Diagnostic Study on Decentralization and Local Governance in Africa

REQUEST FOR EXPRESSIONS OF INTEREST (CONSULTING SERVICES – FIRM SELECTION) Country: Ethiopia Name of Project: The Building Institutions and Systems to Harness and Realize Agenda (BIASHARA) 2063 Project Grant No: P180117 Assignment Title: Consulting Services to Undertake a Continental Diagnostic Study on the State of Decentralisation and Local Governance in Africa Reference No. ET-AUC-555556-CS-QCBS The African Union Commission has received financing from the World Bank toward the cost of The Building Institutions and Systems to Harness and Realize Agenda (BIASHARA) 2063 Project and intends to apply part of the proceeds for consulting services. The consulting services (“the Services”) include to undertaking a continental diagnostic study on the state of decentralisation and local governance in Africa in order to generate evidence-based knowledge that supports governance reforms and strengthens decentralized governance systems across AU Member States. The detailed Terms of Reference (TOR) for the assignment are attached to this Request for Expressions of Interest. The African Union Commission now invites eligible consulting firms (“Consultants”) to indicate their interest in providing the Services. Interested Consultants should provide information demonstrating that they have the required qualifications and relevant experience to perform the Services. The shortlisting criteria are: • At least 10–15 years of experience in governance research, decentralisation policy, or public sector reform

• Proven experience conducting multi-country comparative governance studies

• Experience working / conducting studies with / for multilateral institutions or regional organisations

• Demonstrated expertise in local governance, decentralisation policy, institutional diagnostics, and public administration reform Key Experts will not be evaluated at the shortlisting stage. The attention of interested Consultants is drawn to Section III, paragraphs, 3.14, 3.16, and 3.17 of the World Bank’s “Procurement Regulations for IPF Borrowers” July 2016, revised November 2020 (“Procurement Regulations”), setting forth the World Bank’s policy on conflict of interest. Consultants may associate with other firms to enhance their qualifications but should indicate clearly whether the association is in the form of a joint venture and/or a sub-consultancy. In the case of a joint venture, all the partners in the joint venture shall be jointly and severally liable for the entire contract, if selected. A Consultant will be selected in accordance with the Consultants’ Quality and Cost-based Selection method set out in the Procurement Regulations. Further information can be obtained at the address below during office hours 0900 to 1700 hours. Expressions of interest must be delivered in a written form to the address below (in person, or by mail, or by e-mail) by 13 August 2026. African Union Commission, Head of Supply Chain Management Division Building C, 3rd Floor, P.O Box 3243, Roosevelt Street Addis Ababa, Ethiopia Tel: +251 (0) 11 551 7700 – Ext 4305 Fax: +251 (0) 11 551 0442; +251 11-551-0430 E-mail: Tender@africanunion.org TERMS OF REFERENCE CONSULTING SERVICES TO UNDERTAKE A CONTINENTAL DIAGNOSTIC STUDY ON THE STATE OF DECENTRALISATION AND LOCAL GOVERNANCE IN AFRICA REF: ET-AUC-555556-CS-QCBS • I. Background

