Consultancy to Develop a Savings and Credit Policy

Terms of Reference (ToR) for Consultancy to Develop a Savings and Credit Policy for Ubuntu Wealth Creation Savings and Credit Cooperative

1. Background
Ubuntu Wealth Creation Savings and Credit Cooperative (Ubuntu Cooperative) is a member-driven financial cooperative focused on promoting savings and providing credit facilities to its members. As part of its strategic growth, Ubuntu Cooperative seeks to develop a comprehensive Savings and Credit Policy that will guide its operations, ensure regulatory compliance, and promote financial inclusion.

2. Objective of the Consultancy
The objective of this consultancy is to develop a Savings and Credit Policy for Ubuntu Cooperative. The policy should align with current Ubuntu operational rules, best practices, regulatory requirements, and the cooperative’s mission to enhance member welfare through prudent financial management and ethical lending practices.

3. Scope of Work
The consultant will be responsible for engagement with key stakeholders (i.e., members board members & management) and then drafting a comprehensive Savings and Credit Policy that includes:

• Objectives and guiding principles.
• Eligibility criteria for membership and loan applications.
• Types of savings products and loan services offered.
• Interest rates, fees, and charges.
• Credit evaluation and risk management procedures.
• Loan recovery and delinquency management strategies.
• Roles and responsibilities of the cooperative’s management and members.
• Compliance with relevant regulations and laws.
• Any other key features of SACCO operations

4. Deliverables

The consultant is expected to deliver the following:

1. A draft Savings and Credit Policy document for review.
2. Facilitation of a validation meeting.
3. A finalized Savings and Credit Policy document incorporating feedback from the validation meeting.

5. Timeline

The consultancy will be for a duration of sixS (6) days, commencing from the date of contract signing. The first draft should be ready within 4 days and the final 2 days shall used for validation meeting and incorporating the feedback into the final document.

6. Qualifications and Experience

The ideal consultant should espouse deeper understanding of the ethos of the cooperative operations and possess pthe following qualifications and experience:

Educational Qualifications:

• A degree in Finance, Economics, Business Administration, or a related field. A master’s degree will be an added advantage.

Professional Experience:

• At least 5 years of experience in the financial services sector, particularly in Savings and Credit Cooperatives (SACCOs).
• Proven track record in developing financial policies and procedures for SACCOs or similar financial institutions.
• Experience conducting stakeholder consultations and needs assessments.

Skills and Competencies:

• Strong knowledge of SACCO operations, financial management, and regulatory frameworks.
• Excellent analytical and writing skills.
• Ability to engage with diverse stakeholders.
• Strong organizational and time management skills.

References:

• At least two references from previous clients or employers for similar work done, with contact information.

7. Application Process

Interested consultants are invited to submit the following:

1. A letter expressing interest in the consultancy and highlighting relevant experience.
2. A detailed CV, including qualifications, experience, and references.
3. A financial proposal indicating the consultancy fee.

8. Submission Deadline

Applications should be submitted no later than Wednesday 14th August 2024 (midnight), and addressed to the Board Chairman, on [email protected] . Only shortlisted candidates will be contacted.

9. Evaluation Criteria

The selection of the consultant will be based on the following criteria:

1. Relevant qualifications and experience.
2. Competitiveness of the financial proposal.
3. References and past performance.

Ubuntu Cooperative reserves the right to accept or reject any application and to annul the selection process at any time, without thereby incurring any liability.