ToR: SACCO Support and Capacity-Building Intervention

ABOUT FC AFRICA

Founded in Ethiopia and operating across the continent, FC Africa is a pan-African organization delivering complex economic development programs at scale. Established in 2006, FC Africa has grown into a trusted partner for governments, development partners, financial institutions, and private sector actors, known for execution discipline, institutional credibility, and results that endure. 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 (MSMEs) 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 FC Africa 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.

The Programme has the following four-pillar/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, and 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 Programme has supported the establishment of the seven VSLA groups, aiming to provide simple and accessible savings and loan facilities to communities lacking formal financial services. VSLAs operate as self-sustaining and self-replicating models and can expand financial access to remote and underserved areas,particularly when stakeholders provide appropriate technical and financial support.

The seven VSLAs comprise 173 members (172 females and 1 male member) who received grant under the MESMER programme. The Programme provided capacity-building trainings, covering VSLA methodology, financial literacy, and the selection, planning, and alternative Income Generating Activities (IAG). Accordingly, three VSLAs—Edigat in Gidole (South Ethiopia), Mo’a in Nekemte (West Oromia), and Hubanas in Assosa (Benishangul Gumuz)—have expanded their membership to a total of 273 members and have transitioned into SACCOs. While the initial result is commendable in terms of financial benefits, the long-term viability of the SACCOs needs to be further strengthened through continued technical assistance and financial support. Accordingly, MESMER intends to hire a competent Service Provider (SP) to deliver tailored technical assistance for the SACCOs in areas such as policy and procedures document formulation, leadership, business planning, financial management, record-keeping, and other priority areas based on their identified TA needs. In addition, the SP facilitates logistical, material, and financial support as well as hiring of qualified experts for a specified period to manage the day-to-day operations of SACCOs under the close supervision and leadership of the cooperative management team, the SP, and the MESMER team. Furthermore, to enhance access to liquidity funds, the SP will facilitate linkages with MESMER partner banks and other financial institutions.

OBJECTIVE OF THE ASSIGNMENT

The overall objective of the assignment aims to strengthen the capacities of MESMER SACCOs through targeted technical and financial support.

Specific Objectives

• Develop and customize policy and procedure, and strategy documents such as resource mobilization strategy, credit operations, products marketing and others based on SACCOs needs and best practices.
• Build core competencies in business planning and management; financial management, and record-keeping skills of targeted three SACCOs (Hubanas with 100 members in Asossa, Mo’a with 82 members in Nekemte and Edigat 91 with members in Gidole).
• Provide structured coaching and hands-on support by assigning one qualified expert per SACCO for 12 months
• Facilitate provision of in-kind support including offices maintenances, office materials and furniture for the SACCOs.
• Strengthen SACCO bankability and establish linkages with financial institutions and SACCO unions.
• Strengthen collaborations with relevant local government authorities and other support organizations to ensure resilience and sustainability of the SACCOs.

SCOPE OF WORK

The service provider will implement the following tasks to build the capacities of the three MESMER SACCOs for period of 12 months:

Understanding the Needs: The SP will assess the status and growth potential of each SACCO, identify technical and financial gaps, and validate findings with MESMER and key stakeholders.

Scope:

• Conduct three institutional assessments (one per SACCO)
• Apply structured diagnostic tools covering governance, finance, portfolio quality, and operations

Policy, Procedure, and Strategy Development:

The SP will develop and validate customized policy and strategy documents to strengthen SACCO operations.

The SP will produce the following policy manuals (minimum per SACCO):

• Governance and HR Policy Manual
• Financial Management and Internal Control Manual
• Savings and Credit Policy Manual
• Risk, Compliance and Operations Manual

In addition, the SP will also develop:

• 3-year Strategic Plan per SACCO
• Annual Operational Plan + Budget per SACCO

Training, Coaching and Mentorship:

The SP will deliver structured training, coaching, and mentorship over a 12-month period.

