Market study and preliminary institutional design for an Asian Fund for the promotion of social entrepreneurship
KfW is the globally active promotional bank of the Federal Republic of Germany and the federal states that has a special responsibility for the sustainable improvement of the economic, social and ecological living conditions. Today, it is among the leading regional financiers of microfinance, aiming at increasing access to credit, deposit and insurance for small and medium enterprises and poor people (“financial inclusion”). Over the last decades, KfW has gathered vast experience in strengthening the productivity of small and medium enterprises, promoting private investment and supporting the development of a productive and sound financial sector in Asia.
As a new field of activities, KfW aims to set up a regional Fund providing equity finance and technical assistance (TA) to social entrepreneurs in Asia. Social entrepreneurs (SE) are profit and impact oriented small and medium enterprises providing goods and services which are targeted at the basic needs of the population living on less than $2.5 a day - the “Base of the Pyramid” (BoP).The BoP market encompasses more than 50 % of the total population in Asia and offers huge potentials for business activity due to its size and purchasing power. This market has been steadily growing in the recent years while many basic needs remain largely unsatisfied. By setting up a regional Fund for SE in Asia KfW intends to reduce market inefficiencies by providing early stage capital and technical assistance for the development and implementation of successful SE business models. To this end KfW needs consultancy services to provide it with country specific market studies mapping the existing market conditions and potentials for a regional Fund for SE in selected Asian countries as well as a feasibility study regarding the preliminary institutional design of such Fund. The consultancy services will include review of existing literature and information as well as stakeholder interviews in each country.
The regional approach offers the potential to foster accepted social and environmental standards in SE promotion in a larger number of markets, thereby increasing the contribution of public finance to good investment standards and appropriate regulation. A proposed regional TA-Facility will help to develop country funds’ capacities and to promote locally adapted enabling ecosystems. KfW intends to focus its support to SE in the early stage and growth stage, thereby promoting both, innovative and scalable business models as well as the replication and upscaling of proven business models. Relevant SE should aim at social mission objectives and a financial profit at the same time to become sufficiently profitable for scalability and sustainability. Concerned sectors may be health, education, water and sanitation, renewable energy, agriculture and other relevant sectors providing basic goods and services to the Asian BoP market. The countries/sub-regions that have been tentatively selected are (1) India/Sri Lanka, (2) Pakistan, (3) Bangladesh, (4) Vietnam/ Laos/ Cambodia, (5) Indonesia and (6) the Philippines.
There are presently a number of Development Banks (KfW, ADB, IFC, FMO) and institutions (DFID, SIDA, SECO/DEZA) supporting or preparing to support social entrepreneurship in Asia through various initiatives and programmes. Most importantly, ADB is preparing the greenfielding of country funds for the promotion of SE in several Asian countries, inter alia in the Mekong region (Vietnam, Laos, Cambodia, Thailand), India and the Philippines. The design of KfW’s regional project concept shall explore synergies and seek a complementary conceptual approach that builds on the individual strengths of each partner. To achieve this objective, the consultant to be assigned shall closely cooperate with all consultants currently preparing support programmes for other Development Banks and institutions.
The market study shall comprise country reports on the existing SE markets, market potentials and constraints as well as TA needs. This implies scoping promising sectors for SE, the macroeconomic, regulatory, legal and policy framework at national as well as sectoral level, and the potential emergence of an enabling ecosystem. In addition, the need of technical assistance to promote SE market development at the level of SE, funds, governments and entities of the ecosystem needs to be mapped. Moreover the market study shall identify potential SE business models (Preliminary Project Pipeline) and analyze existing capital market conditions. The identification and description of potential business models in the various eligible sectors of each country will deepen the understanding of current market development and help to estimate the demand for financing in the first financing round. A particular focus shall be put on the promotion of early stage SME ventures in all of the selected countries. Growth stage enterprises are of note in Pakistan, Sri Lanka, Bangladesh and Indonesia. A parallel ADB market study will focus on growth stage enterprises in the Mekong region, India, and the Philippines. The availability of existing funding sources, financial intermediaries and instruments, as well as the potential and constraints of raising additional funding such as regulatory and legal hurdles must be examined in detail. Furthermore, a deeper understanding is needed on the specific characteristics of existing SE funds, the quality of their portfolio, best practises and possible cooperation opportunities with the proposed Asian Fund.
The report on the preliminary institutional design of the Fund must develop and recommend a fund structure as well as an adequate set-up of the regional TA-Facility. As of today, KfW believes that a fund-of-fund structure for the regional fund is more advantageous than a simple fund structure. The envisaged regional Fund-of-Fund structure must be scrutinised against the pros and cons of alternatively supporting a simple fund structure. Thereupon, the Fund structure and investment guidelines shall be designed as well as a practical tool for impact measurement proposed. With regard to the TA-Facility selection criteria for eligible activities, financing instruments, guidelines, reporting, monitoring and evaluation schemes must be developed.
These consultancy services will be financed through the Study and Expert Fund of the Federal Ministry for Economic Cooperation and Development and shall be carried out between April and September 2012.
Deadline
Die Frist für den Eingang der Angebote war 2011-12-15.
Die Ausschreibung wurde veröffentlicht am 2011-11-11.
Anbieter
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Geschichte der Beschaffung
| Datum |
Dokument |
| 2011-11-11
|
Auftragsbekanntmachung
|
| 2012-04-20
|
Bekanntmachung über vergebene Aufträge
|