Procurement Notices

1. BACKGROUND & CONTEXT

The situation in Abyei has been characterized by the lack of an agreement on the final status of Abyei between Sudan and South Sudan since the signing of the Comprehensive Peace Agreement in 2005, and South Sudan’s referendum for independence in 2011. The highly politicized environment, insecurity, and violent conflicts have created restrictions in ways that threaten UN programme delivery in accordance with the UN principles of neutrality, impartiality, and leaving no one behind. At the local level, inter-communal violence between the Ngok Dinka and Misseriya represent the primary factor that has impeded stability, reconciliation, and recovery in the area.  More recently the conflict in Sudan and Twic conflict with Abyei have exacerbated the humanitarian and situation in Abyei.

The lives of women and girls continue to be marked by violence and discrimination, including reports of rape and other forms of gender-based violence (GBV), women and girls face a host of protection concerns connected to intimate partner violence (IPV) in addition to child, early and forced marriages (CEFM), rooted in societal perceptions of women and girls as commodities and valuation of females in terms of the bride wealth (dowry), as revealed through other assessments. The rationale behind the UN Joint Programme is that vulnerability and severe poverty and gender discrimination reinforce fault lines and act as conflict drivers between communities in the Abyei area. Competition over natural resources, especially during migration season, is additional conflict trigger and often increases the risk of attacks targeted on women and children. The severe effects of climate change and the lack of interventions proposing mitigating these effects for the agro-pastoralist communities in the Abyei box further increase community vulnerabilities and compromise efforts to promote peaceful coexistence.

Rising youth unemployment is widely recognized as a concern in South Sudan and Abyei Special Administrative area due to prolonged civil conflict that disproportionately affected access to employment and business opportunities, particularly women and for the youth (15-35 years) who account for 72% of the population. The conflict has destroyed many activities and depressed demand in the markets for products and services of micro and small enterprises (MSEs), hence worsening youth unemployment. For workers, the dramatic contraction of non-oil output, coupled with the conflict, reflects a loss of job activities and a breakdown in market demand. The growing youth unemployment in South Sudan, estimated at 18.8%, which is 6.5% higher than total active population and continues to put huge chokes that threat the consolidation of peace in South Sudan. 

The war in Sudan is the biggest constraints to the lack of livelihood and economic opportunities for youth including lack of access employment and financial capital, education and training, market demand-driven skills, and scarce work opportunities. For instance, 12% of the population depends on wages and salaries for their main livelihood and less than 4% of the population is engaged in entrepreneurial activities across South Sudan and Abyei Special Administrative area. High illiteracy levels among women (84%) and youth (53%) make it difficult for women and youth to access business-related information, opportunities, and markets, while also creating a serious barrier to skills development, intensifying shortage in skills availability and labour market mismatch, aggravating unemployment rates, and ultimately undermining economic mobility. Youth unemployment is both a cause and a consequence of fragility. With the growing number of returnees, estimated at 235,802 as of the end of 2019, the government is challenged to ensure that more South Sudanese are absorbed into the labour market. Experience in South Sudan has shown that where youth are engaged in productive undertakings, such areas do not experience widespread conflict. Therefore, the development of MSEs and job creation will not only address youth employment but will also contribute to peacebuilding.

The Youth and Women Enterprise Development through Micro credits/SMS start up initiatives project seek to ensure that young women and youth aged 18-35 years with the potential to grow as entrepreneurs are self-employed and/or create employment for others through their businesses. Specifically, the project will address: (i) strengthening entrepreneurship skills provision; (ii) the lack of access to finance; (iii) the lack of access to markets and information. The project will also support entrepreneurship opportunities unveiled in the climate adaptation and climate resilience ecosystem through renewable energy/green livelihoods. 

The project will use the community-owned and initiated, Village Savings and Loan Associations (VSLAs) model to enhance youth employment through the creation and sustainability of MSEs in the five (5) counties, including Abyei town and Amiet Market. The training will be delivered through the integrated business/employment, and Innovation Hubs (iHubs) established by UNDP in partnership with the private sector, and financial institutions. The project will support the establishment of new and existing growth oriented small scale enterprise initiative/SMSEs through the agriculture value chain in horticulture, honey, sesame, groundnuts, poultry, fish, cattle, and shea butter and confectionaries. A quick Need Assessment and key informant interviews will be carried out in to inform the selection of the value chains at the commencement of the project in April. 

The project will provide access to finance to groups of young women and men aged 18-35 years that have the potential to start and grow their businesses. A selected financial institution, which has an existing business model to support youth and women groups, will administer the revolving fund to provide interest-free loans to youth. The interest-free loans will range from USD 3,000 to USD 5,000 per MSE Group based on the capacity to absorb the funds and grow the business. The loans will be granted to selected groups and individuals and considering the size and value, it is not expected to cause any market distortion. 

In this regard, UNDP South Sudan seeks to select CSOs, NNGOs and CBOs based in in Abyei with demonstrated capacity to deliver MSE business development services and training on agriculture value chain-based skills training.

1. OBJECTIVES

1. To organize selected youth in each county into Village Savings and Loan Associations (VSLAs), 30 people per VSLAs based on common economic activities and register as cooperatives,
2. To establish business groups (at least 5 youth per group) within the VSLAs organized and provide business development services, entrepreneurship training, and agriculture value chain-based technical skills training and register as MSEs.,
3. To deliver tailored business development services, entrepreneurship training, technical skills training related to the selected value chains, product development, packaging, and marketing support to targeted youth in each county,
4. To conduct an analysis, select sub-sectors of value chains with high potential, identify medium and large enterprises as off-takers, and develop a strategy to establish business linkages.
5. To provide marketing support to MSEs and conduct business linkages between youth-led MSEs and markets at the national and regional levels through medium and large enterprises as off-takers
6. To coordinate with selected SMEs  and provide access to interest-free loans ranging from US$ 3,000 - US$ 5,000 per MSE based on the capacity to absorb the funds and grow the business.
7. To provide mentoring and coaching to the MSEs to increase revenue by 50% and employ an average of 2 new employees per MSE.

1. EXPECTED OUTPUT/DELIVERABLES  

Some key outputs are expected: 

1. Five (5) Village Savings and Loan Associations (VSLAs) consisting of 30 people per VSLAS based on common economic activities are registered as cooperatives.
2. Business groups (at least 5 youth per group) within the VSLAs organized and business development services, entrepreneurship training, and agriculture value chain-based technical skills training and register as MSEs provided.
3. Tailored business development services, entrepreneurship training, technical skills training related to the selected value chains, product development, packaging, and marketing support to targeted youth in each county delivered.
4. An analysis, select sub-sectors of value chains with high potential, identify medium and large enterprises as off-takers, and develop a strategy to establish business linkages conducted.
5. Marketing support to MSEs and conduct business linkages between youth-led MSEs and markets at the national and regional levels through medium and large enterprises as off-takers provided.
6. Selected SMEs  and received interest-free loans ranging from US$ 3,000 - US$ 5,000 per MSE based on the capacity to absorb the funds and grow the business.

1. Mentoring and coaching to the MSEs to increase revenue by 50% and employ an average of 2 new employees per MSE are provided.