Business Development Fund Ltd

Bridge lending window Specialist

JOB OPORTUNITY BRIDGE LENDING WINDOW SPECIALIST • Background Business Development Fund (BDF) was established in 2011 with a mandate to facilitate MSMEs to access finance through provision of financial products such as guarantees, matching grants, MFIs/SACCO refinancing, Leasing, Agribusiness, and Advisory services. The Partial Credit Guarantee (PCG) is the BDF flagship product. While the end beneficiaries of these products are the micro, small, and medium enterprises (MSMEs); participating financial institutions (PFIs-i.e., Banks, MFIs, and SACCOs) are the key partners and primary beneficiaries. The World Bank under the Access to Finance for Recovery and Resilience (AFIRR) Project is providing support on Bridge Lending Window product development to support MSMEs that will be affected by climate shocks (Floods/excess rain; Droughts/lack of rains and landslides). The scheme includes two components, (i) establishing a bridge lending window to be housed at the BDF and (ii) implementing an insurance backstop solution to the BLW. The facility is not only backing PCG but also support recovery and resilience for MSMEs from eligible climate shocks. See Annex for the overall structure of the BLW. The initial market assessment and survey were completed, dissemination and validations of finding from survey were done, the policy and procedures manual including key features of facility were developed and approved by the BDF Board meeting held on 11th July 2023. • Purpose The purpose of the position is to support the establishment of the Bridge Lending Facility within BDF. The Bridge Lending Window Specialist will be responsible for overall lending and monitoring operations of the facility. He/she is expected to perform a full range of administrative and operational duties regarding the BLW facility including guiding a consulting firm for the BLW pilot and insurance backstop product development. He/she will report to the Fund Manager and will closely work with all other technical departments. • Main responsibilities Specifically, the BLW Specialist will do the following: Preparation for the pilot: The BLW Specialist will guide and monitor the consulting firm in the preparation of the pilot. • Guidance on BLW Eligibility and Procedures • Provide guidance in verifying and detailing BLW eligibility requirements (triggers, pre-conditions, data collection requirement, data requirements, stakeholders’ roles, and governance structures of decision-making), operational and reporting procedures, and systems based on the approved BLW policy and procedures manual and the inputs by the consulting firm. • Review internal BDF rules and regulations regarding the extension of credit to ensure alignment of the BLW with existing procedures and provide an advisory opinion to the CEO accordingly. • Engage the relevant stakeholders and validate the revised BLW policy and procedures. • Development of Contract Modalities • Formulate contracting modalities aligned with the governance structures outlined in the operations manual, specifically detailing the operational model for BLW. This should focus on the collaboration framework between BDF and PFIs. The contracting modalities should ensure clarity in roles, responsibilities, and procedures to facilitate effective implementation and governance of the BLW initiative. • Development of analytics and disbursement metrics to activate disbursements from the BLW in response to shocks for BDF management approval • Provide leadership, with support from the consulting firm, in assessing the geographical locations of the current PCG portfolio. Review risk assessment reports in those geographies and for Rwanda to identify the main climatic risks in each location. • Review and validate the findings and analysis provided by the consultancy firm on the projected BLW lending to MSME borrowers and the capacity of available funding to meet the demand for bridge loans. This includes verifying the consultancy firm’s agriculture data collection methods on yield losses and other climatic shocks in those locations to effectively monitor widespread climatic shocks. • Map out disaster risk management (DRM) structures in the GoR and seek collaboration with other institutions/efforts on disaster risk financing. Understand data collected by the DRM agencies and the Ministry of Agriculture. • Guide on structuring and costing of the credit of the BLW using risk-based pricing • Based on the data collected under the previous item, provide guidance on costing analysis for credit extended from the BLW, with support from the selected consultant and WB team. • The cost of credit (interest rate) should be such that it covers the operating costs of the BLW to ensure sustainability but low enough to ensure good value for beneficiary MSMEs. • When setting the cost of credit, the cost of other credit instruments offered by the BDF should be considered. Implementation