1. Background:
The Alliance for Financial Inclusion
The Alliance for Financial Inclusion (AFI) is the world’s leading organization on financial inclusion policy and regulation. Currently, nearly 83 member institutions make up the AFI network including central banks, ministries of finance and other financial policymaking or regulatory institutions from over 75 developing countries and emerging markets. AFI empowers policymakers to increase the access and usage of quality financial services for the underserved through sustainable and inclusive policies and an effective use of digital technologies.
Policies developed and implemented by AFI members contribute to a range of the Sustainable Development Goals. By setting their own agenda, AFI members harness the power of peer learning to develop practical and tested policy reforms that enhance financial inclusion with strategic support from both public and private sector partners.
AFI has 7 Working Groups (WGs): Consumer Empowerment and Market Conduct Working Group (CEMCWG), Digital Financial Services Working Group (DFSWG), Financial Inclusion Data Working Group (FIDWG), Financial Inclusion Strategy Peer Learning Group (FISPLG), Global Standards Proportionality Working Group (GSPWG), Inclusive Green Finance Working Group (IGFWG) and SME Finance Working Group (SMEFWG).
As the key source of policy developments and trends in financial inclusion and as the primary mechanism for generating and incubating technical content in the network, the Working Groups serve as "communities of practice". Providing a platform for knowledge exchange and peer learning among policymakers to share, deliberate and deepen their understanding, the working groups offer leadership and expertise in their respective policy fields and support the network to monitor new developments in emerging fields.
The knowledge generated via the working groups is disseminated for implementation by a range of capacity building activities such as Joint Learning Programs, Member Trainings, Trainings by Private Sector Partners. The practical experience members garner from engaging in peer learning based capacity building is then applied by members as in country implementation projects which are supported by the provision of financial or technical support to AFI member institutions in conducting activities that aim to deliver financial inclusion policies, regulations, supervisory tools or enablers for the development of policies, such as national financial inclusion strategies
The working groups receive strategic guidance and insight from the High-Level Global Standards & Policy Committee, while the Gender Inclusive Finance Committee, supports WGs in integrating gender considerations into all aspects of their work and support members in fulfilling their Denarau Action Plan (2016) commitment to promote women’s financial inclusion.
AFI members have made further commitments in a range of other accords which can be read here.
The AFI’s five regional initiatives support policy implementation in Africa (AfPI), Latin America and the Caribbean (FILAC), the Pacific Islands (PIRI), Eastern Europe and Central Asia (ECAPI) and the Arab Region (FIARI).
Central Bank of Eswatini
The Central Bank of Eswatini (CBE) is the monetary authority of the Kingdom of Eswatini, established to foster price and financial stability that is conducive to the economic development of Eswatini.
The mandate of the Bank is to: formulate and implement sound monetary policy to achieve financial stability; regulate and supervise the financial sector to the end of achieving a sound and efficient financial system; issue and redeem currency (notes & coins); hold and manage foreign reserves in the country; act a banker, adviser and agent to the Eswatini Government on monetary and financial matters, act as a lender of last resort to financial institutions and facilitate development of domestic financial markets, conduct research on monetary, financial and economic matters to support monetary policy formulation and strengthen stakeholder relationships.
The CBE’s fintech journey began in 2018 with the establishment of the Fintech Unit. Since then, the Bank has been committed to creating an enabling environment for responsible innovation while also enhancing consumer protection and preserving the stability of the financial system.
In 2020, the CBE established the Eswatini FinTech Working Group (EFWG), a body formed to promote and co-ordinate greater engagement between regulators, innovators, financial services providers, and policy makers on financial innovation - with the overall objective of deepening financial inclusion and improve productivity by reducing inefficiencies in the financial sector and subsequently drive economic growth.
The EFWG comprises of five partners stated alphabetically: the CBE, Centre for Financial Inclusion CFI), the Eswatini Communications Commission (ESCCOM), the Financial Services Regulatory Authority (FSRA) and the University of Eswatini (UNESWA).
