Background

PALM Corps is a National NGO registered in 2014 and licensed to operate in Uganda. We envisage “a world where the poorest and most vulnerable communities live a dignified, healthy, peaceful, and productive life while taking care of the environment”. PALM Corps’ core thematic areas include Community nutrition, agriculture, protection, skilling and environment and operates in the districts of Terego, Moyo, Obongi, Adjumani, Madi – Okollo, Kiryadongo Koboko and Zombo.

RETI PROGRAM

Muni University in collaboration with eight partners are proposing to implement the Refugee and Host Community Youth Empowerment and Transformation Initiative (RETI) program with the Mastercard Foundation to address unemployment challenges faced by young people aged 15 –35 years in 15 refugee hosting districts in Uganda. The program will directly reach 100,000 (60,000 female) and aims to transition 70,000 (42,000 female) young people into work. The program is implemented through a consortium of nine (9) partners, including three universities namely, Muni, Gulu and Bishop Stuart; and six non-university partners, namely, Finn Church Aid, DanChurchAid, Community Empowerment for Rural Development, PALM Corps, Meeting Point Kitgum, and Young African Refugees for Integral Development. The program has three major pathways and these include.

• Training and skilling by providing access to relevant and quality training and skilling to 100,000 refugee and host-community Young People in the 15 target districts, 70% being refugees and 60% being young women, 3% persons with disability.
• Financial inclusion and market access through supporting the skilled Young People in business and entrepreneurship training and facilitating financial inclusion and market access for enhanced employment access.
• Institutional capacity strengthening by enhancing the capacity of participating institutions to develop and implement relevant, innovative, and inclusive training and skilling programs for refugees and host community Young People.

Rational of the assignment

One of the critical pathways to achieving RETI Goal is through financial inclusion which can only become a reality through addressing barriers to sustainable credit. While VSLAs have transformed rural & vulnerable people’s lives, their ability to save money and empower them to increase earning potential, the absolute amount of capital held remains small and has not resulted in significant growth of business activities to make VSLA members financially secure. These challenges below remain

1. Weak linkage between formal financial institutions and VSLAs brought about by limited or completely no digitalization and hence does not protect YVSLAs as collateral in accessing financial services. There is also huge risk associated with holding funds in the VSLA boxes.
2. Low supply of financial services – Limited   business credit is emphasized as the primary obstacle, with informal structures insufficient to meet the needs of refugees and host communities.
3. Limited delivery channels – Formal financial services are limited, primarily due to physical inaccessibility to the rural VSLAs. This results in high accessibility costs for the VSLAs and individuals.
4. Lack of financial knowledge– A lack of understanding by VSLAs on how to utilize formal services, and how to make informed decisions regarding these services.

Scope of the Assignment

• Provision of digital savings measures, digital tools and complementary financial and non-financial services to youth savings and loans associations adapting the VSLA methodology and customizing it to suit youth savings and loans associations.
• Provide platform for linkage between formal financial institutions such as banks and telecommunication companies more especially MTN Uganda and Airtel.
• Build capacity of group members and mentor for digital savings sustainability.

 Expected deliverables by the service supplier.

1. Digitalized VSLAs Platform– Provision of a digitized Youth savings platform, with ledger functionality, core principles adapted from VSLA methodologies and governance must be upheld during the design.  Human Centred Design principles should be applied in the design of the product.
2. Direct Linkages of VSLA to Banks and Mobile Network Operators. Integration of the VSLA platform to Mobile and Agency Banking platforms to banks’ core banking as well Mobile Money Platforms; Airtel and MTN.
3. Value Addition –Flexible group-based credit products as well as Individual credit products for long term needs & growth-oriented members. Other value-add services: remittances, insurance and social funds and online training (financial literacy and basic VSLA methodology) embedded on the platform
4. Reporting – develop an interactive dashboard for visualization, documentation and quarterly reporting which incorporates sex-age, leader, nationality and disability status.

 Expected results

1. 300 Youth Savings Groups will be digitized onto a digital platform by May 2027
2. 100 VSLAs will be plugged into a formal financial system that will give them access to new financial products, particularly extended lines of group credit and creation of permissible bank transaction history logs.
3. All individual members of the youth savings groups will have increased financial literacy and digital literacy levels through the financial education interventions. This will empower them to make more informed financial decisions that will in turn improve their livelihoods.
4. 100 group digital savings mentors trained for sustainability

Eligibility

1. Five years’ demonstrated experience in YVSLAs or VSLAs digitalization
2. Developed VSLA digital platform with integrated functionalities for tracking savings, loans and data disaggregation by sex, age, nationality and disability with capacity to onboard 9,000 YVSLA membership
3. Existing partnerships with formal financial and telecommunication service providers
4. Valid operating license in Uganda
5. Financial capacity to operate in rural context of Refugee settlement
6. Human resource expertise and capacity to deliver the assignment.
7. Availability of direct or indirect financial and non – financial products in catalyzing access to credit to the young people

Evaluation criteria

Required.

Submit technical proposal highlighting financial implication of digitizing 300 YVSLAs in the period between 1^st May 2025 – May 30^th  2027 via email to tenders@palmcorps.org and copy to n.salama@palmcorps.org  not later than 7^th April 2025

Timeline