Lead Consultant on Development Finance Assessment

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Lesotho is highly committed to the implementation of the Sustainable Development Goals (SDGs) of the 2030 Agenda, which is operationalized through the National Strategic Development Plan II (NSDP II) 2018/19–2022/23, aiming to achieve economic and institutional transformation for private sector-led jobs and inclusive growth. The NSDP II is also aligned with the African Union Agenda 2063 and Regional Indicative Strategic Development Plan of the Southern African Development Community.

However, as a Lower Middle-Income Country, Lesotho’s financing resources have fallen short of the national development needs. Total government revenues declined from 58.5% of GDP in 2014-15 to 42.6% of GDP in 2018-19, largely due to unfavorable macroeconomic and fiscal environment. Revenue management capacity of the government is also limited, with 72% of the collected revenues going into recurrent expenditures (mainly driven by public wage bill). This leaves little for public investments to support the implementation of the NSDP II and SDGs priorities. Further, the public investment budget execution is undermined by limited absorptive capacity of ministries to spend allocated budgets, with very low execution rates of 20% to 45% in health, education, agriculture, and water and energy. Budget oversight, transparency and participation by Parliament and civil society are also weak. The Open Budget Index scored Lesotho 0/100 on budget transparency and participation, and 31/100 on budget oversight in 2017.

Almost 80% of enterprises in Lesotho are Small, Medium and Micro Enterprises (SMMEs), with the rest being state-owned enterprises, financial sector, foreign-owned retail chain stores and communication companies. The regulatory, legal and policy frameworks are weak for private sector engagement. Private sector investment is estimated at about 10% of GDP. Foreign direct investment has steadily declined from 4.94% of GDP in 2015 to 1.45% in 2018. Lesotho remains dependent on remittances, with remittance inflows accounting for 17.5% of GDP. Nonetheless, due to absence of strong regulatory framework, and limited knowledge and statistics on the development impact of remittances, the government lacks the ability to leverage these resources for investments in sustainable national development.

The COVID-19 pandemic has been adversely affecting the implementation of the SDGs and NSDP II in Lesotho. The GDP growth is projected to decline to -4.5% in 2020 from 0.9% in 2019, according to the IMF. The government adopted a range of containment measures, including social distancing, travel restrictions, declaration of a national state of emergency, closure of borders to all but essential goods, closure of schools, extension of initial 21-day lockdown for two weeks (until May 5) and suspension of some shops. The lockdown of the country was lifted on May 19, although with compulsory use of

masks in public spaces and restrictions in high risk sectors such as tourism, sit-in restaurants, and entertainment. The economy is gradually reopening.

The government has taken various fiscal measures to alleviate the pandemic impact. Two major packages are: (i) a M700 million (about 2% of GDP) fund was set aside for the National COVID-19 Response Integrated Plan 2020, more than half of which is being used for health care personnel and purchase of critical goods and services, with the remainder covering logistics, security, and border management; and (ii) economic mitigation measures are also being implemented including 1.2 to 1.5 billion for emergency assistance and expanding social protection.

Given the context above, it is critical for Lesotho to establish an Integrated National Financing Framework (INFF) with holistic, foresighted and risk-informed planning and financing strategy for its sustainable recovery and development priorities. This Development Finance Assessment project, as a solid assessment of the financing landscape and relevant policy and institutional landscape, is part of the joint efforts of the UN Country Team in Lesotho to support the country in putting in place such an INFF. The goal will be to provide solutions to and recommendations on strengthening the financing system in Lesotho and ensuring a financing strategy that enhances fiscal sustainability and stimulates partnerships especially with the private sector for achieving the SDGs.

 


Under the supervision of the UNDP Country Office in Lesotho, and with the support of the UNDP Africa Finance Sector Hub, the Lead Consultant will lead the technical components of the Development Finance Assessment process for Lesotho.

The Lead Consultant is responsible for guiding, shaping and delivering the substantive analysis and recommendations of the DFA process, culminating in the articulation and agreement of an INFF Roadmap.

