REFERENCE NUMBER: SADC/TIFI/DEMOCRATIC REPUBLIC OF CONGO/05/2014 –DEVELOPMENT OF A STRATEGY AND ROADMAP FOR INDUSTRIALISATION IN THE SADC REGION

National Consultancy

DEMOCRATIC REPUBLIC OF CONGO

REQUEST FOR EXPRESSION OF INTEREST

SELECTION OF INDIVIDUAL CONSULTANTS

REFERENCE NUMBER: SADC/TIFI/DEMOCRATIC REPUBLIC OF CONGO/05/2014

REQUEST FOR SERVICES TITLE:

DEVELOPMENT OF A STRATEGY AND ROADMAP FOR INDUSTRIALISATION IN THE SADC REGION

[National Consultancy – DEMOCRATIC REPUBLIC OF CONGO]

  1. The SADC Secretariatis inviting Individual Consultants to submit their CV and Financial Proposal for the following services:

DEVELOPMENT OF A STRATEGY AND ROADMAP FOR INDUSTRIALISATION IN THE SADC REGION

[National Consultancy – DEMOCRATIC REPUBLIC OF CONGO]

The Terms of Reference defining the minimum technical requirements for these services are attached as Annex 1 to this Request for Expression of Interest.

2. Only Individual Consultants are eligible for this assignment provided that they fulfil the following eligibility criteria:

a)they are not bankrupt or being wound up, are having their affairs administered by the courts, have entered into arrangements with creditors, have suspended business activities, are being subject of proceedings concerning those matters, or are being in any similar situations arising from similar procedures provided for in the national legislation or regulations of the SADC member states;

b)they have not been convicted of offences concerning their professional conduct by a judgment which has the force of res judicata; (i.e. against which no appeal is possible);

c)they have not been declared guilty of grave professional misconduct proven by any means which SADC Secretariat can justify;

d)they have fulfilled obligations related to the payments of social security contributions or the payment of taxes in accordance with the legal provisions of the country in which they are established or with those countries where the contract is to be performed;

e)they have not been the subject of a judgment which has the force of res judicata for fraud, corruption, involvement in a criminal organisation or any other illegal activity detrimental to the SADC Secretariat' financial interests; or

f)they are not being currently subject to an administrative penalty.

g) they areCongolese.

3.The maximum budget for this contract is US $16,000 for expert service/consultants fees only. Proposals exceeding this budget will not be accepted.

4.Your Expression of Interest must be presented as per Standard Expression of Interest Forms attached as Annex 2 to this REOI, in the English language and be accompanied by copies of all the indicated supporting documents. If the supporting documents are not in English, these shall be accompanied by a certified translation into English.

5.Your proposalclearly marked “REFERENCE NUMBER: SADC/TIFI/DEMOCRATIC REPUBLIC OF CONGO/05/2014 – DEVELOPMENT OF A STRATEGY AND ROADMAP FOR INDUSTRIALISATION IN THE SADC REGION[National Consultancy –DEMOCRATIC REPUBLIC OF CONGO]” in a sealed envelope, should be submitted in our tender box located at the following address:

Secretary to the Tender Committee

SADC Secretariat

Plot 54385 CBD

Private Bag 0095

Gaborone

Botswana

Attn: Mr Snowden Mmadi

Copy: Ted Peter Luka

Copy: GainmoreZanamwe

6.The deadline for submission of your proposal, to the address indicated in Paragraph 5 above, is:

21 November 2014 at 15:00 hours

7.Proposals submitted by Fax or E-mailare acceptable.

E-mail:

Copy:

Copy:

8.Your CV will be evaluated against the following criteria.

Criteria / Maximum points allocated
Education and Training / 30
Specific Experience relevant to assignment / 60
General Experience / 10
Total / 100

9.You proposal should be submitted as per the following instructions and in accordance with the Terms and Conditions of the Standard Contract attached as Annex 3 to this REOI:

(i) PRICES:

The financial proposal shall be inclusive of all expenses deemed necessary by the Individual Consultant for the performance of the contract.

(ii)EVALUATION AND AWARD OF THE CONTRACT:

Expressions of Interest determined to be formallycompliant to the requirementswill be further evaluated technically.

