WOMEN S FINANCIAL INCLUSION

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1 PROMOTING WOMEN S FINANCIAL INCLUSION IN ZAMBIA WOMEN S FINANCIAL About FSDZ INCLUSION CALL FOR CONCEPT NOTES SUBMISSION PROCESS AND GUIDELINES PUBLIC SECTOR APPLICANTS Financed by Financial Sector Deepening Zambia (FSDZ) ZAMBIA Financial Sector Deepening Zambia (FSDZ) is a donor-funded organisation with a mandate to increase financial inclusion. FSDZ seeks to support an efficient and vibrant financial sector that offers a wider range of financial services through diverse channels to significantly more financially capable households and micro, small and medium enterprises. FSDZ conducts research and facilitates linkages and coordination among consumers, financial service providers, civil society organisations, government, and other key market actors to support the development of a financial market system that works better for poor urban and rural communities. For more information:

2 Financial inclusion is a challenge for the majority of Zambians, but women are at a greater disadvantage than their male counterparts due to a range of constraints. Given women s greater financial exclusion, FSDZ is in the process of designing a programme to specifically increase the use of financial services by women and youth. In addition, we aim to also increase financial capabilities. To this end, FSDZ is soliciting concept papers to support projects/activities that will increase financial inclusion of women and youth, particularly adolescent girls, and; increase financial capabilities of low-income Zambians. The overall impact expected from this programme is increased financial inclusion for youth, women and their households, and more financially capable low-income Zambians, resulting in reduced vulnerability and greater income opportunities. The recent FinScope Zambia 2015 study 1 utilized the Progress out of Poverty Index 2 (PPI), considered to be a reliable indicator of poverty, and found that the majority of adults are from households falling into the lowest PPI categories: PPI 1 and PPI 2. According to the FinScope findings, there is no significant difference between male and female adults in terms of PPI distribution; of the 62.0% of adults in the lowest 2 PPI quintiles, 61.8% are women and 62.2% are men. However, women in each quintile earn less on average than their male counterparts, and the disparity increases at either end of the PPI spectrum. In the lowest and in the fourth quintile, women earn only a little over 60% of the income of male counterparts. Women s Income and Access to Financial Services: In addition to overall income disparity, there is also a gendered difference in sources of income between men and women; that is, after agriculture, men are more likely to earn salaries/wages, and women are more likely to operate microbusinesses or depend on others. This does not bode well for women as financial inclusion surveys across Africa have illustrated those adults relying on inconsistent sources of income and or who are dependent on others for money to pay their expenses are more likely to be excluded than those who have income from salaries/wages. This finding that women will be more excluded than men as predicted by income type was borne out for Zambia in the recent FinScope Focus: Women and Financial Inclusion (2015). For example, some comparative findings of the study for Zambian men and women across all PPI levels: 50% more men use electronic payments than women Women savers are more likely than men to keep cash at home Male savers (38.2%) use formal savings services more than women (28.2%) Male borrowers (11.4%) are more likely than women (7.4%) to borrow from formal lenders such as banks or microlenders Only 14.2% of Zambian adults are aware of insurance with greater awareness among men (16.6%) versus women (11.9%) DEFINING THE GENDER GAP Nevertheless, women across Zambia are careful money managers who would take advantage of increased access to financial services they make a little go far, buy livestock for unexpected expenses, borrow and repay money informally for school fee shortfalls, take up day labour in their busy schedule to cover expenditures, and are careful not to borrow if repayment could be a problem. 1 Bank of Zambia and Financial Sector Deepening Zambia (2015) FinScope Zambia The Progress out of Poverty Index (PPI) uses non-income indicators to determine poverty ranking and is widely accepted as a more accurate indication of poverty than income. The PPI was utilized in FinScope Zambia 2015 dividing the population in five PPI levels or quintiles. For more information see

