MSME Credit Risk Management Technical Assistance (TA) for MESMER Partner Financial Institutions

ABOUT FC Africa

Founded in Ethiopia and operating across the continent, FC Africa is a pan-African organization delivering complex economic development programs at scale. Established in 2006, FC Africa has grown into a trusted partner for governments, development partners, financial institutions, and private sector actors, known for execution discipline, institutional credibility, and results that endure. Our multidisciplinary teams combine a capacity to execute with clarity of the local context. As a result, we have delivered at-scale real impact in terms of job creation, business formation, business growth, and investment attraction and mobilization.

MESMER PROGRAM

Micro, Small, and Medium Enterprise Recovery and Resilience Program (MESMER) is a 5-year program launched in October 2022 to support 72,200 MSMEs and 410,800 jobs by creating access to finance for micro, small and medium enterprises (MSME) to realize their growth prospects and resilience. MESMER will also work to provide support to MSMEs through business development support, psychosocial services, and technical assistance to financial institutions. MESMER is a countrywide program implemented by First Consult (now rebranded as FC Africa) in partnership with the Mastercard Foundation as part of the Foundation’s Young Africa Works strategy and will strive to create dignified and fulfilling work for the youth, the majority of them women.

MESMER is a national scale-up of the existing MSE Resilience Facility launched in 2020 to support enterprises affected by the COVID pandemic. The project will mainly be following a four-pronged approach to meet its objectives: a) Grants and soft loans to MSMEs through a risk-sharing liquidity fund arrangement, b) Technical assistance to financial institutions, c) Business development services and life skills, d) Psychosocial support. The FDRE Ministry of Labour and Skills will be the main government counterpart for the program. Other partners include financial institutions (microfinance institutions, banks, and digital financial service providers), BDS, and psychosocial support providers.

BACKGROUND OF THE ASSIGNMENT

The growth and development of Ethiopian MSMEs, as well as their contribution to the country’s socioeconomic development, are constrained by multiple challenges. These include limited access to finance, weak technical and business leadership skills, lack of adequate working premises, underdeveloped support systems and market linkages, and high exposure to shocks such as conflict, inflation, and broader macroeconomic pressures. Among these constraints, access to finance is most frequently cited by MSMEs. This is largely due to commercial banks’ business models, which primarily serve large enterprises with fixed asset collateral and therefore offer few MSME targeted financial products and services. In addition, banks are often reluctant to engage with MSMEs due to perceived high risk and relatively low returns. Microfinance institutions, while playing an important role, have traditionally focused on micro-enterprises and group lending and often face technical capacity and funding limitations that restrict their ability to provide tailored financial services to MSMEs. As a result, many Ethiopian SMEs fall within the “missing middle” in terms of access to finance. In response, the MESMER programme seeks to promote inclusive and innovative financial services for MSMEs and to support partner banks in developing financial products that better address the specific financing needs of this segment.

Against this background, the MESMER programme identified technical assistance (TA) as a key enabler to strengthen the capacity of partner financial institutions to sustainably deliver innovative, responsible, and inclusive financial services to the programme’s target MSMEs. To this end, the programme conducted technical assistance needs assessment for all partner financial institutions to better understand existing gaps and to identify priority capacity-building areas required to effectively deliver MESMER credit and MSME finance in line with best practices and sound principles. Strengthening MSME credit risk management systems and practices was identified as one of the critical TA areas, given that many partner financial institutions have limited exposure and expertise in MSME credit processing and portfolio management. As the program enters its fourth year, maintaining a high-performing loan portfolio across the four partner FIs has become a critical priority. Therefore, this TA support for the partner FIs will enable them further improve MESMER credit portfolio quality and expand MSMEs finance portfolio on a sustainable basis in order to fuel enterprises growth and unlock their development and employment creation potentials. 

ASSIGNMENT OBJECTIVE

The overall objective of this assignment is to strengthen the MSME credit risk management systems and practices of MESMER partner financial institutions (4 banks and 8 MFIs), with the aim of maintaining a healthy and sustainable MSME portfolio. The assignment will introduce best-practice frameworks, systems, and tools, and will provide targeted training and mentoring to relevant staff.

