Background
The Financial Sector Deepening Trust (FSDT) was incorporated in Tanzania on 1st July 2004.  The FSDT's overall aim is to develop a deeper financial system that can provide greater access to finance of more Tanzanians.  Among its secondary objectives are:

• Provide funding to support the development of new financial products that address the needs of poor households and micro and small enterprises.

• Support improvements in the policy, legislative and regulatory framework affecting delivery of services.

• Support initiatives aimed at improving financial market integration and access to wholesale forms of finance by financial service providers addressing poor households and micro and small enterprises.

• Support initiatives aimed at enhancing the supply of appropriate business services to financial service providers in Tanzania.

Short Description of the Contract
In May 2003 a joint IMF-World Bank Financial Sector Assessment Program (FSAP) Mission team carried out an assessment of the financial sector in Tanzania.  The Government adopted the FSAP report and in order to implement the recommendations, an Inter-institutional Committee (IIC) was formed to develop strategies that would form the basis for the second-generation financial sector reforms.  Among the priority reform areas identified by the IIC, is provision of financial services to the rural areas.

The IIC and BoT as its chair, is, therefore, seeking international consultants with local partners to undertake a critical review of the state of rural finance in the country with the objective of developing a strategy to enhance financial services in the rural areas.

The aim of the study is threefold:

1. To assess the current state of financial services in the rural areas in Tanzania mainland and Zanzibar;
2. To develop an effective and coherent strategy over the next five years to enhance provision of both broader and deeper financial services across all parts of the Union; and
3. To make relevant recommendations as to an action plan for its implementation.  The strategy should take into account the requirements of not only individuals, but also micro and small, medium-sized enterprises (MSMEs) operating in rural areas.  Financial services should include savings, credit, insurance and money transfer.  If considered important, the consultant may address other services.

Given their importance as financial institutions in rural areas, the strategy should include a sub-set that focuses on SACCOS.  This should identify options for SACCO development and make recommendations relating to key areas such as creating economies of scale, establishing more professional standards in governance and operations, capacity building and providing an appropriate legal and regulatory framework.

Scope of Work
The strategy should focus on making markets work for the poor, but also identify areas of current or potential market failure that might justify intervention from a combination of government and donors.  The consultant should therefore seek to identify gaps in the enabling environment; adverse demand-side factors, supply-side constraints and financial infrastructure, as well as making recommendations for how these gaps should be closed.  When assessing gaps and other weaknesses, the consultant should consider what is likely to work most effectively in the Tanzanian environment.  In part, this assessment should also draw on best practices in other countries with similar conditions and problems to those facing Tanzania.

The scope of work is likely to comprise at least three key elements as follows:

1. Information gathering and diagnosis of the current environment for rural finance.
2. Identification and mapping out strategic options
3. Priorities, recommendations and implementing plan.

The duration of the contract is estimated at six (6) months.

Technical Information
The successful consultant is likely to have the following experiences:
1. Wide knowledge and experience in best practices rural finance including rural micro-finance and finance for MSMEs in developing economies
2. Successful development of rural finance strategies in developing economies.
3. Proven experience and knowledge of the co-operative movement and related practices
4. Considerable experience in Sub-Saharan and preferably in East Africa, especially Tanzania.
5. The team leader must have not less than seven years of experience in rural finance.

Procedure
The envisaged number of short-listed candidates is between five (5) and eight (8).

The evaluation criteria will review the Firm's capacity, which should have:

1. Knowledge of and experience in rural financial services (including MSMEs)
2. Development of strategies for rural financial services in developing economies, especially those comparable to and with similar environments to Tanzania's own.
3. Proven experience and knowledge of the co-operative movement and related practices
4. Experience of the individuals in rural financial services development (including MSMEs) and developing strategies in this field.
5. Experience of the individuals in the local environment.

The award criteria will be the most economically advantageous tender in terms of the criteria stated in the specifications in the invitation of tender or to negotiate or in the descriptive document

Additional Information
Expressions of interest must include a capability statement, of not more than four (4) A4 pages, which shows evidence of relevant skills and experience in providing the services required under this notice.  Abridged CVs of key personnel only, of not more than three (3) pages in length, should also be included.  These CVs can be submitted in addition to the four page capability statement. 

Expressions of interest should be submitted to the address stated in the section on Administrative Information, preferably by e-mail.  Following assessments of expressions of interest, FSDT Tanzania will invite successful applicants to submit full technical and commercial proposals.

Although the consultants will be engaged for this specific study, the FSDT may extend the contract to provide for further work covering, for example, modification of the strategy to take account of more detailed supply side information and development of Government policy.  Decisions on any further work are likely to be determined towards the end of the work outlined herein.

Administrative Information
The limit for receipt of the requests for documents or for accessing documents is 20 July 2007 at 10:00am local time.

Time limit for receipt of tenders or requests to participate is 27 July 2007 at 10.00am local time.

Language in which tenders or requests to participate may be drawn up is English.

Official name: Financial Sector Deepening Trust (Tanzania)
Postal Address: P. O. Box 4653
Town: Dar es Salaam
Country : Tanzania
Postal code: None
Telephone: +255 22 2667227/ 2667368
For attention of: Glenn. H. Scott
Email: FSDT@tz.ey.com

Fax: +255 22 2666948/ 2666869