The working group provides informal regulatory guidance to fintech startups and firms looking to be licensed in the country. It also hosts several initiatives with the objective of driving innovation and fintech capacity building.
As such, the EFWG’s initiatives include a fintech hackathon, a machine learning themed hackathon and conference – IndabaX and capacity building webinars. The working group also collaborates on regulatory and policy initiatives for creating an enabling environment for the growth of the local fintech market.
The EFWG members have identified a need to deepen their understanding the local fintech ecosystem, emerging business models and approaches in order to devise policy initiatives to catalyse the fintech ecosystem. As a primary AFI member, the CBE in collaboration with the EFWG are seeking technical support from AFI to conduct a landscape diagnostics and comprehensive survey to understand the current DFS and FinTech landscape in Eswatini and identify key pillars that could support the CBE in creating an enabling fintech environment.
The national Fintech landscape diagnostics and subsequent report will serve as a policy tool to assess current ecosystem dynamics, identify trends for both demand and supply side, and articulate clear recommendations or policy interventions to drive inclusive fintech innovations for inclusion and competition, while also ensuring the financial system's integrity and stability, as well as consumer protection.
The fintech scoping exercise should align with the National Financial Inclusion Strategy objectives of CBE and seek quantitative and qualitative data to evaluate inter-institutional and cross sectoral coordination of actions across public, private, civil society stakeholders that contribute to achieving a robust, inclusive DFS and FinTech ecosystem. Further, the project output (fintech scoping report) should serve as a foundation for action planning, identify key enablers, inhibitors, and catalysts for fintech related initiatives and appropriate policy that might inform a future strategy document.
2.0 Overall Objective:
The project shall fulfil the overall objective of conducting a National Fintech Scoping Exercise for the Kingdom of Eswatini, with the development of a Landscape Report on the FinTech ecosystem in Eswatini.
The scoping exercise shall include an extensive as-is assessment and diagnostics of the FinTech landscape, covering virtual interviews, desktop research and relevant survey methodology to generate insights on industry and broader ecosystem, including: demand-side & supply-side trends, growth trajectory, prevailing and potential Fintech use cases, emerging business models and new practices, current regulatory environment analysis, SWOT analysis and any other relevant analytics to inform clear insights and recommendations on the current landscape and the impact of these on the overall economy and financial services sector.
Drawing insights from the data-driven Fintech scoping results and recommendations, the FinTech Landscape Report shall clearly articulate the compelling direction of the DFS and FinTech entities and activities in the kingdom, identified core issues or gaps, and providing evidence of strong, actionable, and measurable enablers, potential catalysts in the jurisdiction to ensure a sustainable and inclusive Fintech ecosystem aligned to the needs and context of the Kingdom of Eswatini.
3.0 Scope of Work:
The consultant (or consulting firm) is expected to deliver one (1) main output for the Central Bank of Eswatini (CBE), namely:
- To support CBE and EFWG with a National Fintech Scoping Exercise for the Kingdom of Eswatini. The scoping exercise and resulting report will cover an extensive as-is assessment of the FinTech landscape, insights on industry (demand & supply) trends, prevailing Fintech use cases, business models and practices, regulatory environment, and the impact of these on the overall economy and financial services sector. The scoping exercise will include market segmentation, market diagnostics, segment prioritization, and insights from industry recommendations.
The following activities are expected to be delivered under this output:
- Conduct extensive desk research and interviews (key informant interviews) of important local stakeholders, partners, and actors on local, regional and global FinTech activities, trends and linkages to the context and regulatory environment in Eswatini.
- Develop a comprehensive report on FinTech landscape in Eswatini.
- Conduct a stakeholder workshop to validate / disseminate draft report and recommendations.
