Procurement No: AUC/IED/119
July 2017

Section I: Letter of Invitation

25 July 2017

Dear Sirs,

REF: REQUEST FOR PROPOSALS FOR ASSESSMENT OF THE IMPLEMENTATION OF THE ACTION PLAN FOR SUSTAINABLE DEVELOPMENT OF POSTAL SECTOR IN AFRICA: PROCUREMENT No. AUC/IED/119

1. The African Union Commission would like to engage the services of a consultant to assess the implementation of the Action Plan for Sustainable Development of Postal Sector in Africa. The purpose of proposed study is to (i) track progress made by the AU Member States in reforming their postal sector, (ii) seek better understanding of challenges faced by Members States in developing and implementing the reform of their postal services notably their e-services programmes, strategies and projects, (iii) draw lessons, and (iv) come up with adequate recommendations and action plan for the 2019-2023 Medium Term Plan will cover the remaining five years of Agenda 2063 First Ten Year Plan.

2. The African Union Commission invites interested and eligible bidders to submit technical and financial proposals for the assignment as per attached Terms of Reference (TORS).

3. A firm will be selected under Quality and Cost Based Selection Method and procedures described in this RFP.

4. The TECHNICAL and FINANCIAL offers must be delivered in TWO SEPARATE envelopes enclosed in an OUTER to the address below on or before the 18 August of 2017 at 1500hrs.

5. Bidders may request for clarifications no less than 7 days from the deadline for submission, from The Chairperson, Tender Board, African Union Commission, Telephone number (+251) 11 5517700, Ext 4341, Email tender@africa-union.org

6. Proposals shall be valid for a period of 90 days. Late bids will be rejected and returned unopened to bidders. The Outer envelope should bear the name and address of the bidder.

7. The address for deposit of bids is:
The Chairperson, Internal Procurement Commission, African Union Commission, Building C, 3rd floor, TENDER BOX, Roosevelt Street, P. O. Box 3243, Addis Ababa, Ethiopia.

Yours sincerely,

Carine Yemitia Toure
Head, Procurement, Travel and Stores Division

Section 2: Terms of Reference

Terms of Reference for Assessment of the implementation of the Action Plan for sustainable development of postal sector in Africa

1. Background
1.1. General context

Delivering the sustainable development agenda and achieving the seven (7) aspirations for the Africa We Want by 2063 mean addressing the gaps in infrastructure needed to support the Sustainable Development Goals (SDGs). In Africa, especially in rural areas, there is one physical network that can provide a concrete answer to some of the key challenges for the implementation of the SDGs given its ubiquitous and well known presence, the postal network. Digital innovation can provide significant opportunities to transform the postal industry into an instrument of sustainable development.
Taking into account this importance of post offices for rural and remote areas empowerment and development, the 2nd ordinary session of the Conference of the African Ministers in charge of ICT adopted in 2008 an Action Plan for the Sustainable Development of the Postal Sector in Africa. The Acton Plan was endorsed by the Executive Council through decision EX.CL/Dec.434 (XIII).
In addition to the recommended in-depth reform of the postal sector in Africa at policy, legal and regulation levels, the Action Plan is structured around the following four key components:
- Reform focused on the use of ICT;
- Development of financial services;
- Development of e-commerce;
- Reduction of the digital divide mostly in rural and remote areas.
The Action Plan was backed by the declaration of the 2010 Assembly of Heads of State and Government of the AU on “Development of ICT in Africa: prospects and challenges” which called ICT stakeholders in Africa to accord special attention to the postal sector, vehicle to reach the populations in remote and rural areas, in building strategies for ICT development.
In addition, the Ministers in charge of Communication and Information Technologies of the African Union member States have over time taken the following decisions:
- Development of standards and guidelines for universal Postal Service and Strategies to promote the utilization of ICT for the sector development;
- Promotion of the implementation of the e-Post programme as part of the national e-strategies taking into account coordination at the regional level;
- Integration of postal services in the wider frame of ICT services and work towards its integration in the universal service access policies at national level;
- Support to the implementation of the continental joint initiative for the connectivity of Post Offices in rural areas in Africa.
The proposed activity in the framework of the 2017 Program Budget namely “Assess the implementation of the Action Plan for Sustainable Development of Postal Sector in Africa” aims at taking stock of progress made in terms of attained performance and identifying the challenges to be addressed to better shape the future.