An Expression of Interest is considered compliant to the requirements if:

  • It fulfils the formal requirements (see Paragraphs2,3,4,5,6 and 7 above),
  • The financial proposal does not exceed the maximum available budget for the contract.

The award will be made to the applicant who obtained the highest technicalscore.Expressions of Interest not obtaining a minimum score of 70% will be rejected.

(iii) VALIDITY OF THE EXPRESSION OF INTEREST:

Your Expression of Interest should be valid for a period of 90 days from the date of deadline for submission indicated in Paragraph 6 above.

10. The assignment is expected to commence within two (2) weeks from the signature of the contract.

11.Additional requests for information and clarifications can be made until10working days prior to deadline indicated in the paragraph 6 above, from:

The Procuring entity: SADC Secretariat

Contact person: Ted Peter Luka/ GainmoreZanamwe

Telephone:3951863

Fax:3972848

E-mail:

Copy:

The answer on the questions received will be sent to the Consultant and all questions received as well as the answer(s) to them will be posted on the SADC Secretariat’s website at the latest 7 working days before the deadline for submissionof the proposals.

ANNEXES:

ANNEX 1: Terms of Reference

ANNEX 2: Expression of Interest Forms

ANNEX 3: Standard Contract for Individual Consultants

Sincerely,

______(signature)______

Name:Ted Peter Luka

Title:Procurement Officer

Page 1 of 35

REFERENCE NUMBER: SADC/TIFI/DEMOCRATIC REPUBLIC OF CONGO/05/2014 –DEVELOPMENT OF A STRATEGY AND ROADMAP FOR INDUSTRIALISATION IN THE SADC REGION

National Consultancy

DEMOCRATIC REPUBLIC OF CONGO

ANNEX 1: TERMS OF REFERENCE

TERMS OF REFERENCE

DEVELOPMENT OF A STRATEGY AND ROADMAP FOR INDUSTRIALISATION IN THE SADC REGION

National Consultancy

DEMOCRATIC REPUBLIC OF CONGO

1.BACKGROUND

1.1At the Summit held in Victoria Falls, Zimbabwe, in August 2014, the Southern African Development Community (SADC) Heads of State and Government considered and endorsed the following Summit Theme: “SADC Strategy for Economic Transformation: Leveraging the Region’s Diverse Resources for Sustainable Economic and Social Development through Beneficiation and Value Addition”.

1.2In deliberating on the Theme, Summit:

“mandated the Ministerial Task Force on Regional Economic Integration which comprises Ministers responsible for Trade and Industry, Finance, Economic Planning and Infrastructure development to urgently meet, by February 2015, and agree on a strategy and roadmap for industrialisation of the Region. The Ministerial Task Force will be supported by a technical team on industrialisation”.

1.3Summit also considered the draft revised Regional Indicative Strategic Development Plan (RISDP) 2015-2020 and endorsed the Council decision that:

“requested the Committee of Ministers of Trade, assisted by the Secretariat, to review Priority A in the draft Revised RISDP 2015-2020, particularly the sequencing of targeted outputs on Industrial Development and Trade Liberalisation in order to ensure that, at the current stage of integration in SADC, industrialisation is prioritized”.

These Summit decisions not only give prominence to industrialisation, but also inject the much needed energy and focus on value addition and beneficiation of SADC’s raw materials.

1.4In order to implement the Summit decisions, the Secretariat intends to work with a team of prominent experts/organisations including UNECA, UNIDO, UNDP and the World Bank to support Member States in developing a practical, effective, and implementable Strategy and Roadmap for industrialisation in the region. The Strategy and Roadmap should assist SADC to accelerate its pace of industrialisation.

1.5The importance of industrialisation was acknowledged by the SADC Leaders as far back as 2003, when they adopted the Regional Indicative Strategic Development Plan (2003-2018), which among others, advocated for the diversification of the industrial structure and exports with more emphasis on value addition across all sectors by 2015. Furthermore, the SADC Protocol on Trade recognises the importance of industrialisation in the context of the implementation of the SADC Free Trade Area (FTA). Article 4(2) of the SADC Protocol on Trade states that the elimination of import duties under the SADC FTA “should be accompanied by an industrialisation strategy to improve the competitiveness of Member States”.