The consultant (or consulting firm) is expected to capture within the deliverable highlighted above, key information and insights including but not limited to:
- Clear identification and description of types of FinTech entities and the nature of their services/products in Eswatini, including challenges, barriers, opportunities and future outlook
- Existing market (demand and supply side) and competition dynamics for DFS and FinTech actors including incumbents, new entrants, Telcos, and other allied sectors to DFS and FinTech
- Current and projected trends of consumer (including individuals. MSMEs, women, youth, older population) behaviour to FinTech entities, and their products/services
- Presence of pathways to adopt, support and nurture emerging innovations in digital financial services (DFS) and FinTech.
- Existing approach to new product or service design, solution / technology stack development, and innovative distribution rails.
- Insights into current regulatory and policy environment, potential approaches, and options to Fintech innovation.
- Assessment on current and future investment and funding opportunities for the ecosystem and actors.
- Evaluation of current resources, capability, and talent management situation for the FinTech sector
- Overall assessment of the digitalization of the financial sector and the measure of how this have supported or contributed to foster meaningful access, responsible usage and appropriate quality of digital financial services for all segments, particularly, women, youth, rural communities, forcibly displaced individuals, WMSMEs, and MSMEs.
Furthermore, the following sets out the scope of work and expected deliverable under this brief:
Inception Meeting: preliminary consultations with the CBE team and AFI technical team to discuss and agree on the scope, expected deliverables, project management, project related reporting and timelines.
FinTech Landscape Scoping Exercise: Conduct an extensive as-is assessment of the FinTech landscape in the Kingdom of Eswatini, benchmarked to regional and global context, to provide actionable recommendations and insights. This activity shall include:
- Comprehensive desk research: Review existing literature, policies and information publicly available and/or supplied by CBE and the EFWG to establish the baseline of the FinTech landscape in Eswatini
- Interview Stakeholders: In consultation and with the support of CBE, EFWG and AFI, identify and conduct in-depth virtual key informant interviews (or in-person if feasible) with relevant stakeholders, partners, actors, and entities in Eswatini, the region and globally.
- Submit key informant interview report highlighting key information and takeaways
- Develop the first draft of the report on the FinTech scoping exercise highlighting the key findings along the guidance provided above (i.e gaps, barriers, enablers, etc.), risks, opportunities, and recommendations.
- Work with AFI and CBE to organize and implement a workshop (in-person) on disseminating and validating the insights and recommendations from the scoping exercise with CBE, the EFWG, relevant local and regional stakeholders. The consultant is expected to take the lead on the following: (i) draft agenda and session briefs for the workshop, (ii) support identification and engagement of speakers for the workshop, (iii) facilitate session(s) and activities during the workshop,
- With guidance from AFI, CBE and the EFWG, lead a comprehensive review process to validate findings of the study, with inputs and contributions from key stakeholders to the draft FinTech scoping report.
- Submit report on workshop with highlights of meeting (key takeaways) and recommendations
- Following the review and approval from CBE and AFI, submit the final draft of the FinTech Landscape Scoping Exercise report.
Peer Learning Exchange (PLE): With the lead and coordination from AFI, consultant shall support as required the peer learning exchange with a peer financial regulator within the AFI network with practical and relevant experience in assessment and evaluation of their FinTech landscape evident via the development and implementation of a National FinTech Strategy.
General Project Management & Reporting Obligations: The consultant is required to provide regular project updates, prepare workplans, preparing PPT presentations for project updates and stakeholder engagements, updating timelines, capture and share minutes of project meetings, etc.) as required and necessary.
4.0 Timeline:
The following are the outputs of this project with corresponding activities/deliverables and indicative timelines.
Timeline
DeliverableActivities and Deliverables
Oct 2022
· Publish RFP
· Evaluate proposals.
· Seek management approval
FinTech Landscape Scoping Exercise and Report
Nov 2022
· Onboard consultant
Nov 2022
· Consultant undertakes desk research.
