Terms of reference for hire of consultancy service for pre-digitalization assessment of 26 vsla groups in kabale and rubanda districts tender job at Self Help Africa-Uganda

Programme: Growing Resilience and Eco-Enterprise (GREEN
Building Sustainable Landscapes for Resilient Livelihoods
Assignment type: PRE-DIGITALIZATION ASSESSMENT OF VSLA GROUPS IN RUBANDA KABALE DISTRICTS
Project location: RUBANDA KABALE DISTRICTS

Duration: 28th April- 2nd May 2025

1. Introduction:
Self Help Africa (SHA) is an Irish-based, International Non-Governmental Organisation (NGO) implementing rural development, sustainable livelihoods, and food security programmes in nine countries in Sub-Saharan Africa. In Uganda, SHA has been operational since 1989, implementing various programmes across all regions of the country.
Self Help Africa Uganda, through partnership with Community Foundation for Ireland and Irish Aid, is currently implementing two projects: Growing Resilience and Eco-Enterprise (GREEN) (Jan 2023- Dec 2025) and Building Sustainable Landscapes for Resilient Livelihoods (Jan 2023- Dec 2027) in Kabale and Rubanda districts. These initiatives are centered on developing inclusive and equitable landscape management systems that foster sustainable ecosystem services. They aim to build resilient livelihoods for communities, with a special emphasis on women and youth for financial inclusion. The "Green Resilience" project is designed to enhance the resilience of smallholder farmers, women, and youth within the green economy. Both projects share a long-term goal of establishing robust eco-enterprises and businesses that provide sustainable income opportunities for local communities. Through these initiatives, SHA aims to create an environment where community members can thrive economically while preserving and benefiting from their natural resources.

2. About the assessment of VSLA groups for digitalization
As part of the project’s broader efforts to enhance access to both informal and formal financial services, particularly loans, financial management skills, knowledge, and sound record-keeping practices. Self Help Africa (SHA) plans to engage a technology company to conduct a pre-assessment for the digitalization of VSLA groups.

The goal is to support the adoption and use of a digital application by these groups to accurately record members' savings, loan disbursements, and loan recoveries. This initiative is intended to improve the operational efficiency and accountability of farmer groups.
The two projects aim to pilot the digitalization process with at least 30% of the targeted VSLA groups as a foundation for scaling up. The pilot phase will inform the eventual full rollout of digital systems across all groups in the two project districts.

3. Rationale
It is widely believed that integrating Village Savings and Loan Associations (VSLAs) with digital services can significantly improve the efficiency, security, and scalability of their financial activities. By adopting e-services, VSLA members can conduct savings and borrowing transactions remotely, eliminating the need to handle physical cash, thereby reducing the risk of loss or theft.

The use of digital platforms also simplifies the process of lending and tracking transactions. With tools such as blockchain, it becomes possible to create transparent and traceable records for both group and individual transactions. These records build a digital footprint that enhances trustworthiness by demonstrating reliability through consistent savings, loan repayments, and meeting attendance. The digitalization of VSLAs will therefore empower smallholder farmers, enabling them to access a broader range of financial services and grow their businesses more sustainably.

To support this transition, SHA will engage a technology company to conduct a pre-assessment of the VSLA groups. This assessment will determine their readiness for digitalization and guide the development and deployment of a user-friendly digital application. The application will allow groups to manage savings, loan disbursements, and recoveries more efficiently. The two ongoing projects plan to pilot this digital initiative with at least 30% of the targeted VSLA groups across the two districts. This pilot will serve as a learning phase, with the potential for scale-up based on outcomes and lessons learned. The consultant brought on board will play a key role in facilitating this digital transformation and ensuring the long-term success of the initiative.

4. Purpose of the assignment.
The consultant will assess the groups’ readiness for digitalization, identify suitable technologies, and develop training materials to aid in capacity building and subsequently implement the selected digital solution based on assessment findings.

5. Specific objectives for the consultant Specific objectives include: -
• Conduct pre-digitalization assessment of 26 (GREEN=12; Sustainable Landscapes=14) VSLA groups in Kabale and Rubanda districts
• Document key findings, challenges, and lessons learned from the assessment, and provide recommendations for digitalization across 26 VSLA groups in the project areas.
• Identify or customize/recommend an appropriate digital platform/application that meets the needs of the VSLA groups, ensuring ease of use, data security, and scalability and the adoptability of technology.
• Create simple, user-friendly training manuals and guides tailored to the literacy levels of group members and field teams to support sustained use of the digital system.
• Implement the Selected Digital Solution by deploying the chosen digital technology/platform, provide on-going technical support during initial implementation phase and facilitate the transition by assisting with data migration, system integration, and troubleshooting.

6. Expected Output of the Assignment
Expected outputs include: -
• Pre-digitalization assessment report detailing readiness levels, gaps, challenges, and recommendations for digitalization of 26 VSLA groups.
• A proposed or customized digital solution that aligns with the operational and contextual needs of the VSLA groups. This should include a justification for the selected platform, addressing ease of use, data security, scalability, and technology adoptability among target users.
• Implementation plan with clear timelines, milestones and resource requirements.
• Training Toolkit developed, including step-by-step guides, visual aids, and manuals for use by VSLA members and project field staff to support the adoption and long-term use of the platform.
• Digital platform implementation by training the VSLA groups on the application o of the digital platform
• Post implementation support and monitoring framework to assess the success of the digital platform (feedback on usability, efficiency, and effectiveness).
• Develop and share digital solution implementation report detailing implementation process, timelines, milestones achieved, challenges faced and the feedback from the VSLA groups on how the new technology is being used.

7. Timeframe and Reporting
The assignment will be carried out over five days from 28th April to 2nd May 2025, including fieldwork, analysis, and submission of outputs. Following approval of the assessement report and recommendations, the implementation phase will commence on 12th May 2025
The consultant will report to the SHA Project Manager (or designated representative) and will work closely with Project Officers and CBTs for coordination and access to the VSLA groups.

8. Qualifications and Experience Required
• Proven expertise in digital financial inclusion or digital transformation in rural contexts.
• Experience working with VSLAs or other community-based financial systems.
• Strong background in ICT tools/platforms, preferably with experience customizing digital applications for low-literacy users.
• Demonstrated ability to develop user-friendly training materials.
• Demonstrated experience in successfully implementign digital financial solution with similar user profiles
• Capacity to provide ongoing technical support during the initial implementation period • Knowledge of the socio-economic context of Southwestern Uganda will be an added advantage.

9. Application Process
Interested individuals or firms should submit:
• A technical proposal highlighting their understanding of the assignment, methodology, and detailed work plan.
• A financial proposal including consultancy fees and any anticipated logistical costs.
• CV(s) of consultant(s) demonstrating relevant experience.
• At least two examples of previously similar assignments conducted.

Qualified candidates should submit technical and financial proposals by E-mail as follows: procurement-uganda@selfhelpafrica.net
Please type “Consultant / Training to offer training for Corporate Governance UGK4” – [your consultant(s)/Consultancy firm name]” in the subject line of the e-mail.

The closing date for receiving the applications is no later than Close of Business on Friday 25th April 2025.

Self Help Africa is completely against fraud, bribery, and corruption. If approached for money or other favours, or if you have any suspicions of attempted fraud, bribery, or corruption, please report this immediately by email to selfhelpafrica@expolink.co.uk