Request for Proposal (RFP)- Selection of Banking Service Provider(s) for the iWork Program

Background

SOS Children’s Villages Ethiopia is a non-governmental, non-political and non-profit organization dedicated to the welfare of children and young people. SOS CVE works with donors, government bodies and community organizations across Ethiopia and manages multi-year, multi-currency and consortium-funded grants.

The iWork Program is funded by the Mastercard Foundation and implemented under a consortium led by VSO in partnership with SOS CVE and the Ethiopian Civil Service Commission. The program targets 12,000 youth through structured six-month internship placements, soft- and hard-skills training, and enterprise ecosystem development. SOS CVE is responsible for participant-facing financial services including stipend disbursement, savings account facilitation and linkages to sustainable financial products.

Invitation to Bid

SOS Children’s Villages in Ethiopia (SOS CVE) invites eligible commercial banks licensed and in good standing with the National Bank of Ethiopia (NBE) to submit Technical and Financial Proposals for the provision of comprehensive banking services for the iWork Program. SOS CVE may select one banking partner where this provides better geographic coverage, service quality, risk diversification, value for money, or program delivery.

The selected bank(s) will be expected to provide institutional banking services, participant accounts, high-volume stipend disbursement, digital payment solutions, financial inclusion products, foreign exchange and transfer services, reporting, risk management, internship hosting capacity, and a strategic co-financing partnership.

Purpose and Objectives of the RFP

The purpose of this RFP is to select reputable, financially sound and technologically capable banking partner(s) that can:

• Provide secure and reliable institutional banking services for the program.
• Open and maintain dedicated foreign currency and local currency accounts.
• Facilitate accounts for up to 12,000 youth participants.
• Provide secure, scalable and efficient monthly bulk stipend payments.
• Offer digital banking, bulk upload, API/integration and real-time reporting capabilities.
• Support financial inclusion through appropriate youth, SME, SACCO and cooperative products.
• Provide competitive foreign exchange, transfer and other banking services.
• Meet donor, audit, AML/CFT, data protection, safeguarding and applicable Ethiopian regulatory requirements.
• Provide measurable co-financing and strategic partnership support to SOS CVE.
• Provide internship hosting opportunities in the three program clusters.

Program Overview

Scope of Banking Services

1. Institutional Banking Accounts

• Foreign Currency Account: establish and maintain a dedicated foreign currency account for program funds, subject to applicable NBE requirements and SOS CVE eligibility.
• Local Currency Account: establish and maintain an ETB account for operational expenses, local procurement and in-country disbursements.
• Currency Conversion: provide competitive and transparent conversion of USD/EUR grant funds into ETB, with advance disclosure of applicable rates and margins/spreads.
• Account Controls: support multi-signatory, dual authorization and other configurable controls consistent with SOS CVE’s internal control framework.
• Provide clear account statements, confirmations, transaction histories and supporting documentation suitable for reconciliation, reporting and audit.

2. Participant Account Services

• Facilitate individual savings or transaction accounts for participating youth.
• Provide simple account opening and KYC processes, using Fayda National ID verification where available and permitted.
• Provide transparent information on minimum balances, dormancy, account maintenance charges and other fees.
• Provide youth-friendly customer support and financial literacy services.
• Provide accessible savings products and other appropriate financial inclusion services.
• Offer credit/financing products suitable for eligible youth, including startup or youth entrepreneurship financing where available.
• Where available, provide interest-free/Sharia-compliant savings and financing products, including interest-free loan/financing services, with clear eligibility and product terms. Bidders shall identify such products separately in their proposals.

3. Stipend Management and Bulk Payment Solution

The bank shall provide a secure, scalable digital solution for monthly stipend allowance payments. The proposal shall cover:

• Participant registration and enrolment.
• Account validation and beneficiary verification.
• Bulk payment capability for high-volume stipend payments.
• Automated file upload and/or API-based integration.
• Payment authorization workflows and user access controls.
• Defined payment processing and turnaround times.
• Real-time or near-real-time payment status.
• Automated reconciliation reports compatible with SOS CVE Finance processes.
• Exception and failed-payment management.
• Beneficiary replacement for dropout/replacement cases.
• Payment notifications to participants.
• Transaction audit trails and downloadable reports.
• Business continuity arrangements to prevent disruption of stipend payments.

Bidders must provide a separate financial plan identifying the required one-time investment, implementation costs, recurring fees and any other costs associated with establishing and operating the digital bulk stipend payment solution.

