AFI MARKET STUDY / FINANCIAL & BUSINESS PLAN ToR
Athens, September 16th 2019
CONTEXT
Action Finance Initiative (AFI) is a civil non-profitable company, operating in Greece since 2014, and founded by ActionAid Hellas and ADIE, a French microcredit institution with over 25 years of experience. Currently its main activities are:
Provide access to micro-loans up to € 12,500 to its target population, mainly the unemployed and micro-entrepreneurs, who are excluded from the mainstream banking system,
Support entrepreneurs before, during and after the creation of their enterprise in order to ensure its sustainability and development,
Advocate for a more suitable fiscal and institutional environment for microcredit and entrepreneurship to flourish.
In light of a forthcoming new legal framework that will formally establish and regulate microfinance for the first time in Greece, AFI needs to assess the market size, to segment the market, to identify its target groups, and its needs for financial and non-financial microfinance products, to propose a new product line, to recommend a business model and to prepare a financial plan to depict its capital needs and sustainability. Given that the new law will come into effect most probably till 2020, AFI opened this call for expression in order to prepare itself for the imminent changes.
The purpose of this call is to investigate, assess and design the financial and structural position and offering of AFI in the next 3 years.
CONTENT
Through their work, the consultants should cover the following thematic areas
1. Target population segmentation proposal and needs assessment of different target segments,
2. Analysis of existing products (financial and non financial) and proposals of improvement/development,
3. Pricing of financial and non-financial products proposal,
4. Analysis of geographical growth potential for AFI within Greece
5. Financial and narrative 3 years business plan
DELIVERABLES
Narrative paper explaining the main findings of the needs’ assessment, the market segmentation, products proposal, presentation of different scenarios of economic model and the main assumptions supporting it, always taking into consideration the expected new legal framework for microfinance in Greece.
Modelling of financial projections: 3 years’ P&L, including Cash flow and Balance Sheet, Break-even Point, required initial capital, required capital for credit lines, required guarantees for loan portfolio, exit strategies for shareholders.
All deliverables should be written in English.
Timing: All deliverables should be ready by February 15st 2020.
METHODOLOGY
Desk research (offerings of competition (traditional banks and MFIs) in Greece, offerings of banks and MFIs abroad.
On-site market study through group discussions and one-on-one interviews directed toward internal actors (loan officers/volunteers) prior to on-site missions (internal perception, identifying key players, etc), as well as other stakeholders of the ecosystem (entrepreneurship support organizations)
On-site needs assessment through focus groups and one-on-one interviews in different locations in Greece, both with existing and potential clients
Desk work to formulate the business planning (financial projections & description note).
SELECTION CRITERIA
Track record of the consultants: prior experience with microfinance, with nationwide market studies, with new product development. Extensive experience with business/financial planning in the financial services/microfinance sector. Please attach CVs of the consultants.
AFI will select the proposal that offers the best balance between cost and quality.
RESOURCES
Apart from the consultant/consultants selected, and depending on the needs of the project, further resources can be onboarded in coordination with the vendors. At the same time, AFI team will be available to accompany the consultants to the onsite visits and focus groups across regions.
The sum allocated to this service should not exceed 30 000 EUR (including VAT)
PAYMENT SCHEDULE
20% upon contract signature
30% upon mid-project meeting with preliminary results presentation
50% upon final report
APPLICATION PROCESS
Deadline for proposal submission: October 7th, 2019
To be sent by email at: anastasia.tsiloglou@afi.org.gr
