TERMS OF REFERENCE NATIONAL INDIVIDUAL CONSULTANTS (LEAD CONSULTANT AND GENDER CONSULTANT) - ANALYTICAL STUDY OF GREEN GROWTH SECTOR AND ITS POTENTIAL FOR WOMEN ENTREPRENEURS IN KENYA Background In 2011, climate change, both man-made and otherwise was shown to have a detrimental effect on Kenya’s socio-economic development, placing major strains on natural resources, food security, political stability, health and poverty. It is estimated that as of 2011, 3.7 million Kenyans were in need of food, clean water and basic sanitation. The impact of drought on the economy between the years 2008-11, was estimated at Ksh 986 billion, which reduced the economic growth rate to 2.8% per annum. Furthermore, as electricity generation is heavily reliant on rainfall, lost productivity due to inadequate power supply is estimated to have cost the economy in excess of Ksh 100 billion. Floods have been responsible for the loss of lives, livelihoods as well as extensive damage to the country’s infrastructure1. Kenya is principally dependent on traditional fuel sources with wood fuel and other biomass accounting for 68% of total primary consumption, followed by petroleum and electricity. The national electrification rate is 23%, with rural access to the grid being a mere 5 % and urban access 50%2. Access to clean water and sanitation facilities remains limited, with approximately 60% of Kenyans having access to improved water, the percentage for rural and urban areas being 52 and 83 respectively. Improved sanitation coverage is merely 42 % in rural and 55 % in urban areas.3 Kenya continues to suffer from high unemployment and this particularly affects women and the youth. In 2011 a mere five percent (2.13 million) of Kenyans worked in formal employment, with the large majority of those employed, working informally (9.3 million). Women and youth are particularly represented in this sector, with a reported 83% of females being in informal employment compared to 71% of males. What is imperative to note however, is that the majority of those working informally are unable to generate adequate incomes and live in poor and vulnerable conditions. It is estimated that 44% of Kenyans continue to live in poverty with the majority of poor households being single, female headed households. The majority of the poor depend directly or indirectly on natural resources for their livelihoods and 27.4% of the population is vulnerable to poverty through for example the influence of external shocks such as natural disasters4. The agricultural sector is Kenya’s main source of income and employment especially in rural areas. Agriculture accounts for 28% of Kenya’s GDP, employing 75% of the national labour force. Over 80% of the Kenyan population live in the rural areas and derive their livelihoods from Agriculture. Kenya’s informal sector makes up a significant section of the economy accounting for 77% of employment. According to statistics over 60% of those working in the informal sector are youth aged between 18-35 with 50% being women.5 Furthermore, climate change has a direct impact on the majority of small holder and subsistence farmers who rely on 20% of arable land within the country. It is also estimated that women own and operate at least half of all MSEs in Kenya, 85% of which operate in the informal sector and two-thirds in rural areas6. 1 Kenya National Climate Change Action Plan. Lighting Africa 2012, Policy Report Note; Kenya 3 http://kenya.usaid.gov/programs/water-and-sanitation 4 Oxford Poverty and Human Development Initiative (2013) Multidimensional Poverty Index (MPI) at a Glance, Country Briefing:Kenya 5 Institute of Economic Affairs (2012), The Budget Focus; Informal Sector and Taxation in Kenya, Issue No.29, Sept. 2012 6 IBID 2 The Green Economy Due to its promise for offering an opportunity for addressing economic challenges and environmental pressures the world is facing in the form of climate change; natural resource depletion; loss of biodiversity; and rising inequality, the potential of the green economy has received a great deal of attention and acceptance globally. There is no internationally agreed definition of green economy. UNEP’s widely acknowledged definition of the green economy is “one that results in improved human well-being and social equity, while significantly reducing environmental risks and ecological scarcities. In its simplest expression, a green economy can be thought of as one which is low carbon, resource efficient and socially inclusive”7. UNEP identifies ten sectors through which to work towards a greener economy: fisheries, agriculture, energy supply, buildings, forestry, tourism, transport, waste, water and manufacturing & industry. The green economy is seen as having great potential in securing more sustainable development paths and is estimated to be worth more than $5trillion, currently employing more than 30 million people globally, and is projected to grow at 3.7% per year over the coming years. Kenya is party to a number of multilateral environmental agreements (MEAs). Perhaps even more importantly however, the Government of Kenya (GoK) has begun the effort of introducing and implementing policies and initiatives that support the green economy agenda. The Constitution of Kenya 2010 clearly brings forward the environmental objectives of the country by calling for “sustainable exploitation, utilization, management and conservation of the environment and natural resources” and Article 42 of the Bill of Rights states that “every person has the right to a clean and healthy environment, which includes the right to