ToRs: Somaliland Diagnostic Scoping Assignment
Terms of Reference – Somaliland Diagnostic Assessment and Scoping Study
1. Overview
After two decades of conflict, Somalia is the one of the world’s most fragile states. It remains a base for extremists, and insurgent groups and clan conflicts still affect parts of the country. While Somalia is moving towards a federal structure, a full political settlement has not yet been reached, and development needs are immense[1]. These decades of conflict, economic mismanagement and political instability have exacted a heavy toll on the economy of Somalia. Estimated information finds that Somalia’s GDP per capita is just $284, the fourth lowest in the world. The Somali population is young and has high levels of unemployment and poverty: approximately 73% of Somali’s live on less than $2 per day and the incidence of poverty is estimated at 61% and 80% for the urban and rural population respectively[2].
Recovery of the private sector in Somalia is vital for job creation and poverty alleviation. Development of the private sector would generate vested interests in peace by providing alternative livelihoods for those that would otherwise take up arms. It would expand the economic choices of women and youth. It would shift political economy forces in favour of a more representative and responsive state. It would provide the state with the tax revenue to deliver much-needed social services[3].
DFID Somalia has requested support from BERF in addressing some of the key constraints in the business environment across all three regions of Somalia. However, BERF should start by focusing on Somaliland, as the easier region to work in, and expand into other regions in subsequent phases of support.
These Terms of Reference focus on the first phase of support, during which BERF will undertake a general business environment (BE) diagnostic of Somaliland, to identify the main constraints to tackle and scope out potential areas of support for BERF. Initial discussions have focused around two main areas of support:
· Commercial law: build on an assignment undertaken by the Legal Assistance for Economic Reform (LASER) programme, which supported the Ministry of Foreign Affairs and International Cooperation in commercial law. BERF support is needed in improving the law for business licensing and registrations and simplifying the current process.
· Commercial justice: support needed in alternative dispute resolution, property rights, courts, arbitration etc.
Other areas of support will be explored during the scoping phase, based on the results of the diagnostic assessment. Other BERF products (Activities A, B, C, D and E) will also be explored as part of the scoping assignment.
2. Objectives
2.1 To undertake a general BE diagnostic assessment of Somaliland to identify key constraints
2.2 To undertake a scoping study of potential areas of BERF support in Somaliland, including Activity A, B, C, D and E support. Indicative areas of focus include:
(a) Commercial law
(b) Commercial justice
3. Link with BER/investment/jobs/poverty (ToC)
The assignment links directly to improving the BE in Somaliland, with particular focus on women and youth.
The Theory of Change (ToC) starts with improved business environment reform (BER) interventions through removal or modification of laws and regulations and institutional barriers to doing business, leading to job creation and inclusive economic opportunities, thereby resulting in poverty reduction.
The assignment provides expert external assistance and does not replace the work of DFID civil servants.
4. Client and Beneficiaries
The client is DFID Somalia. Beneficiaries include the Government of Somaliland, ministries, departments and agencies (MDAs), private sector business membership organisations (BMOs), civil society organisations (CSOs) and the poor, in particular women and youth.
5. Scope
· Sector scope: economy wide.
· Geographic scope: Somaliland. Assignment to take place in Hargeisa and Nairobi.
6. Method
· Desk based review of general BE constraints in Somaliland, building on existing BE diagnostic assessments and other reports.
· Stakeholder consultations in Hargeisa and Nairobi to identify and confirm key BE constraints:
– Consultations with DFID Somalia.
– Consultations with key private sector stakeholders.
– Consultations with Government of Somaliland, Ministries Departments and Agencies, Business Membership Organisations and Civil Society Organisations, including groups representing women and the urban and rural poor.
– Consultations with Development Partners, including other donors or donor programmes.
– Consultations with other relevant DFID Somalia programmes.
· Systematic reference to one or more of these cross-cutting issues:
– Gender: participation by women in business and in the labour market;
– Youth: participation by youth (15-35) in self-employment and in the labour market;
– FCAS: constraints arising from regional conflicts;
– Environment and climate change: green growth opportunities in particular;
– PEA
· Stakeholder roundtable/focus groups in Hargeisa to present and discuss preliminary findings and further refine conclusions.
· Final report including data analysis and conclusions regarding key BE constraints in Somaliland and potential areas of BERF support.
7. Timeframe
The assignment is expected to take place in Hargeisa and Nairobi for a total of 44 consultant days (provisional estimate), based on a team of two consultants and calculated as follows: 22 days (5 days home based pre-travel, 2 days in Nairobi, 10 days in Hargeisa, 5 home based post-travel) per consultant. The timeframe is September 2016 (to be agreed with DFID Somalia).
8. Deliverables
· Diagnostic assessment of key BE constraints in Somaliland
· Scoping study outlining potential BERF support to DFID Somalia
9. Dissemination
The main deliverables will be disseminated and/or published, including local dissemination amongst the donor community and other stakeholders and publication on the BERF website. The dissemination of these deliverables will be agreed with DFID Somalia.
10. Workplan (schedule)
Workplan /Item/Activities / Location / Timing /
Desk Research / Home based / Week 1
Stakeholder Consultations / Nairobi/Hargeisa / Week 2 + 3
Stakeholder Roundtable / Hargeisa / Week 3
Data analysis and report drafting / Home based / Week 4
Final report submitted / Home based / Week 5
11. Competencies Required
· Experience in designing and developing private sector development programmes with BER components
· Experience undertaking BE diagnostic assessments
· Experience working with DFID and high level stakeholders across public and private sectors to develop strategy papers and roadmaps to inform policy
· Experience in consultative design processes via key informant interviews or focus group discussions to extract data from high level stakeholders
· Experience of working in Somaliland and understanding of the local political economy
· Excellent English writing skills.
12. Budget (TBC)
13. CVs (TBC)
1
[1] Operational Plan 2011-2016, DFID Somalia
[2] Terms of Reference for the Promoting Inclusive Markets in Somalia (PIMS) Programme
[3] Terms of Reference for the Promoting Inclusive Markets in Somalia (PIMS) Programme