Request For Proposal: Terms of reference for consultancy services to conduct high-impact studies for REACT SSA Results-Based Financing (RBF) – Kenya

1.0 About AECF

The AECF is a leading development finance organization that supports businesses in innovating, creating jobs, and leveraging investments to build resilience and sustainable incomes for rural and marginalized communities in Africa. AECF’s goal is to bridge the investment gap between early-stage enterprises and business maturity for entrepreneurs serving the poorest communities.

The AECF provides patient capital to new and innovative business models in the agribusiness and renewable energy sectors across Sub-Saharan Africa through various financing instruments, which include grants, zero-interest loans, guarantees, and working capital facilities. AECF’s financing products are supplemented by three additional growth support services to improve the viability and sustainability of our investees, namely, (i) Advisory Services to improve investee internal capabilities (ii) Investment Support in raising commercial capital in significant volumes, and (iii) Knowledge and Insights for learning and evidence gathering for policy influencing and advocacy.

AECF has successfully implemented programmes across 26 countries in Sub-Saharan Africa (SSA), supporting over 536 enterprises, raising US$ 480 million in funding for programmes, and leveraging $840 million in additional capital.

The AECF 2021-2025 new strategy objective is to build resilience and sustainable incomes for rural and marginalized communities in Africa. Through catalytic funding, the AECF surfaces and supports the commercialization of new ideas, business models, companies, and technologies designed to increase agricultural productivity, expand energy access, and alleviate poverty while also addressing the cross-cutting themes of women and youth.

2. Programme brief

Our REACT Sub-Saharan Africa (SSA) programme aims to bring the benefits of clean energy to off-grid, low-income households. By de-risking unique business models, it supports the private sector to innovate and invest in diverse technologies. The programme supports investees in Burkina Faso, Ethiopia, Kenya, Liberia, Mali, Mozambique, Zimbabwe, and Somalia.

Funded by the Swedish International Development Cooperation Agency (SIDA), the REACT programme has committed US$4.5 million. The supported businesses have created 1,218 direct jobs, 39% of which are female employees. These businesses have also enabled 228,767 households to benefit from clean energy technologies, impacting 1,143,835 people.

The AECF’s engagement in the energy sector under REACT SSA is designed to catalyze the private sector to increase the supply of cleaner fuels, raise awareness of the dangers of indoor air pollution, demonstrate how new knowledge in renewable energy technologies can be put into practice in ways that benefit the poor, especially women, and provide evidence on challenges in policy formulation and implementation.

The REACT Kenya Results-Based Financing programme (REACT RBF) is part of the larger REACT Sub-Saharan Africa (REACT SSA). The USD 4.5 M programme in Kenya supports 10 companies promoting different technologies, such as solar home systems, biogas, improved cookstoves, ethanol stoves, and solar water pumps. The programme aims to accelerate and expand access to low-cost clean energy solutions for households across Kenya. The programme aims to reach 87,000 beneficiary households.

3. Purpose of the assignment

We are seeking a consultant/firm to conduct a high-impact learning study for the REACT SSA RBF Kenya Portfolio. The consultant will be responsible for:

1. Evaluate the Impact and Effectiveness of RBF Instruments on the portfolio/program sector themes i.e., Productive Use of Energy (PUE), Solar Home Systems (SHS), and Clean Cooking Solutions
2. Analyse the impact to portfolio business models and market dynamic impact of RBF incentive application
3. Provide insights on the current RBF implementation and subsidy application, providing feedback on future RBF programs based on investee operational and business model recommendations.

