Company Profile

Nathan, a Cadmus Company is a leading provider of analytic and economic consultancy services worldwide. In the past decade, we have implemented more than 120 projects in more than 50 countries leveraging our global presence in Washington DC, London, and India. From improved transparency and deeper stakeholder engagement to more effective policies and more resilient businesses, we deliver results that impact economic growth, human development, and poverty reduction. We are passionate about applying our deep analytical expertise and advanced proprietary tools to generate economic solutions tailored to our clients’ unique challenges.  Nathan focuses on a range of economic development subject matter areas including Trade & Logistics; Economic Policy & Governance; Private Sector Development; Women’s Economic Empowerment; and Financial Solutions. 

Job Description

Background

The Feed the Future Ghana Trade and Investment (GTI) Activity seeks to improve the enabling environment for Ghana’s economic growth by (1) facilitating growth in export-oriented trade; (2) improving and developing product standards; (3) catalyzing investments in private enterprises related to high-value commercial crops; (4) promoting job creation, particularly among women and youth; (5) promoting economic diversification; and (6) increasing foreign exchange revenues from high-value export crops. GTI will facilitate investing in firms that trade goods across borders, spur innovation, and build the capacity of the entire trade sector.

Nathan, a Cadmus Company is a leading provider of analytic and economic consultancy services worldwide. In the past decade, we have implemented more than 120 projects in more than 50 countries leveraging our global presence in Washington DC, London, and India. From improved transparency and deeper stakeholder engagement to more effective policies and more resilient businesses, we deliver results that impact economic growth, human development, and poverty reduction. We are passionate about applying our deep analytical expertise and advanced proprietary tools to generate economic solutions tailored to our clients’ unique challenges.  Nathan focuses on a range of economic development subject matter areas including Trade & Logistics; Economic Policy & Governance; Private Sector Development; Women’s Economic Empowerment; and Financial Solutions. 

In scaling up our approach, GTI will develop a flexible menu of innovative financing activities that include equity and quasi-equity instruments that leverage the private sector to increase two-way trade and investment between the United States and Ghana. Our transaction advisory services will facilitate exports and investment and adhere to the principle of additionality to address market gaps unfilled by the private sector.

Rationale

The financing difficulty of small and medium sized enterprises in Ghana is challenging. Leasing plays an important role in facilitating capital investment as it offers an alternative form of financing that addresses some of the common constraints to expansion. Companies may obtain equipment needed for expansion without straining their balance sheet and fewer upfront costs. It is also a form of asset-based lending as opposed to balance sheet lending which presents several opportunities for partial payment and ownership of an asset based on a financing structure.  

GTI sees opportunities for lease financing to help companies upgrade production assets, accelerate the introduction of new technologies, reduce the time it takes to launch new products, and simplify the supply of innovative equipment and maintenance. 

Objectives

The purpose of this assignment is to engage the services of a qualified local/international consultant/consulting firm to conduct a feasibility study for lease financing (related to agriculture) in Ghana. The study will provide the basis for developing and strengthening regulations for leasing in Ghana. Leasing supports the acceleration of businesses, promotion of innovative products, reduce risk of business insolvency and simplify sale of used equipment. This will mark a new addition in the development of financial instruments in Ghana.  

The feasibility study will inform the structure of leasing functions in discovering access to equipment and machinery, conservation of capital, risk management, technological advancements, seasonal flexibility, tax benefits, scalability, environmental considerations, access to experts, and financial planning.

It is expected that the study will provide a basis to develop the leasing market leading to access to capital, asset acquisition, cash flow management, asset flexibility, risk mitigation asset utilization, tax credits, diversified financing options, economic growth, industry growth, asset recycling, global competitiveness, and boosting of trade opportunities.

