DMFI Feasibility Study - Individual Consultant
 
JOB TITLE: DMFI Feasibility Study - Individual Consultant
EMPLOYER: FINCA Afghanistan DUTY STATION: Afghanistan
PUBLISHED: 2019-02-19 LAST UPDATED: 2019-02-19 DEADLINE: 2019-03-21

Job Vacancy Announcement

FINCA Impact Finance, one of the world's leading microfinance networks, provides financial services to more than one million clients through 20 wholly-owned and operated subsidiaries in Africa, Eurasia, Latin America, and the Middle East and Southern Asia, including FINCA Afghanistan. Currently “FINCA Afghanistan” is looking for a DMFI FEASIBILITY STUDY - INDIVIDUAL CONSULTANT

Background of the Project

FINCA Afghanistan has received a grant from MISFA to hire independent individual consultant to conduct feasibility study to assess transformation into Deposit taking Micro Finance Institution (MFI to DMFI).  This transformation will enable FINCA Afghanistan to mobilize deposits from public in future; which will provide savings to the non-banking customers.

The key requirements for FINCA Afghanistan to transform to DMFI include compliance with the requirements of Da Afghanistan Bank Central Bank of Afghanistan i.e. having capital as per the stipulated requirements, satisfactory credit process / provisioning norms and a robust MIS.

Summary of Scope of Work

The objective of the feasibility study is twofold: compliance perspective and business operations perspective. On the compliance perspective, it will be necessary to;

a) identify the applicable law and regulations, and how they would impact FINCA going forward;
b) identify gaps for FINCA to comply with the regulation, and
c) Provide a roadmap for transformation as DMFI. 

From a business operations perspective, it entails developing a business plan for FINCA as DMFI, based on economic rationale.

The activities of DMFIs are governed under the following statutes in Afghanistan:

• Da  Afghanistan Bank Law
• Afghanistan Banking Law,
• Anti-Money Laundering and Proceeds of Crime Law
• Law on Combating the Financing of Terrorism
• Corporations and Limited Liability Companies Law
• Microfinance Regulation issued by DAB
• Consultant must check for any other applicable law, procedural requirements or legal guidance etc.

The proposed detailed feasibility study shall comprise of  key elements as follows:

1. SWOT analysis
2. Need analysis
3. Gap analysis
4. Area where management team needs to be strengthened
5. Steps needed to develop a credible business plan projections
6. Areas where the articles of association and Bylaws need amendment
7. Any other areas key area or element that consultant deem fit for FINCA Afghanistan transformation into DMFI.

Transformation has its own pros and cons. However, the clear benefits of transformation are access to funds, sustainability, and better public outreach through enhanced products and services.

The main focus after becoming DMFI would be the requirements / reports of Central Bank specifically the AML requirements. FINCA Afghanistan existing AML and other policies procedures needs to be amended. These will be analyzed in the feasibility study and changes suggested.

Additionally, savings deposits may decrease the interest cost as these deposits will attract less rate of interest then the present cost of borrowings. This is likely to decrease the interest expense a bit. However forex rate risk if the deposits are in currency other than in Afghani can be mitigated by offering the loan in the same currency of the deposits on prorate basis.

The terms of reference for the consultant shall be as follows

1. Prepare a feasibility study including, but not limited to the following: 

• Identify the legal and regulatory requirements for the new legal firm, perform a full scope regulatory impact assessment in compliance with the "Article Twelve of Da Afghanistan Bank (Central Bank): Regulation on the Licensing, Regulations, and Supervision of Depository Microfinance  Institutions"
• Identify the gaps between current and targeted structure (i.e. from MFI to DMFI) in terms of:
 Establish the economic rationale for the transformation process including staff planning/requirements, infrastructure required etc.
 Prepare a detailed action plan on how to bridge those transformation gaps, including time tables, responsible persons and budgets
This feasibility study, in addition to meeting the above objectives, should ensure that it provides the requisite content and material to satisfy the Regulator's prudential standards so as to approve and grant an upgrade to FINCA Afghanistan (FA). That might also mean that the consultant will prepare two separate documents, one for Management purposes, and another for regulatory purposes.
2. The Consultant to provide guidance to the different levels of FA Management in those areas where knowledge gaps are identified, including Risk Management, Corporate Governance, AML and other areas as agreed with Management and design and write policies and procedures, or upgrade existing ones in FA, in order to address the regulatory gap
3. Take responsibility in preparing the licensing package based on the for Da Afghanistan Bank (Central Bank) requirements and submission. With the support from FINCA, the consultant and FINCA shall arrange and facilitate for the necessary meetings with the regulator in order to communicate Management intentions.
4. Regularly report on the above. Adhere to agreed timelines on deliverables.

Key Deliverables

Key deliverables of the consultant shall include:

1. Business plan  / proposal for transformation
2. Feasibility study  / analysis of environment
3. Detailed action plan ( including budgets and responsibilities, staff requirements, infrastructure needed)
4. Periodic (tentatively monthly) progress reports on the assignment
5. Organization structure development taking into account the regulatory requirements

Estimated period of performance

The consultant is required to complete the whole assignment in three months. The consultant to require to share his action plan for three months as mentioned in this ToR.

Qualification:

• Bachelor degree from a reputed university required; Master’s degree in Organization Development will be preferred
• At least five (5) years of development sector experience and has experience conducting such studies of similar nature in other countries.
• Knowledge and/or experience in microfinance and banking sector.
• Strong research and analytical skills.
• Experience in developing feasibility strategy and developing and analyzing policies procedures and comparing it with Central Bank guidelines, legal, policies procedures.
• Strong interpersonal skills.

Reporting responsibilities

The Consultant will report to CEO of FINCA Afghanistan and will work closely with other FINCA staff.

Working conditions/Special considerations

The Consultant is expected to work six (6) days per week for the duration of the assignment. This assignment requires travel to Afghanistan. Kabul will be the primary duty post and will also be required to travel to Mazar and Herat. The requirement for field visits including Kabul branches will be to analyze the current infrastructure, advising FINCA to change per requirement, help design the whole plan for transformation and economic rational in the region or market research for transforming into DMFI.

Submission Guideline:

All interested and qualified candidates should submit their CV along with application letter and also please mention the position title and Vacancy number clearly in the subject line of your email (FA-KBL-HQ-229 DMFI), otherwise your CV will not be considered for mentioned position.

Last date for submission of CVs with cover letter is March 10, 2019.

CVs and Cover Letter shall be sent to the following emails.
To:  hr@finca.af
CC:  Omer.Tamiz@FINCA.AF

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