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Synopsis of the Request for Proposal (RFP): DAI

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DAI, implementer of the USAID-funded Southern Africa Trade and Investment Hub (the USAID TradeHub) invites recognized Financial Service Providers (FSPs) to submit technical and cost proposals to supply and deliver technical assistance as contained herein. 

To Request the full RFP including submission instructions email [email protected].   

Please include the RFP number RFP-SATIH-PRE-21-0182

RFP No. RFP-SATIH-PRE-21-0182
Issue DateSeptember 10, 2021
TitleTransaction Advisory – Support firms in preparation for introduction to Capital Providers (Angola)
Issuing Office & Email Southern Africa Trade and Investment HubEmail: [email protected]  
Deadline for Receipt of QuestionsSeptember 15, 2021 by  12:00 hours (Central African Time)
Deadline for Receipt of Proposals.September 20, 2021 by  10:00 hours (Central African Time)
Point of Contact Please submit all questions and completed proposals to [email protected]  
Anticipated Award TypeFirm Fixed Price Contract
EligibilityThis competition is limited to South African organizations.
Basis for AwardAn award will be made based on the Trade Off Method. The award will be issued to the responsible and reasonable offeror who provides the best value to DAI and its client using a combination of technical and cost/price factors.   

Scope of Work for Services

  1. Overview

The USAID TradeHub has identified the need to work with transactional advisors to support small and medium enterprises (SMEs) exporting to South Africa or the U.S or seeking specific trade related technology transfer (e.g. labelling, branding, laboratories). The transactional advisor will support the SMEs to improve their management, assist in the reporting and presentation to capital providers or financial institutions as the SMEs seek finance and capital.

Under this contract the USAID TradeHub may support the development of the pipeline of target SMEs, within the USAID TradeHub’s target market, in preparation for the subsequent tasks.

  1. The USAID TradeHub Engagement going forward

As the USAID TradeHub, we will support the selected transactional advisor to increase awareness and improve the access to SMEs seeking capital in the region. The USAID TradeHub will avail its network of clients and partners to the advisor in an effort to expand the advisor’s reach in the target countries.  The USAID TradeHub support will be through the sharing of some costs associated with the advisory work, initially on the identification, design and implementation of the necessary interventions.  The selected transactional advisor should identify and highlight areas that should be evaluated for support as part of the firm’s proposal while highlighting the impact of the USAID TradeHub’s support in terms of additionality and creation of a sustainable market for transactional advisory service among SMEs.  The firm and the USAID TradeHub will agree on a set of deliverables wherein the firm will be compensated based on its ability to meet the deliverables. The firm and USAID TradeHub will also agree on targets for the number of SMEs supported, the number of SMEs whose financing needs have been achieved and the value of trade finance and/or investment finance deals closed. Payments will be made against a series of deliverables and targets achieved, based on the agreement reached, following the proposal in response to the Task Order under the Indefinite Quantity Award. This will take into account the demonstrated progress towards supporting the SMEs to receive capital access. 

The USAID TradeHub will work closely with the firm during all stages of this work, providing review and oversight throughout the life of the activity in accordance with the USAID TradeHub’s management approach.  The USAID TradeHub team will administer periodic check-ins, reporting, deliverable review prior to client presentation and approval, and manage an ongoing monitoring, evaluation and learning framework.

  • The firm: The USAID TradeHub will provide the firm with all necessary context at the onset of the award.
  • Project Implementation: The firm will implement the work as prescribed in the Task Order and signed contract. The USAID TradeHub will follow up on a regular basis and ensure periodic check-ins/reporting as per the reporting structure.
  • Ongoing Monitoring, Evaluation, and Learning: The USAID TradeHub will define indicators in the Task Order and contracts, collect and review M&E (monitoring and evaluation) data from the firm for requisite reporting to the USAID TradeHub and will conduct data quality assessments as necessary. Templates for data collection will be defined by the USAID TradeHub and communicated.
  1. Vendor Responsibilities and Tasks

In order to select high-potential transactions and to support the investment ecosystem and build the evidence base for mobilizing private capital to achieve the USAID TradeHub development objectives, the firm will be expected to deliver their proposed value propositions to support the ecosystem and close transactions that contribute to the USAID TradeHub’s projected investment mobilization, by completing the following illustrative tasks:

  1. Orientation and Alignment: 

The firm will align with the USAID TradeHub on the activity workplan, timeline, and reporting requirements, including a convened kickoff meeting with the USAID TradeHub team.

