Position Description

Agricultural Risk & Loan Management
Location Tanzania
Department Programs
Employment Type Volunteer
Apply Now

Agricultural Risk & Loan Management 

Location: Tanzania

Duration: 23 Days

 

Problem Statement 

The growth of strong financial  Institutions is undoubtedly linked to  the sustainable development  of a country.  In  Tanzania, agriculture  is the economic and social mainstay for the majority of  the population  and employs over half  of the total  population.  Therefore, financial institutions are the  key to the  development of the sector because they  provide investment  and empower poor  farmers to increase their productivity and  livelihoods. F or financial institution s to play their  role in creating sustainable  development in the agriculture sector , they must be able to effectively and efficiently manage risk through the establishment of loan underwriting  and loan approval processes.  Their loans underwriting and approval processes should establish minimum thresholds for approval. It is through those minimum requirements that management steers lending decisions toward planned strategic objectives and maintains desired levels of risk within the portfolio. Underwriting standards should  not only result in responsible individual loans but should also establish acceptable portfolio risk levels. 

Financial institutions are the intermediary  between depositors and those in need of funds for their agricultural and  non-agricultural businesses (creditors). Streamlining the underwriting and  loan approval process for credit lending will increase  access to finance for smallholders'  farmers and ensure money  continues to be available to grow the economy.  Technologies such as databases,  scoring systems,  and loan rating matrices can greatly increase efficiency  and effectiveness. Whether the underwriting and loan approval process is automated or not , the consistent  inclusion of accurate and  targeted information is  necessary to reduce  risk. Given the repayment of  the loans is not always guaranteed and frequently depends on  many external factors,  lending can be a risky endeavor.  Therefore, properly managing  loans can have  positive effects  on financial  institution performance ,  borrower success and economic growth. 

Therefore, the Farmer-to-Farmer (F2F) Access to Finance program is recruiting a volunteer expert to assess and  review the  Loan Portfolio Management System s (LPMS) for a  financial institution’s agricultural portfolio in  Tanzania.  The volunteer will  also be expected to redesign the host organization  risk and loan underwriting matrix  and develop  tools for risk detection and credit issue  identification.  The goal is to put something in place that can help management identify issues  before they become problems thereby reducing  the overall risk profile of the institution. Redesigning the risk  and loan rating  matrix will ultimately increase  agriculture customer retention , penetrate the new markets through greater  inclusion of youth and women and strategically  improve the agricultural lending portfolio

 

Objectives of the Assignment

  1. Review and assess the host credit risk management systems,  including underwriting and approval
  2. Support the host organization to redesign  its agricultural loan rating matrix and  improve its loan underwriting tools,  scoring process,  and overall loan approval process es (automation should be involved whenever possible)
  3. Train management staff and loan officers at host organization on risk identification techniques, risk mitigation best practices, and practical tools for credit risk management and loan rating matrix
  4. Provide recommendation s and capacity building to the host for the ongoing development and/or automation of a loan rating matrix or scoring system

 

Tasks to be Performed

In the U.S.

  • Review technical documents for the program, including the Tanzania Country Project Description and the host, needs assessment report
  • Hold call with  F2F Tanzania Country Director and the host organization to develop solid understanding of the financial institution’s needs and discuss assignment objectives and execution plan
  • Review the host organization credit risk management system,  including their procedures and control s, and tools for risk detection and identification
  • Prepare an  outline for practical training material s on risk mitigation best practices, risk identification techniques, and risk mitigation tools available to the host organization
  • Prepare examples of loan rating matrices and concepts for customer scoring and assessment

In Tanzania 

  • Attend orientation hosted by F2F staff to review assignment objectives, security orientation,  and plan
  • Meet with key representatives from the host organization in Dar es Salaam, review assignment objectives, develop execution plan and agree on logistics
  • C onduct one-on-one interviews with host organization management team, loan officers, branch managers, select customers and perhaps representatives of other local financial institutions to assess the current systems and to:
    • G ather data from various branches and feedback on loan rating matrix;  and,
    • U nderstand how risk detection and identification tools, procedures and controls that are in place are currently used by the host management team, branch  managers and loan officers to detect and mitigate risk throughout the credit process
  • Review host organization loan underwriting tools, approval process, and tools for risk detection and identification
  • Present findings resulting from the assessment of the host organization current credit risk management system, tools for risk detection and identification and how are currently used by management and loan officers to detect and mitigate risks
  • Work with representatives of the host organization to develop and adopt   improved underwriting tools, approval processes, and risk mitigation techniques
  • Prepare training on tools and techniques developed
  • Deliver   hands-on  training to host  organization management team and loan officers on loan underwriting and approval best practices and tools and techniques developed
  • Hold debriefing session with  the host organization to share recommendations
  • Hold debriefing session with F2F Country Director to share recommendations and way forward
  • Hold debriefing session with USAID
  • Draft final report for assignment