4. Scope of work

We are seeking a consultant/Firm to conduct high-impact studies for the REACT SSA RBF Kenya Portfolio. The consultant will conduct some additional activities, including;

1. Detail and document the lessons learned from investing in the program sector themes, namely, Productive Use of Energy (PUE), Solar Home Systems (SHS), and Clean Cooking Solutions.
2. Detail and document the business model approach for the different thematic areas and expound on the company portfolio drivers.
3. Identifying and assessing the importance of business model fit for the portfolio companies e.g., stakeholders in the value chains for product delivery and their evolution
4. Evaluating and detailing how RBF influences company behavior/ structure compared to other scaling financing instruments with lessons on its efficiency and effectiveness as a scaling financing tool.
5. Analyzing market changes and the penetration of target technologies.
6. Assessing both the intended and unintended consequences of the RBF model project across different sectors.
7. Identify and detail key research areas that can drive sector-wide transformation.
8. Gathering the necessary data to validate the impact depth

4.1 Deliverables/Expected Outputs

The consultant is expected to publish a high-impact study report focusing on the lessons in deploying results-based financing within the program sector technologies: Productive Use of Energy (PUE), Distributed Solar Home Systems (SHS), and Clean Cooking Solutions. The report should cover the key items outlined in the objectives section.

5. Qualifications/Experience

AECF envisages a team of consultants to support the assignment, including a lead consultant and an evaluation expert. Individual experts are welcome to express interest provided that they can cover all of the skills and experience requirements outlined below:

Lead consultant

A recognized thought leader in their field, s/he will coordinate all aspects of the assignment and be the technical lead for all aspects of the assignment.

Qualifications

• Master’s degree qualification in Development Studies, Economics, Sociology, Anthropology, Sustainable Energy, Business Administration, or other relevant field of study.
• At least 8 years of relevant work experience with 5 years in programme monitoring and evaluation (M&E) focusing on ODA-financed projects in Africa and at least five years in working in the financing of the private sector.
• Possess strong analytical, evaluation design, and methodological skills to utilize “right-fit” methods for a broad range of quantitative and qualitative approaches to monitoring and evaluation that can communicate a rigorous yet compelling story about AECF’s impact.
• Experience working with or reporting to large bilateral funders or private foundations.
• Excellent communication and writing skills, with a keen ability to synthesize and present complex data in a simple, compelling, meaningful way (the ability to produce beautiful and top-notch data visualization is a plus).
• Ability to work with teams across cultures, evidenced by extensive practical working experience in multiple African countries and contexts.

Evaluation Consultant (Energy)

Experienced technical consultants in the fields of renewable/clean energy technologies

Qualifications

• Graduate degree qualification in Development Studies, Economics, Sociology, Anthropology, Sustainable Energy, Business Administration, or other relevant field of study.
• At least 5 years of relevant work experience with programme monitoring and evaluation, focusing on ODA-financed projects in Africa in Energy
• Specific experience in Impact stories, Evaluations, 3rd Party Monitoring, Impact assessments, and demonstrated experience in donor-funded renewable energy projects.
• Experience working with or reporting to large bilateral funders or private foundations.
• Ability to facilitate the process of turning impact data into meaningful stories.
• Experience with the Donor Committee for Enterprise Development (DCED) standard for private sector-led development in relevant sectors would be a plus.
• Excellent communication and writing skills, with a keen ability to synthesize and present complex data in a simple, compelling, meaningful way
• A strong background in data processing and data visualization.

6. Duration

The assignment will run from April 2025 – June 2025

7. Reporting

The consultant will report to the Director of Programmes.

8. Proposal submission

Interested companies/individuals must submit the following documents/information to demonstrate their qualifications.

1. A technical proposal, max 15 pages (excluding annexes), including the following:

• A profile of the lead consultant (max. 3 pages) explaining why they are the most suitable for the work
• CVs of the team composition, expertise,e and their role in the assignment.
• A comprehensive description of the consultant’s understanding of the Terms of Reference and indicating any major inconsistency or deficiency in the Terms of Reference and proposed amendments Proposed methodology and work plan for executing the assignment.
• Detailed reference list indicating the scope and magnitude of similar assignments.
• Letters of reference/recommendation from previous companies/assignments
• Relevant services undertaken. Sample of past work: applicants are requested to submit a sample of similar tasks to demonstrate the experiences required by this Terms of Reference
• Registration and other relevant statutory documents (this applies to Institutional consultants), legal identification (Passport/National ID & Tax ID) for individual consultants,

1. b) A financial proposal

• The financial proposal in KES clearly shows the proposed team members, roles, proposed days, and the proposed professional fee. The financial proposal shall also include an indication of reimbursable (travel, meals, communication, etc.)

