Financial Service Provider to Manage a Revolving Fund, develop a Financial Product Prototype, and Facilitate Financial Services for Women Entrepreneur

The Adventist Development and Relief Agency (ADRA) are a global humanitarian organization with a mission to work with people in poverty and distress to create just and positive changes. ADRA Somalia belongs to the worldwide network, comprised of more than 130 supporting and implementing country offices. ADRA Somalia is seeking for a Financial Service Provider to Manage a Revolving Fund, develop a Financial Product Prototype, and Facilitate Financial Services for Women Entrepreneurs in Banadir, Jubaland and Somaliland

1. Background

Adventist Development and Relief Agency (ADRA) Somalia is implementing the Empowering Women through Investment and Inclusion Networks in Somalia (e-WINS) project, co-funded by the European Union through ADRA Germany. The project seeks to improve women’s economic participation by strengthening access to finance, business support, markets, and networks for women-owned and women-led enterprises. Women entrepreneurs in Banadir, Jubaland and Somaliland face barriers to accessing suitable formal financial services, including limited access to business finance, savings facilities, digital transactions, and financing arrangements that respond to the needs and cash flows of their enterprises. Through e-WINS, ADRA seeks to improve access to inclusive and appropriate financial services that can help women entrepreneurs sustain and grow their businesses.

ADRA intends to engage a qualified financial service provider to manage a revolving fund, develop one financial product prototype tailored to women entrepreneurs in Banadir, Jubaland and Somaliland, and facilitate access to other relevant financial services. The prototype will be informed by a local assessment and designed for eligible women entrepreneurs supported by e-WINS, not only members of Village Savings and Loan Associations (VSLAs) or Self-Help Groups (SHGs). The assignment will assess appropriate financing structures, including Sharia-compliant options such as Murabaha or Musharaka where feasible. The final product design and fund operating arrangements will be subject to review and written approval by ADRA and the selected provider and must comply with applicable regulatory and institutional requirements. The selected financial service provider will work with ADRA to assess local demand, develop one financial product prototype for Banadir, Jubaland and Somaliland, and manage the agreed revolving fund arrangements, and facilitate access to other relevant financial services for eligible women entrepreneurs supported by e-WINS.

1. e-WINS Project

The e-WINS Project is funded by the European Union (EU) to contribute to economic empowerment of women and girls in Somalia through gender inclusive and transformative approaches and actions. The project targets 10,000 women to benefit from enhanced participation in productive economic activities and decision-making processes. Through tailored capacity building initiatives, negotiation skills, inclusivity, entrepreneurship and business management, alongside the establishment of knowledge-sharing platforms among women-led organizations, the action seeks to strengthen the social capital of women in leadership, socio-cultural and economic spheres of life. Furthermore, by implementing digital platforms and strengthening women's engagement in formal business associations, the action directly contributes to improving access to financial services for women entrepreneurs. The action will conduct research to identify gaps in the regulatory framework and organize policy dialogues to advocate for gender-inclusive policies supporting women entrepreneurship and access to finance.

The EU has long championed gender equality and women’s economic empowerment in Somalia. The e-WINS Project is about more than just economic growth. It is about hope, resilience, and the promise of a better future. It is about ensuring that every woman with the ambition to lead a business, innovate, and contribute to her community has the opportunity to do so. The e-WINS Project is driven by the commitment to equip women with businesses in addition to a range of financing instruments, complemented by technical assistance to enhance their stability, drive job creation, and foster economic growth. The action’s commitment to leaving-no-one-behind, especially groups in vulnerable situations such as women, minorities, and those with disabilities, resonates with the emphasis on ensuring inclusivity in development initiatives. This is to be achieved through tailored interventions to local needs and ensure a contextually relevant approach that promotes local ownership and sustainability. By implementing initiatives that increase women's access to financial resources, entrepreneurship opportunities, small- and large-scale investments either directly or through micro and macro financing opportunities, women are bound to become economically independent and contribute to the growth of the economy. e-WINS Project aims to accelerate women’s economic empowerment across three corridors: Shabelle River (Southwest State and Banadir), Somaliland, and Juba River (Jubaland).

