Consultant: Development of Linkages Strategy and Action Plan Implementation – Lesotho

Ministry of Trade and Industry (Lesotho)

Lesotho, Southern Africa
  • Consultancy

Government of Lesotho

MINISTRY OF TRADE AND INDUSTRY

REQUEST FOR CURRICULUM VITAE

Development of a linkages strategy and action plan for Implementation

1. OVERVIEW

The Government of Lesotho (GOL) is committed to fighting poverty, accelerating economic growth, and improving the welfare of the Basotho. The country is faced with an unemployment rate of approximately 25 percent, with nearly two thirds of its labor force in the informal sector, principally engaged in subsistence agriculture. Job creation is therefore a paramount objective of the GOL, the World Bank financedSecond Private Sector Competitiveness Project (PSCEDP II) , the Lesotho National Development Corporation (LNDC) and the Basotho Enterprise Development Corporation (BEDCO).

Both the size and geographical position of Lesotho generally limit opportunities for economic diversification. Furthermore, the country lacks a well-developed domestic private sectorwith enterprise growth hampered by a small domestic resource base, as well as the market size of the economy.Support for domestic enterprise development is clearly needed, particularly in the context of holistic investment policies which leverage the presence of FDI and allow for greater linkages and spillovers.

Foreign Direct Investment (FDI) into Lesotho has been limited and focused primarily in the apparel sector, diamond mining, and services (banks, insurance, telecom, hotels, etc.). Supporting linkages and DVA from FDI can vary considerably across sectors. In Lesotho’s case, despite, long-term foreign investment and non-equity modes of production (NEMs)in the textile and apparel sector, very few relationships have been developed, either in subcontracting, supply links, or in downstream processing. Foreign investment in the apparel/textile sector has traditionally been “footloose” and can quickly relocatedepending on the competitiveness of wage rates and preferential market access.

This gives even more impetus and importance to diversifying away from apparel and fomenting the development of strong domestic Basotho economic actors. Previous studies indicate that in some sectors (for example, computer and related activities, hotels and restaurants, construction, post and telecommunications) there were cases of strong FDI spillovers via backward linkages. In addition, FDI-related spillovers via forward linkages can sometimes be found in agriculture, land transport, mining, as well as services sectors, such as wholesale and retail trade.

2. objectives

The objective of the Government is to create a sustainable mechanism and capacity to foment and support the development of linkages between foreign direct investment and the Basotho private sector (in the textile & apparel sector and beyond). The aim is to improve the capacity of local businesses and build a pipeline of domestic service providers to open new markets for local businesses, thereby creating new and improved jobs.

The objective of this assignment is to assist the Government of Lesotho indevelopinga comprehensive linkagesstrategy and action plan which considers the expansion of both forward and backward linkages for 2-3 targetmanufacturing and / or services sectors. Strategy development and the implementation of its action plan should be structured around the three main areas of constraints that each country must assess and address as part of an effective and comprehensive linkages strategy. They includethe identification of market failures and constraints to be addressed:

  • At the policyand institutional level: improve the environment which private sector enterprises operate to further enable the creation of linkages between FDIs and local firms, including but not limited to SMEs.This includes creating capacity within LNDC and related Government agencies on forging business linkages. This includes benchmarking and disseminating experiences from other countries to other Basotho institutions (BEDCO, PSFL, LCCI, etc.)
  • At the sector level: to remove sector specific constraints and toengage in targeted investment promotion and matchmaking between local firms in order to attract additional foreign direct investment (FDI)
  • At the firm (supplier) level: to identify firms operating in the selected sectors, to identify opportunities, and to upgrade local firms’ capacities to FDI requirements through a range of training and support programs

3. SCOPE OF WORK

The scope of work is split into four sequenced phases: 1) organizational; 2) technical, and analytical; 3) finalization of strategy and action planfor implementation; and (4) operationalization and linkages establishment. These phases should consolidate the findings from the significant volume of desk research and studies already completed; identify gaps in primary data; and undertake necessary surveys and studies to fill said gaps.As indicated above, all phases should be structured around addressing issues at the: 1) policy and institutional level; 2) sector level; 3) firm (supplier) level.

Phase 1: Organizational Phase

A detailed conceptual framework guiding the analysis and approach used for developing the strategy and action plan will be developed and cleared by the client before the consultant commences its tasks.

