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Tender Details
- Country: Ethiopia
- Summary: Technical Advisory Firm to Support the Development and Adoption of Cash-Flow Based Lending Practices
- ETT Ref No: 69691017
- Deadline: 08 Aug 2022
- Competition: ICB
- Financier: World Bank (WB)
- Purchaser Ownership: Public
- Tender Value: Refer Document
- Notice Type: Tender
- Document Ref. No.: 1282138
- Purchaser's Detail :
- Description :
- Expression of Interest are invited for Technical Advisory Firm to Support the Development and Adoption of Cash-Flow Based Lending Practices in Ethiopia Assignment Description A joint initiative of the World Banks Africa Gender Innovation Lab (GIL) and the World Banks Women Entrepreneurship Development Project (WEDP), the Innovations in Financing Women Entrepreneurs (IFWE) project is an initiative to pilot and evaluate new approaches to empowering Ethiopias women entrepreneurs. IFWE acts as a catalyst for innovation specifically in the areas of access to finance, and business support services. IFWE helps develop and pilot innovative approaches to delivering loans and business services to entrepreneurs. IFWE also carries out rigorous research to measure the impact of these innovations and advise local and international stakeholders on options for supporting female entrepreneurs. WEDP has partnerships with more than a dozen Ethiopian MFIs, as well as financing for on-lending to MFIs who adopt any innovations that result in a reduction of collateral coverage or diversification of collateral alternatives. As part of its work on innovative finance, GIL seeks to contract a qualified firm to provide technical assistance on cashflow-based financing to Ethiopian financial institutions. The purpose of this contract is to support the development, piloting, adoption, and evaluation of cashflow-based lending practices amongst Ethiopian financial institutions. In particular, the focus is on business lending; MFIs and banks; reducing the role of collateral in lending decisions; and expanding entrepreneurs access to finance. Traditional loan financing in Ethiopia often comes with high collateral requirements, which excludes many entrepreneurs from accessing (sufficient) financing. This is especially true for women entrepreneurs, who tend to have limited access to fixed-asset collateral. Cashflow-based lending practices use analysis of firm cash flow to inform their decision abouts about who to lend to and what loan size to offer loan applicants. Introducing and expanding the use of cashflow-based lending practices has the potential to expand access to credit for Ethiopian entrepreneurs, and in particular for female entrepreneurs, especially if their introduction results in reduced collateral requirements for borrowers. WEDP in the past developed an excel-based MSME loan appraisal tool that included a cash flow analysis of the business, which was then utilized by some Ethiopian MFIs, and did result in a reduction of collateral requirements from 250% to 100%.
- Documents :
Purchaser : THE WORLD BANK GROUP
Africa Avenue (Bole Road) Addis Ababa
Tel: +251-115176000
Email :wbgeconsultant@worldbank.org
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