9. Pricing

The AECF is obliged by the Kenyan tax authorities to withhold taxes on service contract fees and ensure that value-added tax (VAT) is charged where applicable. Applicants are advised to ensure that they have a clear understanding of their tax position with regard to provisions of Kenya tax legislation when developing their proposals.

10. Evaluation criteria

An evaluation committee will be formed by the AECF and may include employees of the businesses to be supported. All members will be bound by the same standards of confidentiality. The consultant should ensure that they fully respond to all criteria to be comprehensively evaluated.

The AECF may request and receive clarification from any consultant when evaluating a proposal. The evaluation committee may invite some or all the consultants to appear before the committee to clarify their proposals. In such an event, the evaluation committee may consider such clarifications in evaluating proposals.

In deciding the final selection of qualified bidders, the technical quality of the proposal will be given a weighting of 70% based on the evaluation criteria. Only the financial proposal of those bidders who qualify technically will be opened. The financial proposal will be allocated a weighting of 30%, and the proposals will be ranked in terms of total points scored.

The mandatory and desirable criteria against which proposals will be evaluated are identified in the table below.

1.0

Technical Assessment

1.1

Understanding of the assignment and Methodology

1.1.1

Interpretation of the objectives in the ToRs, critical examination of tasks

10

1.1.2

Detailed Methodology on delivery of the tasks.

10

Total 1.1

20.00

1.2

Implementation and work plan

1.2.1

Presentation and explanation of the implementation plan: work steps, milestones, schedule

5

1.2.2

Presentation and explanation of the integration of the partner contributions

5

Total 1.2

10.00

1.3

Project management of the contractor

1.3.1

Approach for the coordination plan with AECF

5

1.3.2

Personnel assignment plan (who, when, what work steps) incl. explanation and specification of expert months

5

Total 1.3

10.00

1.4

Reference letters of previous assignments

10

Total 1.4

10.00

Sub-Total

50.00

2.0

Assessment of proposed staff

2.1

Team leader (in accordance with ToR provisions/criteria)

13.50

2.1.1

– Qualifications

2

2.1.2

– General professional experience

5

2.1.2

– Specific professional experience

4

2.1.4

– Leadership/management experience

1.5

2.1.5

– Regional experience

1

2.2

Evaluation Consultant (Energy)

6.50

2.2.1

– Qualifications

1

2.2.3

– General professional experience

1.5

2.2.4

– Specific professional experience

1.5

2.2.5

– Leadership/management experience

1

2.2.6

– Regional experience

1.5

Total 2

20.00

Sub-Total

70.00

Financial Proposal

30.00

Grand Total

100.00

12. Disclaimer
AECF reserves the right to determine the structure of the process, the number of short-listed participants, the right to withdraw from the proposal process, the right to change this timetable at any time without notice, and the right to withdraw this tender at any time, without prior notice and without liability to compensate and/or reimburse any party.

NB: The AECF does not charge an application fee for participation in the tender process and has not appointed agents or intermediaries to facilitate applications. Applicants are advised to contact the AECF PROCUREMENT DEPARTMENT directly.

How to apply

11. Application details
The AECF is an Equal Opportunity Employer. The AECF considers all interested candidates based on merit without regard to race, gender, color, national origin, religion, sexual orientation, age, marital status, veteran status, disability, or any other characteristic protected by applicable law.
• Interested consultants are requested to submit their technical and financial proposal to [email protected] by 24 March 2025, 5 pm (EAT).

• All questions should be directed to the procurement email by 17 March 2025, 5 pm (EAT).
• The subject of the email should be Consultancy Services for High-Impact Studies – REACT SSA RBF Kenya. The AECF shall not be liable for not opening proposals that are submitted with a different subject or responding to questions that did not meet the deadline as indicated.