1. Objectives

The purpose of this assignment is to establish an inclusive, sustainable financial ecosystem that bridges the credit gap for women entrepreneurs by shifting from collateral-based lending to cashflow and relationship-driven financing. This assignment seeks to create a dynamic public-private finance partnership that leverages the market infrastructure of a Financial Service Provider (FSP) to prove that women-led micro and small enterprises are viable, low-risk commercial clients when offered products designed for their economic realities.

The key role of the selected financial service provider will be to manage the revolving fund under arrangements agreed with ADRA, develop one financial product prototype informed by a local financial services market assessment, and facilitate access to other appropriate financial services. Access will be open to eligible women entrepreneurs supported by e-WINS and will not be limited to VSLA or SHG members.

The specific objectives include:

1. Revolving fund management and capital preservation: the financial service provider (FSP) will be expected to systematically disburse, track, and recover capital to maintain a self-sustaining fund through operational transparency, minimization of default risks and adherence to micro-finance regulations, and localized legal and framework conditions:
2. Financial product prototyping: the FSP must demonstrate innovation by co-creating a prototype built around the economic realities of women-led businesses rather than "one-size-fits-all" lending.
3. Financial service facilitation and inclusion: ensure strategic last-mile delivery including dismantling systemic barriers that women face in financial accessibility and leverage digital apps, fintech integrations, localized agent networks and business mentorship to reach rural or informal-sector women entrepreneurs and build long-term business resilience.
4. Expected Results
5. Revolving Fund Management and Capital Preservation

• Deliverable 1.1: An active, self-sustaining fund: A smoothly operating, ring-fenced credit fund where loan repayments constantly replenish the capital pool, allowing multiple generations of entrepreneurs to be funded out of the same seed capital.
• Deliverable 1.2: Low non-performing loan (NPL) rates: High repayment rates achieved through gender-intelligent underwriting and structured repayment schedules, proving the financial viability of the portfolio.
• Deliverable 1.3: Transparent financial governance: Fully auditable, real-time dashboards and financial reports that satisfy all compliance, legal, and regulatory standards.

1. Product Prototyping and Pilot Testing

• Deliverable 2.1: Financial product prototype blueprint: A fully documented architecture of the new financial product, specifying loan sizes, interest calculations, flexible repayment terms, and required document application streams.
• Deliverable 2.2: Alternative Credit-Scoring Framework: Implementation of a digital or qualitative non-collateral risk assessment tool (like psychometric testing matrices or cash-flow calculation engines).
• Deliverable 2.3: Pilot phase evaluation report: A detailed review tracking the performance of the first cohort [say 50–100] test loans, highlighting user bottlenecks, drop-off points, and necessary product modifications.

1. Financial Service Facilitation and Inclusion

• Deliverable 3.1: Expanded financial access and depth: A measurable surge in formal bank accounts, digital wallets, and lines of credit opened by women who were previously unbanked or underbanked.
• Deliverable 3.2: Bundled business capacity curriculum and digital toolkit: Localized modules covering financial literacy, business mentoring, digital bookkeeping, cash-flow forecasting, and crisis risk management tailored to the target market segments.
• Deliverable 3.3: Quarterly fund performance and impact dashboards: Regular, auditable reports tracking all KPIs (repayment status, recycling velocity, and demographic data on geographic distribution).
• Deliverable 3.4: Economic Impact Assessment: An annual evaluative study measuring business health metrics among beneficiaries, specifically tracking revenue stability, asset accumulation, baseline ability to withstand localized economic shocks, and strategic recommendations for scaling the fund model.