  1. USAID TradeHub’s transactional support prioritization: 

The firm will be responsible, in consultation with the USAID TradeHub team, for identifying and screening the highest potential sectors and transactions that are targeted to promote the cost-effective usage of the firm’s resources to promote access to capital.  The USAID TradeHub encourages the firm to enhance its business model coupled with a demonstrated interest to support promising regional export firms or technology and other trade related SMEs to access capital and enable their rapid growth. The USAID TradeHub defines SME firms as formally registered enterprises with financing and investment needs between US$100,000 and US$3 million.

The firm is encouraged to reach SMEs with the following characteristics:

Existing regional engagement (export experience or advanced local market experience)

Secured trade deals or a South African business linkage.

Seeking South African technology transfer and/or capital in trade related services such as labelling, branding, laboratories.

Products in the USAID TradeHub priority sectors – agricultural, agro-processing, food, textiles and apparels

A capital requirement in the range of US$100,000 to US$3 million.

The ability to enhance jobs, increase income levels or have a developmental impact

Limited or no experience in successfully accessing finance without support (therefore the proposed intervention would bring additionality) 

A need for expansion capital or working capital that would enable increased exports to South Africa and/or the U.S.

The table below summarizes the types of exporters, selection criteria targeted by the USAID TradeHub.

Table 1: Types of exporters, selection criteria and the services that could be provided by the USAID TradeHub in support of Finance and Investment

FirmsCriteriaExporter ChallengesServices Offered by the USAID TradeHub 
Tier 1GazellesKey Characteristics:Already exporting to South Africa and in some cases the United StatesExisting formal functional management structuresReadiness to cost shareScope to expand/supply-capacityLight-touch support required to expand marketsWill not crowd out other market playersSome basic standards Key Features: management skills, processing capacity, product certificationLimited knowledge of market opportunities for diversification purposes in South Africa
Limited knowledge of and ability to comply with tailored buyer requirements
Inability to access appropriate financial products and services because of supply side challenges
Exporter Requirements to Grow: desire to expand and diversify export markets and access finance (debt and equity)
Post-deal care (such as bespoke technical support)Facilitated assistance via transaction advisors and FSPsInvestment teasers, introduction to capital providers, due diligence support, investment facilitation
FirmsCriteriaExporter ChallengesServices Offered by the USAID TradeHub 
Tier 2ImpalasKey Characteristics:Previous export experience in low-value marketsNeed investments to reach higher-value marketsPotential to expand production and achieve scaleBusiness formality Willingness and potential to expand into higher-value marketsSome management structures exist but need strengthening. Limited knowledge of market opportunities in South AfricaLimited knowledge of South Africa buyer compliance requirementsLimited capacity to respond to South African buyer requirements (e.g. labeling, branding, certification, packaging, volumes)Inability to access appropriate financial products and services (both seeker and provider side challenges)Limited management capacity across several disciplinesRequirements: desire to enter into the South African market and access to finance (debt and equity), access certification and technology supportFacilitated assistance via transaction advisors and FSPsInvestment teasersIntroduction to capital providersDue diligence supportInvestment facilitation
Tier 3BushbucksKey Characteristics:Demonstrated national sales experienceCapacity to absorb technical assistance within lifetime of projectPotential and willingness to export to South AfricaBusiness owner management capacitySome management structures exist but need strengthening Potential for linkages as supplier to USAID TradeHub-supported Gazelle and Impala companiesLimited knowledge of market opportunities in South AfricaLimited knowledge of South Africa buyer compliance requirementsLimited capacity to respond to South African buyer requirements (e.g. labeling, branding, certification, packaging, volumes, etc.)Inability to access appropriate financial products and services (both seeker and provider side challenges)Limited management capacity across several disciplinesLimited knowledge of export processes and procedures (e.g., incoterms, transport and logistics, export documentation, trade terms)Requirements: desire to enter into the South African market, seeking to access debt finance, certification, and technology support
Facilitated assistance via transaction advisors and FSPsTechnical management supportBusiness plan supportDeal teaser support handholdingIntroduction to capital providersDue diligence supportFacilitation