This includes:

• Delivering practical training modules
• Deploying BDS coaches in coordination with MESMER
• Providing continuous mentoring and follow-up support
• Monitoring application of skills and addressing operational challenges

Core Training Modules (Mandatory):

• Governance & Leadership for SACCO Boards
• Financial Management & Accounting
• Credit Management & Loan Appraisal
• Savings Mobilization & Member Engagement
• Business Planning & Entrepreneurship
• Risk Management & Internal Control

Facilitating in-Kind Support and Grant Facilitation:

The SP will verify, procure, and facilitate delivery of in-kind support and grants based on approved business plans and market needs. The SP will coordinate with MESMER teams to ensure proper procurement, delivery, and utilization monitoring.

Linkages with SACCO Unions, Financial Institutions and Government stakeholders:

The SP will establish linkages with SACCO unions, financial institutions, and government stakeholders. The SP will coordinate closely with BoLS, cooperative agencies, and other relevant actors to ensure sustainability and smooth handover.

DELIVERABLES AND TIMEFRAMES

The deliverables are listed on the table below.

Scope Area / Activity	Key Deliverables	Indicative Timeframe
Inception and Planning	Inception report including methodology, implementation approach, coordination mechanisms, risk mitigation measures, and detailed work plan	July 06, 2026
Needs assessment	3 Diagnostic Assessment Reports (one per SACCO) 1 Consolidated Capacity Gap Analysis Report and 1 Validation Workshop (1 day)	July 20, 2026
Produce Policy & Procedure and Strategy Documents,	Draft + Final versions of all documents 3 validation workshops (1 per SACCO, 1 day each) Board approval minutes (evidence of adoption)	August 10, 2026
Procure and facilitate in kind support for SACCOs asper the needs identified and prescribed by the programme as follows: Office table with drawer made of MDF (3): (120 cm × 60 cm). Meeting Table made of MDF (3): (150 cm × 120 cm). Metal File Cabinets (3): (35 cm × 120 cm) Desk top Computers (3) – Refer to annex for specification: and Managerial Chair – imported (3): Guest Chairs – imported (12):	In kind support provision report and verified handover sheet with detail lists of items supplied:   Office table with drawer made of MDF (3): (120 cm × 60 cm) Meeting Table made of MDF (3): (150 cm × 120 cm) Metal File Cabinets (3): (35 cm × 120 cm) Desk top Computers (3) – Refer to annex for specification: and Managerial Chair – imported (3): Guest Chairs – imported (12): In-kind support verification reports distribution records Utilization monitoring reports (quarterly)	August 17, 2026
Training, coaching and mentorship, and structured handholding and mentoring support	At least 6 training modules per SACCO Minimum 2 days per module Total: 12 training days per SACCO (36 days total) Training materials/manuals Attendance sheets & training reports Coaching logs and monthly progress reports	31 December 2026
	Hired three SACCO Senior experts (one for each SACCO) for 12ms following approval of MESMER Program management	03 August 2026
Networking	Signed MoUs / linkage agreements Linkage facilitation reports Stakeholder engagement workshop (at least 1)	31 December 2026
Mid-term Reporting	Mid-term report covering activities, results, lessons learned, and recommendations	18 December 2026
Final Reporting	Final report covering activities, results, lessons learned, and recommendations	25 June 2027

Bankability & Performance Indicators:

Institutional Performance Indicators:

• Functional governance structure (Board meetings held regularly)
• Adoption and implementation of all 4 policy manuals
• Timely financial reporting (monthly & quarterly)

Financial/Operational Indicators:

• Portfolio at Risk (PAR > 30 days) < 10%
• Loan repayment rate > 90%
• Increase in savings mobilization (target % to define)
• Positive operational self-sufficiency (or clear trajectory)

Bankability Indicators:

• Audited or verifiable financial statements
• Documented loan portfolio history
• Business plan accepted by financial institution
• The SACCO qualifying for external financing