Consultant – Development of a Framework for Affordable Vehicle Finance at Palladium

Project Overview and Role:

Introduction

The Jobs and Economic Transformation in Ghana (JET) Programme is funded by the UK Foreign, Commonwealth and Development Office (FCDO). The programme is FCDO Ghana’s flagship investment-led job creation programme that will help Ghana transition away from aid dependence in line with the Government of Ghana (GoG) “Ghana beyond Aid” strategy. It seeks to leverage increased investments into the manufacturing and industrial sectors, and introduce new technology and management capabilities, increasing the capabilities of the workforce generating formal employment and economic diversification.

Objectives of the Assignment
Global Objective

• The overarching objective of this assignment is to unlock the economic potential of Ghana’s vehicle assembly to facilitate increased investments, creation of highly skilled jobs, component manufacturing and improved road safety.

Specific Objective

• The specific objective of this assignment is to develop a framework for affordable vehicle financing which will stimulate demand for locally assembled new cars, thereby spurring investments for the sustainable growth and development of Ghana’s automotive industry.

Scope of Work

• In view of the above, the Consultant/ Firm shall be required to undertake the following tasks:
• Provide detailed information and lessons learnt from other economies (e.g., South Africa) in developing similar affordable vehicle finance programmes and the roadmap to achieving single-digit interest rate.
• Provide detailed information and lessons learnt from other countries (e.g. India  Nigeria, South Africa) in developing women-targeted vehicle finance programmes for commercial and non-commercial use – including lower rate to interest-free loans.
• Propose a framework for Vehicle Asset-Based Finance and a complementary but separate women-targeted framework.
• Propose a scheme for affordable vehicle finance, initially for new cars and subsequently for used cars.
• Propose a complementary but separate scheme for women-targeted affordable vehicle finance, for both commercial and non-commercial use, initially for new cars and subsequently for used carRequired Outputs

The following outputs are expected to be delivered considering the scope of work above:

• Establish a Working Group consisting of all relevant stakeholders – ensuring women-focused associations and consumers organizations are included.
• Submit a proposal for the development of a framework for Vehicle Asset-Based Finance model and of a women-targeted framework.
• Submit a proposal for the development of an Affordable Vehicle Finance Scheme and of a women-targeted Affordable Vehicle Finance Scheme.

Location & Duration:

• This assignment shall be for a duration of two (2) months.
• The Firm/ Consultant, in the first part of the assignment, will engage extensively with the Technical Working Group formed by MoTI.
• The Firm/ Consultant, shall with the assistance of MoTI & JET, undertake further analysis and broader stakeholder engagements, including but not limited to Financial Institutions (FIs), Regulatory Institutions (Monetary Policy Committee), MDAs, Associations and Consumers.
• For the second part of this assignment, the Firm/ Consultant shall collaborate with the Technical Working Group to deliver a roadmap to GoG & JET on how to sustainably reduce interest rates to single digits.

Consequently, the Expert will submit the following proposals:

• Affordable vehicle finance scheme (plus a complementary but separate women-focused scheme for affordable vehicle finance), and
• Vehicle asset-based finance framework (a complementary but separate women-targeted framework for vehicle asset-based finance).

Reporting and Timeframe

• The assignment is expected to commence on 01 November 2022 and end by 15 January 2023.
• Activities to be undertaken by the Consultant/ Firm include engagement with relevant multi-sectoral stakeholders in Ghana, provision of initial findings and recommendations and delivery of final proposal to JET and MoTI (not exhaustive).
• The Consultant/ Firm shall report to the JET – Auto Sector Lead and MoTI Chief Director, submitting weekly and monthly progress reports to same.
• At the end of this assignment, the Consultant/ Firm shall submit the proposals to the JET – Auto Sector Lead, MoTI Chief Director and Hon.
• Minister of Trade and Industry in both hard copies and electronic version readable by Microsoft Office application.
• All relevant technical papers, reports and other documents shall be attached to the final proposals to be submitted to JET and MoTI.
• The proposals shall be in English language only.
• Additionally, the Consultant/ Firm shall submit a final report to the JET – Auto Sector Lead, MoTI Chief Director and Hon.
• Minister of Trade and Industry no later than two (2) weeks from the date of completion of this assignment.
• The final report shall include recommendations of achieving and sustaining affordable vehicle finance. Likewise, all relevant documents, technical papers and reports shall be attached to this final report.
• The report shall be submitted in both hard copies and electronic format readable by Microsoft Office application.