RFP2505 AFI Development of Environmental, Social, and Governance (ESG) Framework for Mauritania

1. Background:

The Alliance for Financial Inclusion

The Alliance for Financial Inclusion (AFI) is the world’s leading organization on financial inclusion policy and regulation. Currently, 90 member institutions make up the AFI network including central banks, ministries of finance and other financial policymaking or regulatory institutions from over 84 developing countries and emerging markets. AFI empowers policymakers to increase the access and usage of quality financial services for the underserved through sustainable and inclusive policies and an effective use of digital technologies.

Policies developed and implemented by AFI members contribute to a range of the Sustainable Development Goals. by Setting their own agenda, AFI members harness the power of peer learning to develop practical and tested policy reforms that enhance financial inclusion with strategic support from both public and private sector partners.

AFI has 7 Working Groups (WGs): Consumer Empowerment and Market Conduct Working Group (CEMCWG), Digital Financial Services Working Group (DFSWG), Financial Inclusion Data Working Group (FIDWG), Financial Inclusion Strategy Peer Learning Group (FISPLG), Global Standards Proportionality Working Group (GSPWG), Inclusive Green Finance Working Group (IGFWG) and SME Finance Working Group (SMEFWG).

As the key source of policy developments and trends in financial inclusion and as the primary mechanism for generating and incubating technical content in the network, the Working Groups serve as “communities of practice.” Providing a platform for knowledge exchange and peer learning among policymakers to share, deliberate and deepen their understanding, the working groups offer leadership and expertise in their respective policy fields and support the network to monitor new developments in emerging fields. The WGs are supported by a full range of capacity building courses and events and in-country implementation projects.

The working groups receive strategic guidance and insight from the High-Level Global Standards & Policy Committee, while the Gender Inclusive Finance Committee, supports WGs in integrating gender considerations into all aspects of their work and support members in fulfilling their Denarau Action Plan (updated 2022) commitment to promote women’s financial inclusion.

AFI members have made further commitments in a range of other accords which can be read here.

The AFI’s five regional initiatives support policy implementation in Africa (AfPI), Latin America and the Caribbean (FILAC), the Pacific Islands (PIRI), Eastern Europe and Central Asia (ECAPI) and the Arab Region (FIARI).

The Banque Centrale de Mauritanie (BCM)

The Central Bank of Mauritania (BCM) was established in 1973 by Law No. 73-118 of May 30, 1973. Its headquarters are in Nouakchott, the capital of Mauritania. As the central financial institution of the country, BCM plays a critical role in ensuring economic stability and the development of the Mauritanian financial system.

BCM’s core mission is to preserve price stability, which is fundamental to maintaining a stable economic environment. However, the institution’s role goes far beyond this. It is responsible for defining and implementing the country’s monetary policy, supervising the foreign exchange market, and managing the issuance of currency. In addition, BCM holds and manages Mauritania’s official foreign exchange reserves, providing a safeguard for the national economy.

Another vital aspect of BCM’s work is its regulatory function. The Bank supervises and regulates banks and other financial institutions operating in Mauritania to ensure the stability and integrity of the financial system. It also acts as the State’s Treasurer, managing public finances with transparency and efficiency. Through this, BCM contributes to the responsible and sustainable management of the country’s financial resources.

In addition to its traditional roles, BCM is an active player in promoting financial inclusion. As part of its broader mission, the Bank is committed to developing and implementing strategies that expand access to financial services, particularly for marginalized and underserved populations, including women, youth, people with disabilities, and those living in rural areas. By spearheading national financial inclusion strategies and collaborating with both public and private sector stakeholders, BCM strives to create a more inclusive financial system that serves the needs of all Mauritanians.

BCM’s involvement in financial inclusion extends beyond policy development. The Bank is also engaged in promoting financial literacy and consumer protection, supporting projects that aim to educate the population about managing their finances, understanding financial products, and using digital financial services. As part of its efforts, BCM works to modernize the financial sector by leveraging digital technologies and enhancing the accessibility of financial services for everyone, regardless of their geographic or socio-economic status.

The Central Bank of Mauritania also plays a significant role in ensuring the resilience of the financial system to global environmental challenges. By promoting green finance and supporting sustainable financial practices, especially through its “Roadmap to promote Inclusive Green Finance (IGF)” in Mauritania, BCM is contributing to the broader goal of integrating sustainability into the country’s financial ecosystem.