Specific Objectives

• To conduct a comprehensive gap analysis and develop actionable recommendations;
• To develop and/or update MSME credit risk management guidelines, tools, and templates;
• To train and mentor financial institution staff to enhance their capacity in MSME credit risk management in line with best practices.

SCOPE OF WORK

The service provider will carry out the following key activities with the guidance of the program management:

1. Financial sector performance and potential risks review and strategic insights:
2. Review and analyze risk management program and practices of the banking industry, financial sector landscape, trends, business environment, policy changes and global dynamics, with the emphasis on prospectus and potential risks,
3. Provide guidance and insights on financial sector risks and MSME finance market dynamics as well as mitigation strategies to further enhance access to finance for MSMEs and other disadvantaged groups.  
4. Diagnostic review & gap assessment:
5. Conduct entry meeting and structured key informant interviews with HO risk management divisions, credit operations division, district managers, and branch credit team.
6. Review existing MESMER/MSME credit policies or MSME lending guidelines, credit risk management program/policy, system and practices of each partner FI.
7. Review existing portfolio quality strategies and credit risk appetite frameworks.
8. Assess current loan appraisal workflows for MESMER-supported MSME loans.
9. Review loan monitoring, early warning, and follow-up practices.
10. Analyze loan recovery and remedial management procedures.
11. Assess sample branch-level practices for underwriting, follow ups and delinquency management of the partnering FIs.
12. Review MESMER NPLs cases at sample branches and identify root causes, and draw actionable recommendations.
13. Prepare a consolidated diagnostic report comprising existing gaps and areas of improvement for each bank.
14. Organize validation meeting with the FI’s management team and present identified gaps and actionable recommendations,
15. Support FIs in Strengthening MSME credit risk management:
16. Produce/update MSME credit underwriting procedure and policy document,
17. Produce/update MESMER NPLs Management guideline/MSME credit risk management guideline and tools following best practices and principles,
18. Produce tailored and enhanced MSME credit risk management tools, checklist and templates
19. Produce/Improve credit risk database/register, scoring tools and other relevant supporting tools to enhance MESMER loan portfolio quality.
20. Design improved loan monitoring templates and reporting formats.
21. Refine loan restructuring and rescheduling guidelines.
22. Organize trainings and coaching sessions for partner FIs staff,
23. Produce MSME credit risk/NPLs management training materials/modules- handout, PPT, case studies, role play and others,
24. Organize class trainings and onsite coaching sessions focusing on MSME credit risk/NPLs management for FIs staff at HQ, districts and branches,
25. Organize TOT for HO SME and risk departments team
26. Provide ongoing support to partner FIs as required
27. Provide ongoing guidance and technical advice for MESMER Management and partner FIs in areas of MSME credit risk management,
28. Any other related activities assigned by the programme TA Lead.
29. Reporting
30. Provide biweekly and monthly progress reports in respective TA activities,

 DELIVERABLES AND TIMEFRAMES

Expected deliverables of the assignment and timeline are listed in the table below.

Based on the agreed training schedule and timing, FC Africa will cover the training and workshop related costs.

REQUIRED QUALIFICATIONS

Service provider must demonstrate the following qualifications.

• A minimum of 8 years of proven experience in financial sector, credit risk management and more specifically in MSME credit risk management and provision of TA for banks and other FIs,
• Hands on experience in MSME finance procedure and practices as well as designing MSME credit risk management tools and templates,
• Good knowledge of the Ethiopian financial sector risk management system and practices including regulatory frameworks,     
• Experience in conducting a diagnostic and devise practical recommendations for FIs in areas of risk management and MSME financing, 
• Good knowledge of the risk management and SME finance market in Ethiopia,   
• Proven experience in training design, delivery and mentoring programs for financial institutions,
• Excellent analytical, reporting and interpersonal skills and ability to work with others,
• Ability to work with public and private sector stakeholders.

  WORKING ARRANGEMENT AND REPORTING

• The service provider will be working under a contract with FC Africa Group PLC. The service provider will report directly to the MESMER Deputy lead, and credit & grant team.
• The service provider is obligated to adhere to all required deadlines and maintain availability according to a schedule, which maybe adjusted at any time as deemed necessary.

