass a wide range of economic endeavors, including forest plantation, management, primary and secondary wood processing, carpentry, wood crafts, agroforestry, and more. In collaboration with ADA (Appui au Développement Autonome a.s.b.l), which shares our vision for supporting the development and financing of forest value chains, Inkunga Finance undertook a comprehensive market study. This endeavor led to the development and testing of two innovative financial product prototypes, namely Kundigiti and Noz’urubaho, through a one-year pilot project in select branches. 

The success of this pilot initiative underscored the critical need to further finance the forest sector, empowering rural and peri-urban communities to mitigate the risks of climate change and safeguard their assets and resources. Consequently, Inkunga Finance PLC and ADA have committed to rolling out these two products across all the seven branches. In pursuit of our shared goal to provide the community with robust financing solutions for environmental protection and sustainable development, both institutions have embarked on a collaborative two-year project (2024-2025). This project aims to refine and expand both financial and non-financial products, ensuring their accessibility and effectiveness within the community. 

In light of these endeavors and opportunities, Inkunga Finance PLC is now seeking a motivated, dynamic, and experienced consultant to provide specialized expertise in development of the environmental strategy to support sustainable forestry value chain development. 

2. Objectives of the consultancy 

The primary objective of this consultancy is to provide specialized expertise in the development of the environmental strategy and capacity building to support sustainable forestry value chain development. 

Specifically, the consultant will be responsible for:

• Developing training modules, materials, and guidelines for producers in sustainable forest management practices, environment protection, climate change adaptation, and mitigation.
• Assessing Inkunga Finance and its portfolio risks and vulnerability to climate change;
• Developing an environment strategy based on the findings of the assessment;
• Adapting/developing policies and procedures to align them with the environment strategy).
• Training staff on the content of developed strategies, policies, and procedures related to environment protection and sustainable resource management.

3. Scope of Work 

The scope of work for the consultant will encompass a multifaceted approach to the development of an environmental strategy and capacity building initiatives to support sustainable forestry value chain development. Building upon the context provided by Inkunga Finance PLC's mission and the emerging opportunities within the forestry sector, the consultant will undertake the following tasks:

Training Module Development 

The consultant will focus on designing comprehensive training modules, materials, and guidelines specifically tailored for Inkunga Finance PLC staff directly involved in the project. These modules will be meticulously crafted to address the unique needs and roles of project staff, equipping them with the requisite knowledge and skills in sustainable forest management practices, environment protection, climate change adaptation, and mitigation. Through collaborative discussions and feedback sessions with project stakeholders, the consultant will ensure that the training materials align closely with the objectives and scope of the project, facilitating effective capacity building among Inkunga staff.

Risk and Vulnerability Assessment 

Conducting a thorough assessment of Inkunga Finance PLC and its portfolio to identify risks and vulnerabilities associated with climate change and environmental factors will be a crucial aspect of the consultancy. The consultant will utilize a combination of qualitative and quantitative methods to assess the institution's exposure to climate-related risks, including physical, transition, and liability risks. 

Environmental Strategy Development 

Based on the findings of the risk and vulnerability assessment, the consultant will develop an environmental strategy aimed at enhancing the resilience of Inkunga Finance PLC and its stakeholders to climate change impacts. This strategy will encompass measures to mitigate environmental risks, promote sustainable resource management practices, and foster climate adaptation, resilience within the forestry value chain as well as adapt Inkunga’s business strategy to thrive profitably. 

Policy and Procedure Alignment 

The consultant will collaborate with key stakeholders to adapt or develop policies and procedures that align with the environmental strategy. This may involve revising existing policies related to risk management, credit assessment, analysis and loan disbursement to incorporate environmental criteria and considerations. Additionally, new policies amendment proposals and procedures may be developed to address emerging environmental challenges and opportunities within the forestry sector. 

Staff Training and Capacity Building 

Training sessions will be organized by the consultant to educate Inkunga Finance PLC staff on the content of the developed environmental strategy, policies, and procedures. These sessions will aim to build staff capacity in understanding environmental risks, integrating environmental considerations into decision-making processes, and implementing relevant policies and procedures effectively. 

4. Methodology 

The methodology adopted by the consultant will be guided by a participatory and iterative approach, ensuring active engagement of stakeholders throughout the process. The following methodology outlines the key steps and strategies to be employed: 

Stakeholder Consultation and Engagement 

The consultant will engage with a diverse range of stakeholders, including Inkunga Finance PLC staff, forestry producers, government agencies, and environmental experts, through workshops, focus group discussions, and one-on-one consultations. This collaborative approach will ensure that the environmental strategy and capacity building initiatives are informed by the needs and perspectives of key stakeholders. 

