PROVISION OF CONSULTANCY SERVICES TO DEVELOP AN IMPACT FINANCING STRATEGY AND POLICY

INTRODUCTION

Established in 2005, Fairtrade Africa is the independent non-profit umbrella organisation representing all Fairtrade certified producers in Africa. Fairtrade Africa (FTA) is owned by its members, who are African producer organisations certified against international Fairtrade standards producing traditional export commodities such as coffee, cocoa, tea, cotton, bananas, mango and non-traditional commodities including shea butter and rooibos tea.

Fairtrade Africa’s reach extends across 29 countries, encompassing 684 Producer Organizations (POs) representing 18 distinct product categories, the network supports a total of 1,445,265 individuals, comprising 1,324,435 farmers and 120,830 workers. This extensive reach reflects Fairtrade Africa’s commitment to empowering producers and advancing fair trade principles across diverse communities and sectors.

FTA is also part of the global Fairtrade system and as a Producer Network has 50% ownership of the Fairtrade system. FTA activities are enabled through primary structures such as product groups, country and regional networks which enable members to have a strong voice in the governance and management of the organisations.

BACKGROUND

Fairtrade Africa (FTA) is dedicated to enhancing the livelihoods and resilience of African farmers and workers through the promotion of fair-trade practices. To achieve this, it is crucial that FTA seeks impact financing partnerships to accelerate the just and sustainable transformation producer organisations and provide much needed affordable financing for its producers’ impact projects.

What is it? Impact finance combines concepts from impact investing, social finance, and nonprofit strategies, focusing on investments that deliver measurable social and environmental benefits alongside financial returns. Organisations like GIIN, OECD, and PRI emphasize leveraging resources and fostering sustainable funding models aligned with nonprofit missions.

Impact finance is derived from widely accepted concepts in impact investing, social finance, and nonprofit financial strategies, emphasizing investments that generate measurable social and environmental benefits alongside financial returns. Organisations such as the Global Impact Investing Network (GIIN) highlight its mission-driven focus, while the OECD emphasizes leveraging private and public resources for measurable outcomes. Frameworks from entities such as the UN Principles for Responsible Investment (PRI), development finance institutions like the World Bank, and academic research further underscore its role in fostering sustainable funding models that align with nonprofit missions.

OBJECTIVE OF CONSULTANCY ASSIGNMENT

The primary objectives of the Impact Finance Consultancy are:

a) Develop an impact finance (fund) strategy for FTA.

b) Develop a tailored Impact Finance Policy that aligns with FTA’s mission, enabling robust monitoring and successful implementation of projects that deliver measurable financial, environmental, economic, and social benefits for the producer (farmer) organisations.

c) Assess structural adjustments needed within FTA, to effectively implement and scale impact financing.

d) Identify high-potential, sustainable impact projects and create a comprehensive mapping of these projects to potential donors and funding opportunities.

e) Propose and recommend special-purpose vehicles (SPVs) or other innovative mechanisms to facilitate the seamless implementation of impact projects.

f) Propose setting of internal control systems that would ensure accountability, efficiency, and effectiveness in managing impact projects.

g) Propose a set up (structure) for an Impact Financing Department or Portfolio, including defining key roles, responsibilities, and job descriptions to define the team needed to drive this initiative.

SCOPE OF THE ASSIGNMENT

The consultancy will focus on establishing a comprehensive framework and drafting an operational strategy for impact financing within FTA, ensuring alignment with its mission and goals. The scope of work includes the following key areas:

a) Development of an Impact Finance Strategy and Impact Finance Policy

• Analyze FTA’s objectives, operational context, and producer needs to draft a bespoke Impact Finance Policy.
• Incorporate mechanisms for monitoring, evaluation, and implementation of projects that generate financial, social, environmental, and economic impacts.

b) Organisational Assessment and Recommendations

• Conduct a thorough review of FTA’s current structure, systems, and capabilities to identify gaps or areas for improvement in implementing impact financing projects.
• Provide actionable recommendations for structural changes required to successfully operationalize impact finance initiatives.

c) Identification of Impact Projects and Donor Mapping

• Identify potential impact-driven projects with sustainable and scalable benefits for producers.
• Map these projects to suitable donors and funding sources, outlining strategies to secure support.

d) Proposal for Implementation Mechanisms

• Evaluate and propose innovative implementation models, including special-purpose vehicles (SPVs) or other structures that can streamline the management and delivery of impact projects.

e) Design of Internal Control Systems

• Propose internal control frameworks and processes that ensure transparency, accountability, and effective management of impact projects.
• Define systems for financial oversight, project monitoring, and reporting.

f) Proposal for setting up an Impact Finance Department or Portfolio

• Develop an operational plan for setting up an Impact Finance Department or Portfolio.
• Define job descriptions, roles, and responsibilities for FTA staff and/or external experts required to manage the portfolio effectively.

g) Final Reporting and Recommendations

• Deliver a comprehensive final report detailing all findings, recommendations, and proposed implementation strategies.
• Present actionable next steps and a road map for sustaining and scaling impact finance initiatives within FTA.

The Consultant will collaborate closely with FTA Board of Directors and Leadership, key stakeholders, and producer representatives to ensure that the framework is practical, impactful, and tailored to the organization’s unique needs. The assignment will conclude with the delivery of all outputs and a presentation of the final recommendations.

