Consultancy to Develop a Business Model for the Rehousing Initiative in Kigali

Terms of Reference (ToRs)

Consultancy to Develop a Business Model for the Rehousing Initiative in Kigali

• Summary of Procurement

The World Resources Institute (WRI) seeks to engage a qualified consultant (either a firm or a team) with expertise in Urbanization Economy, Civil Engineering, and Rwandan law to develop a comprehensive business model for the rehousing initiative in Kigali. This initiative aims to address challenges related to rapid urbanization, housing shortages, and informal settlements through sustainable and inclusive approaches. This initiative is based on the existing Mpazi Rehousing project and seeks to upscale this effort through Customer, Government, private-sector, and Development partner engagement. The selected consultants will work closely with WRI’s team and stakeholders to deliver a scalable and practical business model aligned with Kigali’s urban development goals.

• About the World Resources Institute

The World Resources Institute (WRI) is a global research organization that works with leaders in government, business, and civil society to address the world’s most pressing environmental and development challenges. Founded in 1982, WRI’s mission is to turn big ideas into action at the nexus of environment, economic opportunity, and human well-being. WRI’s work spans more than 60 countries, with offices in Brazil, China, India, Indonesia, Mexico, and the United States, as well as regional offices in Africa and Europe.

WRI Africa works on three main pillars with target impacts on people, nature, and climate:

• Thriving Resilient Cities: Contribute to shifting the trajectory of Africa’s urban development through integrated approaches to realize cities that work for all at the heart of sustainable regions.
• Vital Landscapes: Achieve concrete and measurable outcomes that contribute to impacts on forest conservation and landscape restoration, food security and sustainable land use, and improved land governance
• Energy Access and Transition: Contribute to driving clean energy transition at the national level; building demand for clean energy investments, supporting utilities and RPPs; and unlocking finance to the clean energy sector.
• Climate, Economics, and Finance: Address key cross-cutting underlying challenges in the enabling policy, political economy, institutions, and knowledge ecosystem to enable an inclusive and green transition that is underpinned by proactive climate policy and action.
• Background

Kigali’s rapid urbanization has led to challenges such as housing shortages, informal settlements, and the displacement of vulnerable populations. To address these issues, this consultancy aims to develop a comprehensive business model to scale up the Mpazi Rehousing Project, leveraging private sector participation while aligning with Kigali’s vision to become a “Centre of Urban Excellence in Africa.” This vision prioritizes sustainable infrastructure, affordable housing, and inclusive urban development, supported by initiatives like the “Green City Kigali” master plan.

The business model will focus on key components to ensure scalability, affordability, and sustainability. These include identifying the target market (low- to middle-income households and vulnerable groups), developing a strategic property acquisition plan, and establishing a pricing structure that balances affordability with financial viability. A community-centered marketing approach will ensure uptake, while efficient operational management will maintain high-quality housing standards. Diverse revenue streams, such as public-private partnerships and impact investments, will support financial sustainability, and risk management strategies will address potential challenges like market fluctuations or community resistance.

The model will emphasize affordability through innovative financing options (e.g., rent-to-own schemes or microfinance) and ensure high-quality, environmentally sustainable housing in line with Kigali’s green development goals. By assessing alternatives like redevelopment and incorporating lessons from the Mpazi Rehousing Project, the consultancy will propose evidence-based, inclusive solutions that contribute to Kigali’s long-term urban development objectives, fostering a more equitable, resilient, and sustainable city.

• Objectives

The primary objective of this consultancy is to develop a scalable business model for Kigali’s rehousing initiative, building on the Mpazi Rehousing Project’s framework. The model will address housing shortages and informal settlements through affordable, accessible, and high-quality housing, aligned with Kigali’s “Green City Kigali” master plan. This model will It will employ an iterative process to explore scalable strategies, ensuring expansion without proportional cost increases, and integrate roles for the private sector, government, community organizations, and development partners. The model will prioritize inclusivity, community participation, and measurable social, environmental, and economic outcomes, contributing to Kigali’s vision of becoming a “Centre of Urban Excellence in Africa.”