TECHNICAL AND FINANCIAL PROPOSAL

Interested applicants are required to submit:

1. Technical Proposal, including:
2. Understanding of the assignment and proposed methodology
3. Detailed implementation plan and timeline
4. Organizational profile and relevant experience
5. Team composition and key personnel CVs
6. Copies of renewed business registration documents
7. Financial Proposal, including:
8. Detailed cost breakdown by activity, region, and deliverable
9. All costs are inclusive of taxes, logistics, personnel, and operational expenses
10. All pricing must be submitted in Ethiopian Birr (ETB) only.

EVALUATION CRITERIA

• Candidates who scored below 50% on the technical evaluation will not be considered for financial evaluation.

APPLICATION PROCESS

Applicants should email their technical and financial proposals separately to bids2@firstconsultet.com with the relevant information detailed in the technical and financial sections of the proposal. 

The subject of the email should be stated as “MSME Credit Risk Management Technical Assistance (TA) for MESMER Partner FIs. Proposals sent after this date will not be considered.

Proposals must be received on or before Feb 20, 2025, until 5:00PM (GMT+3:00).

INFORMATION:

For the scheduled information session, please use the link provided below to join.

Topic: Info Session – MSME Credit Risk Management Technical Assistance (TA)

Time: February 17, 2026, 10:30 Nairobi

Zoom Meeting Link: https://us05web.zoom.us/j/87013731788?pwd=yVOSKyNHO7cdkgBcHmAbzUaFXlvobV.1

Meeting ID: 870 1373 1788

Passcode: igwTb0

For clarification or for any queries relating to this assignment, please contact the focal person below on or before February 17, 2026, until 5:00 PM (GMT+3:00):

Name: Kalkidan Gezahegn

Title: Manager, Credit and Grant Component, MESMER

Email address: kgezahegn@fcafrica.comN.B: FC Africa reserves the right to reject the bid fully or partially.

(EOI)Prequalification of Advertising & Marketing AgenciesNisir Microfinance. is inviting qualified and experienced advertising and marketing agencies to submit an Expression of Interest (EOI) for prequalification for its 2026 marketing projects. The projects are categorized into two distinct lots:● LOT 1: Broadcast Production: Encompassing the production of high-quality Television Commercials (TVCs) and Radio advertisements.● LOT 2: Social Media Boosting & Design: Covering paid social media advertising campaigns, content boosting, and professional graphic design services.Submission Requirements

1. Formal Letter of Interest: A formal application letter clearly stating the specific Lot number (LOT 1 or LOT 2) for which the agency is applying.
2. Company Profile and Key Personnel CVs: A comprehensive company profile, including its history, structure, and a detailed curriculum vitae (CV) for the key personnel who will be assigned to Nisir MFI’s projects.
3. Portfolio of Work:
   ○ For Lot 1 applicants: A portfolio demonstrating expertise, including at least three (3) successfully executed Television Commercials (TVCs).
   ○ For Lot 2 applicants: A portfolio showcasing proficiency, including at least two (2) detailed digital case studies of past social media boosting and/or design campaigns.
4. Legal Documentation: Copies of legally required documents, specifically a Renewed Trade License (for the Ethiopian Calendar year 2018 E.C.), a VAT registration certificate, and a TIN certificate.
   Submission Process and Deadline

Agencies must deliver their submissions in a single, sealed envelope clearly marked with the text: “Expression of Interest for Marketing Services.” The envelope should be submitted to the Strategy & Brand Directorate located at the Nisir MFI, Nisir Building, Cape Verde Street, Addis Ababa.

The mandatory deadline for submission is February 13, 2026, at 5:00 PM.

Inquiries: : For clarifications or further information regarding this EOI, please contact +251 91 182 4106

FOR THE PROCUREMENT OF CONSULTANCY SERVICES FOR RE-DIAGNOSIS AND LEGAL FRAMEWORKS ENHANCEMENT TO ESTABLISH THE NATIONAL CREDIT GUARANTEES SCHEME:

Procurement Reference No.: NBE/ICB/CS/07/2026

1. Background

Ethiopia’s financial sector is undergoing significant reforms to build a stable and inclusive system. Expanding access to finance is a key priority for the National Bank of Ethiopia, as limited credit availability for MSMEs, women, and rural households remains a major barrier to inclusive growth. To address this, the Bank is establishing a National Credit Guarantee Scheme (NCGS) to share lending risks, incentivize financial institutions to serve underserved segments, and promote financial inclusion.

