Oxfam now invites interested enterprises to submit their business plan/outline proposal from small and medium enterprises that fulfil the criteria or the requirements further listed below.

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Overview

  • Category : Other Consultancy
  • Posted Date : 09/26/2022
  • Phone Number : 0911541904
  • Source : Reporter
  • Closing Date : 09/30/2022

Description

The Oxfam Enterprise Development Programme

EXPRESSION OF INTEREST

INVITATION FOR AN EXPRESSION OF INTEREST

In 2008 Oxfam GB launched its Enterprise Development Programmed (EDP)as a new approach to sustainable development, addressing the lack of appropriate finance and support for rural small and medium enterprises in the developing world.  Through targeted investments in small and medium agricultural enterprises, EDP aimed to  improve the  livelihoods of  smallholder farmers, building the capacity of early-stage enterprises that empower smallholder producers, particularly women, and catalyze wider systemic change.

EDP is a pioneering, business-based approach to development. It combines Oxfam’s international presence and experience with support and expertise from a dedicated group of successful businesspeople.  Crucially, it helps many thousands of people – especially women – to work their way out of poverty. We believe that programmes like EDP are key to eliminating extreme poverty. This careful blend of support is crucial to success.

Since 2008, Enterprise Development Program is operational in Ethiopia and supported three medium-level enterprises (Asosa Farmer’s Cooperative Union, Zenbaba Cooperative Union and Green way Farms). The total investment invested in these businesses have been + 300,000 k GBP. As a result of the EDP support the enterprises have recorded immense growth on some of the key performance indicators (KPIs) like enterprises’ revenue have been increased by 368%, their profitability by 100%, and in terms of social impact; farmers reach increased by 236%, women’s reached by 205%, total jobs supported by 534%, women in leadership position and participation by 122%, and 205% respectively.

What Type of Enterprises Do We Want to Support?

EDP will invest in enterprises that have clear potential for commercial viability, share Oxfam’s values and commitment to tackling gender inequality, and can demonstrate a positive impact on ‘practical gender needs and the potential to address ‘strategic gender needs, struggle to access appropriate finance and support to catalyze growth (where there is a demonstrable gap in the provision of capital) in a timely manner. With an average investment size of £200-250k and tailored package of technical assistance.

EDP will focus on enterprises in two different stages of development: those that are struggling to consolidate and/or reach the necessary levels of operation and management to be sustainable; those that are more established but require additional support -either for growth or to achieve greater impact.

Enterprises Profile could be:

  • Early-stage enterprise, struggling to access commercial growth capital
  • Post revenue, i.e. proven business model
  • Potential to reach a significant number of people and make a significant impact on their livelihoods
  • Formal commitment to promote economic opportunities for underserved women
  • Legal structure in place and tax registration, may include local cooperatives or privately owned enterprises, run by locals or expatriates
  • Committed and capable management team in place
  • Some level of financial analysis and reporting in place

Sectors: Agri business (farming) and Agro industries but not limited to this

Oxfam now invites interested enterprises to submit their business plan/outline proposal from small and medium enterprises that fulfil the criteria or the requirements further listed below. For a time being the outline proposal should not exceed maximum of 5 pages. On the basis of the criteria set, Oxfam shall draw up the shortlist of enterprises and will invite them to submit a full business plan/proposal with clear financial sources and projections.

What Will EDP Offer?

EDP will offer an intelligent mix of recoverable capital and technical assistance (TA) and a commitment to generate and share learning. This ‘offer’ is informed and supported by a significant amount of secondary research that highlights the limitations of capital alone in supporting SMEs, the importance of TA and also the need for TA to address strategic as well as practical gender obstacles in the pursuit of tackling gender inequality

Loan Support: 80-90% of the business annual sales. Mostly in form of guarantees backed by fixed term deposits. Terms are negotiated for each deal. Typical loan uses: Investments in Infrastructure and equipment, Working capital (permanent or as a revolving credit line).

Grants to the business: 5% of the total investment (on average) – Typical uses:

– Seed funding for investments in infrastructure and equipment

– To cover fixed costs especially salaries before enterprises reach break-even

Business development services. Technical Assistance

Grants to support social activities/objectives: To cover support from Oxfam and local partners with a focus on ensuring the sustainability of the impact generated and the inclusion and empowerment of people living in poverty, especially women, addressing specific barriers and opportunities.

Enterprise Selection Eligibility Criteria:

It is crucial that business fulfil a number of carefully selected criteria to ensure they have the greatest social impact. We have a rigorous and an in-depth review and selection process to choose only the very best opportunities to make a difference. Below are the core 10 criteria that all enterprises must meet before they are considered for support.

We hand-pick enterprises which fit our criteria most closely, working with them over several months to understand their business – the model, the potential, their financials, their strengths, and their weaknesses. The best few are reviewed by an independent investment committee for its professional analysis, recommendations, and final decision

A simple 10-point checklist:

  1. Impact Reach: Does the enterprise have clear potential to directly reach a significant number of people (>500)? EDP enterprises directly reach an average of 2000 people each.
  2. Impact Depth: Does the enterprises meaningfully impact these people’s live? Example, through significant improvement of income.
  3. Women’s Economic Empowerment: Does the enterprises provide clear opportunities for women’s economic empowerment?
  4. Proof of Concept: Does the enterprise have a proven business model and verifiable annual revenues of at least £20,000?
  5. Management: Does the enterprise have a dedicated and strong entrepreneur/manager/management team?
  6. Viability: Does the enterprise have potential to grow its market and margins to reach breakeven point within three years?
  7. Access to Finance: Does the enterprise struggle to access appropriate commercial finance (>£20,000)?
  8. Equitable Business Structure? Does the business structure lock in fair sharing of wealth created or can Oxfam reasonably influence the business structure to share value more equally?
  9. Systemic Change: Is there a clear path to achieving systemic change by supporting this enterprise?
  10. Environmental Sustainability: Does the business use natural resources sustainably, addressing environmental and climate change-related risk?

Geography: Within a radius of not more than 300 Km out of Addis Ababa

If your company is interested, please submit your outline proposal/business plan and other relevant documents and information on or before September 30th 2022 on the outline proposal template given on the link below https://oxfam.app.box.com/file/1018650341360?s=5bvucjd1zw71iplfn2bol92gsjbnbjun and send to email address of addisababa@oxfam.org.uk or in person at Oxfam Office located in Bole Sub City, Woreda 03, Kebele 27, House Number 2084 around Ramada Hotel, Near to Old UNHCR Head Office Addis Ababa Ethiopia. for preliminary assessment.

If you may have doubt, please contact @ Ephrem Kelemwork @ ekelemwork@oxfam.org.uk/+251-091-154-19 04.

Oxfam reserves the right to accept or reject any Expression of Interest and to cancel the selection process or reject all expressions at any time, without thereby incurring any liability to the affected enterprises.