have the environment protected for the benefit of present and future generations. The country’s Vision 2030 envisions a country in which its citizens can enjoy a high quality of life in a clean and secure environment. This overarching goal is given significant importance under the Medium Term Plans. The green economy in Kenya is seen as having great potential in ensuring economic growth in the long run and as stated in a scoping study carried out by the Kenya Institute for Public Research and Analysis (KIPRA 2012) Kenya should take advantage of the opportunities that arise from green growth and effectively address challenges and barriers. A green economy approach would allow for ensuring the sustainable consumption of natural resources, energy efficiency, whilst sustaining economic growth and development. The key sectors of the green economy in which Kenya has begun and continues its efforts are renewable energy; promotion of sustainable production and consumption; pollution control and waste management; sustainable production and consumption; environmental planning and governance; and the restoration of forest ecosystems8. In the Kenyan context green economy should be understood as economic activities and processes that are equitable and inclusive, but do not compromise environmental sustainability. It is important to note that the draft MTP II of the Government of Kenya brings forth that the growth strategy of the country embraces measures to ensure a greener economy and that the economy is put on a low carbon trajectory. Furthermore, the African Development Bank (AfDB) in cooperation with UNEP, UNDP, WWF and ILO are supporting the Government in preparing a Green Economy Strategy and Implementation Plan that should be completed by the end of 2013. The potential for women entrepreneurs in the green economy 7 8 http://www.unep.org/greeneconomy/AboutGEI/WhatisGEI/tabid/29784/Default.aspx KIPRA (2012), Green Economy Scoping Study-Kenya The green economy holds a great deal of potential for the Kenyan economy, particularly for women entrepreneurs and provides opportunities for reducing poverty and inequality by improving incomes. It has been estimated that the green economy would enable Kenya to achieve annual real GDP growth of 5 percent as compared to 3.7 percent under a business as usual scenario by 2030 9. There is ample evidence demonstrating the existing potential for job creation as a given economy transitions to a more sustainable and green economy. For example, in Brazil, jobs related to greening the construction, commercialization, maintenance and use of buildings grew from 6.3% to 7.3% in 2 years. In China, the green component of the fiscal stimulus started in 2008 was expected to create upwards of 5.3 million direct and indirect jobs with other estimates predicting the creation of 8 million jobs in the renewable energy sector over the next two decades. In essence, several opportunities exist in the transition towards a green economy and can function as new growth engines and lead to higher income and employment10. This potential is especially important since when it comes to the effects of climate change, the poor, particularly women and the vulnerable are the most affected and these effects are likely to exacerbate existing inequalities. Women in Kenya have been observed to be disproportionately affected by drought, for example, because pre-existing gender discrimination exposes them to higher rates of poverty and insecurity and because of the extra socio-economic burden they have meeting the needs of households, children, vulnerable and the elderly11. According to the Ministry of Energy report on Gender and Climate change in Kenya (2007), women, particularly in rural areas are the main producers and labor, and have in the past been viewed as the destroyers of natural resources through their harvesting of biomass energy. They have also been viewed as the victims of the ensuing energy crises and most recently are considered as critical players in natural resource management12. There are many opportunities within the green economy for income and employment generation including, but not limited to, sectors such as agriculture in which women are the predominant actors. Although the majority of women are involved in agricultural work, they only represent 23% of formal wage employees in agriculture. Thus, whilst rural women contribute significantly to agricultural production, they are excluded from formal employment13. Agriculture contributes approximately one quarter of GDP annually but is increasingly under pressure due to increases in population and extreme weather changes. Sustainable agriculture, water and waste management for example provide an opportunity not only for mitigation to climate change but also adaptation in the form of increased farm yields as well as access to international markets. Numerous studies have shown that sustainable methods of farming increase yields and incomes. For instance, in a project involving 1,000 farmers in South Nyanza, Kenya, increased crop yields by 2-4 tonnes per hectare after an initial conversion to organic farming and in Thika, Kenya 30,000 smallholder farmers increased their incomes by 50% within three years after switching to organic production. The energy sector in Kenya also holds many opportunities for women entrepreneurs however, the sector is currently not yet well developed and statistics on women owned enterprises within the green sector do not readily exist. According to the Global Village Energy Partnership (GVEP) available data on the energy sector show that women commonly operate small businesses within the cook stoves and briquette enterprises and mainly use manual methods for briquette production as 9 KIPRA (2012), Green Economy Scoping Study-Kenya UNEP Briefing note on Green Economy and Employment 11 Adaptation climate change summary. 