Key objectives include, inter alia:

1. Assess the potential market for leasing in the agricultural sector.
2. Determine the technical feasibility of leasing in the agricultural sector.  
3. Assess the financial viability of leasing as an alternative source of financing (operating versus capital leasing).
4. Examine the terms of leasing agreements with respect to interest rates, lease duration, and any associated fees.
5. Determine tax implications and benefits to recipients.
6. Assess impact on cash flow management, residual value, maintenance and repairs, balance sheet, financial strategy, and comparative analysis (total cost of leasing over the lease terms versus the cost of purchasing the asset outright).
7. Identify risks and challenges associated with it.
8. Develop a plan for introduction and implementation in the agricultural sector.

Methodology

Recently, there has been considerable interest among policymakers to develop financial markets - loan, bond, equity, asset-backed, and derivative markets. Despite the abundance of research on financial market development, much less has been done on examining the process of financial markets intrinsically. The functions performed by financial markets are well defined and constant, whereas the instruments and institutions that perform these functions change over time and are endogenously determined by prevailing conditions, including transaction cost, social factors, and behavioral considerations.

The assignment is based on the belief that the development of the leasing market in agricultural sector ultimately depends on the presence and actions of market participants and availability of information in terms of incentives, constraints, and opportunities of borrowers, lenders, liquidity providers, and regulators.

This assignment is to develop a feasibility study for the introduction of leasing as an alternative source of financing in the agricultural sector as well as a financial instruments. The feasibility study must include among others:

1. Literature review
2. Market analysis
3. Technical analysis
4. Risk analysis
5. Issues in financial instrument development
6. Opportunities
7. Key recommendations

The assignment will analyze the current market conditions, identify gaps, and propose suitable structure. 

Key Tasks

The main tasks to be conducted will be as follows:

1. Desk and literature review of leases
2. Determine the role of investors and tax benefit
3. Assess existing and propose legal and corporate governance structure
4. Develop pros and cons of leasing in Ghanaian market.
5. Propose key steps/approach for introducing leasing into the market.
6. Validate the recommendations with stakeholders.

Deliverables And Timeframe

The assignment is expected to start on 20th November 2023 for a period of up to 12 weeks.

Deliverables include:

1. Inception report
2. Key findings of the study (green paper)
3. Draft feasibility study
4. Validation of study by market actors in a workshop
5. Final report on leasing feasibility study

Your technical offer should be concisely presented and structured in the following order to include, but not necessarily limited, to the following information:

1. Description of yourself or firm’s qualifications with the following documents: profile, registration certificate and last audited reports
   1. Year founded.
   2. Number of similar and successfully completed projects.
   3. Number of similar projects currently underway

Include any information that will facilitate our evaluation of you or your firm’s substantive reliability and financial and managerial capacity to provide the services.

     b. Understanding of the requirements under this assignment, proposed approach, solutions, methodology and outputs

1. Description of your capacity to undertake this assignment.
2. Description of your organization’s experience in similar services

    c. Proposed personnel to carry out the assignment.

Required Skills or Experience

Content of Financial Offer

The financial offer must cover all the services to be provided (price “all inclusive”). GTI is exempted from VAT. You are requested to hold your offer for 60 days from deadline for submission. GTI will make its best effort to select a consultant/company within this period. GTI standard payment are within 30 days after satisfactory implementation and receipt of documents in order.

The cost of preparing the bid and of negotiating the contract, including any relevant travel, is not reimbursable, and cannot be included as a direct cost for the assignment. Any activity undertaken or expenses incurred in preparation of the contract before actual contract is signed shall not be borne by GTI. 

Proposal Evaluation

Each proposal will be considered separately and independently. Bidders shall submit a complete proposal of each solicitation in which they wish to participate. References to previous and ongoing proposals will not be considered. Award of a previous contract with GTI will not be considered as preference or guarantee for the award of future solicitation on the same subject.

Technical and Financial evaluation

For the award of this project, GTI has established evaluation criteria that will govern the selection of offers received. Evaluation is made on a technical and financial basis. The percentage assigned to each component is determined in advance as follows:

The Technical offer will be evaluated using, inter alia, the following criteria and percentage distribution from the total score:

The cut-off point for proposal submissions to be considered technically compliant will be 45% out of the 70%.

The Financial offer will use the following percentage distribution: 30% from the total score. The financial component will be analyzed only for bidders that pass the technical evaluation.