3 EXPECTED BENEFITS The expected systemic changes include: an increased number of financial service providers offering appropriate and accessible savings accounts to youth; various financial services to female smallholder farmers and rural women; and improved financial services to women owned and operated SMEs. We also expect an increased number of organisations providing financial education to youth, rural women, and women owned and operated SMEs. Finally, we expect at least 30 percent of the rural women and SME owners reached by our efforts will use digital financial services. We will also support efforts for youth to use digital services if they have access to mobile phones. Bidders are encouraged to suggest a specific approach to implement a project up to 30 months in duration that addresses the programme s core principles of increasing financial inclusion of women and girls and building financial capabilities of low-income Zambians. Each concept paper should clearly state defined goals with measurable impact in one of the three programme areas listed below (please note organisations are free to submit more than one concept paper). The areas provided below are illustrative. Other innovative ideas that will increase financial inclusion for women and youth, or increase financial capabilities are welcome. As an M4P (Making Markets Work for the Poor) programme, FSDZ seeks to effect market system change that benefits the poor and is sustainable. FSDZ will support projects that show: o o o Scale: The firms should articulate its geographically and programmatically diversified portfolio to provide financial education to all Zambians. Existing and previous service activities and regions where the organisation has been serving will be considered as part of the review process. This Request for Concept Papers is designed to provide new service activities and build upon existing ones where appropriate and possible Value: Projects should demonstrate their added value to women and adolescent girls in particular, and to the Zambian population in general. Sustainability: Develop viable and sustainable models that will last beyond the support from FSDZ. The focus areas are as follows: OUTREACH TO WOMEN FSDZ supports projects that Increase outreach to and usage of financial services by women; products to be considered must be appropriate for this market - simple, responsive, affordable and accessible to women and provide value for low-income women and women-owned micro and small enterprises. Deliver financial education to women to increase their financial capabilities and to understand the financial services on offer and to make the decisions on which financial services are best suited to their needs (household and/or business) OUTREACH TO YOUTH FSDZ supports projects that Promote increased access to and usage of financial services for youth; products to be considered must be appropriate for this market - simple, responsive, affordable and accessible to youth and provide value for youth and youth-owned micro and small enterprises. Promote financial education for youth to increase their financial capabilities and understand the financial services available and to make the decisions on which financial services are best suited to their needs. FINANCIAL EDUCATION FSDZ supports projects that provide financial education for all Zambians including, but not limited to: Financial education workplace programmes Financial education programmes for smalholder farmers Financial education programmes for micro, small and medium enterprise (MSME) owners people on an ongoing basis. Financial education through teachable moments such as schools, community meetings, and other places FOCUS AREAS

4 The following organisations are eligible to submit proposals for FSDZ support: ELIGIBILITY Financial service providers (MFIs and commercial banks); mobile network operators; payment service providers; advertising firms; audio and visual production companies Community based organisations Government ministries and other government bodies Non-profit organisations; civil society organisations; non-governmental organisations Research organisations, educational institutions Associations and relevant special interest organisations Agribusinesses Submission of proposals for FSDZ support is in two phases: concept note and full proposal. The process is summarised below. Each phase has its own assessment criteria and therefore acceptance of a concept note does not necessarily result in approval of a full proposal. Concept note Format provided Brief description of the proposed project /initiative Full proposal Guidelines provided Detailed description of the proposed project /initiative If accepted Assessed based on defined criteria focus on feasibility, capacity, scale and sustainability Assessed based on defined criteria focus on innovation, viability and value for money Phase One: Concept note The concept note is a short description of the idea or initiative that the organisation is planning to undertake. A format is provided on key aspects to include in the concept note. The maximum length for concept notes is 5 pages excluding annexes (maximum 10 pages for annexes). Organisations are required to submit the following documentation together with the concept note: Licensing/registration documentation (e.g. certificate of incorporation) Company profile including shareholding information Experience or demonstrated capacity to financial services / education project Signed cover letter on headed stationary Letter/s of intent or signed agreements where applicable Phase Two: Full proposal Organisations will be required to submit the following documentation together with the full proposal: Detailed work plan outlining deliverables and timelines (template provided) Budget (template provided) Targets (scale and key performance indicators) Audited financial statements for the last two years