  1. Deal Note Development and Intervention Delivery

The Transactional Advisor shall develop a deal note, in consultation with the capital seeker, outlining the terms of engagement and the type of support that will be provided.  The deal note will detail the multi-dimensional interventions that will support the investees in achieving their objective to raise the capital required.  The deal note will be presented to the USAID TradeHub for approval.  

The transaction support must at least address the following aspects:

  1. Estimated duration of the intervention;
  2. The barriers or challenges encountered by the capital seeker to be addressed by the intervention; 
  3. The type and level of intervention being provided (technical support leading to preparation and presentation of investment memorandum to capital providers); 
  4. Technical requirements of the capital seeker;
  5. Transactional Advisor’s reporting obligations and those of the capital seeker, including requirements and limitations of information disclosures to the USAID TradeHub;
  6. Transactional Advisor’s personnel responsible for implementing the outlined interventions;
  7. Responsible individual(s) on the part of the capital seeker;
  8. Fee structure (to be paid by the capital seeker);
  9. Performance metrics tied to USAID TradeHub indicators;
  10. Identify the USAID TradeHub as a party and signatory to the deal note; etc.

Once the Transaction Advisor and the capital seeker reach a consensus on the contents of the deal note, the deal note will be submitted to the USAID TradeHub, including the CVs of Transaction Advisor’s proposed Personnel, and a justification for the classification of the capital seeker (Bushbuck, Impala, or Gazelle) for review and approval. Only after receipt of approval from the USAID TradeHub shall the Transaction Advisor, the USAID TradeHub and the capital seeker sign the deal note.

Once the Deal Note is signed by all parties, the Transaction Advisor will begin the technical support leading to the development of the investment memorandum and subsequent presentation to the capital providers.

In the event that the Transaction Advisor and the capital seeker agree that an amendment of the deal note is necessary, the USAID TradeHub shall be consulted, and approval granted prior to any formal modifications to the deal note being made.

The USAID TradeHub should be informed as a matter of urgency about any unexpected failures likely to impact on the month’s performance and similarly the USAID TradeHub should be informed of success as it emerges. Such information should be communicated in a detailed email directly to the USAID TradeHub’s point of contact as prescribed in the contract.

  1. Monthly Reports 

The firm will submit monthly written reports on key metrics and progress with regards to development of the selection criteria.  This should include brief qualitative updates and success stories as often as weekly or as the success emerges. The firm’s staff will be required to avail themselves for periodic in person meetings with the USAID TradeHub to review progress and discuss implementation successes and challenges and propose solutions. 

In addition to completing all deliverables associated with the various contracts, the firm will submit monthly (or as defined in the contract) reports on key metrics, brief qualitative updates and success stories. Monthly reports shall be due within fifteen (15) working days of month-end.  Detailed timing of the monthly reports will be specified under the various contracts.

The firm will arrange to ensure that the USAID TradeHub priorities are clearly articulated in the reports. These should include the following:

  • Access to the transactional advisor’s services in the USAID TradeHub target priority countries.
  • Access for the USAID TradeHub’s target market and value of transactions (equity/mezzanine or loan amount needed) in the range of $100,000 to $3 million.
  • Selected SMEs, if successful in raising capital should have a positive impact in terms of jobs created or development impact.
  • Additionality contributed by the USAID TradeHub i.e. the deal would not have happened or would have taken considerably longer without USAID TradeHub’s transactional advisory support.

The firm is expected to clearly report on the development of the selection criteria, the potential value of the transactions, number of transactions, associated transactions fees and nature of funding sought under by the SMEs.