Phase 2: Technical and Analytical Work

Phase 2 should draw extensively from the first phase and should be consistent with existing strategic and market plans already developed by the LNDC, particularly the investment promotion division. The main point of deviation is that the linkages strategy and action plan should focus exclusively on the policies, sectors, and firms which contribute directly to the objective of increasing linkages in 2-3 sectors with the domestic economy in the short to mid -term.

Phase Three: Finalization of strategic action plan for implementation

This phase will focus on finalizing the strategy and its accompanying action plan.A detailed implementation plan would include revised parameters, objectives, and deliverables, as well as effective tools for implementation to be developed and decided upon.

Phase 4: Operationalization and establishment of linkages

The consultant is expected to work with LNDC and BEDCO staff and other concerned stakeholders to facilitate the establishment of at least 5 specific linkages between foreign and domestic firms. This will ensure that the strategy and action plan are being applied and are effective in accomplishing their key objective of creating new linkages.

4. DELIVERABLES

The deliverables will be based upon the exact scope of work which will be fine-tuned between the consultants and the Government. The deliverables outlined below are indicative. Final deliverables and the scope of work under this TOR will be further defined following receipt of the consultant proposal and negotiations.

Phase One: Organizational

  • Finalize specific scope of activities and timeline for deliverables

Phase Two: Technical and Analytical Phase

  • Identification of 2-3 sectors to focus strategy implementation
  • Market analysis of the 2-3 sectors in terms of job creation and short vs long term impacts
  • Database of the universe of FDIs operating in Lesotho in the selected 2-3 sectors
  • Database of the qualified local firms operating in Lesotho in the selected 2-3 sectors
  • Effective Outreach and Communications Campaign to FDI, local private sector and SMEs, and public

Phase Three: Implementation Phase

  • Strategy for improvement of the business environment to increase linkages in the selected 2-3 sectors
  • Recommendations for further government consideration and approval
  • A detailed time-bound work plan for strategy implementation

Phase 4: Operationalization and establishment of linkages

  • Establishment of at least 5 specific linkages between foreign and domestic firms.
  • Identification of at least 10 other potential future business linkages

5. MONITORING AND EVALUATION

It is essential for the Government to monitor and evaluate the impact of the linkages and DVA strategy on the domestic economy. The consultant will be asked to develop draft output, outcome, and impact indicators as well as identify appropriate data sources for the indicators suggested.The consultant should develop and propose concrete goals and targets relating to quantitative indicators over time.The proposal would also include the evaluative tools that will be utilized to measure the indicators for example, an entry (baseline) and exit survey.

6. QUALIFICATIONS AND EXPERIENCE

Interested Individual Consultant must meet the following qualifications and requirements:

  • Demonstrated private sector development experience in international organizations, government institutions, or private sector, with a focus on investment policy and promotion advisory to developing country governments preferred.
  • The consultant will be expected to spend substantial part of the assignment in Lesotho.
  • Demonstrated research and analytical skills and experience pertaining to investment policy and promotion issues, with a focus on investment linkages preferred.
  • Ability to translate research findings into policy recommendations and support for operational work.
  • Excellent oral and written communication and presentation skills in English.

7. LOCAL PARTICIPATION AND SKILLS TRANSFER

The consultant will be expected identify and recruit an appropriately qualified local counterpart as an assistant for the purposes of skills transfer.

8. TIMING

The duration of the Consultancy is scheduled to last for twelve (12) months.

9SUBMISSION

The Government of Lesotho now invites eligible Individual Consultants to indicate their interest in providing the services by submitting an application letter and detailed curriculum vitae.

Candidates will be selected in accordance with the procedures set out in the current edition of the World Bank’s Guidelines: Selection and Employment of Consultants by World Bank Borrowers.

Interested candidates must deliver their application letter and Curriculum Vitae to the address below by 24 May, 2019.

Electronic submissions of application letters and detailed curriculum vitae (using a single pdf or other protected file) are also encouraged and applicants should include as the subject message “DEVELOPMENT OF LINKAGES STRATEGY AND ACTION PLAN FOR IMPLEMENTATION” and should be sent to tmofelehetsi@psc.org.ls with a copy to lmakhabane@psc.org.ls.

Only shortlisted Individual Consultant will be contacted.

The Project Manager

Private Sector Competitiveness & Economic Diversification Project

1st Floor ‘Matanki House

P.O. Box 747,

Maseru 100

Lesotho

Tel.: (+266) 22 315 100


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