The Ministry of Labor and Skills conducted an initial assessment and prepared draft legal frameworks for MSMEs’ guarantee schemes. This study now requires an update to reflect current priorities, broaden the scheme’s scope to include women and rural households, and ensure alignment with national objectives and international best practices.

In collaboration with GIZ, the National Bank of Ethiopia seeks an experienced consultant to re-diagnose the initial study and revise recommendations for the institutional structure and legal frameworks of the NCGS.

1. Objectives of the consultancy

The overall objective of the assignment is:

1. to review, validate and update the existing draft initial study and legal frameworks of the NCGS to ensure that technically sound, legally compliant, and institutionally sustainable.
2. expand the scope of the schemes to incorporate Women, rural households and farmer cooperatives.

The specific objectives are to:

1. Re-diagnose and refine the existing study and design;  
   1. Critically review the Scheme’s initial study, assumptions, and business model;
   1. Evaluate the proposed Institutional setup for the scheme: Assess its appropriateness, governance, and capacity of the institutional structure that is proposed for the Scheme.
   1. Reassess the draft Legal Frameworks: Scrutinize the adequacy and robustness of the existing legal, regulatory, and policy framework of the Scheme;
2. Update and finalize the draft legal frameworks and expand the scope of the schemes to accommodate women, farmer cooperatives and rural households.
3. The scope of the consultancy services

The consulting firm shall perform, but not be limited to, the following tasks:

1. Review and update existing documents and reports, including: Previous diagnostic and design reports on the NCGS; Relevant financial sector policies, laws, and regulations; risk management strategies; monitoring & evaluation approaches; Credit guarantee schemes and related instruments in comparable countries; assess current developments through additional data and integrate this into the existing assessment;
2. Re-assess the proposed institutional setup of the NCGS: Evaluate alternative institutional models; Analyze governance structures, ownership arrangements, operational & financial models and accountability mechanisms; Propose updated recommendations for institutional structure, roles, and responsibilities.
3. Review the scope of schemes to accommodate women, farmer cooperative and rural household segments
4. Review and update the draft legal frameworks: Analyze compatibility with existing banking business and other relevant laws; re-consider possible guarantee products, identify potential legal gaps or conflicts; Recommend legal instruments required for the effective operation of the NCGS;
5. Facilitate stakeholder validation workshop: present the revised findings and recommendations to key stakeholders and gather feedback;
6. Develop a high-level implementation plan or road map to implement the revised recommendations
7. Documents required from applicants
8. Certified copy of valid registered VAT or equivalent.
9. Certified copy of valid tax identification Number (TIN);
10. Renewed trade license for this fiscal year;
11. Valid Tax clearance certificate.

The final selection of the organization to conduct the study shall be based on a quality-and cost-based selection (QCBS) method through request for proposals.

On all pages of the RFP proposal document, the organization’s stamp should be sealed near the authorized signatory, and all pages should be numbered, dated, signed, and stamped. The application must be signed by an authorized individual. Additional sheets that the applicant must attach should be numbered and submitted as a package with a signed letter. The applicant may provide any additional information he or she believes is necessary to demonstrate his or her ability to perform the assignment.

1. The Proposal and all documentations shall be submitted in English, one original and one copy (in hard and softcopy) having been signed on each page by authorized personnel and delivered to the address below on or before February 26, 2026, until 4:00 PM in the Afternoon. The Applications will be opened on February 27, 2026, at 10:30 Am in the morning at the Office of National Bank of Ethiopia. Documents received after the deadline will not be considered valid and will be returned unopened.

2. The Employer reserves the right to accept any part of or all applications and the right to reject any part or all applications.
3. Late submissions shall be rejected.
4. The following address is for processing activities such as for issuance of documents and/or for clarification regarding the invitation.

Attention: Procurement Services Management Directorate

National Bank of Ethiopia

P. O. Box.       5550

Addis Ababa, Ethiopia

Interested and eligible applicants can obtain the complete set of bidding documents of the RFP from the Procurement Services Management Directorate with the following telephone and e-mail addresses.

           Tel. +251-11- 517-5167, +251-11- 517-5165, +251-11- 517-5162/5161

           E-mail: psmd@nbe.gov.et