12 www.energia.org/kenya-gender-audit-report.pdf 13 UNDP Kenya (2012) Inclusive Economic Growth and Social Development Unit, Strategic Framework 2014-2018 10 opposed to mechanized processes14. These women-owned enterprises do not require a high level of capital, and utilize low technology which affects their scalability as well as their ability to create tangible employment. The solar and biogas enterprises are dominated by men. This is because solar and biogas technology requires a higher investment to start and grow, of which women generally lack access to15. Enterprises within the green sector in rural areas often work in isolation, and are characterized by low production capacity. Furthermore, these enterprises are unable to grow as they do not have the marketing experience, practical knowledge and human resource management required.16 According to the GVEP, delivering a successful energy business, especially within rural areas is more challenging as linkages to suppliers, customers and financial institutions are limited and this combined with operating in isolated areas where consumer awareness and purchasing power are low, contributes to the high failure rate of these enterprises.17 The solid business case for moving towards more sustainable methods of farming and energy use are clear. For example, in Uganda, organic farm yield exports saw a significant increase between 2003 and 2008 totalling US $22.8 million18. Furthermore, through a commissioned study it was shown that prices of organic pineapple, ginger and vanilla were 300%, 185 % and 150 % higher, respectively, than those of conventional products. Through organic farming, Uganda has not only gained economically, it has also made a significant contributed to mitigating climate change.19 It is therefore important that existing enterprises are given the necessary support but also more effort must be focused on women’s diversification into other energy technologies such as solar, biogas and recycling and these efforts should be focused on how these businesses can be scaled up quickly to provide higher access to this technology at the community level but also in creating jobs.20 Additionally there is a need to support women entrepreneur’s start-ups and facilitate their entry into the market. The successful transition to a green economy which will result in sustainable development requires reforms that support economic transformation through capacity building, reform of regulatory frameworks and improved financing mechanisms. There is now a need to look further into the potential that the green economy provides for inclusive growth and possible role of women entrepreneurs in this process. The study will allow for identifying entry points for women entrepreneurs as well as barriers and challenges that currently exist. Particularly important will be to look into the market potential of the green economy specifically for Micro and Small Enterprises and women entrepreneurs. Furthermore the study will provide recommendations and specific needs for interventions. Given this background and the potential for the green economy to boost economic growth and create employment and sustainable livelihoods in Kenya, it is essential that all relevant stakeholders understand the policy and legal environment and whether it takes into account the challenges and special considerations needed to ensure that both potential and current women entrepreneurs are fully participating within the green economy. Additionally, it is important to understand the current businesses that women are operating in within the green economy and whether these activities have potential for scaling up and what particular challenges they face. 14 www.gvepinternational.org/sites/default/files/gvepsexperiencewithworkingwithwomen.pdf www.globalenvision.org/2012/10/17/can-kenyas-new-climate-center-pull-green-investors-africa www.globalenvision.org/2012/10/17/can-kenyas-new-climate-center-pull-green-investors-africa 17 http://www.gvepinternational.org/site/default/files/gveps experience with working with women.pdf 18 Working towards sustainable development. Opportunities for decent work and social inclusion in a green economy. UNEP/ILO Report 19 Working towards sustainable development. Opportunities for decent work and social inclusion in a green economy. UNEP/ILO Report 20 http://www.gvepinternational.org/sites/default/files/gveps_experince_with_working_with_women.pdf 15 16 Objective The main objective of this analytical study is to assess the potential for women entrepreneurs in the green growth sector in Kenya to inform the development of appropriate programs and strategies supporting and fostering women entrepreneurs in the sector. Objectives include: Market potential and entry opportunities for women entrepreneurs 1) Gain a comprehensive understanding of the market potential of the green economy specifically for women–led micro and small enterprises. The analysis will cover the potential and challenges of the different green growth sub-sectors. The analysis will include a detailed description of the current market structures and dynamics. 2) Considering the heterogeneous nature of Kenya’s women-led MSE sector, analyse the market potential for both well established, formal micro and small enterprises as well as for informal/rural micro enterprises/women groups at the bottom of the pyramid. 