Data Collection and Analysis 

Utilizing both primary and secondary data sources, the consultant will collect and analyze information related to climate change impacts, environmental risks, and best practices in sustainable forest management as well as forest value financing. This will involve reviewing existing literature, conducting interviews, and analyzing relevant data sets to inform the risk and vulnerability assessment and strategy development process. 

Risk Assessment and Strategy Development 

The consultant will conduct a comprehensive risk assessment to identify climate-related risks and vulnerabilities facing Inkunga Finance PLC and its stakeholders. Based on the assessment findings, the consultant will work collaboratively with stakeholders to develop an environmental strategy that addresses identified risks and promotes sustainable practices within the forestry value chain. 

Policy and Procedure Alignment 

Working closely with Inkunga Finance PLC management and relevant stakeholders, the consultant will review existing policies and procedures to identify areas for alignment with the environmental strategy. This may involve revising policies related to risk management, credit assessment, and loan disbursement to incorporate environmental considerations and criteria. 

Capacity Building and Training 

Training sessions will be organized by the consultant to build staff capacity in understanding and implementing the environmental strategy, policies, and procedures. These sessions will be interactive and participatory, providing staff with the knowledge and skills needed to integrate environmental considerations into their daily work activities effectively.

Overall, the methodology will prioritize stakeholder engagement, data-driven decision-making, and capacity building to ensure the successful development and implementation of the environmental strategy and capacity building initiatives within the forestry value chain. 

5. Deliverables 

The consultant will be expected to deliver the following:

• Facilitate information gathering and feedback workshops.
• Training sessions conducted and materials developed for Inkunga staff.
• Develop a data-driven environmental strategy aligned with the project.
• Training sessions conducted for project staff on developed strategies, policies, and procedures. 

6. Documentation 

• An inception proposal which responds to the scope of work clarifying methodology, execution process and work plan.
• An annotated outline for a strategy to fortify safeguards gainst environmental and climatic shocks against the financial products, investments in the forestry value chain, improve coordination within, and project scale up, sustainable forest value chains in Inkunga areas of operation, for review.
• Power point slides/ presentation templates that will be used to run the trainings.
• A comprehensive draft report detailing methods applied, stakeholders contacted, materials reviewed, and methods applied. Beyond the standard components of a report, it will include a bibliography, annexures of lists of key informants, workshop participants, interviewees etc.
• A final report incorporating comments made by stakeholders (local authorities, partners, regulators, clients, etc) in the feedback workshop and by Inkunga focal persons.
• Final copy of action-oriented strategy incorporating inputs from stakeholders and reviewers.

7. Timeframe 

The successful consultant will be expected to start working in the first week of April 2024 and all works must have been completed by end of May 2024. The consultant will suggest reasonable and competitive number of days to undertake the exercise which will be a key basis for analysis of bids.

8. Reporting 

The consultant will report directly to the Managing Director and collaborate closely with the operations and transactions department throughout the duration of the consultancy.

9. Qualifications and Experience 

• Demonstrable experience in rural financial services, preferably in the context of agro-forestry, sustainable forestry business development, or related sectors.
• Expertise in product development, business sustainability management, and capacity building.
• Strong facilitation, training skills, excellent communication and interpersonal skills.
• At least 7 years’ research/ consultancy experience in the agricultural, forestry, small holder farmers value chains.
• Experience in carrying out similar exercises before and knowledge of the relevant stakeholders (public agencies, private sector, NGOs).
• Good analytical skills and open minded with the ability to see issues of interest beyond the printed scope of work outlined in this TOR and make appropriate recommendations.
• Familiarity with the Rwandan context and forestry sector would be advantageous.
• Bachelor’s degree in finance, forestry, agronomy, environmental management, or related fields. Master’s degree in related field would be added advantage.

10. How to bid for this assignment 

Interested and suitably qualified consultants and/ firms shall send their bids by e-mail (a technical proposal responding to the TOR objectives and deliverables and a financial proposal) by 22^ndMarch, 2024 23:59HRS to recruitment@inkungafinance.com with subject line “Forestry Value Chain Financing Refinement Consultant”. 

11. Evaluation Criteria 

Proposals will be evaluated based on the following criteria:

• Relevance of experience and expertise.
• Similar works done before.
• Methodology and approach proposed.
• Clarity and feasibility of the timeline.
• Financial proposal. 

12. Terms and Conditions 

• Inkunga Finance Plc reserves the right to accept or reject any proposal received without providing any reasons whatsoever.
• The successful consultant/ firm will be required to sign a consultancy agreement outlining the terms and conditions of the engagement. 

Done at Karongi, March 15^th, 2024

MUHAWENIMANA Abed Cherif

Managing Director