Access to microfinance is extremely limited in Sudan. In 2006, a Central Bank of Sudan (CBOS) sponsored report noted that microfinance is still in its infancy in Sudan with supply of formal microfinance covering only about 1-3% of the potential demand. Although Sudan has a diversified experience of microfinance projects scattered throughout the country, which provide lessons for future activities, very few interventions have truly addressed the needs of the poorest, promoted sustainability or attempted to mobilize sufficient resources to grow the sector. Access of the Poor to the commercial banking sector has been very limited for a variety of reasons: •Historically, commercial bank lending has an extremely limited outreach to poor clients, and where it took place, in many cases it actually impoverished the borrower. Commercial banks have no capacity, trained staff or the institutional set-up to provide Microfinance services to the poor. •General lack of interest by the commercial sector in microfinance because it perceives it as expensive to administer and micro borrowers as bad credit potential and not a good source of income for the bank; and •The requirement for collateral for borrowers is often prohibitive for the sector of the population that microfinance intends to target. The microfinance sector in Sudan is largely credit-oriented (e.g. not focused on savings). A number of specialized and commercial banks have provided small scale microfinance services for more than 15 years. Unfortunately, their outreach remains minimal. Furthermore, none targets the poorest of the poor, and they have limited links with grass root organizations. NGOs, on the other hand, have been much closer to grass roots organisations and the borrowers. However, their efforts are often hampered by a social ‘beneficiary’ rather than a client approach. Some quite successful, but limited experiences could be shown by the Sudanese Development Association (SDA), PASED, ACORD, Elkifaya Bank, Practical Action and Plan Sudan. So far, out of all these experiences emerged no sustainable, i.e. profitable, microfinance model for the rural areas, which constitute more than 90% of the geographical area of Sudan, also due to the fact that low population density makes rural outreach for commercial providers generally unattractive. Lack of road and transportation infrastructure, lack of market access, lack of business skills and recurring conflicts have all contributed to a weak microfinance sector in Sudan as well as changes in donor interest that cut short projects that need a longer-term horizon for sustainability. Introduction: At the same time, mobile phone technology is one of the fastest growing, competitive businesses in Sudan and with network coverage of about 70% of the population, including the poor, expanding quickly further to the remotest areas, constitutes the best working infrastructure in the country. The Sudanese telecommunications industry is amounting to about $ 2 billion a year. Mobile phone technology is revolutionizing communication and services on the African continent. So far, mobile banking is yet nonexistent in Sudan. Mobile Banking can be defined as the provision of financial services through the use of mobile telecommunication devices. These services may include bank transactions such as saving, administering accounts, money transfer to individuals, banks and other institutions, e.g. by purchasing phone credit, payment of bills as well as accessing customized information. When limited to small amounts, these services can also be defined as Mobile Microfinance. Mobile technology in concert with adequate financial management solutions enables a financial institution to widely expand its outreach in terms of geography, but also in terms of reaching poorer clients profitably, by massively reducing cost. Thus, mobile technology has the potential to massively increase outreach to remote and poor clients through a profitable business model. Extending the outreach of financial services to the un-banked/underserved/areas and people in a cost effective manner is viewed as a big step towards poverty alleviation. To better understand the sector and promote access to Microfinance in Sudan, UNDP co-sponsored a National Consultative Forum on Microfinance hosted by the Central Bank of Sudan, jointly with World Bank, DED and IFAD in 2007. The forum was able to examine and take stock of past and ongoing experiences in the microfinance sector within Sudan as well as globally by reviewing, among other issues, mobile microfinance key case studies as well as foster a partnership between potential mobile microfinance providers and other key actors in Sudan. Mobile Microfinance is already widespread in a number of developed countries and was also able to present successful pilots in developing countries: Philippines (G-Cash and Smart Money), Kenya (M-Pesa), South Africa (WIZZIT), Southern Africa (MTN Mobile Money). As a result of this forum, recognizing the potential of mobile microfinance as crucial tool for leap-frogging traditional expansion of a sustainable microfinance industry in Sudan, the Central Bank of Sudan and the United Nations Development Programme decided to jointly initiate a Mobile Microfinance Programme in Sudan. At the same time, in an effort to reform the commercial banks policy and practice vis-à-vis microfinance, the CBOS has hired the Frankfurt School of Management to establish the Sudan Microfinance Development Facility (SMDF) as a new Apex institution providing technical assistance and training to the sector. New microfinance institutions (MFIs) and microfinance banks are being established throughout the country, which are currently looking for adequate microfinance banking software. This offers an excellent opportunity to promote interoperability and open platforms at the design stage, potentially allowing all interested types of microfinance providers, i.e. banks, MFIs as well as specialized NGOs and CBOs to access mobile banking solutions for the benefit of their poor clients. One of these newly-established microfinance institutions is the North Kordofan Microfinance Bank (Gudaim). Gudaim’s business plan calls for full automation of its operations, through the utilization of an advanced Management Information System (MIS) coupled with a well-tested Mobile Payment Platform (MPP). In fact, Gudaim is currently in the process of finalizing its contractual agreements with the suppliers of the MIS and the MPP and plans to install these systems before launching its operations shortly. Objectives of the assignment: As a first phase of a joint programme on establishing mobile microfinance in Sudan, under UNDP’s “Preparatory Support to Microfinance and Micro-Business Development Programming in Sudan – Project Initiation Plan”, the CBOS and UNDP agreed to support Gudaim’s initiative as a pilot project, and will jointly hire an international, accredited, external mobile phone microfinance expert. The tendering process for the consultancy will be supervised by a steering committee consisting of CBOS, UNDP, UNCDF and SMDF.