1.2. Current achievement

1.2.1. At AUC level

In implementing the AU organs decisions with a view to complement the 2008 report on “Diagnostic Evaluation, Policies and Strategies to Develop the Postal Service in Africa”, the AU Commission, in collaboration with PAPU, the specialized institution, has undertaken and completed the following studies:

- Development of remittances in Africa;
- Elaboration of Model and Guidelines for the provision of sustainable Universal Postal Service,
- Strategies to increase financial inclusion of low-income population in Africa, and
- Elaboration Guidelines on Addressing and postcodes systems.

The outcomes of the related studies were adopted by the Conference of Ministers in charge of ICT and endorsed by the Executive Council notably through Decisions EX.CL/Dec.613(XVIII), EX.CL/Dec.739 (XXII) and EX.CL/Dec.900(XXVIII) of the Executive Council.

Furthermore, at the request of the Executive Council ad hoc reports on “Strategies to increase financial inclusion of low-income population in Africa” , “Elaboration Guidelines on Addressing and postcodes systems” and “Electrification and Connectivity of Post Offices in rural areas in Africa” have been submitted to the Conference of 7th Joint Annual Meetings of the AU Conference of Ministers of Economy and Finance and ECA Conference of African Ministers of Finance, Planning and Economic Development and the 9th Joint Annual Meetings of the African Union (AU) Specialized Technical Committee (STC) on Finance, Planning and Integration and ECA Conference of African Ministers of Finance, Planning and Economic Development, respectively.

This led to the following resolutions:

- CAMEF 924(XLVII) which (a) confirmed its commitment to prioritizing the transformation of existing postal assets and resources, with a view to increasing access to basic services and thereby promoting financial inclusion; (b) Commended member States on their efforts to push forward harmonized legal reforms, in collaboration with financial regulators and postal regulatory bodies, and considering the specificity of postal financial services, with a view to providing postal financial services that are more viable, competitive and suited to customers’ needs; that facilitate e-commerce; and that benefit small and medium-sized enterprises, thereby playing an important role in long-term financing for Africa’s industrialization; and (c) Mandated the African Union Commission, in collaboration with the Pan-African Postal Union, the regional economic communities, sub regional postal organizations and the member States, to improve the performance of postal financial services, support information dissemination and best practices, and promote innovation in the areas in which Africa faces particular challenges.

- CUAL-L10 that notably decided to (a) include addressing and postcodes systems in national priorities and to take them into account in national development plans as critical infrastructure to increase access to basic services, (b) encourage Member States implementing such projects to publish the political will to implement an addressing and postcode system and dedicate high priority on effective internal coordination for implementation, (c) Call upon Member States to take ownership of the project and integrate it into national development plans and strategies and (d) Further urge Member States to look into multiple sources of funding, such as national budget, universal service funds, public-private partnerships, international development partners, etc. for the successful implementation of the project.

- The report on “Strategies to increase financial inclusion of low-income population in Africa” reveals that the potential of the existing 26,000 post offices in Africa is being re-discovered with a view to increase financial inclusion. In this respect, many of the post offices (can) play a diverse and relevant but often underestimated low-cost role in promoting financial inclusion. Post office scan fill in gaps in the landscape for financial inclusion, in between bank branches and microfinance outlets, and complement the access infrastructure in peri-urban and rural areas. However, across Africa the position of postal networks and their potential widely differ. Most frequently improvements are needed in the institutional setting, product portfolio, marketing, strategic alliances and partnerships, interoperable ICT, and financial management.

