TERMS OF REFERENCE CONSULTANCY SERVICE TO DEVELOP A NEW PRIVATE SECTOR FEDERATION (PSF) LEGAL STRUCTURE

Background

The Rwanda Private Sector Federation (PSF) is a member-based organization that was established in December 1999, replacing the former Chamber of Commerce and Industry, which was a public agency affiliated to the Ministry of Trade and Industry (MINICOM).

The decision to transition from the Chamber of Commerce as well as Rwanda Employers Association to PSF was made to emphasize the importance of close collaboration between the private sector and public institutions, thereby enhancing the effectiveness of PSF’s organs and functions.

PSF is a professional employers’ federation governed by the provisions of the Labor Code, particularly Articles 143 to 151, as outlined by the Labour Code, 2001. The legal status of the Federation was published in the Official Gazette of the Republic of Rwanda No. 20 of 15/10/2002, and it operates as an employers’ federation.

PSF is comprised of 80 employers’ associations. Its organizational structure extends from the nationwide business community up to the General Assembly, ensuring comprehensive representation and coordination across the private sector. The leadership structure includes the General Assembly, Board of Directors, Clusters (National, Provincial, District, Sector, Cell Leadership), and Sectoral-Based Associations, all of which work together to support and represent the interests of the business community. From cell leadership to national leadership, these entities operate under five key clusters: Industry, Trade, Service, Agriculture, and Specialized, which include youth, women, and persons with disabilities.

To highlight its role, PSF has registered major successes since its creation in 1999. Beyond a strong brand and membership base, PSF pioneered Business Development Services (BDS), registered wins in advocacy and played a strong national, regional and international role.

The Federation’s mission is to advocate effectively and reinforce member’s businesses, with a vision of profitable businesses for a prosperous Rwanda. PSF focuses on capacity building, entrepreneurship promotion, access to the markets, business research and advisory as well as creation of regional and international business partnerships.

Furthermore, the Federation coordinates the participation of its members in various trade missions in Africa and beyond, with a purpose to increase the country’s export base of goods and services as well as ensuring access to new markets for different products, services and raw materials for industries leading to the business growth in Rwanda.

In this context, the Federation has been committed to contributing to national goals (Vision 2050, NST2, etc.) and the country’s economic agenda through proactive advocacy, business community representation, promotion of collective interests, and facilitation of public-private dialogue.

Despite these significant achievements over the last 25 years, the Federation has faced substantial challenges in fulfilling its role due to existing legal, operational, and collaborative constraints that limit its effectiveness.

It is against the above background, PSF is seeking a qualified and motivated consulting firm to develop a legal framework that addresses these challenges, enabling PSF to better fulfill its mandate and continue contributing to Rwanda’s economic development.

Rationale

PSF is committed to play a key role in achieving national and global development goals, including the Sustainable Development Goals’ Vision 2030 (SDGs), Rwanda’s Vision 2050, and the National Strategy for Transformation (NST2). These initiatives emphasize the private sector’s critical role in promoting inclusive and sustainable economic growth, creating productive employment, and driving industrial transformation. However, despite PSF’s efforts, significant challenges remain in its ability to fully represent and coordinate the interests of the business community.

The current structure and existing legal framework does not provide PSF with sufficient authority to effectively coordinate and represent private sector interests, as some companies and associations are regulated by various ministries and public agencies rather than under PSF’s unified oversight. Additionally, collaboration between PSF and its organs, as well as with government institutions, is limited by regulatory constraints, reducing the Federation’s ability to contribute fully to the country’s private sector-led growth model.

In light of these challenges, PSF is seeking consultancy service to revamp its structure, develop a new legal structure that will enhance its ability to fulfill its mandate.

Objectives

Overall Objective

To redefine the overall objective, mission and vision of the institution, develop a comprehensive new legal framework and an appropriate structure that strengthens the PSF capacity to effectively represent, coordinate, and advocate for the business community, thereby enhancing its contribution to Rwanda’s economic development and its alignment with national and global development goals.

Specific Objectives:

• Redefinition of the Objection, Vision, Mission and Values of PSF
• Reshape PSF’s sructure outlook, the roles and responsibilities of PSF’s organs by clarifying and strengthening the functions of PSF’s organs, leadership and governance bodies to improve coordination and representation of the private sector at all levels;
• Review and assess the current legal framework through identifying gaps and limitations within the existing laws, policies, and regulations that hinder PSF’s ability to represent and coordinate private sector interests;
• Propose legal reforms by developing recommendations for reforms, including revisions to existing laws, policies, and PSF governance and secretariat structures, to enhance PSF’s authority and effectiveness;
• Develop new PSF’s articles of association;
• Explore delegation of business-related services by proposing mechanisms for the delegation of relevant services from government institutions to PSF, ensuring improved efficiency and support for private sector development;
• Propose a new PSF organization structure aligned with the new vision. Conduct a Job analysis, develop job descriptions, job evaluation, grading and remuneration structure.
• Evaluation the current team against the new organizational structure and conduct the process of implementing the proposed new structure.
• Develop a Human resources policy and procedures
• Design a sustainable financing mechanism for the new PSF structure.
• Develop an implementation strategy by outlining a step-by-step approach for implementing the proposed legal and structural changes, ensuring smooth transition and alignment with national development objectives;

Scope of Work

The scope of the assignment involves developing a new working structure, an appropriate Human skills and abilities, and a suitable legal regime that would governor well PSF. The assignment will begin with a comprehensive assessment of the current legal, policy, and regulatory framework governing PSF, identifying existing gaps and challenges that limit its authority and operational efficiency. Based on this assessment, the consultancy firm will propose legal reforms, including necessary revisions to laws, policies, and PSF governance and secretariat structures, to strengthen PSF’s capacity to represent the private sector more effectively.