Decentralisation and local governance are central components of democratic governance, public sector reform, and sustainable development across the African continent. By bringing government closer to citizens, decentralisation strengthens accountability, improves service delivery, promotes participatory governance, and supports inclusive development at the local level. Recognising the importance of decentralised governance, the Heads of State and Government of the African Union adopted the African Charter on the Values and Principles of Decentralisation, Local Governance and Local Development in Malabo, Equatorial Guinea, in June 2014. The Charter establishes a continental normative framework aimed at promoting democratic decentralisation, strengthening local authorities, and enhancing citizen participation in governance processes. The Charter also aligns with the aspirations of Agenda 2063: The Africa We Want, particularly Aspiration 3, which calls for an Africa characterised by good governance, democracy, respect for human rights, justice, and the rule of law. Effective decentralisation systems are critical for achieving these goals by strengthening governance at sub-national levels and enabling local governments to contribute to development and service delivery. Despite significant efforts undertaken by many African countries to advance decentralisation reforms, the design, scope, and effectiveness of decentralisation systems vary widely across the continent. Different models have been adopted, including devolution, delegation, and deconcentration. In many cases, decentralisation reforms face challenges related to limited fiscal autonomy, unclear legal frameworks, institutional capacity constraints, and weak coordination between central and local government structures. After the adoption of the Charter by Heads of States in 2014, the African Union established a Specialized Technical Committee on Public Service, Local Government, Urban Development and Decentralization (AU-STC.No.8). The Committee which comprises of Ministers, Senior Government Officials responsible for Public Service, Decentralization, Local Governance and Urban Development, operates under the authority of the Executive Council, and it is tasked with preparing projects, supervising implementation, coordinating programmes and submitting recommendations to the African Union Policy Organs. The Committee is organised into three (3 sub committees) being i) Public Service & Administration, ii) Decentralisation & Local Governance and iii) Urban Development & Human Settlements. The AU-STC.No.8 Sub-Committee on Decentralisation and Local Governance is the main consultative body charged with the responsibility of promoting and enhancing local governance at Sub National Level across the Continent by; • Supporting decentralisation policies and reforms that empower Local Governments to deliver public services more effectively

• Improving local governance structures, promoting transparency, accountability, inclusivity and responsiveness to citizen needs. • Guiding the African Union Member States in structuring institutional frameworks that anchor local autonomy, strengthen capacities and foster community-driven development. At its Fifth Ordinary Session held in Tunisia in December 2024, the STC-8 Sub-Committee on Decentralisation and Local Governance requested the African Union Commission to undertake a continental assessment of the state of decentralisation in Africa in order to better understand the progress made, identify key challenges, and promote policy learning among Member States. In response to this request, and as part of the implementation of the World Bank Funded - Building Institutions and Systems to Harness and Realize Agenda 2063 (BIASHARA) project objectives in terms of supporting the work of the STC no 8, the African Union Commission intends to undertake a continental study on the State of Decentralisation and Local Governance in Africa. The study will generate evidence-based knowledge on decentralisation systems across AU Member States, assess progress in implementing the African Charter on Decentralisation, identify challenges and best practices and reform innovations, and provide policy recommendations to strengthen decentralised governance across the continent. Given the scale and complexity of this assignment, the African Union Commission intends to recruit a qualified consulting firm with demonstrated expertise in governance research, decentralisation policy, public administration reform, and comparative institutional analysis. • II. Objective of the Assignment

The overall objective of the assignment is to undertake a continental diagnostic study on the state of decentralisation and local governance in Africa in order to generate evidence-based knowledge that supports governance reforms and strengthens decentralized governance systems across AU Member States. The specific objectives of the assignment are to: • Develop a comprehensive analytical framework to assess the legal, political, administrative, and fiscal dimensions of decentralisation systems across African Union Member States. • Identify structural, institutional, and governance challenges affecting decentralisation processes in AU Member States, while documenting innovative practices and successful local governance reforms across the continent. • Formulate evidence-based policy recommendations to strengthen decentralisation systems, enhance local governance, and support sustainable governance reforms in Africa. • III. Scope of Work

The consulting firm will undertake a comprehensive continental study covering African Union Member States. The assignment will involve the collection of primary and secondary data, analysis, synthesis, and dissemination of evidence on decentralisation systems and local governance frameworks across the continent. The consulting firm will be expected to carry out, at a minimum, the following tasks: • Deliverable 1: Draft Continental Assessment Report on Decentralisation in Africa

The firm shall prepare and submit a comprehensive draft report presenting the findings of the continental assessment. It will include Continental Mapping and Institutional Analysis of Decentralisation including primary and secondary data collection and be a comprehensive analytical report mapping the decentralisation systems across all African Union Member States. This deliverable will document the legal, political, administrative, and fiscal dimensions of decentralisation across the continent and analyse the institutional arrangements governi