Terms of Reference (TOR)

Digitization on Savings Group operations

I. Introduction

Habitat for Humanity Zambia (HFHZ), Habitat for Humanity Great Britain, and the Terwilliger Centre for Innovation in Shelter (TCIS), in partnership with Zambia National Building Society (ZNBS) and Financial Centre (EFC), launched a four-year housing finance project— Creating Access to Safe Housing (CASH) project, in 2023. The project aims to promote financial inclusion and resilience for women in Zambia. It will facilitate access to affordable housing finance solutions by developing appropriate housing finance products targeting viable low-income households in Lusaka and Central Provinces.

HFHZ has already conducted market research focused on identifying and understanding systemic barriers, and the needs and preferences of low-income households. It identified potential investment opportunities in housing finance initiatives within the supply chain and provided several strategic recommendations to that effect.

II. Background

The government of Zambia continues to grapple with providing decent and affordable housing for all, in line with the vision of the National Housing Policy 2020-2024. The housing deficit is more than 1.5 million housing units, a trend expected to increase to a projected 3.3 million by 2030[1]. The country produces approximately 73,000 housing units a year, of which only 40% meet minimum health and sanitation requirements per the Zambia Public Health Act, and this falls tremendously short of the 220,000 new houses that need to be constructed to meet the backlog[2]. Furthermore, the government built only 3,152 low and medium-cost homes from 2017 to 2019[3].

As of 2022, 46% of the population lived in urban areas, a 4.09% increase from 2021. This rapid urbanization has accelerated the growth of informal settlements, and 70% of urban residencies are characterized by inadequate basic services such as, but not limited to, decent housing, security of tenure, roads, reticulated water, and sewerage. The ineffective implementation of existing housing policies limited financial resources, low financial literacy, and limited access to financial services exacerbate poverty in Zambia[4].

III. Aim
Habitat for Humanity Zambia intends to engage a firm to provide:

1. A reliable and tested Software Platform to support the digitalisation of Savings Groups (SGs) under the project. The platform should allow group members to save, request loans, and make loan payments to the group.

2. Capability to digitise the cashbook and this entails integrating with partner financial services providers’ core banking systems. This will enable Savings Groups to open accounts from which they can push funds to individual members of Savings Groups and vice versa. This is a critical piece of work that must be considered in the linkage with our partner financial services providers.

IV. Objectives of the Assignment

The objectives of the assignment are as follows:

a) The digitalization of the savings ledger book so that transactions are recorded digitally. The ability for the groups to move funds from the group account held in the core banking systems of the partner Financial Service Providers (FSPs).

V. Deliverables

a) The System Requirements Specification (SRS) focused on what the software needs to do and how it must perform. It should lay the important groundwork so that every person involved with the project understands the most crucial details.

b) A document outlining the methodology/approach and work plan with clear timelines on how the assignment will be carried out.

c) A user-friendly Software Training Manual for the users.

VI.  Duration of the Assignment

The assignment should be completed within 90 days of contract signing. This should include Trainer of Trainer (ToT) workshops and onboarding members.

VII. Reporting
The firm will, on the technical aspect of the assignment, be reporting to the Senior Project Manager with the overall supervision by the Programs Director.

VIII. Payment:

The payment will be made upon receipt of an invoice from the Firm, with the bank details.

• 40% payment advance upon contract signing to be processed within 5 working days.
• 60% payment will be paid upon submission of finalized deliverables described in section IV to be processed within 5 working days.
• The total lumpsum consultancy on technical/professional fees will include 15% Withholding Tax.

IX. Quality and Ethical Standards

The c/firm/i should take all reasonable steps to ensure that the final product demonstrates respect and safeguards people’s rights and welfare and the communities of which they are members. It is also expected that the consultant will respect the values of Habitat for Humanity International (HFHI): courage, humility, and accountability.

Qualifications

The competency requirements for the consultant firm are:

• PACRA Registration
• Valid Tax Clearance Certificate
• NAPSA or social security certificate
• References of past and or current clients

X. Application Procedure:

The consultant should submit a technical and financial proposal for carrying out the assignment to the following by 2nd August 2024:

Procurement@habitatzam.org.zm

Cc:  Human Resources, Learning and Organization Development Manager – Ms. Nchimunya Hanjalika

Email: nchimunyahn@habitatzam.org.zm

HABITAT’S STATEMENT OF EXPECTATIONS SURROUNDING SAFEGUARDING

Habitat for Humanity Zambia requires that all consultants take their ethical responsibilities seriously to safeguard our intended beneficiaries, communities, and those with whom we work. Habitat for Humanity Zambia has particular responsibilities to support and develop systems that create and maintain an environment that prevents harassment, sexual exploitation, and abuse; safeguards beneficiaries and community members (especially children); and promotes the implementation of Habitat for Humanity’s code of conduct.