METHODOLOGY

In response to this TOR, the Consultant(s) is expected to propose a methodology tailored to efficiently and effectively achieve the objectives and scope outlined in this TOR. The methodology should be organized into clear phases. To ensure relevance and inclusivity, the methodology must incorporate continuous stakeholder engagement throughout the assignment and integrate feedback at each phase to refine outputs and align them with organizational goals. Furthermore, it should adopt a participatory and systematic approach, fostering ownership and building the FTA Board and Leadership capacity to implement the recommendations of the assignment.

EXPECTED DELIVERABLES

The Impact Finance Consultancy is expected to deliver a comprehensive suite of outputs to support FTA’s transition into impactful financing initiatives. Key deliverables include:

a) A tailored Impact Finance Policy, complete with frameworks for monitoring, evaluation, and implementation of projects aligned with financial, environmental, social, and economic goals.

b) An Organisational Assessment Report, detailing structural adjustments and capacity needs for effective implementation of impact financing projects.

c) A list of Identified Impact Projects with corresponding donor mapping and strategies for securing funding.

d) Recommendations for Special-Purpose Vehicles (SPVs) or alternative mechanisms to streamline project implementation.

e) Draft proposal for set of Internal Control System that would ensure transparency, accountability, and efficiency in managing impact finance projects.

f) Draft detailed operational plan for establishing an Impact Financing Department or Portfolio, including organizational structure, defined roles, and job descriptions for the necessary staff.

g) A Final Consultancy Report summarizing all findings, frameworks, and actionable recommendations, presented to stakeholders for review and approval.

These deliverables will provide the foundation for FTA to effectively adopt, implement, and sustain impact finance initiatives.

DURATION OF ASSIGNMENT

The assignment is expected to take place over a period of 4 months, tentatively scheduled for June 2025 to September 2025. The exact dates and schedule will be finalized in consultation with the selected consultant and Fairtrade Africa.

LOCATION

In person and/or virtual options may also be considered based on the prevailing circumstances and the convenience of the Consultants.

CONSULTANT QUALIFICATIONS

To effectively deliver the objectives and scope of the Impact Finance Consultancy, the consultant or firm should meet the following qualifications:

a) Expertise and Experience

• Proven experience in impact finance, social finance, or sustainable finance, particularly in working with not-for-profit organizations or social enterprises.
• Track record of designing and implementing impact financing frameworks, policies, or programs for organizations or similar initiatives.
• Demonstrated expertise in developing and operationalizing monitoring and evaluation systems for projects with financial, social, and environmental objectives.
• Experience in identifying and securing funding from donors, impact investors, and other financing entities, including knowledge of donor landscapes and proposal development.

b) Sector Knowledge

• Strong understanding of sustainability principles, agriculture, and producer-driven projects, particularly in developing countries or similar contexts.
• Familiarity with organizational development and restructuring for effective implementation of financing mechanisms.
• Knowledge of special-purpose vehicles (SPVs) and innovative financial instruments for impact project implementation.

c) Skills and Capabilities

• Strong analytical skills to conduct organisational assessments, stakeholder analyses, and gap analyses.
• Proven ability to engage diverse stakeholders, including internal leadership, donors, and grassroots producers, ensuring inclusivity and relevance.
• Capacity-building experience, including designing and delivering training programmes for organisational teams.
• Exceptional written and verbal communication skills, with the ability to produce high-quality reports, policies, and presentations.

d) Geographic Understanding

• In-depth understanding of the regional context, particularly in Africa, and the challenges faced by smallholder producers and not-for-profit organisations in accessing and managing impact finance.
• Experience working in multi-cultural environments and engaging with diverse stakeholders across sectors.

e) Firm-Specific Requirements (if applicable)

• The Consultant or Firm should have a team of multi-disciplinary experts, including specialists in finance, policy development, sustainability, and organisational development, strong background in either Finance, Economics, Development Studies, Business Administration, or a related field.
• Specialized certifications in impact investing or social finance are an added advantage. Membership or affiliation with recognized professional bodies in finance, sustainability, or development is preferred.

f) References and Track Record

• Evidence of successfully completed projects of similar scope and complexity, preferably for not-for-profits, development organisations, or social enterprises.
• References from previous clients attesting to the consultant’s or firm’s professionalism, expertise, and impact.

How to Apply:

APPLICATION PROCESS

Interested consultants or firms are invited to submit the following documents:

1. Detailed Technical Proposal: Outline understanding, the proposed approach and methodology for delivering the assignment.
2. Profile Consultant: Provide a profile with CVs highlighting relevant experience, qualifications, and expertise.
3. Financial Proposal: Include a comprehensive breakdown of the total cost for completing the assignment. Kindly submit this as a separate document, don’t combine it with the technical proposal.
4. Client References: Provide references from previous clients to demonstrate relevant experience and successful project delivery.

To apply please submit a Technical and Financial proposal as separate documents with the above specifications, to procurement@fairtradeafrica.net by close of business 28th May 2025 East Africa Time.

The subject of the email submission is Impact Financing Strategy and Policy.

Only shortlisted candidates will be contacted. If you do not receive a response by 13th June 2025, please consider your application unsuccessful. We appreciate your understanding and thank all applicants for their interest in this opportunity.