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National Bank of Ethiopia For Development of Policy and Procedures for Merger, Acquisition & Liquidation of MFIs

National Bank of Ethiopia

Request for Expression of Interest

Ref. No. __NBE/ICB/EOI/S/01/2018/19________________

For Development of Policy and Procedures for Merger, Acquisition & Liquidation of MFIs

This request for expression of interest follows the general procurement notice for this project that appeared in Development Business No. NBE/ICB/S/01/2018/19.

The Government of the Federal Democratic Republic of Ethiopia has received a grant and a loan from International Fund for Agricultural Development (IFAD), with IFAD loan No.I-844-ET Grant No.DSF-8086-ET and intends to apply part of the proceeds of this towards eligible payments under the contract for provision of consultancy service on

Development of Policy and Procedures for Merger, Acquisition and Liquidation of Microfinance Institutions. 

The service, among other things, includes:

i.    Assess the state and condition of the microfinance sector in Ethiopia including its developments and challenges thereof;

ii.   Review the legal framework for MFIs including the country’s commercial code, proclamations, and other relevant laws in general and specific provisions related to acquisition, merger and liquidation of share companies, mainly financial institutions and identify limitations/shortcomings;

iii.   Review and assess the recently amended draft commercial code with the view of understanding the future outlook and incorporating of relevant aspects of same in the policy and procedure manual;

iv.  Study international practices including that of central banks on handling of merger, acquisition and liquidation of financial institutions/ MFIs;

v.   Make a visit to sample representative MFIs and conduct brief assessment on key areas of microfinance business including financial/operational/managerial performances and understand their needs and perspectives on the issue of merger, acquisition and liquidation.

vi.  Study and assess procedures followed by the bank previously in managing incidents of merger, acquisition and liquidation of MFIs/banks and identify shortcomings of the process;

vii. Assess the adequacy and effectiveness of regulation and supervision undertaken on MFIs and identify gaps in respect of factors/causes that contributed for existence of weak and fragile MFIs and the existing system put in place to handle such problematic microfinance institutions through proper undertaking of merger, liquidation, or acquisition procedures;

viii. Identify and assess the role and responsibilities of various government and private stakeholders in undertaking merger, acquisition and liquidation of MFIs and incorporate same in the policy and procedure as appropriate;

ix.  Summarize the preliminary findings and observations and prepare Stocktaking/ Inception Report.

x.   Provide detailed analysis of the findings with key assessment on identified gaps and recommendations in a comprehensive and standard manner and prepare a detailed Interim Report.

xi.  Through the interim report, conduct assessments and make workable and detailed recommendations that enable the bank to effectively undertake and execute merger, acquisition and liquidations of microfinance institutions including:

    setting of criteria and preconditions that trigger undertaking of acquisition, merger and liquidation of MFIs in accordance with the relevant laws to be followed by MFIs;

    prescribing a policy framework that guides acquisition, merger and liquidation decisions of MFIs;

    drafting a framework detailing the steps to be followed by the bank's staff in merger, acquisition and liquidation processes ; and

     any other issues deemed necessary.

xii.  Critically review and assess the current legal framework, identify its limitations and provide recommendations for the introduction or amendment of provisions on the existing proclamation or issuance of new directives with regard to the acquisition, merger and liquidation of MFIs.

xiii. Identify and recommend appropriate organizational structure and setup within the National Bank so as to handle acquisition, merger and liquidation of MFIs.

xiv.  Develop policy and procedures for merger, acquisition and liquidation of MFIs by taking the country’s relevant laws and international best practice into consideration.

xv.  Discuss the draft policy and procedures for merger, acquisition and liquidation of MFIs with counterpart teams as well as all stakeholders and incorporate resulting comments.

xvi. Develop training material on handling merger, acquisition and liquidation of MFIs.

xvii. Train and on board NBE regulatory staff and stakeholders on the proposed policy and procedures for undertaking merger, acquisition and liquidation of MFIs.

xviii.Conduct a stakeholders’ consultative workshop on the draft report and final deliverables.

xix.  Produce final policies and procedures for merger, acquisition and liquidation of MFIs by accommodating all relevant feedback and comments from NBE staff and stakeholders.

The National Bank of Ethiopia now invites qualified and competent consulting firms to express their interest in providing the services.  Interested firms must provide copies of testimonials and statements of capability and experience indicating that they are qualified on Development of Policy and Procedures for Merger, Acquisition and Liquidation of Microfinance Institutions.  The advertisement is open to consultants from eligible source countries.

A shortlist of five to seven firms who demonstrate relevant competence and experience in setting up systems and/or handling of acquisition, merger and liquidation transactions of financial institutions will be compiled in accordance with the procedures set out in the Project Procurement Guidelines and Procurement Handbook of the International Fund for Agricultural Development and the following criteria.

   The technical capacity and capability of the consultants in handling projects related to merger, acquisition and liquidation of Financial Institutions and or developing policies and procedures that guide for implementation of same as provided with documentary evidence in support of its service experience;

   Proposed approach and methodology to successfully undertake the assignment

   Qualification and expertise of the consultants to be assigned for the project;

   Institutional capacity of the consultancy firm  in terms of possessing adequate organizational structure that supports for effective implementation of the project and availing relevant and appropriate mix of full time and part time experts for the assignment;

 Written expression of interest must be delivered to the address below in hand or through post or courier before or on January 07, 2019 of the issuance date.

Applicants must have currently renewed appropriate legal documents.

Interested consultants may request additional information through the following address;

E-mail: [email protected]

Tel: +251 115581094

Address for EOI submission

National Bank of Ethiopia

Procurement Team

Sudan Street, NBE Old Building

P. O. Box 5550

Addis Ababa

Ethiopia