Additionally, the assignment will involve redefining the roles and responsibilities of PSF’s organs and leadership to improve coordination and representation at all levels of the private sector.

To perform this, the consultancy firm will engage PSF members, leadership, and secretariat, as well as relevant government institutions, ensuring a collaborative approach and alignment with stakeholders’ needs and expectations.

The consultancy firm will also benchmark with private sector organizations’ legal and operational framework both regionally and globally to incorporate best practices and lessons learned. Furthermore, the consultancy firm will explore mechanisms for delegating certain business-related services from government institutions to PSF, aiming to improve service delivery and support for private sector development.

Finally, a detailed implementation strategy will be provided, outlining the steps required to execute the proposed new legal reforms and structural changes, ensuring alignment with Rwanda’s national development goals and a smooth transition.

Tasks and Responsibilities

The consultancy firm will ensure that all reforms and recommendations are tailored to meet PSF’s unique needs and that they contribute effectively to strengthening PSF’s role in Rwanda’s private sector-led growth. Reference to the specific objectives, the tasks and responsibilities will include but not limited to the following:

• Redefinition of the Objection, Vision, Mission and Values of PSF
• Reshape PSF’s structure outlook, the roles and responsibilities of PSF’s organs
• Review and assess the current legal framework
• Propose legal reforms by developing recommendations
• Develop new PSF’s articles of association;
• Propose a list of business-related services that can be delegated government institutions to PSF
• Benchmark with regional and global best practices;
• Review and assess the existing structure and propose a new PSF organization structure that can lead PSF to its objectives and propose its implementation. (Conduct a Job analysis, develop job descriptions, job evaluation, grading, remuneration structure, evaluation of the current teams, etc.)
• Revised and aligned key policies and procedure manuals to the new strategy.
• Recommend a communication strategy for effective collaboration between PSF & the world;
• Design a sustainable financing mechanism for the new PSF structure.
• Develop an implementation strategy.

World class aligned strategic vision for the federation for the upcoming ten years with defined strategic priorities.

Methodology and Approach

The selected consultancy firm will be expected to develop a detailed methodology and tools for executing this assignment. The successful firm will collaborate with PSF’s designated contract manager. A structured questionnaire will be developed, and a participatory approach, including regular discussions with PSF members, leadership, secretariat, and key government stakeholders, is recommended.

The consultancy firm may be required to use the following participatory techniques:

• Documentary review to analyze the existing structure, relevant laws, policies, and reports;
• Field visits for individual interviews (Key Informant Interviews – KIIs) and Focus Group Discussions (FGDs) with relevant stakeholders;
• Organizing and leading validation workshops or other technical meetings to share findings and encourage inputs from various actors.

Key Deliverables

The specific deliverables of the assignment will include:

• ⁠Inception report: this will be submitted within six (6) working days after signing the contract between the two parties (PSF and selected firm). This report should provide information on how the consultant understands the assignment, the proposed approach, and the methodology to be used during the assignment and include a roadmap describing how the above outputs shall be achieved.
• Draft of the new PSF overall objective, organizational structure, and legal framework and its operational plan;
• A final report, which considers the comments and recommendations received after the presentation of the draft report internally and with stakeholders.

Qualifications of the consulting firm

⁠The team of consultants should hold the following qualifications:

• Well known institutional reforms experience. A minimum of 10 years of demonstrable experience in performing similar assignments;
• Advanced degrees in law, economic policy management, business management, strategic planning, human resources management and other related fields.
• Prior research experience in EAC is highly desirable; experience working in Rwanda in the field of private sector development projects or programs would be an added advantage;
• Excellent communication skills with ability to explain complex concepts in a simple manner;
• Excellent command of English, both spoken and written. Knowledge of French and/or Kinyarwanda will be an advantage;
• Demonstrate strong quantitative and qualitative research skills and a proven ability to write high-quality documents.
• Joint Ventures are allowed.

Duration and Reporting of the Assignment

The assignment will be executed for a period of sixty (60) calendar days with effect from the time of signing of the contract and the consultancy firm will be reporting to PSF’s assigned contract manager. The consultancy firm will be responsible for setting up meetings with the appropriate government counterparts, district and community business leaders, and stakeholders working in areas of Private Sector Development. PSF shall provide a recommendation letter to the selected firm.

The draft and final reports will be shared with and validated by PSF and other key stakeholders.

The contract will be signed between the selected firm and PSF secretariat as the hiring institution. The assignment will be governed by PSF procurement rules and regulations.

Payments Arrangements

The payment modalities to the consultancy firm will be discussed during the contract negotiation processes and upon agreement the process will be clearly shown in the contract.

Application Specifications

A firm interested in the consultancy will be expected to provide the following documentation:

• Detailed response to the ToR, with specific focus on addressing the scope of work, timeline, and methodology to be used;
• ⁠Initial work plan based on the methodology outlined, final deadline indicated in this ToR, and availability of the applicant;
• Company profile and CVs of the Lead Consultant and for the other three members of the team, including a minimum of three professional references;
• Certificates of completion, with contact information, from clients for whom the Consultancy firm has performed similar assignments in the past;
• Detailed budget breakdown based on expected daily rates and initial work plan.
• RSSB certificate;
• RDB company registration certificate;
• RRA tax clearance certificate.

Submission of Bid

Interested firms should submit online well-bound and separate technical and financial Proposals, in English not later than Wednesday 27^th November, 2024 at 4pm local time.

Inquiries and Submission of all documents will be sent in soft copy to the attention of

PSF Procurement at procurement@psf.org.rw