of the pilot: the BLW Specialist will be responsible for executing the BLW pilot. • Launch and execution of BLW pilot • Oversee the launch and execution of the BLW pilot, with support from the selected consultant and World Bank, organize awareness-raising events, solicit applications, and ensure timely compliance with repayment schedules. • Manage the BLW facility pipeline through the identification of new projects in line with facility objectives and targeted eligible beneficiaries including PFIs to increase the uptake of the BLW. • Ensure compliance with the BLW policy and procedures manual. This includes, but not limited to, eligibility requirements, operational and reporting procedures/templates, and corresponding IT systems. • Review the experience of the pilot and make necessary adjustments in the BLW manual and other related documents. Implementation of the BLW and preparation of the insurance backstop: The BLW Specialist will continue to lead the BLW and guide the consulting firm for the insurance backstop development. • BLW operation • Manage the BLW facility pipeline through the identification of new projects in line with facility objectives and targeted eligible beneficiaries including PFIs to increase the uptake of the BLW. • Ensure compliance with the BLW policy and procedures manual. This includes, but not limited to, eligibility requirements, operational and reporting procedures/templates, and corresponding IT systems. • Insurance Backstop Development and Placement • Lead the development and placement of an insurance backstop product in collaboration with the selected consultancy firm. This includes reviewing available insurance products for the specified geographies and assessing the complementarity between the triggers for these insurance products and the proposed BLW insurance mechanism. Additionally, it may involve developing new products based on quality data, with reference from existing products available in Rwanda and similar products available internationally. • Collaborate with insurance brokers or (re)insurance companies for the placement of the insurance solution. • Capacity Building and Reporting • Coordinate capacity building and provide technical assistance to BDF staff, PFIs, and MSMEs. • Consolidate and prepare all necessary reports (monthly, quarterly, annually, and ad hoc). Participate in planning, budgeting, and implementing the bridge lending process through PFIs. • Prepare reports for the BDF management and the AFIRR project summarizing the progress of the BLW to date, key challenges, successes, and lessons learned to improve the functionality moving forward. • Provide regular updates to the technical committee, formed by BDF representatives (including the BLW Specialist), the selected consultancy firm, and the WB team, on the progress of implementation and execution. • Monitoring, evaluation, and internal controls • Collect all data necessary to fulfil the M&E function of the BLW instrument. This includes but is not exclusive to, the results indicators tracked under the AFIRR project. Aligned with each World Bank implementation support mission, provide the necessary data to update the results indicators of the project. • Organize focus group discussions (FGDs) every 1-2 years with beneficiary MSMEs of the BLW. Use these FGDs as a mechanism to understand the value the BLW provides to MSMEs in Rwanda, hear suggestions to improve the functionality of the BLW as well as improve the design of the BLW moving forward. • Conduct internal control reviews and respond to audit reports/queries as required, adhere to protocols, and improve BLW design and functionality. • Contract duration The contract term is one year renewable upon satisfaction. • Professional, academic qualifications and experience The BLW Specialist will be recruited competitively and shall obtain the following qualifications: • Educational Background: A minimum of a bachelor’s degree in business management, Finance, business administration, or other related fields. • Professional Experience: • At least 5 years experience in the banking sector and at least 3 years working on Managerial level. • Extensive experience in Rwanda's private sector, particularly in agriculture and/or MSME sectors, including roles related to rural business development, finance, marketing, competitiveness, and value chain analysis. • Familiarity with disaster risk management and risk financing, including flood/drought risk assessment and modelling (incl. analytical and research skills in hazard, exposure, and vulnerability analysis) • Experience working with the Government of Rwanda, especially with the Ministry of Finance and Economic Planning (MINECOFIN) or the Central Bank, with a focus on financial policy, stability, long-term finance, and risk management, is preferred. • Skills and Abilities: • Deep understanding of institutional oversight and accountability functions, including grievance mechanisms • Proven