INTERNATIONAL CONSULTANT FOR CONSUMER PROTECTION AND FINANCIAL LITERACY AT NCDF IN MALAWI

Application Deadline :28-Oct-11

Background

NCDF is the UN’s capital investment agency for the world’s 48 least developed countries. It creates new opportunities for poor people and their communities by increasing access to microfinance and investment capital. UNCDF focuses on Africa and the poorest countries of Asia, with a special commitment to countries emerging from conflict or crisis. It provides seed capital – grants and loans – and technical support to help microfinance institutions reach more poor households and small businesses, and local governments finance the capital investments – water systems, feeder roads, schools, irrigation schemes – that will improve poor peoples’ lives. UNCDF programmes help to empower women, and are designed to catalyze larger capital flows from the private sector, national governments and development partners, for maximum impact toward the Millennium Development Goals In Malawi is there is a proliferation of financial products resulting from technological advances (ATM, smart cards, Mobile phone banking etc), product innovation (micro-insurance, club savings, money transfers, remittances, etc.) and increased competition. The public, particularly the poor people’s comprehension of these financial services is arguably challenged.  The need for focused financial literacy becomes more apparent. Financial literacy will become key to providing increased access to finance to the lower segment of the market. Most people will to be educated and informed about the various financial services providers and product choices available to them. In any case the anticipated increase in financial services supply would only be sustained by a well informed market that will take advantage of the increased supply and hence, the need for the development of ‘Consumer Financial Capability’ programmes. Malawi, just like many other countries, has in the recent past experienced unscrupulous financial schemes such as pyramid schemes, which have and continue to lure consumers into unwise investments. As a result, many people have lost their savings through these schemes. Consumer capability programmes will thus go a long way to forestall incidences of this nature and magnitude. Over-indebtedness is an issue affecting many Malawians. Borrowers from banks and other money lending institutions have multiple loans which impact on the capacity to service these loans, leading at times to over-indebtedness. Malawi Parliament passed the Credit Reference Bureau Act 2010 which will allow credit reference bureaus to operate in the country.  Credit Reference Bureaus are critical part of a country’s financial infrastruc¬ture. However, Credit bureaus have been shown to work more effectively when customers are knowledgeable about the information these institutions collect and how it will be used. The Reserve Bank of Malawi is currently the champion for the financial literacy and consumer protection initiatives. It does this through involvement of all other stakeholders in consumer literacy development activities.

Duties and Responsibilities

Functions / Key Results Expected: Mapping of current arrangements, actors and initiatives in financial literacy and consumer financial protection in Malawi Design of a National Strategy on financial literacy and consumer protection Determination of key elements of a strategic framework to introduce/strength financial education and consumer protection in Malawi.  Provide a roadmap for implementing this framework and further strengthen collaboration and coordination between the various actors. The consultant is expected to carry out the following activities: I.     Review current practices in  consumer financial education, financial literacy and consumer financial protection in Malawi, in consideration of developments in Malawi’s financial sector and international good practice: Conduct a mapping exercise reviewing existing legislation, regulations and guidelines, relevant institutions and their activities. Identify potential stakeholders who are not yet actively involved in financial literacy and consumer protection, but whose involvement may be relevant. II.     Recommend a strategic framework for financial literacy and consumer financial protection. Elements of this strategy would include, but not be limited to: The vision The champion/Institutional Arrangement Approach The target groups Roles of the different stakeholders M&E framework Implementation plan Critical success factors. Present results of mapping exercise and recommendations for a strategic framework and proposed next steps at a workshop for discussion by stakeholders. Refine recommendations on strategic framework and propose next steps for the development of an effective and coordinated framework for financial literacy and consumer financial protection. The following specific deliverables are required: Draft report on mapping/scoping study outlining findings and recommendations for financial literacy and consumer financial protection framework in Malawi to be presented in the workshop. Stakeholder strategy workshop conducted Final report including mapping exercise, Proceedings and outputs from the workshop, strategic framework and recommendations for next steps. Information manual (short summary of key issues/recommendations). A strong national stakeholder driven approach is needed.  From the outset all work will be oriented around understanding the current position, perspectives and incentives for stakeholder groups to become involved.  Each phase of development will build on the knowledge gained from the previous phase. Impact of Results: The desired outcome is a common vision for financial literacy, and consumer financial protection in Malawi.  This should have sufficient flexibility to encourage the development of a broad set of activities, a number of which may not be anticipated at the outset.  However it also needs to provide clear orientation for the implementation of a strategic framework, to be developed over time. The developed strategy will focus on the broader financial sector – i.e. clients of formal, semi-formal and informal institutions and if implemented successfully should result into: creation of awareness; consumers understanding their rights and responsibilities and changes to attitude that translate knowledge into behaviour.

Competencies

Technical/Functional: Knowledge and experience in development and implementation of financial literacy and consumer protection initiatives. Extensive inclusive finance training and technical assistance experience. Comprehensive knowledge of financial services industry best practices. Experience at the country-wide sector level and understanding of building inclusive financial sectors, preferably in Africa. The consultant should have a track record in the development of financial literacy and consumer financial protection programmes in Sub-Saharan Africa. Managerial: Excellent writing skills; • Ability to communicate clearly and concisely; • Excellent coordination skills.

Required Skills and Experience

Education: Minimum masters degree in economics, development studies, MBA or other relevant degrees. Experience: Must have at least ten years of work  experience in microfinance and up to date knowledge in the financial services sector, preferably in Africa Comprehensive knowledge of CGAP benchmarks and international industry best practices. Experience on financial literacy and consumer education issues in Africa and globally. Capacity to carry out market assessments. Strong analytical and writing ability Ability to engage effectively with senior public and private sector officials and obtain needed information and insights into the local environment. Experience at the country wide sector level/understanding of building inclusive financial sectors. Language: Excellent report writing and communication skills in English. Time Frame and Work Load: It is anticipated that the consulting assignment will commence 1st November 2011 and should be completed by 30th November 2011. Qualified consultants with relevant experience are invited to come up with detailed technical and financial proposals for carrying out this assignment. The technical proposal should include the following: Profiles of consultant and an outline of recent experience on assignments of a similar nature. References from the consultant’s clients for similar assignments The consultant’s comments or suggestions on the TORs and appreciation of the assignment – the objectives, tasks and deliverables. A clear description of the methodology and work plan that the consultants proposes to execute the assignment, illustrated where appropriate, with bar charts of activities. A timeline for carrying out the assignment. The Financial proposal should list the costs associated with the assignment. All further enquiries should be directed to: Erick Sile (erick.sile@uncdf.org).