 

End of Assignment Report and other Deliverables Required

  1. Need s assessment   r eport
  2. Training materials
  3. Tools developed
  4. List of appropriate action/assignments/recommendations to be taken by the host stop losing money ( non-performing loan s ) and to strategically develop products and loan terms to improve its Agro - loan portfolio
  5. Volunteer assignment  final  r eport

 

F2F Programmatic Pesticide Evaluation Report and Safer Use Action Plan (PERSUAP) Requirements:

This assignment will probably not have any pesticide issues to deal with. The volunteer must, therefore, do the following for a Type 3 assignment:

The volunteer shall review the F2F Environmental Brochure and be aware of F2F’s legal requirements regarding the provision of assistance for the procurement or use of pesticides. The volunteer shall not recommend or provide advice on specific pesticides

 

Expertise of Volunteer Requested 

  • At least 10 years of professional experience in agriculture, agricultural finance, access to finance and/or agricultural economics
  • University degree or higher in financial management,  credit management, agriculture finance,  and risk control and mitigation,  business, economics or, other relevant fields; advanced degree preferred
  • Knowledge of and experience in banking, credit management and agricultural access to finance in sub-Saharan Africa preferred
  • Strong leadership and communication skills and the capacity to plan strategically and flexibly.
  • Sufficiently physically fit, with appropriate medical clearance
  • Experience working in Tanzania and/or the region is preferred
  • Writing Skills: reporting requires good computer skills including, but not limited to, working and generating reports with MS Word. Experience with PowerPoint presentations is desirable
  • This is a United States government-funded program. Therefore, for the purpose of achieving desired results in accordance with the work plan and submitting requisite reports, written and spoken fluency in English is required
  • The ability to work through translators in the field, however, is essential. This requires deliberation and sensitivity to cultural issues in communication. Experience with training and mentoring subsistence farmers in Sub-Saharan Africa preferred
  • Good writing and analytical skills, interpersonal communication and presentation skills (adult education skills), ability and desire to teach in both classroom and field settings

 

Volunteer Outreach

USAID and  IESC  encourage all   F2F volunteers to participate in public outreach. An important objective of the program is to increase awareness of Americans’ good work in developing countries. Volunteers should select  at least one   outreach activity from the list below, to be completed  within two months   of return to the US:

  • Write an entry for the IESC blog
  • Post a photo, video, or text related to the F2F assignment on a personal website, blog, Facebook page, Twitter, or other social media sites and send a link to IESC staff
  • Send a press release to a local newspaper(s) in the volunteer’s hometown . ( IESC can provide a template)
  • Write something for alumni or professional association newsletter, or other publication. ( IESC can help as needed)
  • Give a presentation about the F2F assignment to colleagues, students, church group, rotary club, etc
  • Send an email about F2F to friends, family, or colleagues
  • Other

 

Description of the Program 

The International Executive Service Corps (IESC) serves as the lead implementer for the Farmer-to-Farmer (F2F) Access to Finance Program (2018-2023) to address deficits in the financial ecosystem hindering investment and growth in agriculture for individual farmers, as well as micro, small, and medium-sized enterprises through the delivery of volunteer technical assistance. IESC has designed a thematic F2F program to generate sustainable, broad-based economic growth and create jobs in the agricultural sector with a special focus on assistance to women and youth. IESC is joined by Grameen Foundation, with outstanding experience in digital finance and technology for the agricultural sector, to provide voluntary technical assistance and address the gaps in the financial ecosystem .

Funded by the U.S. Agency for International Development, F2F initiatives generate rapid, sustained, and broad-based economic growth in the agricultural sector. These programs also promote international goodwill, understanding of U.S. foreign assistance programs, and private involvement in development activities. Through the F2F Program, USAID facilitates the delivery of a broad range of U.S. agricultural expertise using U.S. volunteers who work with farmers, agricultural support systems and associations, and agribusinesses, in developing countries. The work of volunteers helps improve the quality of the agricultural sector workforce through training and advisory services provided to a wide range of agriculture sector actors. Volunteer assignments are designed to improve farm and agribusiness operations and agricultural systems. 

Focusing on Kenya, Tanzania, and Sri Lanka, the F2F Access to Finance Program will work with local partner organizations and volunteer hosts to field pro bono experts from the U.S. agriculture, corporate, and banking sectors to address systemic capacity constraints for farmers and lenders in each targeted country and unlock finance for improved agricultural production leading to utilization of agricultural technologies and increased sales and incomes. 

 

Back Apply Now