1.2.2. At PAPU level

In furtherance of the decision No. DEC.Ex.CL434 (XIII) and convinced of the need for a thorough follow up, the 28th session of PAPU’s Administrative Council held on 6-7 June 2009 in Cairo Egypt, decided to establish Sub-regional steering Committees. The Council further requested that the PAPU’s General Secretariat, in close cooperation with the African Union Commission develops terms of reference for the Sub-regional steering Committees.

Further to that PAPU sponsored Communications Regulatory Association of Southern Africa (CRASA) to conduct a workshop aimed at harmonising policies and regulations in the SADC region.

PAPU is in the process of developing a draft Directive on harmonised policies and regulations, as well as coming up with detailed principles for Universal Postal Service delivery in Africa.

On remittances, PAPU and M/s. Instant Cash of United Arab Emirates (UAE) Posts signed a Memorandum of Understanding (MOU) in 2014, to facilitate money transfer services for African migrants residing in UAE, to their home countries, using International Financial Services (IFS). Furthermore, the UPU in collaboration with PAPU is currently working closely with International Fund for Agricultural Development (IFAD) in promoting financial inclusion efforts by post offices in Africa aimed at meeting the financial needs of migrants and their families in rural areas.

It may also recall that under the coordination of PAPU and UPU, PAPU Member States made a Declaration in June 2015, in Khartoum, Sudan, and adopted a matrix of regional cooperation and development priorities that will be integrated in the Regional Development Plan for Africa for the period 2017-2020 on the basis of the following priority levels:

Level one: Improvement of operational efficiency and e-commerce development;
Level two: Postal financial services development
Postal Sector development
E-services and diversification
Level three: Sustainable Development and Inclusion

In conclusion, the structure of the impending Action Plan can be addressed as indicated in the table below:

S/N KEY COMPONENT ACTIVITY/ PROJECT
1 Reform focused on the use of ICT • Electricity and Connectivity of post offices
• Khartoum Declaration-Level two: E-services and diversification
• Khartoum Declaration- Level two: Postal Sector development

2 Development of financial services • Khartoum Declaration-Level two: Postal financial services development
• Electricity and Connectivity of post offices project
• Collaboration with IFAD and similar organisations
3 Development of e-commerce • Khartoum Declaration Level One: Improvement of operational efficiency and e-commerce development of the Declaration;
• Addressing and post code project
• Khartoum Declaration-Level two: E-services and diversification

4 Reduction of the digital divide mostly in rural and remote areas • Electrification and Connectivity project
• Khartoum Declaration-Level two: E-services and diversification

NB: There are some initiatives that do not fit squarely in the structure of the proposed Action Plan as follows:

Harmonisation of policies and regulations for Universal service delivery which is line with priority level two: postal sector development and priority level three namely Sustainable Development and Inclusion.

1.2.3. At UPU level

In 2011 the Universal postal Union decided to assess the development of the postal e-services. A report on “Measuring postal e-service development: A global perspective” was issued in January 2012. The report notes that 21 out of 54 African countries took part in this worldwide assessment. It also came up with the following key findings with regard to developing countries and, in particular, African countries:

- 14% of the identified 55 electronic e-services offered worldwide are available in the African countries that participated in the survey;
- There is a big gap between developed and developing countries in the matter;
- Some developing countries are not lagging behind and African countries namely Tunisia, South Africa, Kenya, Egypt and Mauritius among others are at the top in terms of postal services development index;
- Postal e-services supply in Africa is focused on access to Internet and financial services and offers for administrative e-services are less developed;
- Innovation capability influences the development of postal e-services more than wealth does;
- External factors (Gross national Income, ICT regulation, innovation capability, trade barriers…) and internal factors to postal operators (strategy, funding, market development, organization management …) seem to be drivers and impact of postal e-services development.

The report suggested additional researches on specific findings and in-depth studies and learn more notably from the successful cases.

Similar study conducted in 2015 reached the conclusion that much progress has been made, significant progress in the take-up of postal e-services, increased focus on services that support e-commerce and other core services. The report concluded that “there has been a strong development of e-post and e-government services in countries where the environment is favourable. Posts are well positioned to digitize government processes, which meets the growing interest of policy makers to use e-government to reduce the costs of providing services to citizens. However, the availability of postal e-communication services, e-commerce platforms, e-payment, e-health and e-government solutions leveraging technology can be further improved in many developing countries in ways that correspond to their specific needs and capabilities. Efforts in these areas should be complemented with continuous improvement in the legal framework at national and international levels, recognising the capabilities of the post to foster trust in online transactions”.