3) Gain an overview of current women entrepreneur businesses both in rural and urban areas that work within the green economy sector. 4) Gather best practices from Kenya and internationally and provide an overview of what is being done by different stakeholders in Kenya. 5) Identify potential entry points for women entrepreneurs within the sector as well as potential for diversification into other technologies, considering the heterogeneous nature of the women-led MSE sector. 6) The study will also look into the supply chains and existing and potential linkages between MSEs and large companies, and recommend how these could be strengthened. 7) Identify specific areas within the green economy that hold high potential for women owned businesses and MSEs i.e. Agriculture vs. Energy. Institutional, regulatory and policy frameworks 8) The study also aims at gaining an understanding of the institutional, regulatory and policy frameworks around the green economy in Kenya and whether these take into account the specific needs and challenges that women entrepreneurs face. Additionally, the study will explore whether policies and strategies socially inclusive taking into account income generation opportunities for the poorest sections of the population. Focus and Scope of Study UNDP Kenya, in the framework of the GoK-UN Joint Programme on Gender Equality and Women’ Empowerment, seeks a team of two national individual consultants to undertake an analytical study on the Green Growth Sector and its potential for women entrepreneurs. The proposed study should provide a comprehensive analysis of the green growth sector and the existing policy frameworks in reference to Kenya, drawing on best practice examples and lessons learned regionally and internationally and how women entrepreneurs in particular can take advantage of this high growth sector. Within the specified assignment of 40 working days, the team of two consultants will be responsible for separate outputs both of which will contribute to the final report including observations. It is expected that the two consultants will work closely together at all stages of the consultancy period. The study is conducted for UNDP Kenya in the framework of the Joint Programme on Gender Equality and Women’s Empowerment (JP-GEWE)21 and is intended to work as a background and reference document informing programmes and initiatives in relation to green growth and women entrepreneurs in Kenya. As such it should provide specific recommendations of approach for future initiatives in the sector and needs for further research, as well as identify possible best practices that could be replicated. Lead Consultant Outputs: The lead consultant will be responsible for 1) Leading the study, supervising the gender consultant and ensuring a high-quality output (report) 2) Analysing the current market structures, dynamics and potential relating to the green economy in Kenya, aggregated by different sectors. 3) Analysing the market potential as well as challenges for both well established, formal micro and small enterprises as well as for informal/rural micro enterprises at the bottom of the pyramid. 4) Providing an overview of green business activities Kenyan MSME entrepreneurs are currently active in, including women-led MSMEs. 5) Gathering best practices from Kenya and internationally on MSME engagement in the green growth sector. 6) Identifying potential entry points for women entrepreneurs within the sector as well as potential for diversification into other technologies, considering the heterogeneous nature of the women-led MSE sector. 7) Identifying existing and potential linkages between MSEs and large companies, and recommend how these could be strengthened. 8) Considering MTP II priorities and identify current and planned government and other strategies and programs on MSMEs in the green growth sector, in particular women-led MSMEs. Lead Consultant required competencies: The suitable consultant is expected to meet the following minimum requirements A Master’s Degree in Environmental/Development Economics, Sustainable Development and/or Climate Change Policy At least fifteen years of consultancy experience on environment, private sector development research and policy analysis both in public and private sectors. Demonstrable evidence of previous research assignment on the green growth sector and green economy, climate change desirable. PhD Candidates with at least ten years’ experience will be considered. A sound understanding of national, regional and international sustainable development, climate change and green growth financing arrangements, modalities and challenges; In-depth knowledge and understanding of international, regional and national private sector development issues, policies, good practices and benchmarks; Demonstrable ability to work with and build relationships with stakeholders from diverse backgrounds in private sector, civil society, public sector on complex issues of great national importance. 21 Coordinating Agency: UN Women, Participating Agencies: ILO, IOM, OCHA, UNAIDS, UNDP, UNEP, UNESCO,UNFPA, UNHABITAT, UNICEF, UN WOMEN, UNIDO,UNODC, WHO Highly developed skills in mobilisation and institutional development. Highly developed analytical skills with ability to produce high quality analytical reports and policy papers. High organizational and facilitation skills and ability to handle complex tasks with tight deadlines. Effective communication skills both written and verbal. The Gender consultant required outputs: Under the supervision of the Lead Consultant, the Gender Consultant will be responsible for 1) Undertaking a rough stocktaking on the existing women entrepreneurs/women initiatives in Kenya, by sub-sector and by geographic area. 2) Profiling of existing successful women entrepreneurs in the sector. 