• Scope of Work

The consultant will be responsible for:

• Conducting a Situational Analysis:
• Review existing policies, strategies, and frameworks related to housing, urban planning, and land use in Kigali and Rwanda.
• Analyze the current housing typologies and market, identifying gaps, challenges, and opportunities by:
• Detailed analysis of the Mpazi Rehousing Project and the economic viability of scale-up of this solution
• Review the existing legal framework around ownership of dwelling units in the Mpazi Rehousing Project.
• Create an inventory of best practices in low-cost housing that integrate ESG principles and align with property ownership legal frameworks, drawing insights from global initiatives, regional experiences in African cities with similar socio-economic contexts, and local rehousing efforts in Kigali and neighboring East African countries. The findings will inform recommendations to enhance Kigali’s low-cost rehousing program. Regularly engage stakeholders, including government entities, development partners, private sector actors, and communities, to understand their needs and expectations.
• Developing the Business Model:
• Develop a financial model to Analyse and Propose innovative financing mechanisms for the upscaling of the Mpazi Rehousing Projects, including public-private partnerships, financial support instruments, de-risking mechanisms, and microfinancing.
• Develop a business model for market-oriented solutions (sale, rental, rent to own)
• Review and assess the Mpazi sustainable construction practices and cost-efficient technologies to reduce environmental impact.
• Conduct an off-taker analysis.
• Outline key operational frameworks, including governance structures, implementation timelines, and risk mitigation strategies.
• Stakeholder Engagement and Validation:
• Facilitate workshops with stakeholders to present findings and gather feedback.
• Refine the business model based on inputs from stakeholders.
• Delivering Final Outputs:
• Provide a detailed business model document, including financial projections, risk analysis, off-taker analysis, and implementation strategies.
• Present an executive summary and recommendations for implementation.
• Deliverables

The consultant is expected to deliver the following:

1. Inception Report: Outlining the methodology, work plan, and timeline.
2. Situational Analysis Report: Detailing key findings from the policy review and stakeholder consultations.
3. Draft Business Model: Including financial projections, proposed interventions, and operational frameworks.
4. Validation Workshop Report: Summarizing stakeholder feedback and how it was incorporated.
5. Final Business Model: A comprehensive document ready for implementation.
6. Presentation Materials: A summary presentation for stakeholders.

• Duration and Timeline

The consultancy is expected to last three months, with the following timeline:

• Month 1: Inception report and situational analysis.
• Month 2: Draft business model development.
• Month 3: Stakeholder validation and final business model submission.
• Required Qualifications

The consultancy team should include the following experts:

• Economist/Finance Expert:
• A degree in economics, finance, or a related field.
• At least 7 years of experience in financial modeling, economic analysis, and business model development.
• Proven experience in designing financing mechanisms for green projects.
• Strong analytical and report-writing skills.
• Civil Engineer/Urban Planner:
• Bachelor’s or master’s degree in civil engineering, urban planning or a related field.
• Minimum of 7 years of experience in urban infrastructure planning and housing development.
• Expertise in sustainable construction technologies and cost-efficient building methods.
• Familiarity with regulatory requirements and construction standards in Kigali.
• Legal and Regulatory Expert:
• Law degree with strong experience and understanding of Rwandan land tenure and property rights laws.
• At least 7 years of experience in advising on regulatory frameworks.
• Experience in stakeholder engagement.
• Environmental and socio safeguard specialist:
• Master’s degree in environmental and social development related disciplines
• Experience in developing and managing the implementation of ESIAs for housing projects
• Experience in community engagement and participatory planning

The consultant(s) should have also the following:

• Expertise in business model development, including financial analysis.
• Strong facilitation skills and experience engaging with diverse stakeholders.
• Knowledge of Kigali’s socio-economic and regulatory context.
• Excellent communication and report-writing skills in English; knowledge of Kinyarwanda is an advantage.
• Submission Requirements

Interested consultants should submit:

• A statement of interest detailing their qualifications and approach to the assignment.
• A detailed work plan and methodology (5-7 pages).
• CVs of the proposed team members.
• Examples of similar work and references.
• A financial proposal, including a breakdown of costs.
• Guidelines for Proposal Submission

To ensure a comprehensive and competitive application, prospective consultants must:

• Submit a statement of interest (1-2 pages) outlining their expertise in urban economics, urban planning and its relevance to the rehousing initiative.
• Provide a detailed methodology and illustrative work plan (5-7 pages) that highlights their approach to integrating economic analysis into the business model.
• Include a CV showcasing experience in urban economics, housing markets, and business model development.
• Present a detailed financial proposal, with clear milestones linked to deliverables.

All EOI submissions must be in English and sent via email to Marc Manyifika at Marc.Manyifika@wri.org and Denyse Umurerwa at Denyse.Umurerwa@wri.org by Friday, 21st March 2025, at 5:00 PM (Kigali time). Late submissions will not be considered.

• Evaluation Criteria

Proposals will be evaluated based on the following:

• Relevance of qualifications and experience.
• Quality and feasibility of the proposed methodology.
• Cost-effectiveness and alignment with budgetary constraints.
• Demonstrated understanding of Kigali’s context and housing challenges.
• Contact Information

For inquiries, please get in touch with Marc Manyifika at Marc.Manyifika@wri.org .

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