REQUEST FOR EXPRESSIONS OF INTEREST FOR AN INVESTMENT FACILITATION SPECIALIST

NGO Jobs / UN Jobs Vacancy



Country: Kenya
Organization: Africa Enterprise Challenge Fund
Closing date: 24 Dec 2020

1.0 The Africa Enterprise Challenge Fund

The AECF is a development institution which supports businesses to innovate, create jobs, leverage investments and markets to create resilience and sustainable incomes in rural and marginalized communities in Africa. Launched in 2008, the AECF has so far supported 268 companies in 26 countries in sub-Saharan Africa across 40 value chains in our focal sectors of agribusiness and renewable energy.

In delivering on the strategy, AECF, through the Investments Advisory Services (IAS) department provides value addition support to AECF investee companies in Africa to accelerate their business growth, sustainability and impact delivery. AECF works with the investee companies to identify both business capacity and capital gaps through conducting business diagnostics, prioritizing of capacity and capital needs and planning for delivery of services that will increase business performance, resilience and delivery of social impact. Based on the emerging priority needs of our investees, key advisory services have been categorized under strategy & strategic management; financial management; marketing, distribution & customer service; leadership and organization development; production and operations; integration of environmental and social management; and investment readiness & facilitation.

2.0 About the REACT SSA Program

The AECF renewable energy financing is US $166 million with US $61 million dedicated to REACT SSA, a program supporting the private sector in Sub-Saharan Africa to meet the energy needs of rural communities. About 510 million people in sub-Saharan Africa (SSA) currently have no access to electricity and will not get grid access in the foreseeable future, resulting in a steady increase in the number of people without electricity until at least 2025. The slow progress and high cost of conventional solutions to the household energy crisis means that cheaper and more accessible new clean technologies offer a better chance of improved access to energy for rural households in the foreseeable future. Over the last decade, clean energy technologies have become more economical than conventional generation for many applications, and the regulatory environment to facilitate their application has improved. Risk and market failures restrict innovation and prevent the development and use of successful business models and technologies.

The AECF's engagement in the energy sector under REACT SSA (the “Program”) is designed to catalyze the private sector to increase supply of cleaner fuels, raise awareness of the dangers from indoor air pollution, demonstrate how new knowledge in renewable energy technologies can be put into practice in ways that benefit the poor especially women, provide evidence on challenges in policy formulation and implementation.

REACT SSA business technologies include:

  • Renewable technologies such as hydro-power, solar energy, biomass and wind energy.

  • Small, household level solar home systems, comprising of basic lighting, phone charging systems and radios, made available to large numbers of households through pay-as-you-go (PAYGo) systems.

  • Large solar power stand-alone systems for productive use, comprising of phone charging systems, radio etc. and that can be used at small scale rural based business premises to provide the required power.

  • Larger solar power systems that meet the full range of household needs and are still affordable for low income individuals.

  • Larger centralized renewable power systems (mini grids/ micro grids)/ utility models, with distribution network that meet the full range of household/ business needs and are affordable for low income individuals.

  • Production and/or distribution of cleaner fuels (e.g. ethanol) and energy efficient cook stoves

  • Distribution models that support local entrepreneurship and growth of SMEs within a renewable energy product demand and supply chain.

  • Innovative ideas that stimulate “next generation” approaches in renewable energy sector.

The target countries are Burkina Faso, Ethiopia, Kenya, Liberia, Mali, Mozambique, Zimbabwe, Sudan and Somalia.

3.0 About the Assignment

3.1 Purpose of the Assignment

The purpose of this one-year assignment (the “Assignment”) is to engage an individual or institution or consortium of either (the “Specialist”) to support the REACT SSA investee companies (the “Portfolio”) to raise capital. Success will be measured against the agreed target capital raise with at least 30% of the raised capital spread across not less than 50% of the companies supported, with a minimum of 10 companies raising capital. The final number of companies and target capital will be discussed and agreed upon before contracting. At any time during the duration of the Assignment, a company can be traded for another company, in consultation with AECF. The Specialist will work closely with the IAS delivery team, to deliver on the Assignment.

3.2 Specific duties and responsibilities (the “Services”) of the Specialist

The Specialist will be expected to deliver on the following scope of the Assignment.

· Identify and understand the capital needs across the Portfolio and select the Cohort of companies, which the Specialist will support to raise capital within the duration of the Assignment.

· Support each of the companies in the Cohort in raising the agreed target amount of capital. The support will include, but will not be limited, to identification of suitable investors, introduction of investors to the companies, high level refinement of investor marketing material, review of term sheets and investment agreements, refinement of financial and valuation models and negotiations with investors all culminating in the closing of the deal signaled by executed investment agreements.

· The Specialist will prepare quarterly reports on the progress of the Assignment. The narrative of the report should include, but not limited to, a list of the selected active investees in the Cohort, the target capital to be raised for each investee, fund-raise status of each investee, and any other relevant information about the Cohort relating to the capital raise, a list of all investors identified and those matched and introduced to both the company and AECF, and any challenges faced and proposed remedial action.

· The Specialist will also meet bi-monthly with the IAS team to provide an update on the Assignment progress. Continuous communication between the teams should be maintained.

· At the end of any capital raise (successful or unsuccessful), the Specialist is expected to prepare a report highlighting the process, lessons and insights and improvement suggestions to assist the company in subsequent capital raises and AECF to increase its efficiency in the delivery of similar assignments.