Furthermore, the UPU, in collaboration with the AUC and PAPU, crafted in 2015 the project on Electrification and connectivity of post offices in Africa that aims at providing to participating individuals, institutions and communities technical knowledge, skills, information and resources to access and use online postal services made possible by ICT which promote financial and social inclusion. The pilot phase of the project is being implemented by 13 pilot countries in all AU regions.
2. Objectives and Scope of the work
2.1. Purpose of the study
The purpose of proposed study is to (i) track progress made by the AU Member States in reforming their postal sector, (ii) seek better understanding of challenges faced by Members States in developing and implementing the reform of their postal services notably their e-services programmes, strategies and projects, (iii) draw lessons, and (iv) come up with adequate recommendations and action plan for the 2019-2023 Medium Term Plan will cover the remaining five years of Agenda 2063 First Ten Year Plan.

2.2. Specific objectives
The specific objectives of the study are the following:

• Policy and regulation environment;
• Postal infrastructure development ;
• Mapping of postal e-services in Africa;
• Success factors;
• Best practices;
• Lessons learnt;
• Strategies and recommendations;
• Action plan.

2.3. Scope of work
To this end, the assessment covers programmes and projects undertaken by AU Commission, Regional Economic Communities, the Pan African Postal Union, (PAPU) and Member States over the ten (10) years or from 2008 to 2017.

The following criteria for evaluation have been used:

• Coherence of interventions: Are the programmes and projects which have been implemented aligned with the priorities and key objectives agreed in the various decisions? The issue is to find out whether what was agreed to be done has actually been done. Where applicable, the assignment will highlight cases where programmes and projects have departed from the initial priorities and plans and will provide explanatory notes.

• Effectiveness: What is the extent of achievement of planned outputs and outcomes? Have the milestones and targets for the focus areas been reached? The possible causal factors of actual results (positive or negative) will be analysed and reported.

• Efficiency: Were the financial resources foreseen from annual budgets used in an efficient manner? Were the modalities used for implementation efficient? Were the outputs delivered in time? Were resources (technical, equipment, general support services…) adequate?

The expected result will be a report consisting of assessment, forecast and challenges, strategies, recommendations and action plan.

2.4. Expected results

The expected results are as following:

• Status of postal policy and regulation;
• Status of postal infrastructure in the continent;
• Mapping of e-services;
• Key lessons learn;
• Strategies and recommendations
• Action plan

3. Responsibilities of the consultant
3.1. Requested Services

In order to reach the above objectives, the consultant will conduct the following activities and provide AUC with deliverables on the following:

• Assess the postal reforms in the AU Member States and provide mapping;
• Assess and update the list of e-services offered to consumers through the postal network;
• Mapping of e-services in the continent;
• Countries with best practices within Africa of which Tunisia, South Africa, Kenya, Egypt, Mauritius and any relevant country; other successful cases outside Africa could be appreciated;
• Assess ICT access by rural and remote areas, its complementary with the Programme for Infrastructure Development in Africa (PIDA) and the impact on African citizen life;
• Causes of eventual failures;
• Analysis of the catalysers of those African successes and their potential trends in the future;
• Description of the strategies put in place;
• Analysis of foreseeable changes and challenges on postal e-services for the upcoming ten (10) years and provision of strategies to address the challenges;
• Strategies and recommendations for sustainable development of postal e-services in Africanotably with regard to e-payments, remittances and transfers, loans, savings, insurance, etc. and consistent with transport, energy and energy physical and soft infrastructure development for more complementarity with PIDA and improvement of citizens life mostly in rural and remote areas;
• Action plan for the implementation of the proposed recommendations and strategies.

