Franchise Model Childcare Service in Addis Ababa  

 Livelihood Improvement for Women and Youth (LI-WAY) Program in Addis Ababa

Funded by Sida

 Issuance Date: 24/11/2021

Deadline for Application: 8/12/2021

 This Request for proposal (RFP) is an exclusive, confidential, proprietary property of LI-WAY Program (represented by Mercy Corps). It may not be copied, transmitted, or disclosed by any means without the express written consent of LI-WAY Program (represented by Mercy Corps).

 By accepting a copy hereof, recipient agrees to:

1. Be bound by the terms and conditions contained herein (including but not limited to the confidentiality provisions),
2. Use the RFP (and any related documents) solely for evaluation purposes and for responding to this RFP and
3. Return or destroy the RFP (and any related documents) LI-WAY Program (represented by Mercy Corps)’s request or upon your decision not to respond to this RFP.

 Introduction:

 LIWAY is a development program funded by the Swedish Embassy (SIDA) in Ethiopia and implemented by a consortium including SNV, Mercy Corps, Save the Children, and Technoserve. It intends to sustainably increase incomes for 200,000 young people and women in Addis Ababa. A significant barrier to the engagement of women in labor markets is the absence of affordable childcare, particularly for children aged 0-3 years.

Historically family-based childcare service (CCS) and informal CCS are conventional and common in Ethiopia where grandparents, aunts, elder siblings and neighbors will take care of the child. It helps parents when regular childcare arrangements are not accessible, not affordable or not of sufficient quality. Recently, there is a high demand for non-family CCS where both parents are (or would like to be) income earners, extended family networks (grandparents, aunts etc.) are increasingly unavailable due to migration, distances, work, etc.), and mostly the family is becoming nuclear.

The home-based /informal CCSs are available, mainly for the women workers in the informal economy, and challenged with the high cost of these services. The women’s low and irregular earnings make it difficult to pay daily, weekly or monthly. As most of the women workers in the informal economy are self-employed (such as home-based workers, street vendors, traders and waste pickers, etc.), they are likely to depend on a daily income to meet their needs. Therefore, reducing their working hours to match shorter opening hours of a CCS leads to a direct loss of their income. The home-based CCS are mostly unregistered, unregulated and basic standards and requirements for CCS are not applied. As they are found in low-income neighborhoods, they may lack basic amenities. Thus, quality will be compromised.

To overcome the above constraints, LIWAY believes that the potential exists for a large-scale solution to provide high-quality, low-cost childcare through a franchise model. As such LIWAY is calling for proposals to pilot a franchise model for low-cost childcare. 

A franchise is intended to bring effective business management practices, shared infrastructure, effective marketing, and payment systems to this market; ultimately a profitable and scalable business model for low-cost childcare.

Applicants must have demonstrated experience offering CCS and be seeking to expand or modify their business to service more target group.

LIWAY’s offer in risk sharing:

 While we believe the potential exists for a profitable business model in this sector, in Addis Ababa, the market is nascent and the model unproven. As such, LIWAY intends to stimulate demand by offering to share the risk in investing in this new model.

 Applicants must provide a fully costed proposal of which Mercy Corps will fund a maximum of 70% to a maximum value. In addition, LI-WAY may provide additional technical assistance to selected Applicants as appropriate.

 Crucially, all proposals must demonstrate how, if successful, the investment will result in a profitable business model that continues to provide increased access to childcare for the target group after LIWAY support has ended.

 LIWAY’s initial support will last for 1 year, although follow on support might be possible for a modification of the business model after this pilot period.

 Credit will be given to proposals that demonstrate credible strategies for scaling the business to reach the highest number of potential clients, particularly in the period after LIWAY support has ended.

 All proposals must launch on at least 3 sites simultaneously, offering childcare services to at least 150 children.

Job Requirements

Application requirements

 Applicants shall present their technical application and budget in the formats provided and shall follow the instructions and guidelines listed in these annexes.

 Ineligible expenses

• Operational costs for activities related to the delivery of proposed activities, including trainings, workshops, and communication initiatives, sitting allowance and Travel costs;
• Debts and debt service charges (interests);
• Provision for losses or potential future liabilities;
• Purchase of land, building;
• Credit to a third party;
• Costs associated with preparing proposals in response to the solicitation;
• Fines imposed on potential partner and Penalties imposed.
• Items already financed from another agreement by Sida or other financing agency;

 Financial and Administrative requirements

• Applicants must display minimum management in the form of financial, administrative, and technical policies and procedures and present a system of internal controls that safeguard assets; protect against fraud, waste, and abuse; and support the achievement of program goals and objectives. LI-WAY will assess this capability prior to providing financial assistance.                                              

Eligible Applicants: 

• Already operational service provider that are licensed to (or can prove they can quickly be licensed to) operate in Addis Ababa.
• Any formally registered private daycare with renewed license which is proposing activities that support the objectives of the LI-WAY as identified above.
• Both national and international companies are invited for this franchising RFA 

How to Apply

Application and Submission Information

• Mercy corps invites National and International companies to submit proposal and please collect the complete TOR from www.mercycorps.org/tenders

Technical and Financial proposal should be submitted to tenders@mercycorps.org or hard copy sealed in envelope can be submitted in person to Mercy Corps Addis Ababa Office, Hayahulet, Afro Building OR by P.O.Box 14319 to Mercy corps Addis Ababa office referencing RFP-CC No. 001. For further inquiry Tel. 0111110777

Applications must be submitted no later than December 8, 2021, 4:00pm EAT

 NB: Proposal shall be submitted as per the format provided in English and may not be more than 10 pages in length. Late applications will not be considered. Mercy corps reserves the write to cancel the call for proposal

Mercy Corps /LI-WAY Program Addis Ababa | Ethiopia