ToR for Conducting an Assessment on Green Awareness and Practices Among MSMEs in Ethiopia

ABOUT FIRST CONSULT

First Consult is a leading economic development consulting firm implementing projects in Ethiopia. Founded in 2006, First Consult (FC) has grown to design and implement projects across the agriculture, manufacturing, and service sectors. Our multidisciplinary teams combine a capacity to execute with clarity of the local context. As a result, we have delivered at-scale real impact in terms of job creation, business formation, business growth, and investment attraction and mobilization.

MESMER PROGRAM

Micro, Small, and Medium Enterprise Recovery and Resilience Program (MESMER) is a 5-year program launched in October 2022 to support 72,200 MSMEs and 410,800 jobs by creating access to finance for micro, small and medium enterprises (MSME) to realize their growth prospects and resilience. MESMER works to provide support to MSMEs through business development support, psychosocial services, and technical assistance to financial institutions. MESMER is a countrywide program implemented by Mastercard Foundation in partnership with First Consult as part of the Foundation’s Young Africa Works strategy and aiming to create dignified and fulfilling work for the youth, the majority of them women.

MESMER is a national scale-up of the existing MSE Resilience Facility launched in 2020 to capacitate enterprises affected by the COVID pandemic. The Programme has the following four-pillars/components driving to meet its objectives: a) Grants and soft loans to MSMEs through a risk-sharing liquidity fund arrangement, b) Technical assistance to financial institutions, c) Business development services and life skills, d) Psychosocial support. The FDRE Ministry of Labour and Skills is the main government counterpart for the program. Other partners include financial institutions (microfinance institutions, banks, and digital financial service providers), BDS, and psychosocial support providers.

BACKGROUND OF THE ASSIGNMENT

The MESMER Program supports Micro, Small, and Medium Enterprises (MSMEs) in Ethiopia through credit facilitation, business coaching and training aimed at enhancing operational efficiency, profitability, and competitiveness. As part of its ongoing improvement, MESMER seeks to integrate and promote environmentally sustainable and resource-efficient business practices.

However, MSMEs often have limited awareness of their environmental impact, low adoption of green technologies, and restricted access to finance for sustainable investments. To design effective green and sustainable interventions, MESMER intends to undertake assessment to understand the current status of MSMEs’ green awareness, practices, and readiness.

Green and sustainable practices refer to business approaches and technologies that minimize environmental harm while improving operational efficiency and resilience. This may include energy efficiency and renewable energy use, proper waste management and recycling, cleaner production methods, sustainable sourcing of raw materials, water conservation, and pollution reduction. It also involves promoting circular economy models, encouraging responsible consumption and production, and integrating environmental and social considerations into business operations.

Through this focus, MESMER aims to promote environmentally responsible growth among MSMEs while helping them realize the long-term economic benefits of sustainable practices, such as reduced costs, improved competitiveness, and better access to markets and financing.

OBJECTIVE OF THE ASSIGNMENT

The main objective of this assignment is to assess the current level of environmental awareness, practices, and readiness of MSMEs participating in the MESMER Program to adopt green and sustainable business practices. The assessment will provide data-driven insights to inform the integration of sustainability considerations and environmentally responsible practices into MESMER’s approach to improving enterprises’ operations and overall business practices.

Specific Objectives

• Assess MSMEs’ current level of awareness, knowledge, and perception of environmental sustainability, climate change impacts, and green business practices.
• Identify existing business practices related to resource efficiency, waste management, energy use, pollution control, and recycling.
• Examine the key drivers, barriers, and enabling factors that influence MSMEs’ ability to adopt climate-smart and environmentally responsible practices.
• Analyze barriers and opportunities for MSMEs to adopt green technologies and practices.
• Map the readiness and willingness of MSMEs to transition towards sustainable operations.
• Evaluate how external factors, such as policy environment, access to finance, technical capacity, and market incentives, affect MSMEs’ adoption of sustainable practices.
• Provide actionable recommendations and intervention ideas to help MSMEs integrate sustainability into their day-to-day operations, enhance resource efficiency, and strengthen climate resilience while maintaining business competitiveness.

SCOPE OF WORK

• Review relevant MESMER documents, national green economy policies, and MSME sustainability frameworks.
• Develop appropriate data collection tools (questionnaires, interview guides, and focus group outlines).
• Conduct surveys and/or interviews with a representative sample of MESMER-supported MSMEs (approx. 250 MSMEs).
• Engage with BDS SPs, partner banks, and relevant government agencies (Solid Waste Management Agency, Green Energy Office, etc).
• Analyze findings to identify patterns, gaps, and opportunities.
• Prepare a comprehensive assessment report with clear recommendations for integrating sustainability and environmentally responsible practices into enterprise operations and refine and enhance MESMER’s BDS approaches

DELIVERABLES AND TIMEFRAMES

The deliverables are listed on the table below:-

DURATION OF THE ASSIGNMENT

The assignment is expected to be completed within 30 calendar days from the date of contract signing

REQUIRED QUALIFICATIONS

The service provider must demonstrate the following qualifications:

• Proven experience (minimum 5 years) in conducting baseline or impact assessments in MSME development, green economy, or sustainability sectors.
• Strong technical expertise in climate finance, environmental management, and circular economy.
• Demonstrated understanding of climate change adaptation and mitigation strategies relevant to MSMEs.
• Experience in assessing an enterprise’s environmental footprint and identifying opportunities for low-carbon and resource-efficient operations.
• Proven ability to integrate climate resilience and sustainability principles into enterprise development or policy recommendations.
• Experience in data collection and analysis (both quantitative and qualitative).
• Excellent analytical, writing, and presentation skills with the ability to translate technical findings into practical recommendations.
• Familiarity with Ethiopia’s climate policies, green growth strategies, and related institutional frameworks.
• Experience working with development programs and/or government agencies in Ethiopia is an asset.

WORKING ARRANGEMENT

• The service provider will be working under a contract with First Consult Plc. The service provider will report directly to the MESMER BDS team.
• Regular progress updates will be required, and all deliverables will be reviewed and approved by the MESMER management team.
• The service provider is obligated to work within the required deadlines and be available by schedule, which can be adapted at any time as deemed necessary.

TECHNICAL AND FINANCIAL PROPOSAL

Eligible companies/service providers must submit the following:

1. A technical proposal outlining their understanding of the assignment, methodology, implementation plan, relevant experience, and team composition or company profile that includes CVs of the proposed team members of the assignment, copies of renewed business registration documents.
2. A financial proposal detailing cost breakdowns in ETB by activity, area, and deliverable, inclusive of all applicable taxes and related expenses.

EVALUATION CRITERIA

• Candidates who scored below 50% on the technical evaluation will not be considered for financial evaluation.