TERMS OF REFERENCE FOR LIVELIHOODS MARKET ASSESSMENT AND STAFF TRAINING IN SOMALIA/SOMALILAND

1. Background

Somalia remains one of the most complex and long-standing humanitarian crises in the world. The chronic vulnerabilities that underpin the humanitarian situation in Somalia cannot be considered independently from the security environment, the political situation, human rights and underdevelopment. Conflict and cyclical climatic shocks are the key drivers of humanitarian needs, and are compounded by underlying socioeconomic or political factors, such as weak governance, lack of access to basic services and persistent marginalization and discrimination of disadvantaged groups. Somalia’s long-standing chronic crises now are compounded by the “triple threat” of the COVID-19 pandemic which is rapidly spreading in the country as part of the second wave, desert locust infestations and climatic shocks. Furthermore, according to Somalia Gu 2021 forecast and weather update by SWALIM issued on 1st March 2021 indicates an increased likelihood of below average rainfall during the 2021 Gu (April – June) season across most of the country which will adversely affect food security and nutrition outcomes., there is a lack of access to key social services and/or economic development in Somalia, resulting in the populations’ limited ability to absorb these recurrent shocks and stresses.

With this regard, SC Somalia with funding from USAID/BHA, launched new project named Sustainable Opportunities for More Accessible Livelihoods and Integrated Assistance. The overall goal of the project is to save lives, alleviate suffering, maintain human dignity, and build resilience in communities experiencing humanitarian crisis and/or are food insecurity.

The target locations of Awdal, Hiran, Bari and Nugaal are in IPC 3 (meaning HHs facing food crisis and having food consumption gaps or are depleting essential livelihood assets through negative coping strategies to meet minimal food requirements) and are also projected to remain in IPC 3 till June 2021 with population increasing to 2.83 million.

One of the activities of the project is restoring lost livelihoods and creating access to microfinance for poor and vulnerable households in project target locations. The objective of the intervention is to improve HHs access to finance through cash for livelihood transfers, community-based saving mechanisms and creating linkage to MFIs. Therefore, there is a need to conduct Market analysis of the target locations of the project, before actual implementation of these activities.

Purpose of the Market Assessment:

Understanding market dynamics is an important aspect in designing and delivering livelihood options, therefore SC is supporting HHs with livelihood options and creating access to finances and is interesting in supporting interventions informed by current market dynamics, opportunities and trends in petty trade, small business, business supports, establishing of Saving groups and engaging in microfinance institutions. This is to Investigate the microenterprise markets in Baidabo, Garowe, Gardo, Lughaya, Zeila and identify and provide guidance on economic sectors/sub-sectors with the highest potential for development of women and youth enterprises in the target areas.

In addition, another key purpose of the consultancy is to train core SC staff team on market assessment. This will be achieved through classroom training and on the field guide to the core team during the assessment.

The specific objectives of the assessment include:

1. To recommend appropriate income generating activities in the project target locations based on their feasibility, profitability, easy of start and sustainability among other parameters.
2. Identify viable opportunities which exist in the market and demanded by the market which include innovative petty trades
3. Identify key challenges faced by small business holders and propose solutions and recommendations based on the identified challenges.
4. SC will be doing business trainings for the target clients; therefore, the assessment should identify key areas and concepts in which current small business holders are struggling with so that we tailoring trainings accordingly.
5. Mapping of financial service providers and challenges in accessing them for the target communities including constraints for women and disadvantaged groups in entering the labor market.
6. Train Save the children team staff on market assessment.
7. Provide recommendations (based on the findings) on how SCI can best design and implement the access to finance interventions

2. Study Questions

1. What are the key feasible and viable small business opportunity? What are they key challenges could be faced by these small business owners?
2. How best will target community get access to existing microfinance systems? What will other stakeholders need to do to facilitate access?

3. Scope and Methodology: Data collection should use a cross-sectional design incorporating both quantitative and qualitative methods to answer the study objectives. Quantitative methods – should be deployed to capture data on income and financial indicators measuring enterprise viability, and profitability and Qualitative methods should be used to gather an in-depth understanding of a livelihoods and market structure, sustainability, challenges, knowledge gaps and so on. **

The specific data collection methods will include:

1. Desk Review: An in-depth desk study should conduct to understand the context, and to complement information gaps in the assessment. The desk review will include project documents and other available relevant study as well previous project evaluations and data.
2. Surveys: This should be used to administer individual questionnaires, targeted women who involve in small businesses or those who ae running such small business now.
3. Focus group discussions: Provides an in-depth qualitative information to enhance understanding of local livelihood systems and markets. Participatory approaches should be used to encourage the participants to freely discuss, analyse and share their views and opinions on issues related to livelihoods, economic activities, and markets
4. Key Informant Interviews (KIIs): Provides broader picture information on issues related to small business, petty trade, market dynamics and opportunities.

Consultant should develop a conceptual frame work on how to assess the program areas.

4. Key Deliverables and Timelines

The assessment and the training is supposed to be completed over a period of approximately 35 working days between August- September 2021.

5. Duration of Assignment

The assignment is expected to be undertaken between August – September 2021

6. Expected Profile of Consultant

The desired consultant should have the following academic qualifications, technical skills and experience:

· A post-graduate qualification in Economics, Social Sciences, Development Studies, Business studies or any related fields.

· At least 10 years of experience in coordinating and conducting Market related studies, assessment and market-based programing including market based livelihoods and Labour market assessment.

• Demonstrated experience in training, facilitation and supervising survey enumerators to collect and enter data as per high-quality standards;
• Demonstrated experience in quantitative and qualitative data analysis.
• Fluency in English (spoken and written).
• Ability to produce high-quality work under tight timeframes; and

Ability to work jointly with the MEAL team and integrate feedback as required