2. Project Background:

As Mauritania strives for economic growth and social development, its financial sector is poised to play a pivotal role in achieving the country’s Vision 2030. However, to ensure sustainable and equitable progress, the sector must embrace Environmental, Social, and Governance (ESG) principles.

Currently, the integration of ESG standards in Mauritania’s financial sector is limited. To address this, financial institutions, including banks, insurance companies, and microfinance institutions, must prioritize ESG considerations in their operations. By incorporating ESG factors into their strategies, these institutions can mitigate risks, enhance their reputation, and attract sustainable investors.

The Central Bank of Mauritania can play a crucial role in driving this transition by developing a comprehensive ESG framework for the financial sector. This framework should include guidelines for identifying, assessing, and managing ESG risks and opportunities. Additionally, the BCM can promote transparency and disclosure of ESG information, enabling informed decision-making by investors and other stakeholders.

By embracing ESG principles, Mauritania’s financial sector can contribute to a more sustainable and resilient future for the country. This not only aligns with global trends but also positions the sector to attract sustainable finance and drive economic growth.

3. Overall Objective:

The project aims to support the establishment of a national framework to integrate Environmental, Social, and Governance (ESG) standards and enhance transparency obligations related to ESG to advance green, sustainable, and inclusive financing activities in Mauritania. More specifically, the project aims to:

• Understand the landscape of green financing or climate financing activities in Mauritania including the climate and investing policy environment;
• Develop an ESG framework benchmarked on international practices which will serve as a national standard for ESG management for the financial institutions in Mauritania with consideration of the implications of such standards to financing and investing activities for MSMEs;
• Build the capacity of the BCM in implementing the ESG framework

4. Scope of Work:

The Consultant is expected to:

1. Provide a landscape of green financing activities in the country including but not limited to the regulatory and policy ecosystem, sources of finance, and green financing for MSMEs;
2. Elaborate on approaches and processes for identifying risks related to climate and sustainability. Recommend benchmarks based on international standards;
3. Identify relevant standards from the benchmarking exercise on what can be adopted for the financial sector of Mauritania;
4. Prepare a draft of an ESG framework that outlines the ESG standards for banks and financial institutions in managing their ESG risks in consultation with relevant stakeholders including reporting and monitoring mechanisms;
5. Engage stakeholders to gather insights on potential ESG standards and take stock of what’s currently being practiced in the market;
6. Conduct learning sessions on the ESG framework either in person and/or virtually.

5. Timeline and Deliverables

The assignment is expected to commence for a period of 8 months from March 2025 – October 2025. The key timelines are summarized in the table below:

Refer link in ‘How to Apply’ section for more detailed information.

6. Travel:

All travel arrangements, including bookings and logistics, will be organized and managed by the consultant, in line with AFI’s travel policy and guidelines. Travel costs must be included in the financial proposal and will be reimbursed accordingly.

7. Consultant Experience:

The consultant undertaking this assignment should have the following qualifications at minimum:

• 8+ years of professional experience in broad financial regulation, climate risk management, green finance, sustainable finance, financial inclusion, climate policy and international development.
• Advanced understanding and experience in analyzing the issue of regulatory oversight and supervision around financial inclusion & stability, public finance.
• Experience working directly with central banks on policy development and implementation, preferably in regulatory oversight, risk management, supervision, prudential regulation, and enforcing policies and mandates.
• Knowledge of green finance and climate change policies and development. Experience in supporting green finance/climate finance policy development is desirable.
• Excellent oral, writing and presentation skills in the French and English language is compulsory.
• Previous experience working with the Government of Mauritania or in North Africa is an advantage.
• Previous experience writing is desirable.
• Advanced university degree in social science, international economics, environmental policy, development finance or other related field.

8. Payment Terms

The payment terms proposed for this consultancy are as following:

Refer link in ‘How to Apply’ section for more detailed information.

9. Administrative Information:

9.1 Disclaimer

The final decision on the selection of a consultant/consulting firm for this project rests with the AFI management team and with the Inquiry. Only shortlisted and successful consultants will be contacted.

9.2 Proposal Submission Information

Proposals will be due with the following requirements for submission

10. Reporting:

Throughout the contract period, the Consultant will be reporting regularly to AFI Team and BCM Team on a schedule mutually agreed by all parties.

11. Evaluation Criteria

The proposals submitted will be evaluated based on the following criteria:

Refer link in ‘How to Apply’ section for more detailed information