1.6Given the importance attached to industrialisation, concerted efforts have taken place, with a number of initiatives being put in place. The most comprehensive initiative relates to the Industrial Upgrading and Modernization Programme (IUMP) which was adopted by the Committee of Ministers of Trade (CMT) in 2009 in order to implement the RISDP component on industrialisation. The IUMP, developed with assistance from UNIDO, seeks to enhance the competitiveness of existing industrial capacity and promote the development of regional value chains in selected sectors across the region, including through upgrading existing manufacturing capacities, modernizing productive facilities, reinforcing the institutional support infrastructure, and strengthening the region’s capacities for research and innovation. Even though nine sectors were identified as having potential, the focus is currently on the minerals, agro-processing and the pharmaceutical sectors. However, this does not mean that the other priority sectors will not be supported.

1.7Furthermore, in underscoring the importance of industrialisation, the CMT adopted the SADC Industrial Development Policy Framework (IDPF) in 2012. The Industrial Development Policy Framework seeks to enhance cooperation and facilitate the development of backward and forward linkages or synergies across SADC industrial sectors, gradually building a diversified, innovative and globally competitive industrial base across the region.

1.8The Industrial Development Policy Framework outlines the following broad cross cutting and sector specific interventions for implementation at regional level:

i)Developing and exploiting SADC mutually beneficial opportunities;

ii)Improving standards, technical regulations & quality infrastructure;

iii)Promoting cooperation on innovation, technology transfer, and research and development activities;

iv)Developing mechanisms to improve access to finance for manufacturing and related sectors;

v)Improving support for small and medium-sized enterprises (SMEs);

vi)Integrating infrastructure and services into the regional industrialization strategy;

vii)Attracting local regional and foreign direct investment (FDI) and promoting exports;

viii)Developing strategies to exploit opportunities emerging in the region’s strategic cooperation with global partners; and

ix)Promoting alignment of the Policy with existing complementary policies of SADC such as the Regional Agricultural Policy (RAP), Regional Infrastructure Development Master Plan (RIDMP), Protocols for energy, Transport, communications etc.

1.9Since the adoption of the IUMP and the IDPF, the Secretariat has undertaken a number of actions in order to progress work on industrialisation, especially in the minerals, agro-processing and pharmaceutical sectors. The Secretariat is in the process of undertaking studies on profiling mineral beneficiation and identifying the skills requirements in the minerals sector. On the pharmaceutical sector, the Secretariat is undertaking a feasibility study on regional production of medicines and commodities especially those related to HIV and AIDS, TB and Malaria and another, to identify training and research needs and facilitation of the selection of centres of excellence. In 2013, SADC adopted the Regional Agriculture Policy. The Policy identifies a number of strategies on enhancing sustainable agricultural production, productivity and competitiveness, improving regional and international trade and access to markets of agricultural products, improving private and public sector engagement and investment in the agricultural value-chains, reducing social and economic vulnerability of the region’s population in the context of food and nutrition security and the changing economic and climatic environment.

1.10Despite all these initiatives, the Independent Review of the RISDP undertaken in 2012 concluded that the major shortcomings in the implementation of the RISDP were on industrial development, upgrading and economic diversification. The Review noted that programmes on industrialisation have the greatest potential to support economic transformation of the region but they have not been fully supported. In this regard, the Review recommended that in the remaining period of the RISDP, SADC should amongst other things; focus on the implementation of the Industrial Development Policy Framework, enhancing regional value chains, productive capacity and economic diversification in order to ensure that there is equitable distribution of regional economic integration benefits.

1.11In order to address the issues raised in the Review, SADC established a Task Force on the Regional Indicative Strategic Development Plan to consider the draft Revised RISDP (2015-2020). The draft revised RISDP identifies Industrial Development and Market integration as one of the key priorities for the SADC integration process. The overall goal under Industrial Development and Market Integration is to facilitate competitive and diversified industrial development, trade and financial liberalization and integration, macroeconomic stability and convergence, as well as increased investment for deeper regional integration and poverty eradication. In the area of sustainable industrial development, productive competitiveness and supply side capacity, the objective is to promote regional value chains and increase value addition for agricultural and non-agricultural products. Some of the strategies that are proposed in the draft Revised RISDP include the following:

i)Implementation of Industrial Upgrading and Modernisation Programme (IUMP);

ii)Operationalisation of the Industrial Development Policy Framework;

iii)Implementation of the Protocol on Mining;

iv)Implementation of the Regional Agricultural Policy;

v)Leveraging on the RIDMP to catalyse industrial development;

vi)Development and implementation of regional value chain and value addition strategies in selected priority sectors;

vii)Development of the Protocol on Industry; and

viii)Operationalisation of the first two windows of SADC Development Fund.