4. Digital Banking and Integration

• Internet banking platform.
• Mobile banking platform.
• API integration options and technical documentation.
• Bulk upload functionality.
• Maker-checker/dual authorization functionality.
• Role-based user access.
• Real-time transaction and account reporting.
• Automated SMS, app or other payment notifications.
• System availability and service-level commitments.
• Technical support and incident escalation.

5. Financial Inclusion Products

Bidders shall provide specific product information rather than general statements of intent. The proposal should cover:

• Youth savings accounts and other accessible savings products.
• Youth entrepreneurship/start-up financing.
• Business and SME loans.
• Asset or equipment financing where available.
• Agricultural or value-chain financing where relevant.
• SACCO and cooperative savings/financing products.
• Financial literacy and customer education.
• Interest-free/Sharia-compliant savings and financing products, including interest-free loan/financing services, where offered.
• Product eligibility, pricing/profit structure, collateral requirements, limits, tenor and application process.

6. Foreign Exchange and Transfer Services

• Local and international transfers.
• Incoming and outgoing international payments.
• Competitive FX conversion rates and transparent margins.
• Clear disclosure of correspondent/intermediary bank charges.
• Transfer turnaround times and transaction limits.
• Electronic payment confirmations and supporting documentation.
• Ability to support cross-currency payments where applicable.

7. SME, SACCO and Cooperative Products

The bidder should describe tailored products for SMEs, SACCOs and cooperatives linked to the program and internship ecosystem, including enterprise development support, savings, financing and other services that can strengthen host organizations and employment opportunities.

8. Co-Financing and Strategic Partnership

Co-financing is a core component of the partnership. Bidders shall propose annual commitments for 2027, 2028 and 2029 and clearly state the modality, monetary value, conditions, timing and intended use. Possible modalities include cash grants, in-kind support, matched funding, financial literacy, CSR initiatives, digital infrastructure support or other measurable development contributions.

9. Internship Hosting Capacity

Bidders shall demonstrate capacity to host youth interns for six-month placements within the three program clusters. The proposal shall state the number of interns that can be hosted by location, branch placement opportunities, supervision arrangements, mentorship arrangements and available facilities

Service Level and Performance Requirements

Compliance, Risk Management and Safeguarding

• Valid licensing and continuing good standing with the National Bank of Ethiopia.
• Full compliance with applicable AML/CFT, KYC and financial-sector requirements.
• Protection of participant personal and financial data.
• Cybersecurity controls, encryption, access management and monitoring.
• Daily backup, disaster recovery and business continuity arrangements.
• Fraud prevention and transaction monitoring.
• Incident response and data breach notification procedures.
• Accessible complaint and grievance mechanisms.
• Safeguarding-sensitive customer service appropriate to youth and participants who may be transitioning from care arrangements.
• No undisclosed conflict of interest with SOS CVE or the donor.
• Evidence of ESG and safeguarding commitments.

Eligibility and Mandatory Requirements

A bidder must submit documentary evidence for the following minimum requirements. Failure to meet a mandatory requirement may result in disqualification.

Proposal Submission Instructions

Bidders shall submit separate Technical and Financial Proposals. The proposal must be clear, complete, signed by an authorized representative and supported by the required evidence.

1. Technical Proposal

• Signed cover letter and bidder information.
• Company profile and ownership/management structure.
• Evidence of licensing and regulatory standing.
• Branch and service network by cluster.
• Relevant experience and references.
• Detailed service delivery approach.
• Institutional account and FX service proposal.
• Participant account opening and financial inclusion proposal.
• Digital bulk stipend payment solution, including architecture/process flow.
• API/integration and digital banking capabilities.
• Reconciliation and reporting approach.
• Interest-free/Sharia-compliant savings and financing products, where available.
• Risk management, cybersecurity, fraud prevention and business continuity plans.
• Internship hosting plan across program cluster (Dire Dawa, Harar, Jigjig; Jimma; Sheger–Adama–Arsi)
• Co-financing and strategic partnership proposal for 2027–2029.
• Implementation plan and transition/mobilization approach.
• Customer support and escalation matrix.
• Signed declarations and supporting documents

2 Financial Proposal

The Financial Proposal shall be submitted separately and shall provide a transparent, itemized price schedule. All fees, taxes, commissions, spreads and other charges must be disclosed.

The bidder shall also provide a separate financial plan for the required investment and associated fees for implementing the digital solution for bulk stipend allowance payments. The financial proposal shall identify all assumptions and distinguish one-time investment from recurring operating costs.

Evaluation Methodology

Proposals will be evaluated in two stages: technical evaluation followed by financial evaluation. A minimum technical score of 70% is required for a proposal to proceed to financial evaluation. The overall evaluation will comprise 70% technical and 30% financial assessment.

