Grameen Foundation

SUMMARY The HARITA project team of Oxfam America is currently working to scale up its existing microinsurance project within Ethiopia and three other countries over the next five years, in cooperation with the World Food Program. We are seeking a team of volunteers to develop a country expansion assessment tool and conduct market research necessary for project expansion beyond Ethiopia. Business consulting experience is desirable. Project can be done remotely. BACKGROUND The World Food Programme (WFP) and Oxfam America (OA) have entered into a strategic partnership to develop and scale a holistic risk management framework that combines risk reduction with support to enable households to take ‘smart risks,’ allowing them to build more sustainable livelihoods which are protected through risk transfer mechanisms. The R4 Rural Resilience Initiative model takes a farmer-centric approach to risk management, and is based around the idea of managing four risks - community risk reduction (i.e., improved agricultural practices and conservation activities), prudent risk taking (i.e., credit), risk transfer (i.e., insurance) and risk reserves (i.e. savings). The R4 Rural Resilience Initiative will build on the successful Horn of Africa Risk Transfer for Adaptation (HARITA) program piloted by Oxfam America in the drought-prone Tigray region of northern Ethiopia in 2008. The project’s core innovation is supporting cash-poor farmers to transfer risk by paying for weather index crop insurance with their own labor through an existing, WFP-supported government safety net food and cash for work program. The HARITA program in Ethiopia has been supported through Swiss Re, the world’s largest reinsurer. R4 leverages WFP’s experience and innovations in managing productive safety nets with governments with OA’s rights based approach to development and unique market systems approach. The WFP is the world’s largest humanitarian agency fighting hunger. Since 1962, WFP has been building expertise in providing emergency food assistance around the world. R4 supports WFP’s recent strategic plan of moving from food aid toward food assistance, whereby WFP’s interventions include meeting hunger needs, strengthening local markets, increasing small farm-holder productivity and building national capacities. Oxfam America is an international relief and development agency that creates lasting solutions to poverty, hunger and injustice. The HARITA project is managed by Oxfam America’s Private Sector Department. R4 will be rolled out in four countries over the next five years, including scale up of the existing HARITA project in Ethiopia. CHALLENGE While the potential gains are large, undertaking microfinance activities poses significant risk to Oxfam and its partners. Thus, the selection of countries in which to scale up the program needs to be based on careful market research and analysis. The HARITA team is primarily focused on managing the existing project and has limited time to adequately conduct this critical research. PROJECT DESCRIPTION AND OBJECTIVES The volunteer team will develop an Assessment Tool that provides a systematic process for vetting possible expansion countries. This tool will then be used to conduct research to assist Oxfam America and WFP to identify 3 to 5 additional countries with different risk, institutional, and livelihoods profiles. These countries will be selected to provide a solid foundation for evaluating the potential of replicating and scaling up the HARITA initiative. An emphasis will be placed on looking at the applicability of the R4 integrated approach in areas facing differing climate change hazards. Several countries have already been short-listed as possible candidates for expansion. While the WFP has so far only secured approval from the first list of country directors below, they are open to expanding this list. The top priorities for WFP are Haiti and Mali. 1. Countries Already Approved by WFP Country Directors: Ethiopia, Haiti, Peru, Mali, Senegal, Cambodia; 2. Countries Being Explored by Oxfam Great Britain (OGB)/MicroEnsure for Micro-insurance Expansion: Rwanda, Tanzania; and possibly Ethiopia. With a second cohort (beyond Gates financing) for Nepal and the Philippines; 3. Countries being scoped by Oxfam America/SCALE for Price Risk Transfer Pilot: Niger, Ethiopia, Malawi, Tanzania. The following have been identified as minimum criteria for country selection: ? WFP and Oxfam America (or an Oxfam International affiliate) should already have a presence in the target country; ? WFP and Oxfam International affiliate regional offices should be interested in participating (regional offices are decentralized, with a lot of autonomy); ? A labor-based safety net program should exist; ? Adequate infrastructure (e.g. weather stations) to provide unbiased weather data and minimize basis risk; ? Government support/buy-in is critical; In addition, the Assessment Tool should include the following, but not limited to, criteria for assessing potential expansion countries: ? Competition/Collaboration: What is the existing credit infrastructure? Are there credible, cost-effective and commercially viable national insurers, whose payments are guaranteed by a credible authority, and intermediaries that market and package insurance with relevant inputs, technology, agronomic and weather information, and/or financial services? Who are the existing MFIs? What other NGOs and international agencies are working in the country, particularly in the field of microfinance and agriculture? ? Legislative and Regulatory System: What is the legislation governing insurance (particularly index insurance) and microfinance? Is there an enabling environment to enforce contracts and supervise insurance, and in which subsidized risk-management options do not crowd out market-driven products? ? Climate Change Hazard Profile: Are there infrequent but high-impact events that threaten livelihoods or cause traditional coping mechanisms to fail? Annual rainfall, weather trends, risk severity and probability, etc; ? Livelihood Analysis and Agricultural Profile: What types of crops and livestock exist? What are the growing seasons? Percent of population involved in agriculture; farmer demographics; ? Exogenous Market Risks: Volatility and vulnerability to global financial markets; ? Existing Coping Mechanisms: Are there community-based risk management practices, self-insurance, savings groups, etc; ? Perceptions of Value of Insurance: What is the target population’s financial literacy and appetite for risk? Are there existing threats to the program’s credibility or confidence in the market? VOLUNTEER DELIVERABLES AND TIMELINE Deliverables: • Assessment Tool; • Written report of country analysis findings and recommendations presented to OA and WFP. In addition, the volunteer will be expected to attend weekly conference call team meetings. VOLUNTEER REQUIREMENTS Oxfam America seeks a team of volunteers with experience in: • Insurance industry; • Market research and analysis; • Business consulting. PROJECT DURATION AND LOCATION The project will begin in April and will last four to eight months. The timing will be finalized once a team of volunteers is identified. The project can be done remotely.