· Delivered with each report will be an updated database of profiled investors that are aligned to the needs to the REACT SSA companies.

3.3 Specific deliverables and timelines of the Services

The Assignment is expected to commence on 18th January 2021, with the following deliverables over the Assignment period.

Assignment Deliverables

Est. Assignment duration

Contract signing and inception report

0 months

Initial identification and agreement of the target Cohort

1 month

Transaction support leading to closed deals

Over the Assignment duration

Regular progress reports, to AECF, as agreed

Quarterly or as agreed

AECF end of assignment report

1 month after end of Assignment

4.0 Payment criteria

The payment breakdown below, will be milestone based, against the Assignment deliverables and will be made upon satisfactory signoff by AECF.

Fee/Percentage

Milestone

Mobilization fee

Fixed nominal fee on execution of the contract

3%-5% of amount raised

30% on signing of term sheet/ offer letter

70% on signing of investment/funding agreements

5.0 Proposal submission

The qualified Specialist is invited to submit a proposal that includes the following:

a) Qualification and experience in successfully delivering similar assignments, with SMEs, including (if any) those in the renewable energy sector.

b) Approach and methodology to undertake this Assignment underpinned by demonstration of value for money and successful closing of deals.

c) A detailed financial budget (in USD) and work plan.

d) The technical and financial proposals will need to be submitted as separate documents.

6.0 Qualifications and experience

The minimum competencies and qualifications include:

a) Deep experience working with SMEs in Sub-Saharan Africa and successfully raising capital, especially for companies in the renewable energy sector.

b) Experience in raising capital for early stage and growth companies, in the renewable energy sector, with a capital need of $300,000 and above.

c) Demonstrated ability to raise blended capital (grants, debt and equity) will be an added advantage.

d) Demonstrated network and access to a wide range of investors that would align with the needs of the REACT SSA portfolio.

e) Experience in working with SME’s in fragile economies will be an added advantage.

f) Appreciation and understanding of impact investing.

7.0 Contracting and Reporting

The Assignment will be contracted for a period of one year, and the Specialist will report to the Head, Investment Advisory Services.

8.0 Evaluation Criteria

An evaluation committee will be formed by the AECF and may include employees of the businesses to be supported. All members will be bound by the same standards of confidentiality. The Specialist should ensure that they fully respond to all criteria to be comprehensively evaluated.

The AECF may request and receive clarification from any Specialist when evaluating a proposal. The evaluation committee may invite some or all the Specialists to appear before the committee to clarify their proposals. In such event, the evaluation committee may consider such clarifications in evaluating proposals.

In deciding the final selection of qualified bidder, the technical quality of the proposal will be given a weighting of 70% based on the evaluation criteria. Only the financial proposal of those bidders who qualify technically will be opened. The financial proposal will be allocated a weighting of 30% and the proposals will be ranked in terms of total points scored.

The mandatory and desirable criteria against which proposals will be evaluated are identified in the table below.

Key Areas for Evaluation/ Assessment

Weighted Award

(A) TECHNIAL PROPOSAL

70

i) An understanding of the consultancy requirements;

10

· Demonstrate an understanding of the Assignment and an in-depth understanding of the Sub Saharan Africa SME capital raising process, culminating in closing of deals

10

ii) Methodology and work-plan that will deliver the best value on the Assignment:

20

· Demonstrate the strategy and capacity to successfully deliver on the Assignment within a realistic timeline and underpinned by value for money.**

10

· Strategy that demonstrates capability to deliver a large part of this Assignment virtually.

10

iv) Relevant services undertaken by the bidder in the past engagements:

30

· Demonstrate relevant experience and recent engagements with private sector companies in Sub-Saharan Africa, in assisting them to successfully raise capital (grants, debt & equity). Provide indicative average amounts of the capital raised and the number of companies successful supported. Experience in raising capital for SME companies in the Renewable Energy and Climate Adaption sub-sector, in Sub-Saharan Africa (SSA) is an added advantage.

· Demonstrated strong relations with different clusters of investors investing in renewable energy in SSA, and the ability to develop a relevant investor database.

30

v) Detailed reference list indicating the scope and magnitude of similar assignments:

10

· Letters of relevant reference from past customers or associates to the Specialist, clearly indicating the support provided and amounts raised.

10

(A) FINANCIAL PROPOSAL

30

· Clarity, relevance, reality to market value/ value for money of cost for the Assignment (inclusive of any applicable tax).

· The proposal should include a nominal mobilization fee amount combined with the larger success fee component

30

Total Score

100

10.0 Pricing

The AECF is obliged by the Kenyan tax authorities to withhold taxes on service contract fees as well as ensure that VAT, is charged where applicable. Applicants are advised to ensure that they have a clear understanding of their tax position with regards to provisions of Kenya tax legislation when developing their proposals.

11.0 Disclaimer

AECF reserves the right to determine the structure of the process, number of short-listed participants, the right to withdraw from the proposal process, the right to change this timetable at any time without notice and reserves the right to withdraw this tender at any time, without prior notice and without liability to compensate and/or reimburse any party.

How to apply:

9.0 Application details

To be considered, your proposal reference “**REQUEST FOR EXPRESSIONS OF INTEREST FOR AN INVESTMENT FACILITATION SPECIALIST**” must be addressed to aecfprocurement@aecfafrica.org and received by Thursday, 24th December 2020 5:00 PM EAT.



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