Position Description

Credit Readiness and Loan Packaging Service Development Volunteer Expert
Location Tanzania
Department Programs
Employment Type Volunteer
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Credit Readiness and Loan Packaging Service Development Volunteer Expert

 

Location of Assignment:            Dar es Salaam, Tanzania, with likely travel to regional centers

Proposed Level of Effort:           4-6 weeks 

Anticipated Start Date:              August/September 2017 

Problem Statement

Small enterprises in Tanzania often cite a lack of access to finance as a key constraint to the long-term viability and growth of their business. While the reasons for low levels of small enterprise lending among financial intuitions is myriad, one significant factor is the inability of business owners to adequately prepare prior to seeking a business loan. 

The objective of this assignment is to develop a structured “credit readiness” process to help Tanzanian business owners with loan application preparation and packaging in order to improve their likelihood of qualifying for a commercial loan. 

Background 

The Tanzania Enabling Growth through Investment and Enterprise Program (ENGINE) is a four-year, USAID-funded Feed the Future activity awarded through the Volunteers for Economic Growth Alliance (VEGA), that aims to streamline and enhance many of the regulatory, informational and financial channels that encourage domestic and foreign investment in the southern mainland agricultural regions of Mbeya, Morogoro, and Iringa, and in Zanzibar. 

ENGINE works at the district level, using a broad-based approach to engage with district Local Government Authorities (LGAs), private sector associations, business development service providers, financial institutions and small and medium enterprises. The program’s activities are divided into three main components: 

  1. Implement policies for growth. Build the capacity of the private sector to effectively dialogue with the government to set the policy agenda and improve the capacity of the public sector to implement policies. 
  2. Equip businesses for growth. Strengthen SME capacity and foster the growth and capacity of a sustainable market for business development services (BDS) in Tanzania. 
  3. Access to finance for growth. Broaden access to finance for small and medium-sized enterprises (SMEs), especially women and youth entrepreneurs and those working within agricultural value chains, to facilitate increased investment and growth. 

Problem Statement

Small enterprises in Tanzania often cite a lack of access to finance as a key constraint to the long-term viability and growth of their business. While the reasons for low levels of small enterprise lending among financial intuitions is myriad, one significant factor is the inability of business owners to adequately prepare prior to seeking a business loan. 

Objectives of the Assignment

The elements of the process will be developed by the volunteer to align with the documentation requirements common among Tanzanian financial institutions. Once developed, with standards established for each step, the volunteer will teach the elements of the process to a selected group of business service providers, who will in turn provide the service to business owners on a fee basis. By pre-underwriting potential borrowers, this process would also serve as a first line of due-diligence, ensuring accuracy and reasonableness on the part of the business before its profile is shared with financial institutions. 

Once complete, trained business service providers will be able to assist business owners in preparing for loans—helping them to develop necessary documentation (e.g., business plans, financial statements) as well as to clearly articulate the amount of credit sought, its purpose, the duration of the loan, how it will be repaid, and what collateral they have available to pledge as security.  

 

Tasks

The Expert Volunteer will complete the following tasks:

  1. Attend an orientation meeting with ENGINE Program staff.
  2. With ENGINE staff, meet with representatives of between 4-6 Tanzanian financial institutions (commercial banks and microfinance institutions) to understand their credit processes and documentation requirements.
  3. Develop the required elements of a formal “credit readiness” process for small business owners—including both the necessary knowledge and documentation. 
  4. Develop a set of standards, guidelines and templates for training and producing each component, as well as quality assurance verification methods. 
  5. Train business service providers in the process and standards so that can provide the service directly to business owners.
  6. Submit a final report summarizing findings, conclusions and recommendations related to the assignment;
  7. Provide exit debriefings to ENGINE leadership and other relevant stakeholders.

 

Deliverables 

The Expert Volunteer will submit the following deliverables:

  1. List of information requirements for each financial institution met; 
  2. Development of a list of documents and procedures that constitute a firm’s “credit readiness;”
  3. Development of standards, guidelines and templates for BDS providers to adhere to when offering this service;
  4. Final Trip Report that includes the following sections:

A.    Introduction;

B.    Methodology;

C.    Findings, Conclusions, and Recommendations; and

  1. Discussion of assignment objectives and how they were met or why they were not met.

 

Additionally, the Expert Volunteer will provide exit debriefings (Task G above).

 

Expert Volunteer Qualifications

The ideal Credit Readiness Service Development Expert Volunteer will have the following skills and qualifications:

  • 7+ years of commercial credit underwriting experience;
  • Knowledge of business loan documentation and loan processing;
  • Strong commercial credit and cash flow analysis skills;
  • Well-developed writing skills in English and the ability to express one’s self clearly and concisely;
  • Undergraduate university degree in business, finance, accounting or related field; relevant graduate degree is a plus;
  • Training skills, including participatory training in group settings.  
  • Self-motivated, proactive, detail-oriented, mature, professional team player, who is a strong people person and communicator, with good inter-personal skills;
  • Ability to address issues, challenges, questions, and concerns in a professional, respectful, logical, and timely manner;
  • Ability to work effectively in cross-cultural contexts; prior experience working overseas—especially in Africa—is helpful;
  • Good computer skills in MS Office.