Microcredit and Revolving Fund Consultancy for CVM and CHODAWU – September 2026

Consultancy for Microcredit and Revolving Fund Mechanism

1. Background

Comunità Volontari per il Mondo (CVM) and CHODAWU are implementing a project called EMPOWERED II, aimed at improving the skills, employment opportunities and socio-economic conditions of domestic workers.

The project includes a microcredit component intended to support domestic workers in accessing vocational training opportunities through small loans. Under the proposed mechanism:

• The Project Lead – CVM will coordinate the overall project.
• The Partner Organisation – CHODAWU will be responsible for managing and administering the loans provided to eligible domestic workers.

Loan repayments are expected to generate a revolving fund, allowing recovered resources to be used to finance training opportunities for additional domestic workers after the project cycle.

Given the specific nature of the target group and the need to ensure the sustainability, transparency and appropriate management of the revolving fund, an external expert is required to assess and define the most appropriate mechanism for the microcredit component.

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2. Objective of the Assignment

The overall objective of the assignment is to assess, design and recommend an appropriate microcredit and revolving fund mechanism for financing vocational training for domestic workers.

The expert will ensure that the proposed mechanism is:

• Financially and operationally feasible.
• Adequately controlled.
• Sustainable.
• Consistent with the project’s objectives.
• Consistent with applicable donor and organisational requirements.

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3. Scope of Work

The expert will undertake the following:

A. Assess the Proposed Microcredit Model

• Analyse the characteristics and financial capacity of the target beneficiaries.
• Recommend appropriate loan amounts, repayment periods, interest/fees, grace periods and eligibility criteria.
• Assess potential repayment risks and mitigation measures.

B. Design the Revolving Fund Mechanism

• Define how the initial fund will be capitalised and allocated.
• Develop a mechanism through which loan repayments are returned to the fund and made available to additional beneficiaries.
• Define how the fund will be tracked, reconciled and reported.
• Establish clear rules for the use, reinvestment and, where applicable, closure of the revolving fund.
• Estimate the potential number of beneficiaries that could be supported through successive lending cycles.

C. Define Roles and Responsibilities

The expert will propose a clear division of responsibilities between the Project Lead and Partner Organisation, including:

• Beneficiary identification and eligibility.
• Loan application and approval.
• Disbursement of loans.
• Collection of repayments.
• Management and custody of funds.
• Financial reconciliation.
• Monitoring of repayment performance.
• Management of defaults.
• Oversight and internal controls.

D. Develop the Operational Framework

The expert will develop or recommend the key tools and procedures required to operationalise the mechanism, including:

• Beneficiary/borrower eligibility criteria.
• Loan application and assessment process.
• Loan agreement.
• Repayment schedule.
• Disbursement procedures.
• Repayment collection procedures.
• Default management.
• Record-keeping and financial tracking.
• Monitoring indicators.
• Reporting templates.
• Internal control and audit arrangements.

E. Risk and Compliance Assessment

The expert will identify key risks associated with the proposed mechanism, including:

• Credit and repayment risk.
• Misuse of funds.
• Fraud and financial mismanagement.
• Conflict of interest.
• Safeguarding risks.
• Data protection and confidentiality.
• Sustainability of the revolving fund.
• Regulatory/legal considerations applicable to the provision of loans.

The expert will recommend appropriate mitigation measures and identify any regulatory or institutional requirements that should be addressed before implementation.

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4. Deliverables

Deliverable 1 – Assessment Report

Assessment of the feasibility, risks and key requirements of the proposed microcredit component.

Deliverable 2 – Microcredit & Revolving Fund Model

A detailed recommended model covering:

• Loan conditions.
• Beneficiary selection.
• Fund flows.
• Repayment mechanism.
• Recycling of funds.

Deliverable 3 – Operational Procedures

Practical procedures and tools to manage the loan portfolio and revolving fund.

Deliverable 4 – Governance and Control Framework

Clear roles and responsibilities between the Project Lead and Partner, including:

• Approval.
• Oversight.
• Reporting.
• Reconciliation.
• Audit arrangements.

Deliverable 5 – Financial Projection

A projection showing how the revolving fund could evolve over successive lending cycles, including assumptions on:

• Repayment rates.
• Defaults.
• Administrative costs.
• Number of additional beneficiaries potentially supported.

Deliverable 6 – Final Recommendations

A final implementation roadmap identifying the actions and decisions required before launching the microcredit component.

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5. Duration

The assignment is expected to require approximately xx working days during the period xx.

The assignment will include:

• Document review.
• Consultations with the Project Lead and Partner Organisation.
• Analysis of the proposed mechanism.
• Presentation of the final recommendations.

Note: The source vacancy leaves the number of working days and assignment period as “xx”.

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6. Required Expertise

The expert should have:

• Demonstrated experience in microfinance/microcredit programme design and management.
• Experience designing or managing revolving funds.
• Strong knowledge of loan portfolio management and credit risk.
• Experience working with NGOs and/or donor-funded programmes is preferred.
• Experience with financial controls, reporting and accountability mechanisms.
• Knowledge of the Tanzanian regulatory framework relevant to microcredit/lending.
• Experience working with vulnerable or low-income populations would be an advantage.

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7. Reporting

The expert will report to [Project Lead/Programme Manager] and will work in close consultation with the Project Lead and Partner Organisation.

The final recommendations will be presented to the HQ and donor for review and approval before implementation of the microcredit component.

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How to Apply

Qualified experts who meet the required expertise and professional experience are invited to submit their applications through the application link below.

Application Method: Online application

CLICK HERE TO APPLY

Important: The supplied vacancy does not state a specific application closing date.