3.2. Methodology

The methodology should include a step by step description of the means and ways of achieving the objectives. It includes:

• Timetable;
• Desk/document review;
• Fields visits;
• Briefings/Debriefings;
• Video-conferences for debriefing/debriefing with AUC, PAPU, RECs, UPU, and any identified stakeholder;
• Meetings and consultations;
• A kick-off/validation meeting in Addis Ababa (Ethiopia) with the participation of stakeholders including PAPU, Regional Economic communities, and African regional and sub-regional Postal organizations for presentation of findings, discussion and validation;
• Final report and deliverables.

A specific methodology has to be submitted by the consultancy firm.

3.3. Deliverables

The Consultant shall deliver the following outputs and deliverables:
• An Inception Report (Deliverable No1) outlining complete problem analysis, methodology to address the problem, the understanding of the ToRs, a work plan of the assignment and proposed timeframe to carry out the assignment. It should be submitted as soon as the kick off meeting takes place;
• An Interim Report or Deliverable No2 will include (i) Policy and regulation environment; (ii) Postal infrastructure development, (iii) mapping of e-services, (iv) best practices inside and outside Africa with their respective drivers and impact, (v) analysis the causes of eventual failures, (vi) analysis of foreseeable trends of postal e-service in the world and within Africa, (vii) description of strategies put in place, (viii) changes, opportunities and challenges of postal e-services for the upcoming ten (10) years and (ix) proposals of strategies and guidelines to address the challenges and recommendations for sustainable development of postal e-services in Africa and (x) action plan for the implementation of recommendations.
• The Final draft Report or Deliverable No3 will be submitted after comment from the client namely the AUC. It shall include an executive summary in English and French.

• The consultant should commit him/herself to attend a validation workshop of the Deliverable No 3 by African postal sector stakeholders including Member States, PAPU, RECs and sub-regional postal organizations and finalize the report as per participants’ comments. The final report shall include an executive summary in English and French.

4. Expert profile
The expert/consultancy firm will be selected based on submitted proposals, with the following criteria:
• A combination of technical and financial aspects, based on a 75/25 ratio (75% for the technical elements, 25% for the financial part).
• Technical aspects will include the academic/research track record of the Consultant, African expertise, affinity with postal policies and regulation, reform issues, economics, financial services and financial inclusion, e-applications, knowledge of postal and ICT development including Africa, international research project experience, strong communication skills in reading and writing, in English and in French and the proposed schedule.

5. Duration
The estimated duration of the study is six (6) months.
The tentative covered period is as follows:
• Indicative starting date: 15 June 2017
• Indicative end date: 15 December 2017

6. Organization of work
The following organization is proposed to implement the study:

6.1. Institutional framework
A meeting to launch the study will be organized at the headquarters of the African Union Commission with the selected consultant/consultancy firm for a better framing of the work and harmonization of views on the task. The draft report will be validated by the Information Society Division of the Department of Infrastructure and Energy.

6.2. Language
The Deliverable No 1 can be submitted in English or French. It should consist of an executive summary in English and French.
The Deliverables No 2 and No 3 shall be submitted in English and French with executive summary in English and French.
7. Documents to provide to the Consultant
The African Union Commission will provide the Consultants with the following documents:
• Plan of action for the development of the postal sector in Africa
• Reports on:
- Harmonization of postal policies and regulatory and strategies for strengthening the postal sector in Africa and its annexes;
- Model and guidelines on Universal Postal Service (UPS) for Africa
- Strategies for financial inclusion of low-income populations in Africa;
- Guidelines on addressing and postcode systems;
- Electrification and connectivity of post offices in Africa.
• AU organs declarations and decisions;
• UPU on “Measuring postal e-service development: A global perspective” 2011 and 2015;
• Any other relevant document.

S/N CRITEIA Score
1 General Experience of the firm 10
2 Specific experience of the consultant in postal policies and regulation, reform issues, economics, financial services and financial inclusion, e-applications, knowledge of postal and ICT development. 35
3 Experience in international research projects 25
4 Experience and Qualifications of proposed personnel 20
5 Methodology and Work plan
10

TOTAL 100