The consultant will work under the joint responsibility of the Central Bank of Sudan and the United Nations Development Programme. The consultant will also be in close contacts with the Sudan Microfinance Development Facility (SMDF) as well as any other relevant government Ministries, Departments and specialized agencies, as well as, with MFIs, NGOs and CBOs. The consultant will undertake the following activities: •Assess and analyse the outreach, capacities, technology and interests of mobile operators in Sudan as potential partners in the mobile microfinance programme. •Identify crucial conditions, risks and opportunities for the success of mobile microfinance related to the enabling environment. •Suggest amendments and/or reforms for existing regulations needed for the operation of the Mobile Payment Platform (MPP) with the support of a national consultant specialized in Sudanese Microfinance Laws and Regulations. •Develop a Strategic Partnerships Plan and ensure the proposal includes a draft Stakeholder Participation Plan (based on stakeholders consultations). •Assess Gudaim’s business model including the business model of its mobile payment platform suitable to MFIs and banks that could be integrated with Sudan’s National Payment System, as well as Gudaim’s MIS and MPP systems and specify any additional enhancements to their functional and technical specifications. •Develop an implementation plan for up-scaling the MIS and MPP of Gudaim. •Design key performance indicators for monitoring and evaluation of the Gudaim project. •Organize and facilitate a workshop on Mobile Microfinance with key potential actors in Sudan (Government, SMDF, UN, MFIs, banks, telecoms, NGOs, donors). •Hold an information session with UNDP and CBOS staff on innovative microfinance approaches. •Respond to project reviews and comments from Central Bank of Sudan, Sudan Microfinance Development Facility and UNDP. 6. Expected Results: As a result of the above-mentioned activities the consultant is expected to deliver the following results: •In close cooperation with the CBOS and UNDP and with support from the SMDF develop a Project Document for the strategic expansion of a Mobile Phone Financial Services Program in Sudan, including the proposed business model, potential strategic partnerships plan, stakeholder participation plan, as well as the program’s goal, objective, outcomes and outputs, risk analysis, M&E framework including key performance indicators, the project’s implementation plan and implementation arrangements, co-financing options and a draft co-financing plan, activities and workplan. •As part of this Project Document, develop an assessment report on Gudaim’s business model as well as its MIS and MPP systems specifying recommendations on the business model as well as any additional enhancements to the functional and technical specifications of its MIS and MPP systems. •Equally as part of this Project Document, lead the drafting of necessary amendments and/or reforms for existing regulations needed for the operation of the MPP, with the support of a national consultant specialized in Sudanese Microfinance Laws and Regulations. Continued support, including strong technical guidance, will be provided by the UNDP Economic Advisor all along the consultant’s assignment.

•At least 5 years working experience with internationally renowned microfinance institution or other microfinance expert organization; •International in-depth mobile banking business model design and project implementation experience; •Experience in drafting technology-related microfinance proposals •Participation / membership in internationally renowned microfinance best practice networks •Excellent analytical and communication skills •In-depth understanding of current international microfinance and mobile banking best practices

Duration and place of work: The timeframe for the consultancy is 47 working days, including the preparation of reports. The consultancy will take place in Khartoum (27 days) and El Obeid (27 days). The consultant will work in close collaboration with a national microfinance expert who will assist him/her in the analysis of the policy and regulatory framework related to mobile phone financial services as well as a national microfinance consultant supporting him/her as national counterpart. The consultant will closely collaborate with CBOS, UNDP and SMDF who will provide briefings and organisational support. The consultancy will incorporate all the remarks and recommendations by CBOS and UNDP, presenting the final document to CBOS and UNDP, at the latest 15 days after receiving the comments to the preliminary document. The maximum period defined for the presentation of the final document to CBOS and UNDP is 60 days after signing the consultancy contract. Evaluation Criteria: Interested candidates may apply sending their results-oriented CV together with a sample of previous work related to the subject. Pre-selected candidates will then be invited to a phone interview / teleconference and requested to submit a financial proposal including salary, per diem and travel cost as a lump-sum price. The contract will be awarded to the consultant who meets the quality requirements and has offered the lowest lump sum price. Other Requirements: The consultant is requested to bring his/her own laptop. The consultant is required to organize and provide for her/his own local transportation. Only short-listed consultants will be contacted. Notice: CBOS, as a matter of practice, does not charge any application, processing or training fee at any stage of the procurement process.