1. Scope of Work:

The selected financial service provider will be responsible for supporting the design and management of the revolving fund, developing one financial product prototype for Banadir, Jubaland and Somaliland and facilitating access to additional financial services. The scope of work includes:

• Financial Services Market Assessment: Assess the financial needs, preferences, barriers, and business cash flows of women entrepreneurs supported by e-WINS in Banadir, Jubaland and Somaliland. The assessment should consider women entrepreneurs inside and outside VSLAs and SHGs.
• Financial Product Prototype: Develop one product prototype specifically for Banadir, Jubaland and Somaliland, outlining its purpose, target clients, eligibility criteria, application process, financing structure, terms and conditions, repayment arrangements, pricing and fees, risk controls, and client-protection measures. Assess relevant Sharia-compliant options, including Murabaha or Musharaka where feasible.
• Revolving Fund Management: Propose and implement, following ADRA’s written approval, clear arrangements for fund administration, client screening, appraisal, approval, disbursement, repayment, tracking, reconciliation, arrears management, complaints handling, and reporting. Fund capital must be accounted for separately from provider fees and operational costs.
• Additional Services: Provide or facilitate access to relevant services, such as savings, payments, money transfers, and mobile or digital banking, based on the provider’s capacity and the needs identified.
• Financial Inclusion and Client Protection: Ensure that information on product terms, fees, repayment obligations, risks, and complaints mechanisms is clear and accessible. Apply fair and non-discriminatory processes and protect clients’ personal and financial information.
• Reporting and Coordination: Coordinate with ADRA throughout the assignment and provide assessment findings, the proposed product prototype, fund-management procedures, and periodic reports on outreach, financing, repayments, portfolio performance, and challenges.
• Provide or facilitate access to appropriate financial services, which may include savings, payments, money transfers, and mobile or digital banking services.
• Promote financial inclusion through accessible, transparent, and gender-sensitive financial services for eligible women entrepreneurs, including those who are not members of VSLAs or SHGs.
• Identify institutional or capacity gaps affecting service delivery and propose practical measures to address them in coordination with ADRA.

1. Eligibility and Mandatory Requirements

To be considered for selection, applicants must be legally authorized to operate in Somalia and submit all required foundational documentation. Applications failing to meet these mandatory requirements will be disqualified.

• Legal and Operational Status: Must be a reputable, legally registered bank or microfinance institution (MFI) authorized by the Central Bank of Somalia, with an active operational presence in Banadir, Somaliland and Jubaland.
• Compliance Documentation: Applicants must provide a valid registration certificate, operating licenses, and valid tax compliance or clearance documentation.
• Organizational Background: Applicants must submit a company profile, organizational structure and a capability statement.

1. Technical Evaluation

   The technical evaluation assesses the provider's capacity, experience, and strategic approach to executing the assignment. Bidders must submit their applications and capability statements detailing these elements.

• Targeted Experience: Proven track record of managing revolving funds, serving MSMEs (specifically women-owned businesses), and implementing economic empowerment activities, ideally alongside NGOs in Banadir, Jubaland and Somaliland or similar urban markets.
• Service Delivery and Accessibility: Demonstrated capability to offer accessible services via physical branches, agents, mobile banking, or digital channels, alongside a willingness to build gender-sensitive financial products.
• Operational Execution Plan: A clear work plan and timeline that includes a financial services market assessment and the creation of a product prototype for Banadir, Jubaland and Somaliland. The workplan should run until November 2028.
• Risk and Personnel Management: Detailed CVs of key staff showing adequate capacity, alongside a clear approach to client protection, risk management, fund tracking, and reporting in English.
• Socio-Cultural Competency: Ability to effectively engage with women entrepreneurs, understand their financial barriers, and provide access to eligible women outside of VSLAs (Village Savings and Loan Associations) and SHGs (Self-Help Groups).

Interested financial institutions must submit their technical and financial proposals as separate documents by email to**Tenders@adrasom.org** not later than 15th November 2026, with “**Loan Revolving Fund”** in the subject line. Please specify region of presence whether Banadir, Jubaland or Somaliland. Note that canvassing will lead to automatic disqualification. *‘’ADRA Somalia is committed to upholding the rights of all children and vulnerable adults that we serve and those we interact with in the course of our work. We endevour to protect all from all forms of abuse and exploitation as outlined in the UN Convention on the Rights of the Child and Inter Agency Standing Committee (IASC) six core principles on Sexual Exploitation and Abuse (SEA). ADRA Somalia has zero tolerance to abuse and exploitation of beneficiaries and staff.’’*