3) Identifying the challenges and entry barriers faced by by women entrepreneurs active in the green economy. 4) Identifying potential income-generating activities for low-income women; 5) Carrying out an overview of the existing policies and strategies relating to the green economy and whether these are socially inclusive and gender sensitive. Key strategies, which need to be influenced in order to ensure more socially inclusive green growth strategies should also be identified. All recommendations of the gender consultant must feed into the final report and recommendations of the lead consultant and will therefore require that both work together on a regular basis. Gender Consultant required competencies: A Master’s Degree in Gender, Environmental/Development Economics, Business Administration with an emphasis on Entrepreneurship, or Natural Resources Management. At least 10 years of consultancy experience on gender and the environment, in private sector development research and policy analysis both in public and private sectors. Demonstrable evidence of previous research assignment on the green growth sector and green economy, climate change and its effect on women are an asset. Demonstrated experience/expertise in gender mainstreaming. A sound understanding of entrepreneurship and the specific needs and challenges that women entrepreneur’s face and the strategies that can be utilized to harness and promote women entrepreneurship. In-depth knowledge and understanding of international, regional and national private sector development issues, policies, good practices and benchmarks; Demonstrable ability to work with and build relationships stakeholders from diverse backgrounds in private sector, civil society, public sector on complex issues of great national importance. Highly developed skills in mobilisation and institutional development. Highly developed analytical skills with ability to produce high quality analytical reports and policy papers. High organization and facilitation skills and ability to handle complex tasks with tight deadlines. Effective communication skills both written and verbal. Outputs The key output from this assignment will be a report on the green growth sector and its potential for Kenyan women entrepreneurs, analyzing the market potential and entry opportunities for women entrepreneurs, including Comprehensive description of market potential and challenges of green economy, with special focus on women-led micro and small enterprises including description of current market structures Analysis of market potential for both informal and formal MSE’s at all levels of pyramid Overview of current women entrepreneurs involved in green business in both rural and urban areas Best practices from Kenya and abroad including overview of activities by stakeholders in country Identification of entry points for women entrepreneurs as well as potential for diversification into other technologies and scaling up activities Description of supply chains, identifying potential linkages and providing recommendations for strengthening these linkages between MSEs and larger companies Specific areas within the green economy that hold high potential for women owned businesses and MSEs. Providing account of relevant institutional, regulatory and policy frameworks in Kenya and whether they are socially inclusive and the specific needs of women entrepreneurs are taken into consideration. List of outputs: Output Inception report including draft structure of final report First draft of final report sent to UNDP for comments Stakeholder consultation workshop Incorporation of comments and finalisation of report. Report delivered to UNDP Stakeholder workshop (s) Duration of Contract 40 working days for lead consultant and 30 working days for gender consultant over a period of 2 months Reporting lines The Consultants will work in direct collaboration with UNDP Kenya and directly liaise with UNDP Kenya on a weekly basis UNDP as hiring entity will ensure quality assurance. Duty Station Nairobi Logistical Arrangements Logistical arrangement for field visits outside of Nairobi shall be done by UNDP Kenya. The service providers are expected to provide their own equipment and working space and will be responsible for all other logistical arrangements including meeting and workshop coordination. Payment will be done according to milestones agreed during contract signing. Application Procedure Interested and qualified candidates should submit their applications which should include the following: 1. UNDP Personal History Form (P11) which should include contacts of three referees 2. Detailed Curriculum Vitae 3. Proposal for implementing the assignment Please quote the following references on the subject line depending on the post you are applying for:1. Lead Consultant – Analytical Study of Green Growth Sector 2. Gender Consultant – Analytical Study of Green Growth Sector Applications should be emailed to consultants.ken@undp.org to reach us not later than Monday, 18 November 2013 at 2.00 P.M Kenya Time. Please see the Terms of Reference, the P11 form, the Individual Contract Proposal form and the Terms and Conditions of Individual Contracts by visiting the UNDP Kenya Website: http://www.ke.undp.org/content/kenya/en/home/operations/procurement