5 Evaluation criteria The key assessment questions under the evaluation categories are summarised below: Feasibility Capacity Scale & Sustainability Is the proposed project workable and viable in Zambia market? Does the organisation have experience developing and delivering financial education services? Does the organisation have experience in providing financial services to women? Is an appropriate organisational structure proposed and does the organisation have the necessary skills or will these be delivered through proposed consultants/outsourced firms? Does the proposed project have prospects of reaching a large number of low-income persons? Does the initiative have prospects of achieving scale in rural areas? What strategies will be implemented to ensure the proposed project will continue to be implemented after FSDZ support? FINANCING Innovation Viability Value For Money Are there any elements of innovation in product or distribution model to increase prospects of success? Does the project have good financial projections? Are the financial projections realistic given market conditions? What are the prospects of sustainability, replication and increased scale? FSDZ will provide financial support up to GBP 500,000 or (ZMW equivalent) per proposal. Funding requests can be for specified technical assistance, implementation, or a combination of both. Funding will be on a cost-sharing and reimbursement basis. The cost sharing proportions will be split 50:50 or as appropriate and mutually agreed between FSDZ and the organisation being supported. The financing arrangements agreed will form part of a signed partnership agreement between FSDZ and the organisation. FSDZ will fund: Pilot-related activity costs in a product development cycle including but not limited to piloting new products, sales, marketing and customer care strategies and tools Technical assistance support (short-term or long-term specific to the initiative) Capacity building activities (e.g. training of staff of the organization or partner) Market research aimed at improving understanding of consumer needs (including financial service needs and financial capabilities) or enhancing client value Research and development aimed at determining gaps in financial capabilities, developing curriculum, consolidating the business case, or assessing client value FSDZ will not fund: General operating costs of the organisation or its partner(s) Salaries for existing or new staff required to implement the project Purchase of fixed assets such as computers, furniture, printers, vehicles Subsidies for on going delivery

6 The indicative timeline for each evaluation phase is indicated below: Concept proposal assessment Estimated no more than 2 weeks from date of submission Full proposal assessment Estimated no more than 4 weeks from date of submission Partnership agreement What makes a good proposal? Each proposal will be assessed on its own merits and will focus on the extent to which it is aligned to the focus areas of FSDZ and the criteria set. Some key factors that constitute a good proposal include proposals that: 1. Fulfill the overall goal of FSDZ s to increase financial inclusion of women and youth, particularly adolescent girls, and; increase financial capabilities of low-income Zambians 2. Fits within the focus areas namely outreach, scale, value and sustainability 3. Fulfills all the guidelines, with required template completed in full 4. With strong demonstration of the women/youth financial services business case as well as client value 5. With strong demonstration of ownership, investment and commitment by the submitting organisation 6. With strong demonstration of organisational capacity and structure to effectively manage the initiative. Negotiations, drawing up and signing agreements Depends on complexity PROPOSAL EVALUATION Frequently asked questions 1 Can one organisation submit proposals for more than one initiative? Yes FAQs 2 Can an organisation seek clarifications as they write the concept note or full proposal? Yes - Any questions and/or clarification relating to the content of this Request for Concept Papers during proposal preparation should be addressed to FSDZ at bids@fsdzambia.org by Friday 27th May 2016 All questions / clarifications and responses to these will be shared with all bidders 3 What currency should be used in the budget? GBP or ZMW 4 What is the level of confidentiality that will be provided in information supplied? All information included in the concept note and full proposal remains confidential information between the applicant and FSDZ. Signed financing agreements will include non-disclosure clauses - no additional nondisclosure agreements will be necessary 5 What will be counted as co-financing by the organisation? Both financial and in-kind contributions (in-kind normally limited to 50% of an organisation s contribution) In-kind contributions may include staff time, fixed assets and other resources dedicated to the project. Concept papers should be submitted to FSDZ by , at bids@fsdzambia.org mailto:by 12.00hrs CAT Monday 6 June Non-conforming concept papers will not be reviewed. Please respect the 5-page limit.