Consultancy - Structured Agricultural Finance Advisor
Consultancy Title: Structured Agricultural Finance Advisor
Project Location: In-country – Kampala and Northern Uganda
Duration: Approximately until December 31, 2019
Number of billable days: up to 40 days (TBD) – split in phases.
NUTEC Financial Services (NUTEC-FS) is a DFID-funded blended finance facility to enhance the agriculture market system in Northern Uganda. It began implementation in early 2019 and will run until March 2022. To implement the facility, Mercy Corps as the implementing partner of DFID is partnering with Equity Bank Uganda to establish a risk sharing credit fund for lending to agribusinesses and agriculture projects that would otherwise be considered ‘too high a risk’ for commercial lending. This is often referred to as “the missing middle”- smaller, often informal SMEs active across the agricultural value chain.
The new portfolio of loans will aim to adopt innovative risk assessment and management strategies that incentivise financial institutions to adopt reduced borrowing requirements and make lending capital available to a wider segment of the market.
NUTEC-FS made an ambitious commitment to DFID: Support Equity Bank to lend £25 million within three years, backed by a DFID guarantee of £6 million.
To deliver on that commitment, NUTEC-FS works with Equity Bank to adopt innovative products and enhanced risk assessment and management strategies that incentivise the Bank to reduce borrowing requirements and make lending capital available to a wider, deeper segment of the agribusiness market. Replication by other financial institutions is a NUTEC-FS imperative.
NUTEC-FS plays a unique role at the nexus of commercial delivery and development impact. It has responsibilities to disparate partners. The role requires balanced positioning and carefully crafted communications to maintain the commercial nature of its financial services work whilst facilitating development impact.
Purpose / Project Description:
The programme needs an experienced Trade Finance and Structured Commodity Finance Professional to support the NUTEC project team and the partner bank to develop innovative structured agricultural commodity finance products and solutions whilst managing attendant risks to help build the Agribusiness Lending Unit (ABLU) portfolio especially in Northern Uganda. The individual will grow the bank’s market position through development and execution of an agribusiness sales strategy to drive growth in the agribusiness portfolio and achieve laid down loan book value and quality targets.
Key Responsibilities will include:
- Collaborate with the relevant bank teams to structure/develop Agri Trade lending solutions. The consultant will be required to work with the bank team to identify potential agribusinesses and other commodity trade players in the market to inform the new product.
- Engage with commodity finance stakeholders including the partner FI, NUTEC FS team, agribusinesses and farmers, potential collateral managers’/monitoring agents, etc to incorporate requisite feedback, meet market demand and ensure additionally to the market.
- Support the FI to set up systems to drive the uptake and growth of Agri Trade Finance incomes and business volumes from the process of deal origination, structuring and credit approval to contracting and placement to ensure that the process is finalized within optimal time.
- Work closely with the potential service providers such as collateral management service providers to ensure the service offered meets the set standards and manages risks
- Work with relevant stakeholders to support adoption of agriculture lending systems in the bank to allow for robust Agri Trade Lending
- Ensure compliance with the policies, procedures and regulatory requirements of the selected FI and NUTEC
- Train various stakeholders in the bank and partners on Trade Finance solutions, systems and processes.
- Market snapshot (2-3 pages) highlighting agribusiness demand for commodity finance and collateral management services.
- Structured Agricultural Commodity Trade Finance Product paper
- Development of relevant process flow diagrams and procedures to help deliver the product
- Initial testing of the product in the market with a sample of 2-3 potential agribusiness customers and supporting the bank team develop appropriate term sheets.
- Training of NUTEC team and Equity Bank Agriculture, Trade Finance and Credit Staff.
Minimum Knowledge, Skills and Abilities Required:
- Bachelor’s Degree in Agribusiness, Agricultural Economics, Agronomy, Horticulture or Animal Science Business, Economics or other business related degree. Master’s degree added advantage.
- Demonstrated experience in Structured Commodity Finance products in the Region. Experience in developing similar products for the agriculture sector with commercial banks in the region.
- Minimum 10 years’ progressive experience in the Trade Finance and Commodity Finance sector.
- Experience and knowledge in agriculture, credit guarantee schemes and/or blended finance facility a plus
- Demonstrate the ability to work with stakeholders to achieve desired objectives
- Strong analytical, negotiation and interpersonal skills with ability to network and generate strong business relations
- Up to date understanding of the commercial banking and commodity finance sector in Eastern Africa.
- Ability to work independently as well as effectively in a team environment
- Excellent verbal and writing skills
The Consultant will work closely with:
NUTEC FS Team, Trade Finance, Credit and other teams at partner financial institution.
The Consultant will report to:
NUTEC Financial Services Team Leader with dotted reporting line to the Bank’s Head of Trade Finance/Head of Credit.