1.12Therefore, in developing the Strategy and Road Map on industrialisation, it is important to take stock of existing and on-going interventions, identify essential requirements for industrialisation at regional and national level and assess gaps, including, whether the strategies that have been identified in the draft revised RISDP (2015-2020) are adequate, practical and will lead to intended and visible results on industrialisation.

1.13Despite the fact that SADC Members are endowed with abundant natural resources, the region still lags behind in terms of participating in regional and global value chains, mainly due to the low level of the region’s industrialization. As a result, intra-regional trade is less than 15%, while it exceeds 45% in other emerging regions such as South-East Asia. While some progress has been made in deepening regional integration through the launch of the free trade agreement (FTA) in 2008, the region has made limited progress to add value and beneficiate its abundant resources to expand and diversify its industrial base; increase trade and to become a competitive and effective player in the region, the continent and the global economy. The United Nations Economic Commission for Africa (UNECA) also pointed out that African countries have experienced unprecedented growth over the past two decades. However, these countries are facing challenges in terms of designing and implementing effective policies to promote industrialisation and economic transformation as this growth has not been inclusive.

1.14The need to industrialize is gaining momentum, not only in SADC, but also at the Tripartite and continental levels. At the Tripartite level, industrial development is one of the key pillars in addition to market integration and infrastructure development. At the continental level, frameworks and strategies such as the African Productive Capacity Initiative of 2004, the Plan of Action for the Accelerated Industrial Development (AIDA) of 2008, the initiative on Boosting Intra-African Trade (BIAT) and the Africa Mining Vision (AMV), also provide relevant impetus to SADC’s work on industrialization and value addition.

1.15Despite all these commitments towards industrialization, the SADC region continues to face challenges relating to industrialisation, beneficiation and value addition such as:

-lack of access to affordable financial resources;

-high infrastructure deficit leading to limited access to markets and uncompetitive costs of doing business;

-limited investment in R&D, science, innovation and technology;

-inadequate human capital and skills;

-poorly developed and small private sector which is highly undercapitalised and has low capacity;

-difficulties to comply with international standards and quality requirements;

-new requirements for dealing with environment and climate change;

-poor coordination between trade, investment and industrial policy as well as other cross-cutting policies and regulations with the result that trade and investment agreements have constrained the policy space for industrialisation; and

-poor enabling environment for investment and private sector development.

1.16These challenges would need to be addressed within the Strategy and Roadmap to be developed towards industrialization if the region is to succeed in its endeavour to industrialize.

2.OBJECTIVES, APPROACH AND SCOPE OF WORK

2.1The overall objective of the assignment is to assist SADC to develop an Industrialisation Strategy and Road Map, which would facilitate accelerated industrialisation through effective and practical interventions; while promoting and enabling the region to use its diverse resources to achieve economic and social development through beneficiation and value addition.

2.2The approach of the assignment is to partner with Strategic Partners/ a team of experts to work with the Secretariat and key stakeholders to develop a Strategy and Roadmap for industrialisation of the SADC region with clear and measureable targets. This work will be aligned with the review of Priority A (Industrial Development and Market Integration) in the draft Revised RISDP 2015-2020, particularly the sequencing of targeted outputs on Industrial Development and Trade Liberalisation in order to ensure that industrialisation is accorded centre stage in the remaining period of the RISDP.

2.3In order to achieve the above objective, national studies are to be conducted and national consultations held in all the SADC member-states. The national studies are to gather relevant information and data on the progress on industrialisation in member-states, the frameworks and policies, harmonisation with regional frameworks, opportunities, problems and challenges and national perspectives and inputs on how the SADC Roadmap and Strategy on Industrialisation should be framed. To this end, a national consultant will be recruited in each of the SADC Member-States to undertake the following tasks: