Terms of Reference (Study on Prospective Impact Investors for Women-led Businesses in Nepal)

Terms of Reference (TOR)

Study on Prospective Impact Investors for Women-led Businesses in Nepal

1.     Background  

Heifer International is a global development organization working to sustainably combat hunger and poverty in various countries across Africa, Asia, and the Americas. It empowers smallholder farming households and communities to identify, manage, and invest in diverse agricultural opportunities while promoting eco-friendly and climate-resilient farming practices. Its locally led approach empowers communities to make development decisions and fosters partnerships with private sector partners. Heifer aims to catalyze rural development and build resilience by supporting women-led self-help groups and cooperatives. Through its Caring for the Earth (C4E) approach, it helps farmers adapt to climate challenges while advancing towards Sustainable Living Income and promoting regenerative land management.

Heifer Nepal’s 2030 goal is to help 2.8 million families achieve sustainable living incomes. Currently, different local economic development projects are implemented under three signature program frameworks. Heifer Nepal has built formal partnerships with local 14 Banking and Financial Institutions (BFIs) to build inclusive, effective, and sustainable value chains. It has received a commitment of USD 76.5 million to invest in the target commodities from those BFIs. 

Around USD17.6 million has been mobilized, benefiting 10,700 rural smallholder farmers. Nonetheless, the persistent living income gap in existing signature programs remains a significant concern. Moreover, 280 cooperatives have mobilized over USD 100 million own fund in their communities including external investment, forging relationships with local BFIs. This dynamic scenario underscores both substantial investment needs and promising growth opportunities.

One significant challenge in program implementation is the limited access of women-led businesses to financial services and affordable credit due to various barriers. Heifer's Social Entrepreneur Women Cooperative (SEW) model offers a promising solution, serving as a business hub and promoting financial inclusion for rural communities, particularly women entrepreneurs. 

Expanding on this initiative, SEW acts as a catalyst for enhancing formal financial access in remote areas by establishing Bank Sathi networks within community and Nepalese banking industry. This effectively bridges the gap between investors and enterprises, unlocking economic opportunities for farm businesses and empowering rural women. 

Accessing affordable investment remains a persistent hurdle for cooperatives and growing businesses in Nepal, especially those supported by Heifer. It's imperative to identify and engage impact investors who can provide various forms of support. Conducting a study to align with SEW's objectives is crucial for effectively catering to the needs of Nepalese small businesses. 

By actively involving impact investors and leveraging the Bank Sathi model, SEW can drive sustainable development and empower marginalized communities in rural Nepal. Through strategic partnerships and focused interventions, we can unleash the full potential of cooperatives and small businesses, fostering inclusive growth and resilience in the agricultural sector.

2.     Objectives

The following are the key objectives of the rapid study.

• Identify impact investors active in Nepal and other prospectives investors along with their existing practices and requirements in mobilizing investment (debt and guarantee).
• Review the current modality and legal requirements being fulfilled by these investors and investee. This involves identifying any gaps by thoroughly examining the available agreements, guidelines, reference materials and reports.
• Suggest a list of impact investors relevant and appropriate for agriculture cooperatives and women led businesses in Nepal including their requirements (legal, business, environmental and social), and steps to be taken to realize the investment.  

3.     Methodology

The consultant will do this rapid study ensuring thoroughness and effectiveness using her/his existing network and desk review.

Review of Literature: The consultant will receive cooperatives and women led business related documents (individually and programmatic), both published and unpublished, including reports, publications, guidelines, tools, and checklists for thorough review. The consultant will scrutinize these documents and identify relevant cases or access online guidelines and published reports from other organizations.

Meeting with the Heifer Nepal Team: To understand the overall work of Heifer in Nepal, particularly the cooperative business and mobilizing investment, a meeting will be held at Heifer Nepal’s country office in Kathmandu. During the meeting, methodologies, and the outlook of the report will be finalized.

Expert Meeting: The consultant will organize separate meetings with impact investor, including partner banks, cooperatives, development and public agencies, and the private sectors.

• Process Definition: The report should provide a list of active and perspective impact investors in Nepal. This includes identifying suitable investors for Cooperative business and women led businesses.
• Impact Measurement: The assignment should cover the area of impact measurement, proposed methodology, key questions, and timeframe to measure changes.  
• Compliance and Risk Management: Ensure compliance with regulatory requirements and adherence to ethical standards (Code of Conduct-CoC, individual contract, support letter, legality etc.).

4.     Scope of Work

This study should involve:

Mapping Potential Impact Investors: Conducting thorough research to identify potential impact investors who are inclined towards supporting initiatives that promote sustainable agriculture, and gender equality. This includes both domestic and international investors. Tailored Outreach Efforts: Crafting targeted outreach campaigns to engage with identified impact investors and articulate the unique value proposition offered by Heifer-supported cooperatives and women-led businesses. Highlighting the socio-economic impact, scalability, and sustainability of these initiatives will be crucial in garnering investor interest.

The report should briefly describe.

• Building Partnerships: Collaborating with financial institutions, impact investment funds, philanthropic organizations, and development agencies that share similar objectives. Establishing strategic partnerships can facilitate access to a broader pool of resources and expertise, thereby enhancing the viability and scalability of Heifer's interventions.
• Capacity Building: Providing targeted capacity-building support to strengthen the financial management skills and investment readiness of cooperatives and women-led businesses. This may include training programs on financial literacy, business planning, risk management, and compliance standards to instill confidence among potential investors.
• Monitoring and Evaluation: Implementing robust monitoring and evaluation mechanisms to track the impact of investments on the targeted beneficiaries and communities. Transparent reporting of outcomes and financial performance is essential for building trust and credibility among investors.

5.     Timeline and Evaluation of the Proposal: 

The assignment is expected to be completed within 20 days of signing the contract. There is a possibility of continuing the work depending on the consultant's performance and the organization's needs. 

The evaluation for the technical proposal will focus on three key aspects: team’s qualifications and relevant experience, the methodology outlined in the proposal, and the level of understanding demonstrated regarding the assignment. The proposed team's expertise and track record on similar projects will be scrutinized to ensure they possess the necessary skills to effectively execute the assignment. 

Overall, the evaluation process will involve a comprehensive review of both the technical and financial proposals to determine the most suitable and cost-effective solution for the assignment.

6.     Deliverables 

• First draft: Within 10 days of signing of the agreement.
• Final report including action plan within 20 days of signing of the agreement.

7.     Requirements:

• Master’s degree in economics, finance, investment, business management or relevant field.
• At least 10 years of working experience in impact investment, green finance, blended finance, banking Industry and cooperatives in Nepal or in the region with an excellent understanding of practical aspects of mobilizing investment to the businesses based on the priority sector (environment, social and governance).
• Excellent understanding on accessing affordable finance or investment in Nepal. 
• Must have excellent verbal and written communication in English language.

8.     Required Documents for Submitting the Proposal:

Please submit the proposal to Procurement-NP@heifer.org by 7th April 2024, 5 : 00 PM with email subject line “Proposal to Study on Prospective Impact Investors for Women-led Businesses in Nepal” along with below documents.

1. Application letter 
2. Updated CV 
3. Brief proposal with budget 
4. Copy of PAN/VAT certificate

VAT registered vendors are encouraged to apply. 

Heifer reserves the right to accept or reject any proposal and to annul the selection process and reject all Proposals at any time prior to contract award, without thereby incurring any liability to affected individuals.

Heifer International Nepal

Lalitpur-15, Hattiban

Ph.no: 977-1-5913554, 5913120

Email: Procurement-NP@heifer.org