The Lead Consultant will drive the DFA process forward, under the guidance of the Oversight Committee and UNDP country office in Lesotho, by undertaking the following activities in each phase of the DFA and in relation to the four INFF Building Blocks:

1. DFA initial analysis and consultation phase

  •  Lead consultations with stakeholders across the financing landscape to (i) collect data, information and analysis, (ii) engage stakeholders in the DFA process and (iii) share, socialize and refine initial emerging findings and ideas for recommendations to be developed.
  •  Lead technical discussions at initial multi-stakeholder Dialogues .
  •  Engage closely with the Oversight Committee to ensure the process remains in line with their guidance and objectives for the process.

2. Prepare DFA report

  •  Review and update the Lesotho report on financing sources (2017) based on the new literature to anchor Lesotho’s financing context and outlook
  •  Refine analysis of the financing outlook and context in relation to the INFF building blocks, identifying development priorities and potential recommendations to strengthen financing in relation to the INFF building blocks.
  •  Prepare first draft DFA report.

3. Facilitating Dialogues toward the INFF Roadmap

  • Lead technical discussions, whether through mission(s) or remote engagement, in a series of Dialogues that iteratively shape and refine the analysis and development of ways forward through a collaborative process.
  •  Ensure continuous close engagement with the Oversight Committee to ensure continued alignment with government priorities and government ownership over the process and recommendations.
  •  Facilitate technical discussions through small dedicated working groups to refine specific priorities, as needed.

4. Articulating and agreeing the INFF Roadmap

  •  Work closely with the Oversight Committee to prepare the draft INFF Roadmap.
  •  Work with relevant stakeholders to refine specific, actionable solutions for inclusion in the INFF Roadmap.
  • Support the Oversight Committee as needed to refine, finalize and approve the INFF Roadmap.

 


  • Demonstrating/safeguarding ethics and integrity, by modelling the UN/UNDP’s values and ethical standards.
  •  Promotes the vision, mission, and strategic goals of UN/UNDP.
  •  Displays cultural, gender, religion, race, nationality and age sensitivity and adaptability.
  •  Demonstrate corporate knowledge and sound judgment.
  •  Self-development, initiative-taking.
  •  Acting as a team player and facilitating teamwork.
  •  Facilitating and encouraging open communication in the team, communicating effectively
  •  Creating synergies through self-control.
  •  Managing conflicts.
  •  Learning and sharing knowledge and encourage the learning of others. Promoting learning and knowledge management/sharing is the responsibility of each staff member.
  •  Informed and transparent decision making.

 


Education

  •  A Master’s degree in the field of Finance, Economics or other relevant fields.

Professional Experience

  •  At least 5-7 years of experience in the field of finance, public financial management, private sector development, budgeting and planning. Previous experience with a development partner, international organization, or government is a very strong advantage.
  •  Research experience in areas of public or private financing policy for sustainable development is required.
  • Experience in country level work rooted in public policy reforms in close collaboration with government.
  • Excellent writing skills required, as demonstrated by previous research/analytical reports on relevant topics.
  • Proven ability to lead consultations and facilitate dialogue among senior government officials and other senior stakeholders required.
  •  Sound grasp of substantive policy issues in the key areas of public and private financing.
  • Excellent knowledge of data collection, analysis and statistics tool are essential.
  • Advanced quantitative skills and experience with related data analysis tools are an advantage.
  • Demonstrated ability to engage in strategic analysis, and sectoral analysis.
  • Understanding of and experience in working in Lesotho will be an advantage.

Langugage:

  • Fluent in English.

How to apply:

  • Submit 1. Confirmation of Interest and Availability (Template in the link below). 2. CV, 3.  Technical Proposal
  • Tems of Reference dnd Confrimation of Interest and Availability template can be accessed at:

 procurement-notices.undp.org/view_notice.cfm?notice_id=72306

Closing date: 19 November 2020

Apply here!

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