· Consultant submits list of relevant stakeholders for in depth interviews
· Consultant submits guiding questions and guiding outline for Fintech landscape scoping exercise
Nov – Dec 2022
· Consultant undertakes in depth interviews and desktop research
· Consultant submits 1st draft
Dec – Jan 2023
· Feedback from AFI, CBE and EFWG
· Consultant submits revised draft(s)
· Consultant prepares and conduct validation workshop: develop and submit workshop report
· Support with AFI-led peer review and Peer Learning Exchange
Jan – Feb 2023
· Consultant submits updated draft incorporating approved inputs and recommendations
· Endorsement from AFI, CBE and EFWG
· Consultant submits final draft of FinTech Landscape Scoping Exercise Report
· Submit al project closure documentation
The overall project requires standard project management responsibilities including but not limited to capturing meeting minutes, developing presentations and leading / presenting updates in project update meetings.
Note: The Fintech Landscape Scoping Exercise is expected to take 25 days of LOE to complete in total, spread out over a period of 3.5 months.
5.0 Travel:
Travel is expected to Eswatini for the stakeholder’s workshop but shall be subject to the requirement and advise by CBE and/or AFI. All travel and accommodation expenses shall follow AFI procurement and sponsorship guidelines.
6.0 Consultant Experience:
- 8+ years of professional experience in broad financial regulatory and policy interventions, digital financial services and financial technology, financial regulation for DFS and FinTech, and AML-CFT, public policy, financial inclusion, and international development.
- Sophisticated understanding and experience in analyzing the issue of regulatory oversight and supervision around financial inclusion, stability, integrity, and consumer protection through the lens of growing digital technology.
- Experience working directly with central banks on policy development and implementation, preferably in regulatory oversight, supervision, reporting and enforcing policies and mandates in the African region.
- Knowledge of potential technological solutions for regulatory and supervisory technology (e.g. FinTech and RegTech applications) and their linkages to deepen financial inclusion.
- Excellent written and presentation skills in the English language.
- Previous experience working in sub-Sahara Africa on issues related to digital financial inclusion, FinTech with policymaking and regulatory institutions is desirable.
- Advanced university degree in social science, international economics, development finance, business administration or other related field(s).
Behavioural:
- Excellent interpersonal and intercultural skills with a positive attitude and collaborative team spirit. This is core to the role, as it involves a lot of coordination with very diverse stakeholders.
- Respectful of diversity and other cultures.
- Effective organizational skills to be able to handle multiple tasks and priorities in parallel.
7.0 Reporting:
Throughout the contract period, the consultant will be reporting to the Policy Analysis and Guidance Unit.
8.0 Payment Terms:
Daily timesheet in AFI format has to be filled by the Consultant and invoice raised on a monthly basis. Payment will be made upon approval of submitted work and timesheet by the Policy Analysis and Guidance Unit.
9.0 Proposal Submission Information:
Refer link in 'How to Apply' section for more detailed information
Retention of Proposals
All proposals submitted become the property of AFI. AFI will make all reasonable efforts to maintain proposals in confidence and will release proposals only to personnel involved with the evaluation of the project. Proprietary information should be identified in each proposal.
10.0 Criteria for Evaluation:
Refer link in 'How to Apply' section for more detailed information
Evaluation of technical and financial proposals
The evaluation and decision on the best proposal will be made based on the combined criterion, where companies are qualified by means of a score that takes into account the combined valuation of the technical and financial proposals, with the following weights:
a) Technical Proposal: 70% (Seventy percent)
b) Financial Proposal: 30% (Thirty percent)
How to apply
Interested applicants are expected to submit a proposal with an updated CV and using the template given (Download the RFP document here) by email to AFI’s Procurement & Contracts Office at rfp2235@afi-global.org by the extended dateline, 31 Oct 2022, Monday.
Note: AFI does not tolerate copyright infringement, including and not limited to infringement, in the form of plagiarism. Consultant or consulting entity awarded a contract by AFI shall take responsibility to ensure that the authored works, produced in parts or as an entirety of the deliverables stated in this RFP does not infringe on copyrights.
The final decision on the selection of a consultant/consulting firm for this project rests with AFI management team and with the Inquiry. Only shortlisted and successful consultants will be contacted.