1.1 Technical Evaluation Criteria

1.2 Financial Evaluation Criteria – 30%

Only bidders that achieve the minimum technical qualifying score shall proceed to Financial Evaluation. The Financial Proposal will be evaluated based on overall cost, transparency, competitiveness and value for money.

Financial Evaluation Framework

For transparency, bidders shall provide sufficient pricing information to enable comparison of total banking costs. SOS CVE may normalize fees, transaction assumptions and recurring costs where necessary for a like-for-like comparison. Any hidden, conditional or volume-based charges must be disclosed.

The financial proposal shall not be evaluated solely on the lowest individual fee. The evaluation will consider the overall cost of the proposed banking solution, service quality, scalability, implementation investment, transaction charges and other material costs.

Clarifications and Communication

Bidders requiring clarification shall submit questions in writing to SOS CVE through the official procurement communication channel designated in the invitation. SOS CVE may issue clarifications or addenda to all bidders where a response could affect the interpretation of the RFP. Bidders are responsible for ensuring that their proposals address any issued clarification or addendum.

Proposal Validity

The bidder shall state the validity period of its proposal. Unless otherwise agreed in writing, the proposal should remain valid for at least 90 calendar days from the submission deadline.

Implementation and Mobilization

1. Contract signing and designation of relationship managers.
2. Opening/activation of required institutional accounts.
3. Participant account opening and KYC arrangements.
4. Configuration/testing of bulk stipend payment solution.
5. User access and authorization configuration.
6. System integration/API testing where applicable.
7. Pilot payment and reconciliation testing.
8. Training of SOS CVE Finance and relevant program users.
9. Go-live and stabilization support.
10. Post-implementation review and agreed service-level monitoring.

Reporting Requirements

The selected bank shall provide monthly and quarterly reports covering, at minimum:

• Number of active participant accounts.
• Number and value of stipend payments.
• Successful and failed transactions.
• Dormant accounts.
• Fees and charges incurred.
• FX rates and applicable margins/spreads.
• Complaints and resolutions.
• Financial inclusion indicators.
• System availability/incidents where relevant.
• Outstanding exceptions and corrective actions.

Contract and Service Level Agreement

The successful bidder will be required to enter into a banking services agreement and, where applicable, a Service Level Agreement (SLA). The agreement should address service scope, fees, confidentiality, data protection, authorization controls, reporting, service levels, incident management, business continuity, audit access, complaints, liability, termination, dispute resolution and other applicable contractual requirements.

The banking services agreement is expected to cover the full iWork implementation period, August 2026 to January 2029, with an option for SOS CVE to extend or expand the engagement to other SOS CVE programs subject to satisfactory performance and mutually agreed terms.

SOS CVE Rights and Reservations

• Accept or reject any proposal.
• Request additional information or clarification.
• Invite shortlisted bidders for presentations, demonstrations or negotiations.
• Negotiate commercial and service terms with shortlisted bidders.
• Select one banking partner and enter into a formal Cooperation or Banking Services Agreement with the selected bank.
• Cancel or amend the procurement process without obligation to award a contract.
• Reject proposals that are incomplete, non-responsive, materially conditional or fail mandatory requirements

Confidentiality and Data Protection

Bidders shall treat all information received from SOS CVE as confidential and shall use it only for preparing and delivering the proposal. The selected provider shall protect participant and SOS CVE data in accordance with applicable Ethiopian requirements, contractual obligations and SOS CVE safeguarding standards.

Ethical Conduct, Conflict of Interest and Fraud Prevention

• Bidders must disclose any actual, potential or perceived conflict of interest.
• Bidders shall not offer gifts, commissions, inducements or other improper benefits to SOS CVE personnel.
• Any attempt to influence the procurement process improperly may lead to disqualification.
• All information provided by the bidder must be accurate and verifiable.
• SOS CVE may verify references, licenses, financial information and other submitted evidence.

Proposal Submission Checklist

Bidder Response Forms

_{Form 1: Bidder Information}

Form 2: Relevant Experience

Form 3: Proposed Co-Financing

Form 4: Internship Hosting Capacity

Form 5: Digital Stipend Solution

Form 6: Financial Proposal Declaration

We certify that the prices and charges submitted in our Financial Proposal are complete and accurate and that all applicable fees, commissions, spreads, implementation costs and recurring charges have been disclosed. We confirm that the proposal is valid for the stated validity period and that we have reviewed and accept the requirements of this RFP, subject to the qualifications expressly stated in our proposal.