The Employment Promotion Programme (EPP) IV is implemented by Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) on behalf of the German Federal Ministry for Economic Cooperation and Development (BMZ) and co-financed by the European Union (EU). The private sector development (PSD) work area of EPP IV deals directly with micro, small and medium enterprises (MSMEs) development and utilizes a methodology called the SME Business Training and Coaching Loop (popularly known as B-Loop in Sierra Leone).
EPP has been implemented in Sierra Leone for the past decade, through phases one, two and three. A fourth phase was approved and started on August 1, 2020 for the next three and half years ending April 2024.
One of the most pressing challenges of entrepreneurs since the B-Loop was implemented by EPP in 2014 has been the lack of access to credit to further grow their businesses.
Following the roll-out of the SME Loop methodology in EPP III, a total of 908 entrepreneurs have successfully graduated from several cycles between January 2019 and April 2020 in Kono, Kailahun, Falaba and Koinadugu districts. Under EPP IV, a total of 750 entrepreneurs will be trained using the B-Loop approach.
Lack of access to finance
Empirical evidence from EPP’s interventions over the past years with a wide spectrum of micro-entrepreneurs in our operational districts, indicated that accessing loans from formal financial institutions (FFIs) remain a major challenge for MSMEs due to the following:
- High interest rates charged
- Collateral demands are prohibitive to small entrepreneurs who cannot provide them
- Elevated default risk.
- Lack of suitable financial products and services offered especially to small holder farmers and associated challenges such as
- Small profit margin
- Little understanding of small agricultural businesses
- Increased workload for credit tracking
- Small profit margin
- Prequalification of Firms
For Expression of Interest and prequalification, prospective bidders should submit the following valid documentation:
- National Revenue Authority (NRA) clearance certificate
- Certificate of Business Registration
- Brief company profile (3 pages) detailing minimum three years’ experience in the tasks outlined in the scope of work.
- Submission of Expressions of Interest
Eligible experts, consulting firms and/or institutions should submit their “Expression of Interest” in a plain sealed envelope in the Tender Box situated at the GIZ Country Office Reception –32d Wilkinson Road, Freetown not later than 29thJuly 2022, 4:30 PM local time, clearly marked with Recruitment for Financial Institution to Administer (1,500) small individual business Loan to Entrepreneurs CoSoft 83414778”. Only prequalified bidders will be contacted with detailed Terms of Reference and tender documentation for submission of technical and financial bids.