The firm will provide supporting documents to serve as a source of evidence for the reported activities as required by the USAID TradeHub Monitoring, Evaluation and Learning team, including, but not limited to:

  1. Records of investment and financing deals.
  2. Technical Firm and Application for Assistance Form (using USAID TradeHub prescribed format)
  3. Business Organizational Capacity Assessment Tool (using USAID TradeHub prescribed format)
  4. Meeting notes or email records
  1. Knowledge Sharing

The firm will be requested to participate in some knowledge sharing and reporting activities.  These will range from marketing the firm’s own business development initiatives to support the USAID TradeHub’s identified needs such as supporting the development of the financial literacy and skills among SMEs in the region and helping the SMEs make more informed choices about different financial and management options and choices.  This will also be in support of the educational solution that will be developed by the USAID TradeHub.  It is anticipated that this contribution will be limited to one day of interviews, provision of examples of relevant documentation such as investor teasers, pitch decks and up to one day for reviews or interaction with test versions of the learning tool (not more than 2 man-days).

  1. Deliverables

The deliverables are listed in the table below:

Deliverable No.DeliverableDetailed DescriptionQuantityDue date
1




Detailed monthly report
The detailed monthly report should include an updated on the technical support and the  ‘Live to Market’ activities in Angola.   In addition to this, the monthly report should have but not limited to the following: Number of firms supported and the number of firms whose investment memorandums are ‘Live to Market’ , Potential value of transactions (US$), Sector focus, Jobs created or development impact, Regional engagement, Market linkages developed, Potential support to identified market linkages, Additionality, potential increase in value of Sales/Exports, Potential increase in profitability, Staff training, Anticipated fees/costs (US$), Anticipated advice to provided.9Not later than 15 days after month end
2











Deal Note Development  
Based on the approved and updated capital seeker short-list, the Transaction Advisor shall develop a deal note, in consultation with the Angolan based capital seeker, outlining the terms of engagement and the type of support that will be provided. The deal note will detail the Transaction Advisor’s multi-dimensional interventions that will be used to support the to support investors/investees in achieving their objective to raise or mobilizing capital required (this has to be approved by the USAID TradeHub prior to presentation and acceptance by the capital seeker).  The deal note will be presented to the USAID TradeHub for approval.  Interventions may include, for example, technical and investment advisory services to complete due diligence, market assessment work, mappings, growth projections which will be stipulated in the specific contract issued to the selected bidder. On the investee side, examples are operational, managerial, market, governance, legal and/or financial issues identified, as well as support in identifying and engaging with potential investors, preparing financial valuation package, loan application and supporting documentation, business plan, market assessment, financial model, pitch decks, and assistance reviewing terms sheets and letters of intent as appropriate.8Within three working days after acceptance by the capital seeker. This task has to be completed within one month after the award.
3Deal Note Implementation The Transaction Advisor shall implement the 8 individual deal notes (each deal note implemented is a deliverable), in consultation with the Angolan based capital seeker.  The deal note will detail the Transaction Advisor’s multi-dimensional interventions that will be used to support the investors/investees in achieving their objective to raise or mobilizing capital required  Interventions may include, for example, technical and investment advisory services to complete due diligence, market assessment work, mappings, growth projections which will be stipulated in the specific contract issued to the selected bidder. On the investee side, examples are operational, managerial, market, governance, legal and/or financial issues identified, as well as support in identifying and engaging with potential investors, preparing financial valuation package, loan application and supporting documentation, business plan, market assessment, financial model, pitch decks, and assistance reviewing terms sheets and letters of intent as appropriate.  The transaction advisor will generate at least 8 investment memoranda.This task has to be completed within three months after the award.
4Presentation of investment memorandum to Capital Providers (‘Live to Market’) The Transaction Advisor shall in consultation with the capital seekers present at least 8 individual investment memoranda (each investment memorandum that is ‘Live to Market’ and receives a corresponding term sheet [an offer] is a deliverable) to the capital providers.  .  The Deliverable for each firm’s Investment Memoranda presented is a Term Sheet or Letter of Intent which will detail the terms and conditions of the offer made by the capital provider.  The firm with the support of the Transaction Advisor will review and determine whether to accept or decline an offer. Only one Term Sheet will be sufficient as a deliverable though the transactional advisors are encouraged to obtain multiple Terms Sheets from multiple capital provider for each firm to improve the probability of successful access to finance.This task has to be undertaken between January and April 2022 or earlier.

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